There are many scenarios that could give rise to an errors and omissions insurance claim, but here are a few examples to provide context to the cover described above.
• IT consultancy recommends unsuitable software: an IT consultancy incorrectly advises a client to install new software at great expense, which is then found to be unfit for purpose. The client sues the IT firm for the software cost, time taken to install it, plus the cost of seeking new advice and software.
• Conveyancing solicitor error: a conveyancing solicitor acting for a housebuyer failed to spot that an extension did not have planning permission or building regulations approval. Having completed the purchase, the buyer discovered the error and sued for the cost of obtaining retrospective permission and approval.
• Accountancy error: a failure to lodge tax returns led to the client losing tax repayment and interest, which they sought to recoup from the accountant.
• Graphic designer breach of copyright: a graphic designer used copyrighted images without a licence on behalf of a client and was held liable to pay the costs of the licence holder.