Errors & Omissions Insurance
Errors and Omissions Insurance
Your company does it’s best to adhere to the rules and regulations governing the transportation industry, and provides exceptional, professional services to your customers. Yet, regulations are constantly changing, and you need protection against the smallest employee mistakes and even unfounded complaints of negligence and errors that could be brought against you. In today’s litigious environment, in which settlements and awards are increasingly on the rise, your company cannot afford to go without the proper Errors and Omissions Insurance (E&O Insurance).
What Is Errors and Omissions Insurance?
Errors and Omissions insurance is a type of professional liability insurance available to any company that offers advice or provides a service. At Roanoke, we provide cost-effective E&O insurance that is specifically designed for transportation and logistics service professionals.
E&O insurance from Roanoke covers your inherent vulnerability to financial exposures and liability, as a result of improper performance of, or the failure to perform, your professional services, including your activities as a customs broker, property broker, domestic freight forwarder, international freight forwarder, NVOCC, warehouseman, etc. Without the appropriate E&O Insurance, you could face substantial and costly legal claims.
How Does E&O Insurance Protect Your Business?
In the event, a customer files a claim against your company, E&O Insurance will cover your legal defense and any settlement awarded to the customer, per the policy terms. An Errors and Omissions Insurance policy is applicable to a wide range of claims alleging damages or losses as a result of the services you provided.
Some of the most common types of claims under the typical E&O Insurance policy include: failure to follow instructions, shipping delay caused by the negligence of an employee, improper quotation of charges, incorrect document preparation, unauthorized release of goods, misdirection, failure to collect documents, failure to properly clear goods upon entry, incorrect classification of goods, failure to insure cargo when instructed to do so, negligent selection of trucker or other carriers, among other activities.
Errors and omissions insurance that covers the cost of defense from the very first dollar for a claim is going to give your business the best value. Your risks are unique and a potential legal action costly, which is why you need E&O insurance specific to your needs and comprehensive in nature.
Errors and Omissions Claims Scenario
Delay in Delivery of Goods
The freight forwarder was engaged by a production company to arrange transportation of video, audio and lighting equipment to and from the Dominican Republic. The production company filed suit against the forwarder for failure to return the cargo timely. The delay resulted in additional charges to the leasing company for rental costs of new equipment and payment of lost sales.
The reason for the delay was that Dominican Customs could not match up the export documents with the import documents at no fault of the forwarder. The forwarder operated using terms and conditions of service referenced on their freight invoices which the production company had seen over several years of working with the forwarder. The case was settled at mediation.
A number of factors resulted in a contribution of settlement. Although the forwarder did operate using terms and conditions of service, several versions had been issued over a period of time of doing business with their customer. It was not clear which terms and conditions could, if any, be enforced on that basis. The forwarder was not responsible for the delay, but could possibly have made other arrangements to get the cargo exported timely.
Damages Sought: $448,524
$75,000 Settlement + $108,000 Legal Fees = $183,000 Payment from Insurance Company (before deductible)
Freight forwarder contribution: $5,000 deductible
Roanoke: E&O Insurance Specific to Your Needs
At Roanoke, we have spent two decades refining and enhancing our Errors and Omissions Insurance program to meet the precise needs of the professionals who make up the transportation industry. We can customize your E&O Insurance program based on your operations to provide the comprehensive protection needed to eliminate or minimize financial losses associated with actual or alleged errors or omissions claims and litigation.
Your daily operations may involve services for your customers driven by extensive documentation that requires attention to detail. Without the necessary protection, even a small oversight or alleged error can have a devastating effect on your business. Roanoke can help protect you against costly lawsuits with our insurance programs.
Please contact us at 1-800-ROANOKE (800-762-6653) or contact us here.