Most businesses do their best to ensure that their contracts, terms and conditions, and other important documents are accurate. Nonetheless, companies and individuals can easily make mistakes or leave important matters out of these documents. It is for this reason that California’s Errors and Omissions Law exists. This piece of legislation protects clients and consumers against any possible negligence as a result of error or omission. Here is how it works.

What is The Errors and Omissions Law in California?

The Errors and Omissions law deals with claims of negligence due to mistakes or oversights on the part of service providers. Business customers may often find that a certain vital clause has been left out of the service provider’s terms and conditions, for example. If this results in damage or injury for the customer, he or she then has the right to seek compensation by way of the Errors and Omissions Law. The most common legal issues associated with the Errors and Omissions Law include poor communication and documentation, gaps in insurance coverage or breaches of insurance contracts, bad business practices, and breaches of duty.

What is Covered Under E&O Insurance?

Just as consumers have the right to seek compensation if they suffer losses as a result of errors and omissions, so businesses have the right to protect themselves against the possibility of E&O claims against them. Many insurance companies offer E&O insurance for this exact purpose – to offer protection against claims of error, negligence, inadequate work, or misrepresentation.

E&O insurance is business insurance coverage that protects companies if accusations of negligence or mistakes come their way. Errors and omissions insurance may cover businesses in the event of any of the following accusations:

  • Errors or oversights in your work
  • Failure to deliver
  • Missed deadlines
  • Professional negligence
  • Failure to meet the standard of care
  • Breach of contract

How to Prepare for Court

When you are named as the defendant in an errors and omissions lawsuit, the first thing to do is speak to your lawyer. Once you have explained the details of the case, you and your lawyer can decide on the best steps to take. You can answer the claim and explain your side of the matter. You can try to have the claim dismissed, assuming that there is evidence to show that the claim can be dismissed on legal grounds. Depending on the situation, you can also file a countersuit.

If you cannot secure a dismissal, the court will set a series of deadlines for the case. Often, there will be an opportunity to have a mandatory settlement conference, where the matter can possibly be settled out of court. If no settlement is reached, you will enter the discovery phase, during which you and your lawyer will need to gather all the evidence you need for your defense. Your lawyer will advise you on what documents will be needed to help you fight the suit. 

Hire an Attorney

If you are facing an errors and omissions lawsuit, it is always best to consult a lawyer with a strong knowledge of the Errors and Omissions Law. Your E&O attorney will be able to examine the documents and circumstances connected with the case being made against you, and help you build a strong defense. 

Westover Law is one of the leading family law firms in Southern California. Our experienced family law attorneys are equipped to handle most civil cases, including errors and omissions claims. Contact us for more information.