Wedding Bell Blues Can Result In A Professional Liability Claim

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Kim and Tammy were partners in a successful wedding planning business. They assembled armies of florists, musicians, caterers, photographers, and such, to orchestrate magical events that were the talk of the town. However, the event that they helmed at one of the citys most sophisticated hotels was a complete disaster, and threatens to be the last wedding the team ever puts together. Amid $50,000 of flowers, flickering candles, ribbons and trailing vines, the bride waited in vain at the alter for her groomand lets just say things went downhill from there. Guests milled around in confusion, a fist-fight broke out between the brides family and the grooms family, and the bride retreated to her suite upstairs, humiliated. In her pain, the distraught bride found fault with everyone but the MIA groom, and focused her ire on Kim and Tammy for some minor changes in the program that occurred as the entire hotel staff scrambled to handle the public fiascochanges that the wedding planners had failed to counsel the bride about. To make matters worse, the team didnt have complete records of every aspect of the hotels policies, so things became a matter of he said, she said. Running their business on a shoestring, Kim and Tammy had not purchased insurance to cover professional liability claims, so if the bride makes good on her threat to sue them unless they pay for the additional costs incurred at the hotel, Kim and Tammys wedding planning business will be closed permanently.

Policy pays when clients claim injury

Also called errors and omission insurance, this is one policy that it is very important to have for those who are in the business of providing some type of professional service or advice. In the event the policyholder make an error or omission that causes injury to his or her client, the policyholders coverage pays for the legal defense costs regardless of whether it is determined that an error or omission has actually occurred, as well as the court fees to pay for legal defense (up to the policy limit). The policy also pays for damages for which the policyholder is found liable (again, up to policy limits).

Talk to an experienced professional

Having coverage in place for error and omissions makes sense to provide protection for the risks that are outside the definition of bodily injury or property damage in a standard general liability policy. To learn more, talk to a professional insurance agent who has the kind of expertise that is needed to make appropriate choices that will offer protection from professional liability claims.
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