Every business should have established tactics to ensure it is delivering the best products or services to its customers. Straying from those codes can mean more than just an unhappy customer. For some companies, an error or omission can result in a costly lawsuit that may be budget-breaking. There are several things business owners can do to avoid such a claim, such as purchasing e & o insurance. Follow these tips to mitigate the risk of an expensive lawsuit.
1. Improve Customer Service
One of the best ways to settle a dispute outside a courtroom is to employ best practices in customer services. Talking to a disgruntled patron and offering solutions not only reduces the chances he or she will sue, but it can actually improve the way he or she thinks about the company.
2. Only Make Promises That Can Be Kept
Many lawsuits involving business malpractice stem from situations in which a company provides misleading information. Absolute promises and guarantees can leave the door open for a mistake. Therefore, a business should only enter into those situations if it has complete control over deciding factors.
3. Get Covered
Even when a business owner takes every necessary precaution, mistakes can happen. A sound e & o insurance policy can reduce the financial burden of a lawsuit. Business owners should work with reputable agents in order to determine a plan that will meet their budgetary needs.