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Regulation and Compliance > Litigation

Insurance Doesn't Solve Everything

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Just as having a good relationship with your clients is no substitute for adequate E&O coverage, the insurance is also no reason not to make nice with your clients. “Let’s face it, we’re all going to make mistakes,” says Katherine Vessenes, an attorney and CFP with Vestment Advisors in Shorewood, Minnesota, who makes a living teaching advisor seminars with titles like “Litigation Proofing Your Practice.” “This stuff is really complicated. It’s hard to dot all the I’s and cross all the T’s, so you better make friends with your clients. They’re far less likely to sue you when you have a really close personal relationship. Do everything you can to make them happy. When you have close relationships with 12 or 14 touchpoints throughout the year, it’s much more unlikely that those clients are going to sue you. Or they’re going to come to you first and try and work it out.”

That sure sounds like a much better option than litigation or arbitration, but keep those premiums paid up, just in case.


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