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.

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.