Errors and Omissions Insurance - Buy E&O Insurance Online from Plum

What Is Errors and Omissions Insurance?

‘Errors and omissions insurance’, also known as E&O insurance, is a specialized form of liability insurance. It safeguards companies, their employees, and other professionals such as consultants, financial advisors, insurance agents, or lawyers against the full costs of claims made by clients.

These claims may arise from negligent actions, inadequate work, or mistakes in the provision of advice or services. As a common form of business insurance, E&O insurance is essential for any company that offers any kind of service, as it provides protection against accusations of errors or omissions in their professional conduct.

Who Needs Errors and Omissions Insurance?

Errors and omissions insurance, commonly referred to as E&O insurance, typically covers both legal costs and any settlements up to the limit defined in the insurance agreement.

This form of liability insurance is often mandatory for businesses that provide professional advice or services. Without it, a company could be responsible for millions in damages, in addition to the expenses of legal representation.

Various professionals, including insurance brokers, realtors, registered investment advisors, financial planners, and other financial experts, can secure E&O insurance.

E&O insurance isn't limited to a specific sector. It is relevant to organizations outside of finance, such as nonprofits, general maintenance firms, contractors, and engineering companies.

Other service providers, like wedding planners, printers, and medical professionals (who may refer to it as malpractice insurance), also need E&O insurance. An illustrative example of the importance of E&O insurance might involve a client suing an advisor or broker following a failed investment, even when the associated risks were clearly communicated and within the client's accepted guidelines.

Even if the legal decision favours the broker or investment advisor, the legal fees can be substantial, underscoring the necessity of E&O insurance.

Advantages of Errors And Omissions Insurance

Errors and omissions insurance offers several key advantages, including:

1. Financial Support

   This insurance provides financial assistance to the policyholder. If a third party files a lawsuit, the insurance covers the costs of hiring a lawyer and any expenses related to court documentation.

2. Peace of Mind

   Investing in this insurance for your employees can offer peace of mind. Knowing that any mistakes made by an employee that result in customer damage are covered by this insurance helps maintain a sense of security and confidence in your operations.

3. Comprehensive Coverage

   The plan offers protection against violations of copyrights, trade secrets, and trademarks. It also covers instances of misuse of confidential information.

Following are the steps to file an Errors and Omissions insurance claim;

1. Initiate contact on priority with the Plum team to report the incident.

2. Plum works promptly with the insurer partner and subsequent course of action is determined.

3. In collaboration with Plum and the insurers, an investigator is designated to assess the severity and analyse the details of the incident.

4. Expert guidance on containment measures to prevent the situation from worsening further is provided.

5. The Plum team aids you in comprehending the necessary documentation, which includes records on the extent of the impact, the actions taken for remediation, and any direct expenses incurred during the claims procedure.

6. Following an in-depth analysis of the documentation, the survey report is created.

7. Plum maintains a strong liaison with the insurer and policyholder throughout the claim approval process.

How to Renew E&O Insurance?

To renew your Errors and Omissions Insurance policy, contact the Plum team, who will initiate the renewal procedure. Armed with your policy documentation and pertinent details, Plum will offer comprehensive guidance throughout the renewal process.

Typically, a renewal with Plum entails the following steps:

1. Plum conducts a thorough evaluation of your policy parameters, including coverage, costs, and exclusions. This evaluation is benchmarked against market standards and industry peers.

2. Based on these evaluations/ alterations in your data or business operations, Plum provides tailored recommendations for shaping your Errors and Omissions Insurance policy.

3. Once these policy recommendations are established, we collaborate with top-tier insurance partners in the market to craft the most exhaustive and competitively priced policies for your company.

4. The Plum team makes the process of renewing and booking a Errors and Omissions Insurance policy smooth and hassle free.