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Errors and Omisssions LiabilityMiscellaneous Errors ad OmissionsWhy buy Miscellaneous E&O insurance? When considering the need for this coverage, it is important to keep in mind that 35.9% of Misc. E&O claims result in some cost to the defendant. $22,649 is the average amount for defending a claim that closes with just legal expenses. $119,170 is the average loss amount paid per claim. $163,123 is the average combined loss and expense amount paid per claim when the defendant is found guilty. (Averages based on 1990-1999 data on file as of 12/31/01 with Shand Morahan & Co., Inc.) Who should buy Miscellaneous E&O insurance? Miscellaneous Errors and Omissions Coverage will generally encompass those risks that do not otherwise fit specific class definitions. This will include certain types of consultants, persons who give expert testimony, collection services, or otherwise offer professional services for a fee not normally requiring special licensing or certification. Claim A Third Party Administrator/Service Provider to a community hospital is being sued by the hospital due to an error that resulted in significant overpayment of a health claim. As administrator, the defendant approved a claim and then later discovered the company they had contracted with for the medical product had erroneously billed each prescription refill, resulting in an overpayment of nearly $400,000.00. The defendant alerted the hospital of the error and immediately stopped subsequent payments. Soon after, the drug provider filed for bankruptcy,, and recovering the overpayments from the successor have proven unsuccessful. A lawsuit against the defendant is pending and will seek to recover the amount of overpayment made by them to the drug provider. Click here to download an Miscellaneous E&O application and send your submission to PLUS today! |
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