Errors and Omissions Insurance Policy

Errors and omissions insurance (E&O insurance) is a type of professional indemnity insurance. It is also known as professional liability or malpractice insurance. This insurance policy provides coverage against legal liabilities to professionals such as chartered accountants, doctors and service sector companies such as Fintech, Banks, e-commerce, etc. in case of any error and omission caused due to negligence while providing their services resulting in any loss or damage to the clients.

Read more
error omissions insurance

Get right expert advice

Hassle free policy

Speedy Claims

Fast-track your search with instant quotes from prominent insurers

Get ₹1 Crore insurance cover starting at ₹35,000/year+

Step 1/2

Get ₹1 crore insurance cover starting at ₹35,000/year+

secure-icon We don't spam
Get Updates on WhatsApp
View Plans

Get ₹1 Crore insurance cover starting at ₹35,000/year+

Step 2/2
Fast-track your search with instant quotes from prominent insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Why should You Purchase Errors & Omissions Insurance?

Regardless of the experience you have, there is always a potential for mistakes. This is where error and omission insurance policy steps in. You should purchase this policy if you are:

Handling Sensitive Data

If your business deals with sensitive client or business data, the risk of data breaches or loss exists. Professional indemnity insurance steps in to cover financial consequences resulting from data mishandling.

Offering Advice or Guidance

Professionals who provide advice or guidance face the risk of errors causing financial harm to clients. Errors and omissions insurance covers claims arising from such situations.

Addressing Quality Concerns

Professionals may encounter claims challenging the quality of their services. E&O insurance safeguards against financial losses resulting from legal actions taken by dissatisfied clients.

Apart from this, Errors and Omissions insurance policy is important for the following reasons:

Financial Protection in the Face of Claims

E&O insurance shields your business when confronted with claims or legal actions. It covers legal fees, settlement costs, and awarded damages, ensuring your financial stability remains intact.

Tailored Coverage for Businesses of All Sizes

From small startups to large corporations, errors and omissions offers customized coverage that suits your specific business needs. It effectively minimizes risks associated with professional services.

Providing Peace of Mind for Your Organization

Having errors and omissions insurance brings peace of mind. It safeguards your organization from potential liabilities arising due to professional errors or negligence. This coverage allows you to focus on your work without worrying about legal or financial repercussions.

What is Covered under Errors and Omissions Insurance?

Here's a brief overview of what's typically covered under an errors and omissions insurance policy:

  • Legal Representation Fees: This includes the fees associated with hiring a lawyer to represent your interests in the event of a claim or lawsuit.
  • Expert Witness Costs: If the case requires expert opinions, the insurance can cover the expenses of hiring professionals to provide specialized insights.
  • Administrative Expenses: These costs pertain to managing the documentation and administrative aspects of the case.
  • Court-Related Costs: This covers expenses directly related to legal proceedings, such as court filing fees and other court-related expenditures.
  • Settlement Expenses: If you decide to settle a claim outside of court, the insurance can cover the costs associated with reaching an agreement.
  • Legal Judgment Payments: In cases where a legal judgment is rendered against you, the insurance can cover the financial obligations, including penalties and fines imposed by the court.

Disclaimer: The coverage provided under errors and omissions insurance policy varies from one insurer to another. To learn about the coverage in detail, kindly refer to the policy wording of the insurance provider.

Apart from this, Errors and omissions insurance covers a variety of legal claims against the policyholder that include:

  • Negligence Coverage: This pertains to claims arising from mistakes or oversights by you, your subcontractors, or employees in the course of business operations.
  • Confidentiality Breach: Coverage extends to claims related to unauthorized disclosure of confidential information.
  • Breach of Contract: Claims arising from failure to meet contractual obligations are covered.
  • Tech Failure/Product Non-Performance: This includes claims related to technological malfunctions or instances where products fail to perform as intended.
  • Defamation Protection: Coverage is provided for claims involving harmful statements that damage reputation.
  • IPR (Intellectual Property Rights) Claims: This encompasses claims of infringing on intellectual property rights.
  • Good Faith and Fair Dealing Violations: Claims related to breaches of the duty to act fairly and in good faith towards contractual obligations are covered.
  • Wrong Advice: Inaccurate advice leading to financial loss is also covered under errors and omissions insurance.

What is Not Covered under Errors and Omissions Insurance?

E&O policy does not provide cover for the following perils:

  • Anti-trust Claims/Unfair Competition: Claims related to anti-competitive behavior or unfair business practices fall outside the coverage.
  • Bodily Injury and Property Damage: E&O insurance focuses on financial losses; it doesn't cover physical harm or property damage.
  • Contractual Liability/Performance Guarantee: Claims arising from not fulfilling contractual obligations or providing performance guarantees are not typically covered.
  • Insolvency: Claims connected to insolvency, bankruptcy, or financial failure aren't typically covered under E&O insurance.
  • Misdeeds/Deliberate Misconduct: Coverage usually excludes claims related to intentional wrongdoing or misconduct.
  • Prior Acts/Claims: Claims arising from incidents that occurred before the policy period aren't typically covered.
  • Infrastructural Issues: Claims linked to design, construction, or infrastructure problems are generally not covered.
  • Liability Covered by Other Policies: E&O insurance excludes claims already covered by other policies like Commercial General Liability (CGL), Directors and Officers (D&O), Cyber risk, Commercial Crime, and Employment Claims insurance.

Disclaimer: To learn about the exclusion in detail, kindly refer to the policy wording provided by the insurance company.

Who can Purchase Errors and Omissions Insurance Policy?

Here is a list of businesses and individual professionals who can purchase errors and omissions insurance policy:

  • Professionals: Individuals like architects, accountants, designers, consultants, engineers, doctors, and lawyers can benefit from this coverage. It safeguards against claims arising from professional errors or omissions.
  • Law Firms: Errors and omissions insurance is vital for law firms, offering protection against potential legal claims stemming from professional services.
  • Media and Marketing: This coverage is essential for multimedia companies, digital marketing agencies, media buying companies, etc., safeguarding against claims related to advice, design, or campaign execution.
  • Technology Industry: For software development, maintenance companies, data center services, system integration, and infrastructure management services, E&O insurance covers potential claims tied to software performance, tech failures, or system integration issues.
  • Business Process Outsourcing (BPO): BPO companies can benefit from E&O insurance to cover potential errors or oversights in their services.
  • Infrastructure Engineering: E&O insurance is crucial for businesses in infrastructure engineering to protect against claims related to design, construction, or other technical errors.
  • Research & Development: Companies engaged in research and development can utilize this insurance to mitigate the risks tied to errors or omissions in their innovative processes.

Errors & Omissions Insurance: Claim Process

Follow the steps given below to raise a claim under the errors and omissions insurance policy:

Step 1: Inform the designated claims handler at Policybazaar regarding the occurrence.

Step 2: The claims handler will furnish you with a claim notification template, which you should duly complete and directly submit to them. This template should include the following details:

  • Policy Number
  • Name of the Insurance Company
  • Name of the Policyholder
  • Address of the Policyholder
  • Date of the Incident
  • Brief Description of the Incident
  • Estimated Amount of Loss
  • Address of the Incident Site
  • Contact Details and Name of the Person Present at the Incident Site.

Step 3: Upon furnishing these particulars to the claims handler, they will transmit them to the insurance company.

Step 4: Following a review of the submitted claim notification template, the insurance company will formally record the claim and allocate a reference number.

Step 5: Upon the issuance of the claim reference number, the insurance company may opt to engage an appraiser to validate the incident or provide a Letter of Reference (LOR) for further advancement of the claim procedure.

Step 6: The insurance company will send out a claims form that requires your completion, signature, and appropriate company seal endorsement. In the case of individual professionals, their personal seal can be affixed. The standard list of essential documents encompasses: Required KYC Documents

  • Permanent Account Number (PAN) Card
  • Aadhar Card
  • Goods and Services Tax (GST) Registration Certificate
  • Evidence of the Incident Location (e.g., Electricity Bill)

Please note: These are fundamental prerequisites. Additional necessities or any LOR will be conveyed by the insurer through Policybazaar. The claims handler will lend assistance in accumulating and submitting supplementary documents.

Step 7: The insurance company may decide to deploy a survey team to validate the incident site at their discretion.

Step 8: In the event of an ongoing legal case related to the incident, it is imperative to communicate relevant case specifics to the insurance company.

Step 9: Upon the conclusion of the court case resulting in a compensation verdict, the insurance company will duly disburse payment in accordance with the stipulations outlined in the policy.

Disclaimer: A specific percentage of the sum insured is determined to establish the extent of coverage for lawyer's fees. For instance, with an insured sum of Rs. 100 and coverage for lawyer's fees up to 25%, you are eligible for coverage of up to Rs. 25.

Moreover, the insurance company may provide their legal representation, although coverage aligns with the specified terms if you choose to retain your own legal counsel.

Why Buy Errors and Omissions Insurance From Policybazaar?

Policybazaar provides several features such as a comparison between different plans offered by different companies, provides quotes for your desired insurance plan and not just this, you can also calculate the premium amount of your insurance plan using the online premium calculator tool.


Errors & Omissions Insurance Companies

Now help your friend get Business Insurance

Your referral is greatly appreciated!

Our team will reach out to your friend soon to help with their business insurance requirements.

Policybazaar for Business - Errors Omissions Insurance - Customer Reviews
View all
Based on 21 reviews
out of 5
Based on 21 reviews
3 users
14 users
4 users
0 users
0 users
4.3 February 24, 2023
Quick Quotes
I was looking for a Liability Insurance plan online. I wanted to get an idea of the premium amount that I hav to pay. I went on the Policybazaar website and entered a few details such as a number of employees, average age, etc. It showed me a quoate for the insurance plan. Thanks, PolicyBazaar.
3.8 February 11, 2023
Amazing Policy
I wanted to buy Liability Insurance, which requires less paperwork and could provide medical coverage to my employees in case of any misshpening at my workplace, so I chcked the policy bazaar website, where I learned about multiple benefits with affordable rates. I purchased the plan for my Company's Employees and found it helpful. Thanks, PB.
3.8 January 29, 2023
Incredible Benefits
Suitable policy and good coverage. Thank PB
4.3 January 16, 2023
Easy Process
I am so much pleased with the Liability Insurance I purchased through PolicyBazaar website. The policy offers me peace of mind, knowing that any legal liabilities resulting from my business operations are covered. Their website is user-friendly and their customer service team was knowledgeable. Thanks
4.3 January 03, 2023
Coverage For Multiple Perils
The plan i purchased at policybazaar provided me coverage for multiple perils. Thankyou.
3.8 December 21, 2022
Wide Range Of Coverage
I purchased liability insurance from policybazaar website and it provides me godd coverage at affordable rates. Thanks
4.3 December 08, 2022
Multiple Coverage
I had been searching for an affordble Liability Insurance option for my small business and PolicyBazaar came to the rescue. Not only did they provide me with multple quotes from different insurance providers, but they also helped me compare the coverage and premiums. I found a policy that fit my budget without compromising on the coverage I needed. Thankyou.
3.8 November 25, 2022
Highly Supportive
I recently purchsed Liability Insurance from PolicyBazaar website and I'm extremely satisfied with their service. The policy not only provides comprehnsive coverage for third-party damages but also offers excellent customer support. Thanks to PolicyBazaar.
4.3 November 12, 2022
Easy Customization
Their Easy customised process amazed me. Thanks to PolicyBazaar. It was a useful purchase.
4.5 October 02, 2022
Maximum Coverage
I was looking to buy error omission insurance and finally decided to go with the policybaazar. The premium was pocket friendly and still offered the maximum coverage. Their website is well managed and had all the information in detail.

Wait! Didn't find what you were looking for?

Our certified business insurance experts are just a call away.

Your call has been scheduled successfully.

icon Expert advice made easy icon
  • Date
  • Time

When do you want a call back?

  • Today
  • Tomorrow
  • 21 Jul
  • 22 Jul
  • 23 Jul
  • 24 Jul
  • 25 Jul

What will be the suitable time?

  • 11:00am - 12:00pm
  • 12:00pm - 01:00pm
  • 01:00pm - 02:00pm
  • 02:00pm - 03:00pm
  • 03:00pm - 04:00pm
  • 04:00pm - 05:00pm
  • 05:00pm - 06:00pm

Tell us the number you want us to call on

Your privacy matters. We wont spam you

Call scheduled successfully!

Our experts will reach out to you on Today between 2:00 PM - 3:00 PM

Thank you
Our experts will provide you assistance with your
insurance coverage. Be assured, all your questions
will be answered
  • Disclaimers+

    *Savings of 88% are based on the comparison between the highest and lowest premiums for the sum insured of Rs 25 lakh for a medical practitioner with specialization as Cardio Surgeon. Premium varies on the basis of Occupancy, Business Activity & Coverage Type
    By clicking on "View Plans" you agree to our Privacy Policy and Terms Of Use and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.
    The details of insurance coverage, inclusions and exclusions are subject to change as per solutions offered by insurance providers. The content has been curated based on the general practices in the industry. Policybazaar is not responsible for the factual correctness of these details.