Errors and Omissions Insurance Policy

Error and omissions insurance is a form of liability insurance, generally termed as E&O insurance covers breach of duty and protects any organisation/ institution / establishment against lawsuits and claims made by the clients against a professional who has provided advice or services to that client. E&O insurance covers the organisation and their employees against claims of negligent actions, breach of duty or any error or omission in rendering professional services.

This policy is meant to pay for defence expenses and damages which the insured is legally bound to pay resulting from any judgment or award by competent authority.

Error and Omission Insurance in medical fraternity:

Medical profession is exposed to various risks resulting in legal and financial liabilities. The Error and Omission Insurance policy will indemnify the Insured in respect of any act committed by the professionals or qualified assistants named in the proposal engaged by the medical establishment which gives rise to any third party legal liability.

The legal liabilities arise out of errors & omissions like misdiagnosis, negligence, errors in procedures related to surgery, an inadequate or incorrect course of treatment or medication, error in extending advice to patients etc.

Many times the patient party tends to file suits not only in names of a treating doctor but the medical establishment and its employees also and this risk is referred as “vicarious liability”, wherein when one person is liable for the negligent actions of another person, even though the first person was not directly responsible for the injury.

In such a scenario the Individual liability policy would respond for the Individual doctor only but the E&O Insurance will respond for the establishment and its employees.

This is one of the main reasons why the medical establishments should opt for E&O Insurance and stay protected
against unforeseen risks