subject: >errors And Omissions Insurance [print this page] Professionals, however proficient they may be are often entangled in lawsuits and are sued of certain errors in their working procedures and then their work gets disturbed and is badly affected, for such professionals the error and omissions insurance is very important and acts as a life saviour, in case you are unaware of what this insurance is then read on.
It is a professional liability insurance which is meant to protect companies as well as individual professionals when their clients or other companies complain about them or claim them for some kind of work negligence or some time inadequate work or inappropriate actions.
The Error and Omissions Insurance which is sometimes also referred to as E&O insurance covers the entire court cost and when there is a settlement the settlement amount as is specified in the contract made during signing of the insurance policy.
If you are thinking that where to obtain this insurance then answer is simple, you can obtain your E&O insurance from the local insurance brokers and dealers who also provide various different types of insurances. This insurance is also many times a mandatory requirement by financial bodies like FINRA or other companies who are investing in your company or your project.
Law suits are something that are unavoidable, even if the claim made by the opponent is baseless and inappropriate one cannot avoid it and have to go to the doors of the court to get it solved, and if you win the case the total expenses and the fees is very high and in such cases the Error and Omission Insurance play an important role and help you pay the fees of your broker, the entire expense of the court case and in case you have to pay some alumni to your client then that can also be done with the help of this insurance money.
Some professionals like, doctors, computer professionals who are more likely to face problems and claims from their clients have to take the E&O insurance, because they are persons who have various litigation problems find it very convenient and favourable for their normal working. Professionals liability is important and these days compulsory in any kind of professions which is prone to human errors and may have omission or claims for negligence.
Find the right kind of insurance policy is thus very important that would take care of your profession.
by: Lousie Smith
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