Posted on: December 21, 2015 by titan-goodrich
There are many risks involved in running your own business. One of the biggest fears that any business owner has is being sued due to a wayward effort or inaction as a business owner. While you want to make sure you have the best VA Professional Liability insurance possible, you should be aware of some of the most common lawsuits faced as a business owner.
Errors or Omissions in Performing Service- This refers to professional liability claims made by clients that you have failed to provide a service you were intended to provide or that the service you did provide was inadequate. For example, if a contractor is hired to build a structure but uses shoddy materials, causing the structure to deteriorate resulting in damage or injury, they and their company will be held liable.
Negligence- This is a breach of duty or care made between a professional and their client. A patient for example, expects their doctors and nurses to adhere to standards that prevent harm and distress while under a doctor’s care. Should this breach of duty cause harm to the patient the doctor is found responsible. In the medical profession, this is known as malpractice.
Misrepresentation- Often a professional may be accused of falsely advertising a product. If this misrepresentation causes loss to the other party within the business transaction you may be held responsible. For instance, if a building is listed being on valuable commercial property, but is actually on a run down plot of land, the buyer may sue the seller for financial loss associated with the purchase.
Violation of Good Faith and Fair Dealing- There is an assumption that all parties involved in a transaction will deal with each other in an honest and fair manner. This is not always the case. Lets say you are the contractor installing lighting. You completed the job and checked that things are in working order. The business owner may try to claim that you did not complete the job in order to get out of paying for the work that you have completed. This is where the Good Faith Law steps in to protect you based on your contracted understanding.
The truth is that everyone makes mistakes. Rather than having your company take such a financial risk, properly ensure that you are covered before the mistakes are made. Even if found not at fault, litigation could take up much needed time and expenses.
At Goodrich & Watson Insurers Inc. we understand the importance of protecting yourself from all professional liability issues. Contact us today at 888.829.5004 for information on our Professional Liability Insurance as well as other policies.