Error & Omission Insurance

Any professional or business offering services, such as consultants, lawyers, accountants, healthcare providers, and IT professionals, may need ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance to protect against legal claims.

It covers errors such as negligence, incorrect advice, missed deadlines, and failure to meet professional standards or contractual obligations.

ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance covers financial losses caused by professional errors, while general liability covers bodily injury and property damage.

Yes, it covers legal defense costs, including attorney fees and court expenses, even if the claim is baseless.

In some industries, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance is required by regulatory bodies or client contracts, but it’s not legally mandated in all sectors.

The cost depends on factors like the industry, size of the business, claim history, and the policy’s coverage limits.

Key factors include industry risk, business size, revenue, past claims, and the coverage limits selected.

Consider your industry’s risk level, your business’s revenue, potential client losses, and any contractual requirements when selecting coverage.

Yes, independent contractors can purchase ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance to protect themselves from client claims related to their services.

No, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance excludes intentional wrongdoing, fraud, or criminal activities.

Yes, retroactive coverage can cover incidents that occurred before the policy start date, as long as they weren’t previously known.

A claims-made policy covers claims made during the policy period, regardless of when the incident occurred, as long as the incident happened after the retroactive date.

Yes, ERROR & OMISSION/PROFESSIONAL INDEMNITY policies are highly customizable to address the specific risks of your profession or business.

It protects your business by covering legal fees, settlements, and judgments, ensuring that professional mistakes don’t lead to financial ruin.

Without ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance, your business may be financially liable for defense costs, settlements, or judgments resulting from client claims.

Typically, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance does not cover fines or penalties imposed by regulatory bodies.

The process includes notifying the insurer, providing documentation, evaluation of the claim, appointment of legal counsel, and claim resolution.

Yes, as long as the breach arises from a professional error or omission, but intentional breaches are excluded.

Exclusions typically include fraud, intentional acts, bodily injury, property damage, and pre-existing claims.

Policies typically last for one year, but they can be renewed annually. However, long term projects may be assigned long term policies too which corresponds to project period.

Cyber risks are not typically covered unless a cyber liability add-on is included.

Yes, most policies allow for coverage to extend to employees, contractors, or agents acting on behalf of the insured.

Retroactive coverage applies to claims arising from incidents that occurred before the policy’s start date, as long as they weren’t known at the time of purchase.

Yes, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance primarily covers financial losses incurred by clients due to professional mistakes or negligence.

Yes, but ensure there’s no gap in coverage and discuss retroactive dates to maintain protection for past work.

Claims are handled through a step-by-step process of notification, evaluation, legal defense, and potential settlement or trial.

Yes, unintentional defamation such as libel or slander may be covered under ERROR & OMISSION/PROFESSIONAL INDEMNITY policies.

Yes, policies often have deductibles that must be paid by the insured before the coverage kicks in.

Defense costs are typically paid directly by the insurer or reimbursed to the insured as they are incurred.

Yes, freelancers offering professional services can purchase ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance to protect themselves from client claims.

You may need to adjust your policy or obtain a new one that fits the risks associated with your new profession.

A deductible is the amount you must pay out of pocket before the insurer begins covering the remaining costs of a claim.

No, personal injury and bodily injury claims are typically excluded and covered under general liability insurance instead.

ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance and Professional Liability Insurance are essentially the same, covering professional mistakes, errors, and negligence.

It’s advisable to review your policy annually or when there’s a significant change in your business operations.

Yes, if the employee’s negligence leads to a claim, it’s typically covered under the ERROR & OMISSION/PROFESSIONAL INDEMNITY policy.

In most cases, the insurer will appoint legal counsel, but some policies allow you to choose your own representation with the insurer’s approval.

Vicarious liability extends coverage to claims arising from the actions of employees, contractors, or agents acting on behalf of the insured.

Yes, claims related to the mistakes of subcontractors can be covered if they are included in the policy.

It provides financial protection by covering legal defense costs, settlements, and damages resulting from professional errors or negligence.

If a claim exceeds your policy limits, you are responsible for covering the remaining costs.

Some policies offer add-ons for public relations expenses to help manage reputational damage after a claim.

Disputes over service quality or contract terms can be covered, but intentional breaches are excluded.

Yes, but your premium may be higher, and there may be exclusions related to past claims.

PR coverage helps manage damage to your business’s reputation after a covered claim, often by hiring PR professionals.

Some policies offer protection for claims related to unintentional copyright or trademark infringements.

Global policies or add-ons are available to cover claims arising from international services, depending on the insurer.

Yes, but early cancellation may result in penalties or loss of coverage for certain claims.

The aggregate limit is the maximum amount an insurer will pay for all claims during the policy period.

Does ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance cover legal fees for settlements?

Yes, you can add retroactive coverage, which covers claims related to services provided before the policy start date, provided no prior knowledge of the incident.

Reinsurance helps insurers manage the risk by sharing the exposure of large claims with other insurers, ensuring that even significant claims can be paid out.

It covers claims of malpractice, negligence, and failure to meet the standard of care, protecting healthcare professionals from legal liabilities.

Tail coverage allows claims to be reported after the policy period ends, covering incidents that occurred while the policy was active.

No, fraudulent acts or intentional wrongdoing by the insured are typically excluded from coverage.

Yes, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance is available for businesses of all sizes, including small businesses and freelancers.

Occurrence-based policies cover claims for incidents that occur during the policy period, regardless of when the claim is filed, while claims-made policies cover claims filed during the active policy period.

Yes, claims arising from employee errors or omissions are typically covered if the employees are acting within the scope of their duties.

While clients can still sue you personally, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance can cover legal defense costs and settlements, protecting your personal assets depending on your business structure.

High-risk industries like healthcare, finance, and law typically face higher premiums due to the increased likelihood of costly claims.

It can cover claims related to the actions exposed by whistleblowers, but the policy would not cover the penalties resulting from fraudulent activities uncovered by the whistleblower.

Punitive damages are awarded to punish a wrongdoer. Most ERROR & OMISSION/PROFESSIONAL INDEMNITY policies do not cover punitive damages, as they are considered penalties rather than compensation.

If multiple claims are made during a policy period, the policy will cover them up to the aggregate limit set in the policy.

Typically, client data breaches are not covered under standard ERROR & OMISSION/PROFESSIONAL INDEMNITY policies unless cyber liability coverage is added.

It covers claims related to software failures, coding errors, data breaches, or incorrect technology advice that results in client losses.

Yes, but your premium may increase, and some exclusions related to the prior claim may apply.

The deductible is the amount you must pay out of pocket before the insurance policy covers the rest of the claim.

Yes, if missing a deadline leads to a financial loss for a client, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance can cover claims related to the delay.

You must notify your insurer immediately, provide necessary documentation, and work with your insurer to defend or settle the claim.

Yes, ERROR & OMISSION/PROFESSIONAL INDEMNITY policies can be extended to cover independent contractors, or contractors may purchase their own policy.

Yes, if unintentional misrepresentation leads to financial loss for a client, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance can cover the resulting claim.

Common exclusions include intentional wrongdoing, bodily injury, property damage, fraud, and prior knowledge of claims.

Yes, many insurers offer combined packages that include ERROR & OMISSION/PROFESSIONAL INDEMNITY, general liability, cyber liability, and other business coverages.

The main limitations include exclusions for fraud, intentional acts, and policy-specific exclusions such as cyber risks or physical damage claims.

Yes, breach of confidentiality is generally covered, especially in industries handling sensitive information, like legal or financial services.

Without renewal, you lose protection, and any claims made after the policy expires will not be covered, even if the incident occurred during the active period of the policy.

Yes, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance can be customized to cover professionals who provide services across multiple industries.

ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance does not usually cover regulatory fines or investigations, though legal defense costs related to claims may be included.

The statute of limitations varies by jurisdiction and the nature of the professional services provided, but typically ranges from 1 to 6 years.

No, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance covers client losses due to professional errors but does not cover the insured’s own business income losses.

Retroactive coverage applies to claims made for incidents that occurred before the policy start date but after the retroactive date listed on the policy.

Yes, you can increase your coverage limits at any time, though this may result in an adjustment to your premium.

Crisis management coverage, often an add-on, helps cover the costs of managing PR fallout and restoring reputation after a major claim.

In professions like healthcare or law, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance protects against claims of malpractice by covering legal fees and settlements for negligence.

Yes, many insurers offer cyber liability as an add-on to protect against data breaches and cyber-related claims.

Some policies include coverage for intellectual property infringement claims, especially in creative or tech-based industries.

Fraudulent acts are typically excluded from coverage, and any fraudulent claims may result in policy termination.

Yes, project-based ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance is available for professionals looking for coverage for specific, one-time engagements.

Some policies offer public relations coverage to help manage the fallout from claims, protecting your company’s reputation.

Run-off provisions allow coverage to continue for claims made after a business closes, ensuring that past work is still covered.

Yes, most insurers allow you to adjust your coverage limits during the policy term, but this may affect your premium.

Data loss claims are not typically covered unless a cyber liability endorsement is added to the policy.

ERROR & OMISSION/PROFESSIONAL INDEMNITY covers professional mistakes, while general liability covers physical injuries and property damage. Together, they provide comprehensive protection.

Yes, policies can be extended to cover business partners, employees, or other relevant stakeholders.

Employees are typically covered for claims arising from professional services they perform as part of their job duties.

These are claims brought by third parties (e.g., clients or vendors) who experience financial loss due to the insured’s professional errors or negligence.

Some policies offer coverage for past owners, especially if run-off provisions or similar clauses are included.

A split limit specifies separate limits for different parts of the policy, such as a per-claim limit and an aggregate limit for all claims within the policy period.

Yes, if the policy includes international coverage or if a global policy is purchased, ERROR & OMISSION/PROFESSIONAL INDEMNITY Insurance can cover claims arising from services provided in other countries.