Savvy business owners always look for new business opportunities, and client service professionals running insurance agencies or law firms are no different. Nobody likes to turn away business. But when it comes to avoiding E&O claims, the most effective strategy is to avoid certain clients altogether.

Whether he is called problematic or dangerous, he can take many forms and likes to invade all professional services industries. It doesn't matter to him if you are an insurance broker, lawyer, property manager or hair stylist. If allowed, he will find a way to dominate your time, give you countless headaches and provide relatively little income when compared to the hassle of dealing with him.

Dangerous clients increase your risk of E&O claims in two ways: First, they get involved in difficult situations more likely to result in adverse consequences; and second, they are more willing to blame—or sue—you when something goes wrong.

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