Errors and Omissions Insurance

(E&O Insurance)

The Errors and Omissions insurance is primarily intended for professionals with advisory or service-based roles. Some of the professionals who require E&O insurance are:

• Consultants (based in IT, strategic business growth, media & marketing)

• Healthcare providers (physicians, psychologists, diagnosticians, etc)

• Financial advisors, accountants, insurance agents

• Real estate consultants

• Lawyers

• Creative services (advertising agencies, copywriters, graphic designers, etc)

Typically, E&O insurance is for professionals giving serious recommendations or providing a service to others who want protection against financial loss from a negligence claim or failure to perform their professional duties.

The E&O Insurance Policy is a type of liability insurance for professionals or companies to shield them from any claims led by claims for any professional negligence or any act of errors or omissions during the period of service. The Errors and Omissions Insurance covers for any financial harm caused to clients or consumers as a consequence of the professional mistakes and not providing the desired service aligning with the needs of the clients or consumers.

• Negligence Claims: The E&O insurance covers any claims led by clients arising from professional mistakes or oversights.

• Defense Costs: The legal fees and expenses incurred in defense against the claims of professional negligence are covered.

• Settlements and Judgments: The Errors & Omissions insurance provides the settlement or court-ordered judgments related to covered claims.

• Breach of Duty: Protects against claims alleging failure to fulfill professional obligations.

• Misrepresentation: For any claims alleging false or misleading statements, the Errors and Omissions insurance will provide coverage for managing the reputational damage.

• Defamation: The insurance policy protects against claims of libel or slander.

• Copyright Infringement: The E&O insurance provides coverage for any claims about unauthorized use of intellectual property.

• Intentional or criminal acts: Claims that result from intentional or criminal acts.

• Bodily injury or property damage: Claims of bodily injury or property damage, which are typically covered by general liability insurance.

• Punitive damages: E&O insurance does not cover punitive damages, which are intended to punish the insured for particularly egregious behavior.

• Prior known claims or circumstances: Claims or circumstances that the insured was aware of or had knowledge of before the policy went into effect.

• Cyber liability : Cyber attacks and data breaches are not covered under E&O insurance policies and need a separate policy.

• Contractual liability : E&O insurance does not provide coverage for any claims due to breach of contract except in the event the breach is due to negligence, errors, or omissions in the services provided.

The cost of premium for E&O insurance varies according to several factors which includes the specific industry of the business and profession, the size of the company, dynamics within the organization and the number of employees and the number of directors and officers and the board members within the company. The cost of the Errors and Omissions insurance also depends on the level of risk and the cover required in case of any unfortunate events.

The policy premium can be low in certain cases when the companies follow stringent guidelines to mitigate any risks which include adhering to the required policies and procedures, a training programme for employees, and maintaining records and documentation with accuracy.

Every professional service, from financial advising to software development, carries many inherent risks. A simple mistake, oversight, or miscommunication could lead to costly claims of negligence, misrepresentation, or even professional malpractice.

Covrzy's Errors & Omissions (E&O) insurance safeguards your business from these unforeseen liabilities. Here's why we're the ideal partner for your E&O insurance:

• Comprehensive coverage with flexible options.

• Affordable policy premium with a competitive market price aligning with budget.

• Expert guidance at every step of the claims process

• Unmatched Customer Service.

• Coverage tailored to your industry and risks

• Fast settlement of claims to support quick recovery of damages or loss.