Short-hand for malpractice insurance which gives physicians, attorneys, architects, engineers, and other professionals coverage for claims by clients for alleged professional errors and omissions which amount to negligence.
Errors And Omissions – Insurance That Protects Companies And Individuals Against Claims Made By Clients For Inadequate Work Or Negligent Actions
If you are in a position of selling or providing services to individuals, you are vulnerable to being sued by clients who are dissatisfied with your services. In order to deal with the financial consequences of being sued, you need to have a suitable coverage in place. The only exception would be if you are employed by a large organization that has a blanket policy covering all their employees. Find out more about errors and omissions insurance that protects companies and individuals against claims made by clients for inadequate work or negligent actions.
If you own or are a partner in a business, you should talk to your policy provider. You will definitely require some form of errors and omissions insurance. The primary aim of this type of liability coverage is to provide financial protection for individuals and businesses that are being sued by an unhappy client.
This type of coverage is frequently referred to by other names. Although sold under various names it does provide the same level and type of cover. It is often referred to as malpractice insurance in connection with medical practitioners. It is called professional liability cover for others such as accountants, engineers lawyers and other professional service providers.
In many cases, the complaints may have no real foundation, but it can be very expensive to go through the process to prove you are not liable. This is where your policy can help to cover the costs for your defense, and any judgments awarded against you. It can also help to cover any out-of-court settlements for compensation.
It is generally accepted as being good business practice these days to have liability coverage in place. Many potential customers will insist on it. You can always use it as a selling point for your services as many customers will see this as a positive and responsible move.
Accidents and mistakes do happen and are often out with your control. Clients nowadays need to be reassured that they have a course for redress if the worst happens. This usually means some form of financial compensation and is why you need errors and omissions insurance cover.