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Errors and Omissions Insurance Coverage

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Why do I need errors and omissions insurance coverage?

Hiscox errors and omissions coverage, also known as professional liability insurance, provides protection for your professional services business from claims of negligence or failing to perform your professional duties. This section explains what our E&O insurance offers.

 

        What is covered?

 

What is not covered?

  • Alleged or actual negligence
  Bodily injury or property damage
  • Defense costs
  Fraudulent acts
  • Personal injury (e.g., libel or slander)
  Employment matters
  • Copyright infringement
  False advertising
  • Worldwide errors and omissions insurance coverage
  Patents and trade secrets
  • Temporary staff and independent contractors
  Personally identifiable information
  • Claims arising from services provided in the past
  Other services
  • Claims and damages
  

 

Your Hiscox errors and omissions insurance policy covers:

 

Alleged or actual negligence

Errors and omissions insurance coverage is strongly recommended to protect your business from claims alleging negligence from your professional services including failing in your "duty of care", giving incorrect advice or making mistakes.

 

Defense costs

Hiscox will defend you, even if the lawsuit is groundless. We even pay for supplemental expenses you incur as a result of attending an arbitration proceeding trial in the defense of a covered claim.

 

Personal injury (e.g., libel or slander)

Hiscox protects you against personal injury claims (e.g., libel or slander) that arise while rendering your professional services.

 

Copyright infringement

We customize your errors and omissions insurance coverage for the specific needs of your business.

 

For example, if you are an IT/technology consultant, you could run the risk of being sued for allegedly infringing on software code. For most businesses in this profession, Hiscox offers up to $200,000 of coverage for damages and claims expenses for just such a situation.

 

Similarly, for marketing consultants, we include up to $200,000 of coverage for claims alleging the infringement of a third party’s copyrights or trademarks that may arise while rendering your professional services.

 

Worldwide errors and omissions insurance coverage

At Hiscox, we believe your insurance should follow you wherever your business takes you. Our E & O insurance covers claims arising from work you do anywhere in the world, as long as the claim is filed in the United States, its territories or Canada.

 

Temporary staff and independent contractors

Hiscox covers claims arising from business-related services completed by your employees, temporary staff and independent contractors.

 

Claims arising from services provided in the past

We’re one of the few insurers to cover unknown claims from services your business has performed in the past. Most errors and omissions insurance carriers will only cover your services originating from the date you purchased your first policy. Hiscox covers you even before you purchased your first E & O insurance policy (retroactive coverage).

 

Claims and damages

It’s better to be safe than sorry. If you lose a large claim, it can affect the financial stability of your business. Your Hiscox policy covers claims for monetary damages and non-monetary relief, including up to $250,000 of punitive damages where allowed by law.

 

Start your errors and omissions quote

Get your small business errors and omissions insurance quote online now or call one of our licensed advisors at 866-283-7545 (Monday - Friday, 8am-10pm EST). We are here to help.

 

Your Hiscox errors and omissions policy doesn’t cover:

 

Bodily injury or property damage

Hiscox errors and omissions insurance doesn't cover damages or claims expenses for third-party injuries (slip and falls) or damage to someone’s property. To protect your business from these risks, please see our general liability insurance coverage page.

 

Fraudulent acts

We won’t cover any fraudulent, dishonest or criminal acts. However, we’ll defend these actions until they’re proven to be fraudulent, dishonest or criminal by proper process in court. If this happens, we’ll kindly request that you reimburse us for those costs.

 

Employment matters

Your policy doesn't cover your business for claims alleging any improper employment practices committed against your employees or for any workers’ compensation claims or employer's liability claims.

 

False advertising

Your Hiscox E & O insurance policy does not cover you for any false advertising claims.

 

Patents and trade secrets

Your policy does not cover your business for any claims that allege an infringement of a patent or theft of a trade secret.

 

Personally identifiable information

Your errors and omissions insurance coverage policy does not cover your business’s failure to protect any personally identifiable information in its care, custody or control.

 

Other services

We don’t cover any services you perform not specified by the services endorsement attached to your policy. Your policy will also not cover any medical, nursing, insurance broker/agent, legal, actuarial, architectural or engineering services, regardless of your occupation.

Errors and omissions coverage claims examples:

 

Copyright infringement
You’re a marketing consultant creating a slogan for a new product. By accident, you use a slogan similar to another business's. Unknowingly, you may have just infringed upon the intellectual property rights of that other business. They may sue you.

 

You don’t need to press the panic button. Your Hiscox errors and omissions insurance coverage will immediately defend you and, if necessary, a lawyer will be assigned to handle your case. We’ll even pay for damages for which your business is found liable, up to the policy limits.

 

Negligent acts
You’re an IT/technology consultant installing software changes for a client. A virus lets hackers access their customer database file because you disabled the firewall in order to make the installation. Your client may sue you for damages, even though your actions were unintentional.

 

Not to worry. We’ll immediately defend you and, if necessary, appoint a lawyer to handle your claim, covering any damages you may incur, up to the policy limit.

 

Protection, even if you haven’t made a mistake
You’re a software developer. Your client claims the new invoicing system you’re building for them lacks the functionality required. Although not your fault, the client alleges negligence and sues you for failing to deliver a working piece of software. We’ll appoint an attorney to defend you and pay any damages for which you are liable, up to your policy limits.

This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverages are subject to underwriting and may not be available in all states.

Contact Hiscox the small business insurance specialists, and speak to one of our licensed agents today!

866-283-7545

8am - 10pm (Mon - Fri) EST

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