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Errors and Omissions Insurance

 

                                                 Errors & Omissions Insurance

 

Everyone makes mistakes. Errors, oversights occur during the course of work but such errors can be fatal or damaging to the client. Errors and omissions insurance is a form of professional liability insurance which covers negligent acts in the performance of professional services.

Errors & Omissions (E&O) is the Insurance that covers the Insured in the event that a client holds the Insured responsible for a service provided, or failed to provide, that did not have expected or promised results.

Who needs E&O insurance?

Doctors, dentists, lawyers, architects or engineers are vulnerable to such claims. For instance, if a surgeon operates the left eye instead of the right he is exposed to legal liability.

E&O insurance protects companies and professionals against claims of inadequate work or negligent actions, made by clients. Companies often obtain E&O insurance if they provide services to a customer for a fee.

For example, a client may sue an advisor after an investment goes sour, even if the risks were well-known and within the guidelines established by the client. Even if a court decides in favor of an investment advisor, the legal fees can be very high, which is why E&O insurance is important

What E&O insurance covers:

·         Damages resulting from

·         Professional Liability: arising out of breach of duty of the Insured

·         Intellectual Property: claims made due to infringement

·         Defamation: Libel /Slander committed unintentionally   

·         Defense Costs: incurred in defending a claim  

 

E&O policies are geographically bound and may still cover work performed outside of the company's primary country of operation.

What E&O insurance does not cover

Criminal prosecution

The bottom line

Errors and omissions insurance covers both court costs and any settlements up to the amount specified by the insurance contract. Without E&O insurance, a company can be held liable for up to millions in damages plus the fees associated with a legal team.

 

Disclaimer:   

Zen Insurance is an IRDAI registered broker which facilitates quick & accurate insurance broking services. We deal with only regulator approved products of insurers. We do not underwrite the products.

 

 

 

 

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