An errors and omissions policy protects and individual or organization from claims that are filed due to accidental negligence or failure to provide services according to an arrangement or contract. An E&O claim will look different within each industry, and the claim may even be titled differently. Within the medical field, malpractice is a type of E&O concern.
Things to Consider
With medical E&O coverage, an insurance plan provides protection from claims of failing to perform professional duties or claims of negligence. These claims can be anything from medical billing errors, a wrong prescription administration, or even copy-write infringement. Claims can be made against independent contractors, employees, and temporary staff. Mishandling patients’ data or failing to maintain data confidentiality could also open up a medical professional or organization to an expensive lawsuit.
Things to be Lost
A lawsuit against your medical practice could cost you thousands or millions. This kind of financial strain could cause you to lose your business, but the nature of the claim could cause you to lose your reputation. E&O insurance is a proactive way to protect you from these losses. There are too many exposures for you to face on your own, and a comprehensive policy will cover physicians, billing, claims review, management services, credentialing, and ancillary activities that aren’t typically associated with a medical practice.