An alternative term for professional indemnity but often used to refer to the ‘newer professions’, e.g. advertising agents, the media, etc. The term also describes the insurance effected by Lloyd’s underwriting agents as required by Lloyd’s.
Insurance Encyclopedia
Errors and omissions (E&
O) insurance An insurance form that protects the insured against liability for committing an error or omission in performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury (BI) and property damage (PD).
Errors and omissions (E&O) insurance
An insurance form that protects the insured against liability for committing an error or omission in performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury (BI) and property damage (PD).
Errors and omissions clause
Ensures that the reinsurer is not relieved of liability if the reinsured has inadvertently made an error or omission in supplying risk information to the reinsurer. Errors and omissions must be corrected as soon as possible. Some E & O clauses apply to errors and omissions by either party. The aim is to place the parties in the position that would have existed in the absence of the error or omission.
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A provision in reinsurance agreements that is intended to neutralize any change in liability or benefits as a result of an inadvertent error by either party.
Errors and omissions clause (Reinsurance)
A clause in a reinsurance treaty that stipulates that errors or omissions made do not nullify the reinsurer’s liability.
Errors and omissions coverage (E&
O)A type of professional liability insurance protecting the insured against claims alleging bodily injury or property damage caused by the professional or technical incompetence of the insured.
ERRORS AND OMISSIONS COVERAGE (E&O)
Also known as E&O insurance, this form of coverage protects the policy-holder for negligent acts and omissions that may harm customers. Errors and/or omissions are usually interpreted as mistakes and/or failure of your firm to perform services as promised in a contract. Coverage includes defense and court costs as well as the amount of any claim or judgment up to the limits of the policy. E&O is commonly written to protect insurance agents. (See Professional Liability Insurance).
Errors and Omissions Insurance
Liability insurance policy that provides protection against loss incurred by a client because of some negligent act, error, or omission by the insured.
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Policies generally available to the various professions that require protection for negligent acts and/or omissions resulting in bodily injury, personal injury and/or property damage liability to a client. For example, law firms are often exposed to the claim that inadequate or improper legal advice was provided resulting in a claim by the client that they suffered a loss. (02) A form of insurance which covers losses resulting from financial institutions failing to effect appropriate insurance coverage.
Errors and omissions insurance (Liability)
Insurance that covers the insured against losses incurred due to a mistake on the insured’s part. This type of insurance is usually purchased by financial advisors or insurance agents. This can also be a type of insurance that covers a financial institution against failure to obtain adequate insurance coverage.