At times, frivolous lawsuits can not only jam up the courts, but also they can represent the twisted reality that sometimes exists within the legal system. For example, if a person has no insurance or assets of any worth, they may avoid a lawsuit even if they are completely liable. Sometimes, a person can get sued without due cause because they hold a lot of lucrative assets. Sometimes the idea of liability can be stretched by lawyers to fit their need. For this reason, financial service professionals and corporations need high quality insurance coverage’s, partly because they may pose a handsome target for for less lawsuits Error Omission Insurances.
This is even more the case when a professional opinion involved, as one erroneous decision, or even flawed paperwork, can cost an investor a lot of money. If that investor thinks their financial professional it is the fault, no matter the facts, there is a high probability that there will initiate legal proceedings. A bad judgement can grow in a career, even if the professional being sued did nothing wrong.
This is why error omission insurances is such a high-dollar commodity. Paying for attorneys can be extremely costly, even for a financial services company possessing high profit margins. A good error omission policy will help mitigate the costs of court proceedings. After all, some financial professionals will need to use it through no fault of their own. This will never change, because even if Congress passed tort reform, many trial lawyers will still find loopholes and new legal avenues for litigation.