If a company or individual is responsible to offer service or advice or financial assistance, then there is a chance of risk of lawsuits. These law suits can be imposed by any one who received physical harm or financial, personal or property loss because of business professional’s mistakes.
Then individuals or companies are protected by errors and omissions insurance from claims which are caused by negligence or mistakes. Lawyers, accountants, architects or engineers, doctors may need this insurance policy. Other professionals also need this insurance, their jurisdictions decide the need of this insurance.
This insurance is compulsory for some professions in some countries. This type of insurance is called as malpractice insurance in medical field. All medical facilities and professionals are required by this insurance to carry the malpractice coverage through out the world. Health care workers are provided protection by this insurance policy by providing the legal assistance and claim coverage. Financial advisers, mortgage intermediaries, and insurance brokers require professional indemnity in UK. Requirement of the insurance changes according to states in United States. International policies are offered by some insurance companies to some Multinational companies because they organize the business in different regions or places. Errors and omissions claims are not covered by product or business liability insurance, so one requires a separate policy. There are different deductible amounts, they are agreed in advance. Protection of professionals are also included by this insurance coverage from claims. Attorney will be provide court costs which are associated with the suit are paid by insurance company if a suit is filed on the policyholder.
The important thing is deliberate criminal or dishonest acts are not covered by errors and omissions insurance policy. You can choose this insurance policy according to your requirements.