What is Errors & Omissions Insurance?
Errors and omissions insurance (E&O Insurance) or Professional Liability, Professional Indemnity(PI) insurance is a particular type of professional liability insurance policy that has been designed to protect individuals or companies and their workers against claims made by clients for negligent actions or inadequate work. Up to specified amount as per the insurance contract, the errors and omission insurance policies can also cover both court expenses and any settlement Errors and Omissions Insurance coverage provides a certain type of insurance protection that helps to safeguard you and your employees in the event when your clients lay blame on you of making mistakes that cost them money. These accusations may comprise claims that your work was unprofessional, inadequate or incomplete, careless conduct. You must keep in mind that even if you never have made a mistake, you could still be sued. As a small-business owner, you ought to know that a discontented client blaming your service for their financial loss might sue you or your company. So, if they do that, your E and O insurance coverage can help you defend your business in many important ways.
Who Can Buy Errors & Omissions Insurance in India?
Errors & Omissions Insurance or Professional Indemnity Insurance is a type of insurance policy that safeguards your business against the cost of compensation claims when a client believes you've been negligent or made a mistake in your work. Find out who can buy E&O policies in India below.
Benefits of Errors & Omissions Insurance Policy in India
Errors & Omissions insurance policy, also known as E&O insurance or Professional Liability Insurance comes with a number of exclusive coverage options. Find out the special benefits that can be availed under E&O insurance in India.
Errors and omissions indemnity policy covers the company or an individual against lawsuit filed by a third party for financial loss during the course of providing services. Infringement of intellectual property including trademark, copyright and any trade secret is also covered under professional indemnity insurance. Errors & Omissions Insurance policy in India also covers the claims regarding any misuse or misselling of any information that is either confidential or subject to restrictions.
Other effective additional extensions that can be availed with indemnity insurance include libel and slander, defamation cover, and cover for employee dishonesty. All claims based on incidences that took place after the retroactive date is covered. This is the date that the first indemnity insurance was bought, provided renewals have been timely. Errors & Omissions insurance policy also comes with option to customize jurisdiction and territory as per requirement.
Covers Legal Expenses
Errors & Omissions Insurance policy in India can help you pay for the Lawyer Fees given that the good lawyers charge on hourly basis and a legal case is likely to take a long time to get settled. The professional indemnity insurance also covers the court costs for filing documents with court that involve costs, administrative costs for the smooth disposition of legal cases and settlement since you may have to pay to the plaintiff depending on the compensation you mutually agreed.
Errors & Omissions Insurance Exclusions
Just like any other insurance policies available in India, errors and omissions insurance plans certainly have a number of exclusions under which the company doesn’t offer any coverage. Find out what are excluded under E&O insurance online in India.
Willful Negligence, Criminal Intent, Fraud
Any negligence, fraud, or such actions that are found to be committed on purpose are not covered under Errors & Omissions insurance policy in India. Any claim payment that would place sanctions on the insurer by government or regulatory authorities is also not covered under professional indemnity insurance online. This clause is known as sanctions & limitations.
In case of failure of service, if you have a contract that specifies a certain monetary penalty, errors and omissions insurance online will not cover that payment.
Liability Covered by Other Policies
The liability claims arising from performance of professional services will only get covered under an errors & omissions policy in India. Any claim that would be covered under a Workman’s Compensation policy or, a Commercial General Liability policy etc. will not be covered by professional liability insurance online.