NBP Insurance » Technology Errors and Omissions Insurance FAQ

New York State Technology Errors and Omissions Insurance FAQ

What are the basic coverage’s provided by standard office insurance package policies?

  • Fire and theft coverage on office equipment and inventory.
  • Trip & fall and lawsuit coverage, in the event someone claims that something you did caused him or her to become injured.
  • Lots of other related benefits, often utilized by small businesses. Two examples are:
    1. Certificates Of Insurance
    2.Additional Insured Endorsements

What is Errors & Omissions Insurance?

Errors and omissions insurance is coverage that protects those people that give advice, make educated recommendations, design solutions or represent the needs of others. “E & O” is also referred to as Professional Liability or Malpractice Insurance. The original name, Errors and Omissions came from “doing something they shouldn’t have done (an error) or not doing something they should have done (an omission)”.

Who Needs E&O?

Today, many business trades and professions require the coverage. Teachers, consultants, software developers, ad copywriters, web page designers, placement services, ISP’s, telecommunications carriers, inspectors, realtors, insurance brokers, lawyers, doctors and just about everyone else.

What is the difference between E&O coverage and General Liability coverage?

General Liability is intended to cover physical injury to people or physical damage to things (your product causes physical injury to the user of your product or your client trips over your foot and breaks their face)

E & O is intended to protect you, the consultant or designer, in the event your client alleges that something you did on their behalf was done incorrectly, which resulted in some kind of financial loss or business interruption to your client. Contracts can help to limit your real liability, but the big expense in this kind of claim is the legal defense to prove your true liability or innocence. E & O policies are designed cover many of these defense costs and ultimately the final settlement if you do not prevail.

Always refer to your policy and review all papers carefully to be aware of any limitations or exclusions, which may apply. Remember, ALL policies contain certain limitations and exclusions; a policy is nothing more than a contract between you and an insurance company. Consult your policy and ask your Agent, just to be certain that you are clear on issues that may affect you.