Professional Indemnity - Errors & Omissions Insurance
Professional Indemnity (PI), Errors & Omissions (E&O) Insurance
One of the biggest challenges for any professional services firm is to navigate today’s complex risk environment and protect against claims that can erode its professional credentials.
Given increasing litigation trends and the rampant “blame and claim” culture that often pervades, no professional services firm can assume its practice to be immune from claims of malpractice or negligence.
The “duty of care” that a professional services firm owes its clients is heightened on account of specialised skills and knowledge that individuals bring to the services rendered by them. This is reflected in the consideration that clients are often prepared to pay for the same.
Risk of litigation comes from many sources, including:
- Failure to perform to the required standards
- Inadvertent error (even at junior levels) or the unintended consequences of seeming appropriate advice
- The failure to adhere to accepted “prior” or “post” procedural protocols leading to potentially serious claims or law suits against professional service firms.
Traditional general, public or product liability policies are not designed to cover claims alleging professional negligence and will generally be limited to only cover for bodily injury or property damage claims arising out of events or occurrences. Specialised Professional Indemnity or Errors and Omissions Insurance is designed to indemnify the insured against claims from clients or customers that allege financial losses arising out of deficient or erroneous professional services, or even claims alleging non-compliance of contractual obligations.
Key Insurance Features
- Covers claims brought by third parties (usually your client or those who rely upon the services or activities that you provide
- Covers claims arising from the professional’s negligent acts, errors or omission
- Coverage extends to individuals and the entity
- Coverage includes defence costs, settlement and judgments
- Policy coverage is normally arranged on an annual basis. Occasionally, multi-year policy can be arranged to meet specific project requirements.
Did You Know?
Aon represents more large professional service firms than any other broker in the world, placing coverage for:
- 55 of the 100 largest global law firms, including 56 of the 100 largest U.S. law firms and 10 of the 25 largest UK solicitors’ firms
- 19 of the 25 largest U.S. accounting, CPA firms, including each of the “Big Four”
- 10 of the 25 largest global consulting firms
- 7 of the 40 largest global design firms.
Aon has collected over USD 6B in professional indemnity claims on behalf of clients, more than all other insurance brokers combined.
Harness the power of the world’s largest broker to provide you the insurance solutions you have always been seeking for your firms’ liability insurance!