Such claims are simply outside the scope of the basic CGL insuring agreement. The new kid on the block, specialty or miscellaneous errors and omissions insurance, is needed for the exposure. Specialty underwriters have already identified between 60 and 100 classes that are candidates for the coverage and for which they are prepared to write it. Errors in a program that has been developed can have the potential for economic damage to the user. Electronic data processing companies.
Procedural errors can result in problems for the client.
It is clear that executive search specialists, in particular, can be held accountable in certain circumstances for financial loss incurred by a client. Purchasers of existing homes rely on the reports of such services prior to large investments. Marketing service companies. Reports that are incomplete or not based on careful investigation or analysis can have a serious impact on the client. A flawed return can eventually result in costs to the preparer greater than penalties to the client.