Professinoal Indemnity Insurance

A professional liability insurance that protects companies and individuals against claims made by clients for inadequate work or negligent actions. Errors and omissions insurance often covers both court costs and any settlements up to the amount specified on the insurance contract. Errors and Omissions Insurance may be referred as: E&O (Insurance), Errors (&) Omissions, Professional Liability (Insurance), Malpractice (Insurance), etc. The Professional Indemnity Insurance is given to PROFESSIONALS like Doctors, engineers, Chartered Accountants etc., whereas, the E&O policy is given to organisations like BPOs, Software Engineering concerns etc.,

Errors and omissions (E&O) is the insurance that covers the Insured, in the event that a client holds our Insured responsible for a service provided, or failed to provide, that did not have the expected or promised results. For doctors, dentists, chiropractors, etc., it is often called malpractice insurance. For lawyers, accountants, architects or engineers, it may be called professional liability. Whatever you call it, it covers the Insured for errors (or omissions) that they made or that their client perceives they have made. Most E&O policies cover judgments, settlements and defence costs. Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit. They can bankrupt a smaller company or individual and have a lasting effect on the bottom line of larger companies. In short, E&O coverage provides protection for the Insured in the event that an error or omission on their part has caused a financial loss for their client.