Errors and Omission Insurance

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The errors and Omission Insurance is also called as Professional Liability Insurance but it is also sometimes referred to as Professional Indemnity Insurance. The errors and omission Insurance is a form of Liability Insurance which protects the advice giving and service providing Individuals from the situation of bearing on their own the cost of defending against the claim of negligence usually made by their clients.  The errors and Omission Insurance coverage also sometimes covers the defence cost which includes a situation when the legal action turns out to be groundless.


However the Errors and Omission Insurance coverage doesn't neither  include the Criminal Prosecution nor the wide range of the potential liabilities which might occur under the civil law that are not specifically mentioned in the policy but these potential liabilities may be subjected to other forms of Insurance.  The Professional Liability insurance is required to be taken, in certain areas, for legal and medical practitioners. This is sometimes also needed to be taken under the contract by the clients who are beneficiaries of the professional advice.

The Errors and Omission Insurance may be referred differently depending upon the profession the policy holder is practicing. However the core purpose of this insurance remains the same. In relation to the medical professionals this insurance is called as the malpractice Insurance and the lawyers, consultants and brokers use the Standard errors and Omission Insurance. The accounting and Financial professionals and some times even the charitable organisations and NGO's are also Professional Liability Insured.

The Errors and Omission Insurance is usually taken because the general insurance will only protect you in the case of the bodily injury, personal damage or the damage to the property. But the general insurance doesn't protect the individuals from the harm that may be caused even without any bodily Injury. The claims most commonly covered by the Professional Liability Insurance are violation of Good faith, inaccurate advice, Negligence etc.