Often known as errors & omissions (E&O Insurance) is a form of liability insurance that helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.
The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are potential causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm.
Our policy provides for the defense costs, including when legal action turns out to be groundless. Coverage does not include criminal prosecution.
This insurance is required by law in some areas for certain kinds of professional practice and is also sometimes required under contract by other businesses that are the beneficiaries of the advice or service.
PI insurance may take on different forms and names depending on the profession. For example, in reference to medical professions it is called medical malpractice insurance, while errors and omissions (E&O) insurance is used by other miscellaneous professions including consultants, brokers and lawyers (Miscellaneous PI Application) (Specimen Policy). Other miscellaneous professions that commonly purchase professional liability insurance include accounting and financial services.
When such coverage is looked for management of companies (Directors & Officers) its known as D&O Liability Insurance.
Architects & Engineers (including all construction and maintenance (general contractors, plumbers, etc.) professions (A&E Application)(Specimen Policy) also require to buy this cover. They can do so on a project by project basis or, for an over-all annual cover.