SMALL BUSINESSES CAN NOW COVER THEMSELVES AGAINST CLAIMS FOR MISTAKES

Friday, May 17, 2013

Auto & General Insurance has added Errors & Omissions cover to its Business Insurance product suite. The solution provides cover of up to R50-million to protect businesses against claims by a client for an alleged mistake or omission that has caused financial loss. The company’s Head of Brokers, Sean Jackson, says Auto & General’s Errors & Omissions goes beyond indemnity insurance. “It is a tailor-made solution that targets key risks for small and medium sized (SMEs) businesses which offer advice or services.

“Regardless of how meticulous we are about implementing policies and procedures to prevent mistakes, they can still happen. If a company for instance gives advice to a client, or provides a service to someone, and something goes wrong as a result of the work done or advice provided, the company could be held financially responsible.

“Even if the company isn’t ultimately responsible for the loss, the legal costs can stack-up considerably. This can threaten the sustainability of a small business. Our product is designed to protect and guide SMEs in the event that one of their client’s sues them for a loss or breach resulting from the service or advice they received. Beyond just providing insurance cover against this kind of liability, the product also offers support to assist small companies in navigating the dispute resolution process,” says Jackson.

Auto & General’s Errors & Omissions insurance is founded on the company’s “Always there, always a pleasure” service guarantee. Claims specialists guide customers throughout the process, from claim to settlement, and in the event of court proceedings, Auto & General will arrange and pay for a legal expert who understands their business and the risks associated with their sector to represent them.

Jackson says smaller businesses, just like large corporates, can be held liable for a range of errors and omissions arising from providing services and advice to individuals and other companies. These include dishonesty or fraudulent acts by employees; negligent misstatements or misrepresentation; breach of confidence or misuse of information that is confidential or subjected to restricted use; loss of documents, and infringement of intellectual property rights such as copyright, patents, and trademarks.

Auto & General Errors & Omissions covers business against claims related to these and also provides for:

  • Defence costs
  • Loss mitigation
  • Costs and expenses incurred when recovering fees due to the company
  • Sub-contracted duties
  • Joint Venture agreements
  • Claims preparation costs
  • Automatic extended reporting period

The solution features Alternate Dispute Resolution, which pays for arbitration services incurred by a company when attempting to resolve a dispute; affordable monthly premium payments via interest free direct debits; clear and easy to understand policy wording, and affordable excess.

“We developed our Errors & Omissions solution with small and medium sized companies specifically in mind. They don’t always have the know-how or the resources to defend themselves appropriately in a dispute. We’re here to make it easier and help manage the financial and reputational implications for them,” concludes Jackson.



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