ERRORS AND OMISSIONS CLAIMS AND LITIGATION

Most businesses and small business owners recognize that Errors & Omissions insurance (also commonly known as “E&O Coverage”) serves as a vital component of the business plan and helps protect against potentially devastating financial losses resulting from harm caused by the negligence of the business to its customers and clients.

The harm does not have to be a physical injury or property damage loss; rather, the harm alleged can result either a failure to make a timely and proper delivery of a purchased product to the untimely and proper delivery of a promised service. In this respect, E & O coverage is very similar to professional malpractice liability insurance in that it falls within the insurance industry’s category of Professional Liability Insurance (also commonly known as “PL Coverage”). It is also important to note that the coverages available under typical Commercial Liability policies (also commonly known as “GL Coverage”) generally differ from the coverage available under a typical E & O policy in that GL policies usually do not cover claims of personal negligence and resulting loss.

Depending upon the language, endorsements and exclusions of a particular E & O policy, indemnity for a claimed negligent loss will be provided, as will be payment for the businesses’ attorney’s fees, expert witness fees, court costs, settlements (if approved by the insurer) and judgments. Also, and depending upon the language of the policy, a businesses’ employees and even its independent contractors may be afforded coverage against claims of negligent performance and resulting loss.

Whether a licensed professional or a general contractor, whether a restaurant operator or a massage therapist; all businesses and business owners who are involved in the production or delivery of goods, products and services are likely well advised to consider the protections available through the various types of E & O coverages provided by the insurance industry.

The attorneys of Poling Law have successfully defended multiple claims covered by E & O policies of insurance, and we are ready to stand with you and your insurance company, at trial, in the event a suit is filed.