When Things Go Pear-Shaped – and it’s your fault
If your work involves selling your knowledge, services and expertise to others, then Errors & Omissions insurance (E&O) is a must. It’s an essential piece of armour for anyone who could be sued for making a mistake.
What is E&O insurance?
In this everything-by-yesterday world, even the most respectable company can find itself in dispute with a client over an error, a delay or alleged breach of contract. E&O insurance provides indemnity for losses you are legally liable for if you make a mistake or are negligent, or if your product or service is defective, inadequate or fails to perform.
Why do I need it?
In the political climate of harmonization and consumer protection, it’s hard to keep up with changes in the law, and many companies find themselves embroiled in expensive disputes without realizing they’d done anything wrong. Failing to defend these allegations properly could cause irreparable damage to the reputation and financial stability of your business. Every day your business could be exposed to allegations of:
Negligence or breach of duty of care
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Negligent mis-statement & defamation – unwitting or intended comments
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Infringement of intellectual property rights including copyright, performance and broadcasting rights
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Breach of contract
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Dishonesty of your partners, directors, employees or freelancers
How will it protect my business?
Errors & Omissions Insurance helps with:
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Indemnification and defense costs: legal expenses cover to defend your cause in a dispute
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Rectification: the insurer may pay to rectify the problem to mitigate costs and avoid an expensive liability claim
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Outstanding fees: if a dissatisfied client threatens legal action and defaults on fee payment, the policy can cover outstanding fees
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We can help you review your contractual obligations to identify the extent of indemnities that your clients require. Contact us using the form below.
