Commonly referred to as “PI Cover” as for cover in the professional industries, it is also known as “Errors & Omissions” (E&O) cover. It is a form of liability insurance which protects business and individuals against the neglect in professional advice and or service rendered and or product designed and more, bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. Cover could provide for the defence costs, including when legal action turns out to be groundless.

A policy that has figuratively speaking, shot through the roof in cost, especially for those involved with childbirth, midwifery. The policy grants cover for legal cost for when a medical or health care professional, through a neglect in action or omission, deviates from standards in their profession, thereby causing injury to a patient. The negligence might arise from errors in action or diagnosis, treatment, aftercare or health management.

Often called “D&O”, it is liability insurance payable to the directors and officers of a company or to the organization itself however please note, intentional illegal acts are not covered. Reimbursement in terms of this policy is for losses or advancement of defence costs in the event of a legal action brought against a director or officer for an apparent wrongful act performed, in their capacity as directors and officers of the entity.

Covering unfair labour practice / wrongful acts arising from employment, the legal action and the award will be the quantified loss.  The most commonly reported claims result out of CCMA Summonses brought against clients, as a result of wrongful termination, discrimination, sexual harassment and retaliation. In addition, defamation, invasion of privacy, failure to promote, deprivation of a career opportunity and negligent evaluation is covered too.