Errors and Omissions Insurance Policy
The http://professionalliabilityinsurance.ca/errors-and-omissions-insurance/ coverage protects you and your business from claims of negligence or failing to fulfill your professional duties as expected. This cover is also known as Liability Insurance.
Even people whose are well trained and perform their duties diligently can fall victim to lawsuits. Such lawsuits can be very disruptive, and they have been known to bankrupt many good professionals. It’s just human nature to fall victim to such unfortunate incidents. This is why the errors & omissions Insurance Cover is so important to any professional, organization or business.
What E&O Insurance Covers
Actual and Alleged Negligence
The errors & omissions insurance cover is a must for you to run your business safely or work without risk falling into debt due lawsuits. Claims alleging negligence on your part includes failure in “duty of care,” and giving incorrect advice or making mistakes.
The defense costs of lawsuits related to negligence can be burdening and unexpected. Having an errors & omissions insurance cover ensures you do not suffer sudden financial burden as you attend an arbitration proceeding.
When you take errors & omissions insurance cover, you protect yourself from financial claims that arise from personal injury claims. This includes slander and libel.
The errors & omissions insurance cover also covers suits related to copyright infringement by your organization in the course of doing business or providing professional services.
Independent Contractors and Temporary Clients
It is possible for you to be sued for malpractices committed by your temporary staff or contractors. The errors & omissions insurance cover protects you from such liabilities.
Services Provided In the Past
It’s important to get a backdated errors & omissions insurance cover for work you have done in the past, not just a cover from the day that you got the errors & omissions insurance cover. This will protect you from negligence lawsuits that might arise from your past work.
Claims and Damages
You might suffer financial ruin if you are not covered for claims and damages. This can happen when you lose a large financial claim that may be a non-monetary or monetary relief.
What E&O Insurance Does Not Cover
Property Damage or Bodily Injury
The errors & omissions Insurance cover does not protect you from third-party damage claims. This includes damage to someone’s property or slip and falls. You should seek a general liability cover for those types of lawsuits.
These are not covered by the e&o Insurance cover. However, most insurance firms will cover you against such charges until they have been to true. Then you may be required to reimburse the cost of representation.
The errors & omissions Insurance does not cover you against any unfair employee treatment.
False advertising is not covered by errors & omissions Insurance cover.
Trades and Patent secrets
If your business is involved in a theft of any business secrets or infringement of patents, you will not be covered by the errors & omissions Insurance cover.
Personal Identifiable Information
The e&o Insurance cover does not include any information under the care, control or custody of your business.
Types of Errors & Omissions Insurance policies
The type of errors & omissions Insurance cover you get will vary from one insurance firm to another. The errors & omissions Insurance covers are written and tailored to cater for different business and the most common exposures those that particular business is likely to experience.
It’s important to remember that sometimes claims may be unwarranted. However, legal fees needed for proper representation will still eat into your operating expenses. These will cause you a lot of financial hardship. Most errors & omissions Insurance cover policies will also cover settlements up to the policy’s limit, court cost, judgments and attorney fees.