Errors and Omissions Professional Liability Coverage

Errors and Omissions Insurance

Professional Liability:
Errors and Omissions (E & O) Coverage?

Professional Liability protects the insured against loss from a claim of ALLEGED negligent acts, errors or omissions in performance of the insured's professional services. Professional Liability also covers the insured against ALLEGED claims of libel, slander and invasion of property. The Professional Liability policy will respond EVEN WHEN THE CLAIM IS FALSE OR GROUNDLESS!
When?

This coverage should always be included in your small business insurance program, regardless! The chances of sustaining a Professional Liability claim is considered to be far greater than a slip and fall type of claim. (General Liability)
Why?

IT professionals and consultants normally need to show proof of Professional Liability coverage before entering into a contract because of the risks involved in working with volatile computer technology. In addition, if a client sues your company due to a dispute over work performance or a contract, Professional Liability coverage provides protection for you or your company up to the policy limits you select. Having Professional Liability shows the client you are conscientious and professional.
Major Endorsements:

Endorsements limit or broaden the scope, cause, and condition of property covered. The following are just a few of the major endorsements:

* Intellectual Property Infringement Endorsement: Extends coverage for claims arising out of actual or ALLEGED infringement of patent, copyright, trademark, trade name, trade dress, trade secret, or any other type of intellectual property.
* Personal Injury Endorsement: Extends coverage for injury other than bodily injury, including mental or emotional distress or humiliation.
* Computer Virus Endorsement: Extends coverage for results of unauthorized access of an electronic system or program and for damage caused by computer viruses.

Examples:

* While working on-site at a client's office, and attempting to fix their server, you accidentally erase some data. Due to the nature of the error, the E & O policy has you covered.
* A contractor working for your business is working on a website for a client. The contractor provides links to other sites as per the contract, however, the clients find one of the links objectionable. When they file a suit against your company, the Professional Liability coverage provides protection.

This section is designed for general informational and descriptive purposes only. The precise wording of each coverage is subject to specific conditions and endorsements of the actual policy issued. Always read your policy very carefully!

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