Every business tries to deliver accurate information and services, but the simple fact is that mistakes do happen. If a company fails to provide factual information or falls short on its services in some way, errors and omission law in California gives consumers and customers the right to seek compensation. For this reason, companies often buy errors and omissions insurance to protect themselves in these instances.
What is an Errors and Omissions Law?
In the business context, “errors and omissions” refers to a specific type of malpractice. The term encompasses any mistakes which may result in financial losses – both to a customer and to the company itself. If a customer can prove that your omission or mistake resulted in financial loss for them, they can very easily seek – and get – compensation from you via the courts. The hard truth is that you can’t always prevent mistakes, so it is important to protect yourself against their consequences.
How To Protect Yourself
Most businesses make provisions for errors and omissions in California by buying specialized insurance policies for that purpose. If you are in any of the following areas of business, it is well worth your while looking into one of these policies:
- Real estate agents and brokers
- Property appraisers
- Architects and engineers
- Software and website developers
- Information technology specialists
- Insurance agents
Errors and omissions insurance offers protection for the numerous costs that can result from a lawsuit, including:
- Legal Expenses: If civil litigation arises from accusations of malpractice, your insurance policy will help you cover the costs.
- Court Fees: As the defendant, you may have to pay for the court expenses when your case is filed. Your policy will help you do so.
- Settlement: In some cases, in order to stay out of court, a settlement will be agreed upon between the two parties. This not only saves both parties time and money, but often resolves the conflict quickly. Many settlement fees are covered by Errors and Omission Insurance.
- Judgment: If your case heads to court and you are determined to be at fault, a judgment of financial expenses will likely be leveled against you. Your policy can help offset this cost as well.
Do You Need a Lawyer to Help You?
Small businesses should have a good understanding of errors and omissions laws in California. If any disputes do arise, it is best to have an experienced errors and omissions lawyer on your side to advise you and represent you in court if necessary. Speak to the team at Westover Law, a family law firm and civil law firm in Murrieta, CA. Contact us for more information or to book a consultation.