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Errors & Omissions Insurance
Safeguard your company against client disputes stemming from human errors or unmet expectations in providing professional services.
What is Errors & Omissions Insurance?
- Errors & Omissions Insurance acknowledges the inherent risk in offering expert services: the risk of making a mistake or failing to meet a client's expectations.
- The unique value of E&O insurance lies in its coverage of claims arising from your professional services (or tech product). Whether it's an oversight in a contract, copyright infringement, a missed deadline, an error in a financial analysis, or alleged negligence, E&O insurance can cover the cost of defending your business in court, as well as any settlements or judgments you're required to pay.
- Facing a claim without E&O insurance can drain your time, resources, and focus from serving your clients. With an E&O policy, your insurer takes on much of the burden of a claim, allowing you to continue your work with minimal disruption.
E&O Insurance provides coverage for errors such as :
2. Defamation.
3. Errors, mistakes, or oversights incurred during the course of work
4. Failure to meet a deadline or deliver a specific service promised to a client.
5. Professional negligence.
6. Professional negligence or failure to meet standards.
Why get Errors & Omissions Insurance?
In a tech company, the majority of work involves creating software, developing applications, managing data, and providing professional services. These activities come with inherent risks that can lead to financial losses and legal disputes. Errors and Omissions Insurance is vital for your tech company because it provides protection against:
Claims from Clients
Despite your best efforts, errors, software bugs, or unintentional omissions can occur, potentially causing harm to your clients' businesses. E&O Insurance provides coverage for claims arising from financial losses, property damage, or business interruptions caused by your products, services, or advice.
Legal Defense
Defending your tech company against claims or law suits can be financially burdensome. E&O Insurance not only covers settlements but also includes legal defense costs. This means you'll have the necessary resources to hire legal experts who specialize in technology-related litigation, ensuring a robust defense for your business.
Professional Services
If your tech company provides professional services, such as consulting or implementation support, E&O insurance can protect you from claims related to errors, delays, or inadequate performance. This coverage ensures that your clients are financially compensated for any harm caused by mistakes or shortcomings in your professional services.
Discover the advantages of Errors & Omissions
(E&O) insurance coverage
Loss of Documents
In case of a lawsuit alleging loss or destruction of important documents, this policy will cover the legal and claim charges.
Employee Dishonesty
Protect your business from third-party claims resulting from frauds or dishonest acts conducted by your employees.
Automatic Subsidiary
Newly created or acquired subsidiaries will be seamlessly incorporated into the policy, requiring only a minimal amount of paperwork.
Error in Service
If an employee makes an error while providing a service, then E&O insurance covers resulting claims, cover court costs or settlements
Mitigation Costs
In case of errors and omissions, you might need to take steps to reduce or prevent further damage or loss, The policy can help cover cost of repairs.
Court Attendance Fees
Cover losses for attending court due to an E&O lawsuit, including lawyer's fees, travel expenses, and lost wages &actual loss of earnings costs.
Legal Representation Costs
E&O Insurance safeguards you from the financial burden of legal representation expenses when facing lawsuits. Whether in court or negotiating with regulators, this coverage ensures you have the support you need, including the cost of settlements.
Professional Inquiry Investigation
If an investigation or inquiry is conducted by a professional regulatory body, such as an industry association or government agency, this coverage indemnifies the loss incurred by the insured. It covers the costs of legal fees, settlements, fines, or judgments that may arise from such an investigation.
Coverages & Exclusions in
Errors & Omissions Insurance
Automatic Subsidiary Coverage
Newly created or acquired subsidiaries will be seamlessly incorporated into the policy, requiring only a minimal amount of additional paperwork. However, this inclusion is contingent upon the acquired company being not more than one-fourth the size of the company implementing the policy.
Professional Inquiry Investigation
If an investigation or inquiry is conducted by a professional regulatory body, such as an industry association or government agency, this coverage indemnifies the loss incurred by the insured. It covers the costs of legal fees, settlements, fines, or judgments that may arise from such an investigation.
Mitigation Costs
In case of errors and omissions, you might need to take steps to reduce or prevent further damage or loss. The policy can help cover the cost of repairs, replacements, and other expenses incurred in such cases.
Loss of Documents In case of a lawsuit alleging loss or destruction of important documents, this policy will cover the legal and claim charges.
Legal Representation Costs
E&O Insurance safeguards you from the financial burden of legal representation expenses when facing lawsuits. Whether in court or negotiating with regulators, this coverage ensures you have the support you need, including the cost of settlements.
Malicious Acts & Intentional Wrongdoing
This insurance doesn’t pay for any losses or damages if you purposely do something wrong or harmful. For example, if you lie about something important (that’s called “intentional misrepresentation”), steal something (that’s “theft”), or cheat in some way (that’s “fraud”), and these actions cause harm or loss, the insurance won’t cover it. These are considered intentional or malicious acts, which means you did them on purpose knowing they could cause harm.
Employee Illness or Injury
Claims related to fines, penalties levied by a court or governmental agency, or arising from contractual breaches or negligence on part of the insured are not covered under this policy.
Cyber Threats
E&O policy does not cover claims resulting from cyber risks, such as data breaches and cyber-attacks. This is covered separately when you purchase Cyber insurance.
Bodily Injury to Third Parties
This policy does not provide coverage for any third-party bodily injury claims arising from alleged or actual negligence during the provision of your business services.
