Benefits of Errors And Omissions Insurance
There are several benefits of purchasing the errors and omissions insurance plan. They are as follows:
- Financial Aid: The Errors and omissions insurance plan provides financial aid to the insured. In case of a lawsuit filed by a third party, this insurance plan provides cover for the lawyer hired to fight your case and the expense that occurred in the documentation process in the court of law.
- Wide Coverage: This insurance plan provides cover for the infringement of any copyright, trade secret as well as a trademark. It also provides cover for the misuse of information that is confidential.
- Peace of Mind: Purchasing this insurance plan for your employees will bring you peace of mind because any error made by your employee that caused damage to the customer is your responsibility and being insured with this plan will keep you sound-minded.
What is Covered Under Errors and Omissions Insurance?
Errors and omissions coverage are as follows:
- Negligent Action: If your employee’s negligent action caused any harm to the customer then this insurance plan will provide cover for it.
- Error in Service: In case your employee caused an error during a service provided by your company/business then it will be covered under this insurance plan.
- Omission: In case your employee forgets to provide any important information to the customer that eventually causes them loss then the insurer will provide cover for it.
- Misrepresentation: If your employee misrepresents any service in any way that leads to loss or damage to your customer, the insurer will provide cover for it.
- Violate Good Faith & Fair Deal: If your company violates good faith as well as fails to deliver its end of the deal then the insurer will provide cover for any upcoming financial threat.
- Lawyer’s Fees: The insurer will provide cover for your lawyer’s fee in case the customer files a case against your company and you have to hire a lawyer to defend your case.
- Settlement: Once the case is over and you have to pay for the error, this insurance plan will provide cover for it as well.
- An unintentional breach of a written contract in delivering any product due to:
- Defective Material: If a product-selling company delivers a defective material and the customer chooses to take action against the company then this insurance will provide cover for it.
- If the product fails to meet the implied statutory term concerning necessary quality, fitness and safety.
- Infringement: In case of infringement of any intellectual property right, copyright, trade dress, trade mark or an act of passing-off or moral rights.
- In case of defamation, this insurance provides coverage.
- Civil liability is covered.
What is Not Covered Under Errors and omissions Insurance?
E&O policy does not provide cover for several things. They are as follows:
- If case the insured breaks the law and gets stuck in an illegal activity then the insurer will not provide cover for it.
- The insurer will not provide cover for purposeful wrongdoings such as deceiving the customer of your company.
- The insurer will not provide cover for the injury or illness of your employee under Errors and omissions insurance however workmen's compensation will provide cover for it.
- In case of any kind of harassment or discrimination in the workplace that involves the employees, the insurer will not provide cover for it.
- Any director’s or officer’s personal liability of the company insured.
- Fines & Contractual penalties are not covered.
- In case of any defect in the delivered item that is only the supplier, manufacturer or originator’s responsibility.
How to Raise a Claim Under Errors and Omissions Insurance?
Here are the steps that you can follow to raise a claim under the Errors and omissions insurance policy.
- Tell Your Insurer: Inform the insurer quickly when any customer of yours files a case against you.
- Keep Documents Ready: In order to begin the claiming process, you are required to submit a few documents along with the claim form.
- Tell Insurer Everything: The insurer will send an inspector to talk to you about the incident and everything related to it.
- Claim settlement: Once they are satisfied and your situation falls under the inclusions of the insurance plan, they will provide cover for the expenses coming out of that particular situation.
How to Renew Errors and Omissions Insurance?
Errors and omissions liability insurance is not something that you can purchase once and get a lifetime service, it requires renewal at a particular interval of time. So here are the steps that you can follow to renew the insurance plan.
- Step 1: Visit your insurance company’s website
- Step 2: Enter your name, policy number, policy name, etc.
- Step 3: Now click on the tap with Renew Policy written on it
- Step 4: It will show you the status of your insurance plan
- Step 5: Review the details of your plan
- Step 6: Add or remove any add-on as per your requirement
- Step 7: Pay the premium using UPI, Net banking, credit/debit card, etc.
- Step 8: Once you have made the payment, the insurer will send you a confirmation mail and a message on your registered mobile number.
It is also important to renew your insurance plan before the expiry date otherwise the policy will lapse and you won’t get coverage for any of the inclusions.
Why Buy Errors and Omissions Insurance From Policybazaar?
Purchasing the best e&o insurance plan from policybazaar is the easiest way available. 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.