Errors & Omissions Insurance

Why is Errors & Omissions Insurance essential?

Cases involving allegations of copyright infringement, negligence in work, and defamation have increased by more than 50% in India in the recent years.

As clients challenge any deficiency in service delivery mechanisms, the risk of facing financial loss claims is on the rise. Regardless of the quality of your offering, mistakes and dissatisfied customers are a part of doing business.

Errors & Omissions (E&O) insurance provides financial security, preserves your reputation, and instills confidence in clients. With E&O insurance, you can focus on delivering exceptional service without worrying about potential legal repercussions.

Key Factors to Consider When Purchasing E&O Insurance:

• Business size and risk exposure: Larger businesses typically face greater risks and should prioritize acquiring E&O insurance.
• Litigation-prone industries: If you operate in an industry with a high likelihood of legal disputes, securing E&O coverage is particularly essential.
• High-value clients and shipments: When dealing with clients who require a superior level of service or handling high-value shipments, having E&O insurance may be expected.
• Geographic location: If your business operates in an area with a high incidence of lawsuits, it is advisable to obtain E&O insurance coverage as soon as possible.

Discover the advantages of Errors & Omissions (E&O) insurance coverage:

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.

Employee Dishonesty

Protect your business from third-party claims resulting from frauds or dishonest acts conducted by your employees. E&O Insurance covers investigation costs, legal fees, and damages caused by their actions.

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.

Error in Service

If an employee makes an error while providing a service, then E&O insurance covers resulting claims.

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

Court Attendance Fees

Cover losses for attending court due to an E&O lawsuit, including lawyer's fees, travel expenses, and lost wages.

Loss of Document

In case of a lawsuit alleging loss or destruction of important documents, this policy will cover the legal and claim charges

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.