Can you Really Get Sued for Making an Honest Mistake?

Many businesses don't realize that they face the same risk of a lawsuit as physicians. Just as a patient can sue a doctor for malpractice, a customer can sue a business if a product or service causes harm or does't live up to their expectations. The truth is that the causes of many lawsuits are honest mistakes or issues that the business owner didn't even know about. However, the fact remains that if you provide a service or sell a product to a consumer, you are responsible for the outcome. The good news is, that there are insurance products that can protect you in case the worst does happen.

Examples of Lawsuit Causing Mistakes
Honest mistakes that can result in lawsuits are wide ranging and encompass every industry. For example, if a wedding planner books a reception and wedding for the wrong date, the bride may sue for the cost of the rental, the cost to book another rental at a late date and emotional distress.
Another example is when a service is not performed to the client's expectation. For example, if a website designer does not deliver a website on time, it costs the client business which they can then sue the designer for. Or, if the website doesn't meet the quality standards the client wanted, they may claim that it damaged their reputation which they may also sue for.

Professional Liability Insurance
Professional Liability insurance is sometimes called Errors and Omissions coverage and can cover either an individual or a company. Businesses pay premiums and receive certain predefined levels of coverage. This coverage pays for things like court costs, settlements and judgment that are associated with any lawsuit brought against the business.

Business At Risk

Lawyers and accountants are two of the major professions that need to have professional liability insurance. However, there are many other types of businesses, and even side businesses, that need it to. These include advertising agencies, commercial printers, web hosting companies, wedding planners and even caterers. Basically, any business that provides a good or a service to consumers for a fee is at risk of being sued. 

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