It’s the kind of insurance that protects your business from financially crippling and often reputation-damaging claims by unhappy clients. Professional indemnity insurance, also known as Errors and Omissions (E&O) insurance, is the insurance that covers your company, or you individually, in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results.
In the present day, dynamic business environment, the executives of the Company must take various decisions to effectively run the business. While the situation at a certain point of time may warrant a certain decision to be taken, subsequent developments may result in some of the decision taken coming under scrutiny. Various regulators of the business may have various views on how the business should be run. The stakeholders of the business, the competitors, the suppliers and the customers may all have different view point, which may not all be in line with the Company’s or executive’s view point.
All these results in pressure on the Company officials, which in turn could result in executives committing errors, being held negligent or committing breach of duty or omission. Business entities would like to protect its executives and itself for the legal liability and costs that may arise in such circumstances.
Professional indemnity insurance protects you from legal action taken for losses incurred as a result of your advice. It provides indemnity cover if your client suffers a loss – either material, financial or physical – directly attributed to negligent acts.
Below we list some of the danger areas your business could be exposed to:
*Negligence: or breach of duty of care
*Intellectual property: unintentionally infringing on others’ copyrights, trademarks, broadcasting rights, any act of passing off
*Loss of documents/data: damaged, lost or stolen data and documents belonging to your clients
This policy is most suitable for doctors, lawyers, accountants, architects & designers, engineers, brokers, consultants, advertising agencies etc.
The professional indemnity covers that our Team could arrange for your Business would help mitigate such risks to the extent possible.