{"id":40,"date":"2019-04-23T15:08:02","date_gmt":"2019-04-23T09:38:02","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=40"},"modified":"2021-07-28T15:46:51","modified_gmt":"2021-07-28T10:16:51","slug":"errors-and-omissions-insurance-even-the-most-successful-companies-require-it","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/errors-and-omissions-insurance-even-the-most-successful-companies-require-it\/","title":{"rendered":"Successful Companies (And Their Need for E&O Insurance)"},"content":{"rendered":"\r\n

\u201cThe greatest mistake is to imagine that we never err.\u201d <\/em><\/span><\/p>\r\n

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There are times when a professional error or negligence on the part of a company could cost a customer reputational and monetary losses. At such times, the company is legally liable to pay for damages incurred by the customer. This could run into lakhs and crores of rupees and could financially cripple a company.<\/span><\/p>\r\n

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Let\u2019s look at a few examples to understand this.<\/span><\/p>\r\n

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Example 1<\/strong>: Company X is the insured – an IT software services company that sells and installs a computerized system for a client \u2013 an e-commerce company. As the IT services provider, company X is also responsible for regular maintenance and system support.<\/span><\/p>\r\n

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A software upgradation lead to erratic behavior and eventually, the complete failure of the portal. As a result the e-commerce company had to shut down the portal access and suffered loss of finances. The client sued company X for negligence in service performance.<\/span><\/p>\r\n

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The claim was filed under the E&O Insurance policy<\/strong> for \u201cProfessional Negligence\u201d and \u201cFailure to perform\u201d and the damages claimed were for the loss of revenue and damage to reputation.<\/span><\/p>\r\n

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Example 2<\/strong>: A well-known clothing brand employs a freelance fashion designer to design a new collection. The freelancer uses the image of an artist\u2019s painting as a print on one of the textiles. The clothing brand introduces the new collection. The artist gets to know that her painting has been used without her permission. She sues both, the freelance designer and the clothing brand.<\/span><\/p>\r\n

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Circumstances and nature of incidents may vary across different industries, but it is essential for enterprises to have some kind of cover that can protect them during these sort of trying times. This is where having an errors and omissions insurance cost<\/span><\/span><\/span> could prove to be particularly beneficial.<\/span><\/p>\r\n

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Small business errors and omissions insurance<\/span><\/span><\/span> India<\/strong> can ensure that companies are able to deal with setbacks<\/a> and can avoid adverse effects on their business. Errors and Omissions policy<\/span><\/span><\/span><\/strong> is one of the most common liability business insurance that is suitable for small business owners, large corporations and even individual contractors and professionals.<\/span><\/p>\r\n

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If you need an e & o insurance policy<\/span><\/span><\/span><\/strong> and want to know more about it, this article is perfect for you. And even if you haven\u2019t considered or have decided against purchasing one, read on further to understand why you might want to reconsider your decision.<\/span><\/p>\r\n\r\n\r\n\r\n

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