Your Company’s Website May Actually Be an E&O Risk
Posted on: April 20, 2018 by Signature Insurance Group
It’s smart business to have an online presence, especially if your target market spends a lot of their time on the internet. However, your company’s website can actually serve as a professional liability risk if it’s not being regularly maintained. Errors and omissions claims typically arise from claims against the services that a business provides, often as a result of human interaction. However, claims against a business regarding their website language are becoming increasingly common. What a company’s website does – or doesn’t – say may actually be a big E&O risk.
Too Much Information
Sometimes there is such a thing as too much information, especially if that information is not up to date. Company information, locations, employee information, services provided and product descriptions should all err on the side of “less is more” and should be updated as soon as possible if something changes. For example, if a company advertises a package of services on their website, they should be providing exactly that service package to their customers. If they decide later on to change, add or remove any services, but forget to update the package description on their website, they can be held liable for services that they did or did not perform.
Additionally, a business can find themselves in hot water if their website makes promises versus providing facts. For example, when describing the company’s services, it’s important to stand out from the crowd. Language such as “We provide the BEST solutions” is often used to help draw in more business. However, this type of comparative or superlative language can result in a case against the company if customers feel that the business is not delivering on promised claims.
Not Enough Information
A business’s website should have both a disclaimer and a privacy statement. This is an area in which having ample information is ideal.
- The disclaimer is meant to reduce the likelihood of claims against the company from visitors to the website. It should contain information such as, the specific name and web address of the website, the person or entity that owns the website, the liability accepted or not accepted by the website owner and the website owner’s policy regarding endorsements towards third party links from their website.
- The privacy statement informs website visitors about the types and uses of data that is gathered through the website. It should be somewhere on the website that is easily accessible, and ideally should include details on; the type of information gathered, how/why it is gathered, what it is used for and how it is protected.
About Signature Insurance Group
Signature Insurance Group has been working since 1969 to provide comprehensive insurance solutions to individuals and businesses across the United States. We offer a range of insurance products and services in risk management, employee benefits, business insurance, and personal insurance, and we pride ourselves on our commitment to creating “Signature Relationships” with our clients where we commit to providing the best, most comprehensive service possible. To learn more about our goods and services, contact us today at (800) 464-3606.
Posted in: blog Errors and Omissions Insurance