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...C anti-fraud rules. This includes errors of omission, as well as errors of commission. Liability can extend t...ary E. Jacobson, JD can be reached at Vander Wel, Jacobson, & Bishop ...

...r professionals, such as doctors, lawyers, architects, engineers, and CPAs, ha...iligence can help reduce the frequency and severity of E&O claims as well ...

...y should they stay with you? Errors and omissions. By failing to recommen... revenues, greater customer retention, and a lessened threat of litigation. Yo...

...ay be forced to pay for court and lawyers' costs incurred by the company, win ... recognizing the concerns of the other and with cooperative rather than advers...

...rincipal(s) personally. Don’t let lawyers and accountants in on it until ever...at the agreement contains non-compete and non-piracy clauses that are reasonable and enforceable. If poss...

... In reality, a close reading of each policy confirmed that they were not the same. The insured ended up purchasing the cheapest coverage, content that it was adequate. You can imagine the difficulty the broker had in justifying the comparison under a deposition by the client's lawyer after a claim was denied by the insurer. While getting smart on any new line of coverage takes time and effort, such knowledge is essential for making an EPL book of business profitable and free from allegations of broker E&O . Here are some tips ... forms and increasing insurance capacity. While all these are signs of a burgeoning market-marked by an increasing hit ratio measured in actual sales as a percentage of formal proposals-this rapid expansion can also spell trouble for agents and brokers. They are now more vulnerable to charges of broker errors and omissions (E &O ) . Savvy brokers and agents have been advising their clients for many years about the risks associated with employment practices liability and about the widespread availability of EPL insurance, but it has become difficult to sort out the vast variations in ... between policy forms. Selling EPL insurance on price alone is extremely dangerous, since many coverage forms and endorsements simply don't offer meaningful coverage and can result in risks not being covered. Avoid surprises by knowing what's covered and what's not-and conveying that information to your client. A recent EPL coverage comparison illustrates the problem. A broker had obtained six different EPL quotes from a broad range of insurance companies. In the broker's analysis, 15 features were compared in each of the quoted policy forms. The features compared were vaguely listed, and ...

... areas of litigation exposure are errors & omissions, and protection of expirations. Proper insu...se. On complex matters such as mergers and reorganizations, it can only sugges...

...er, it’s not just for doctors and lawyers. This insurance policy covers errors and omissions, which can be a real problem...an you don’t need them. What you need and what the law requires can be two ve...

... on securities issues. A stock sale is a securities transaction — and our securities laws are a classic example of how to encourage lawsuits. Both buyer and seller can be sued for errors of omission, as well as errors of commission. Since a creative lawyer can almost always think of information of some kind that was omitted, the potential for lawsuits is very high. Because any good attorney will try to reduce the chance of future lawsuits against their client, they'll try to avoid the securities issues by structuring the sale ... . Will be taxed only at the personal level. STOCK SALE No "use" tax (the new "entity ownership transfer tax") . Even "private placement" stock sales are considered the sale of a security subject to SEC anti-fraud rules. This includes errors of omission, as well as errors of commission. Liability can extend to both buyer and seller. Buyer Many contractual agreements with the corporation will remain in place, including what might be crucial producer non-competes. Depreciable assets will not get a step-up in basis ( ... it's a Section 338 election, which is rarely wise) . Because "goodwill" is not purchased, it is not amortizable. Interest on debt to acquire "C " Corp. stock is deductible only against "investment" income. In other words, in most cases it will not be deductible. Interest on debt to acquire "S " Corp. stock is fully deductible if the buyer is actively involved in the business. Seller Often far less tax than in an asset sale, unless it's an "S " Corp ...

... agency principals. Set up procedures that will treat customers fairly and respect their intelligence and decision-making capabilities. Keep them informed of good news and bad in a timely manner. And meet their needs with courtesy and professionalism. A satisfied insured is less likely to call a lawyer if things don't go their way. The late Carol Hammes, principal of the Middleton Group, was one of the Independent Agency System's most widely respected management consultants. She will be sorely missed. Reproduced, with permission, from The Middleton Letter. Login or ... We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Errors And Omissions Considerations 4/30/2013 10:36:15 PM by CompleteMarkets Editor , Carol Hammes This content has not been rated yet. ERRORS AND OMISSIONS CONSIDERATIONS by Carol Hammes The old saying The cobbler's children go unshod' could apply to many insurance ... today. Thousands of agents don't carry any E&O insurance at all, and many more might not have the right coverage. Although they analyze risks and review policy forms to give their prospects and clients the best and most comprehensive insurance plans, they often don't give their own situations the same type of evaluation. With the expanded responsibilities that agents have taken on, such as fee-based consultative services or providing underwriting decision-making assistance for insurance companies, comes additional professional liability exposure. The available E&O coverage has been changing dramatically ...