Evergy client in Kansas City is claiming I missed a $25K billing error on their manufacturing facility. Just got served with papers. Never dealt with an E&O claim before. What should I expect?
First E&O claim - what to expect?
Call your carrier immediately. Don't talk to the client or their lawyers until you've spoken with your claims adjuster. They'll assign defense counsel.
Document everything about the original audit. Every email, every calculation, every piece of data you reviewed. Your defense attorney will need it all.
Don't take it personally. Even if you made an error, that's why you have insurance. Let the professionals handle the legal side while you focus on your other clients.
How long do these things usually take to resolve?
Claims adjuster says 6-18 months is typical. They're negotiating with the client's attorney now. Looks like it will settle for about $18K plus legal costs.
At least your carrier is handling it. That's exactly why we pay premiums. Better to have coverage and not need it than need it and not have it.
Claims are stressful but they're part of doing business. The important thing is learning from the experience and improving your processes to prevent similar issues in the future.