“Why risk your entire reputation? It’s not worth it. There are too many people out there in a litigious society who are going to sue you,” says attorney, Marc W. Brown, speaking about the often complacent view toward the actual legal exposure of those who most need E&O insurance.
WHAT YOU NEED TO KNOW
- The article (September 4, 2014, WSJ) detailed a case brought against two realtors who used their E&O coverage to pay for a 7-year legal battle after selling an upscale home
- The article clarifies that E&O insurance does not come into play only if there are sloppy professional practices, which some assume. E&O coverage is — in fact — useful for claims brought against a whole host of professional services providers for issues that may or may not be related to careless practices.
- About a dozen states (mostly Midwest & South) actually require
professionals carry coverage.
- Litigation was long and the cost was substantial but they won and and
their E&O policy covered most of the cost to litigate.