This type of errors and omissions insurance provides coverage for mistakes made by professions such as lawyers, architects, engineers, or for mistakes made in a service business, such as insurance, real estate, and others.
Why do I need Errors and Omissions Insurance?
As a business professional, an error or mistake could be made in providing a service, which may result in a financial loss to the customer. Errors and Omissions coverage will defend the claim and pay the loss if necessary. Other types of claims that may be covered include negligent advice, breach of contract and misrepresentation of services. Our insurance agents in Utah can provide you with additional information.
We cover any alleged mistakes in your provision of professional services. This includes failing in your ‘duty of care,’ giving incorrect advice, an omission (leaving something out), or failing to deliver your services.
If you’re sued, even if you haven’t made a mistake, we will appoint an attorney to defend you, even if the lawsuit is groundless.
Services performed in the past
We cover the services you have performed going back to an agreed – upon date – even if that date is before you were insured with current insurance company – for any unknown claims that may be made against you and reported to us during the policy period. This date, the retroactive date, is printed on the Declarations Page of your policy.
Worldwide insurance coverage
We cover claims arising from work done anywhere in the world as long as the claim is filed in the United States, its territories, or Canada.
Employees, temporary staff, and independent contractors
We cover claims arising from services performed by your employees, temporary staff, or independent contractors if those services were performed on behalf of your business.
Claims and damages
We cover claims for damages, including up to $250,000 of punitive damages where allowed by law.
We cover claims of libel and slander as part of your professional services.
We will pay for expenses you reasonably incur as a result of attending arbitration proceedings or trials in the Defense of a covered claim. We will pay up to $5,000.
Will not cover:
Bodily injury or property damage
We won’t cover damages or claims expenses if you injure someone or damage someone’s property. Coverage for these types of risks is included in our General Liability or Business Owners Policy.
We won’t cover you for claims alleging improper employment practices, workers’ compensation claims, or any Employer’s liability.
Known claims and circumstances
We won’t cover any known circumstance that could result in a claim or any actual claim originating prior to the start of your first E and O policy.
We won’t cover you for false advertising claims.
Personally identifiable information
We won’t cover your failure to protect any personally identifiable information that is in your care.
We won’t cover any medical, nursing, insurance broker/agent, legal, actuarial, architectural, or engineering services you perform. We also don’t cover any services you perform that are not specified in your policy.
We won’t cover any claims that are brought by any governmental body or licensing organization, unless they are one of your clients and they make a claim against you in that capacity.
Your costs and excluded damages
We won’t cover fines, penalties, and taxes that are levied against you. E and O or professional liability also won’t cover the cost of Complying with nonmonetary relief, cost overruns, or reduction of your fees.
We won’t cover infringement of a copyright, trademark, patent, or theft of a trade secret.
Common claim examples:
Protection even if you haven’t made a mistake – You advise a client to change some internal processes to increase productivity. The recommendations aren’t implemented as you had specified and productivity. Subsequently drops by 15% rather than improving. If your client sues you to recover lost income, we will appoint an attorney to defend you.
Protection even if you haven’t made a mistake – You manage the development of a new product. There are problems with the project (which are out of your control) and you cannot deliver the final product in a timely manner. If your client sues you, we will appoint an attorney to defend you.
Negligent acts – You advise a client to update their employment practices. Six months later, your client contacts you, stating a part-time employee is suing the company. You had left out a key requirement on the amount of hours Part-time employees are permitted to work. If your client sues you, we will appoint an attorney to defend you. Coverage summaries, descriptions, and claims examples are provided for illustrative purposes only and are subject to the applicable policy limits, deductibles, exclusions, terms, and conditions. Not all insurance products and services are available in all states.