Avoiding Missteps: Tips to Reduce E&O Risk

Here’s a practical guide to managing your E&O risk.

1. Put Client Relationships in Writing

Start every client relationship with a clear, written agreement. It should outline:

• What services will and will not be provided
• Timelines, responsibilities, and cost
• Any relevant limitations or expectations

Always ensure both you and the client have signed copies on file.

2. Choose Clients Wisely

Not every potential client is a good fit. Before taking on new work:

• Vet prospective clients thoroughly
• Avoid working with unstable or disreputable individuals or businesses
• Trust your instincts—if something feels off, it probably is

3. Communicate Early and Often

Clear communication helps avoid misunderstandings that lead to claims. Make it a habit to:

• Be transparent and honest from the start
• Obtain informed consent, where applicable
• Discuss potential risks, benefits, and limitations
• Manage expectations realistically—don’t overpromise
• Keep clients in the loop throughout the process

4. Know When to Walk Away

Despite your best efforts, some clients are simply too difficult to work with. If the relationship becomes strained or unmanageable:

• Consider ending the professional relationship
• Protect your team and your business from future issues

5. Document Everything

Accurate records are your best defense in the event of a dispute. Be sure to:

• Keep detailed documentation of conversations, decisions, and project milestones
• Maintain records for all communications and agreements
• Report any potential claims to your insurance agent right away

6. Stay Within Your Expertise

It’s okay to say no. If a project falls outside your skill set:

• Refer it out to other qualified professionals
• Provide a list of recommendations, not just one name

7. Build a Culture of Quality

Strong internal processes protect your business over time. To ensure consistency:

• Implement clear policies and quality control procedures
• Conduct regular internal and external audits
• Apply standards consistently across all clients

8. Keep Your Credentials Current

Stay sharp, informed, and compliant in your profession:

• Maintain all necessary licenses and certifications
• Complete continuing education courses regularly
• Stay up to date on industry regulations, best practices, and ethical standards

9. Prioritize Professionalism and Respect

At the core of any E&O risk management strategy is a client-first mindset:

• Respect your clients, colleagues, and industry partners
• Identify client needs early, and make them central to your work
• Treat every interaction as a reflection of your professionalism

Need Guidance for Your Industry?

Every field has its own E&O risks and responsibilities. For more specific advice tailored to your business or profession, contact your Leavitt Group Texas Select insurance advisor. We’re here to help you stay protected, confident, and focused on what you do best!