Wordings Library
Administrative protection
Clause explained
Errors & Omissions
May preserve cover for an inadvertent administrative error or omission, subject to correction and premium payment.
Meaning
May preserve cover for an inadvertent administrative error or omission, subject to correction and premium payment.
Why insurers use it
To avoid disproportionate forfeiture for genuine clerical mistakes while excluding deliberate or material non-disclosure.
Effect on coverage
Can cure scheduling mistakes but rarely creates cover the insurer would never have accepted.
Illustrative example
A newly acquired location is accidentally omitted from a monthly declaration.
Claim consequence
Recovery may depend on prompt correction, the reporting window, and proof that the omission was inadvertent.
What the insured should negotiate or check
Check reporting period, maximum value, acquisition rules, material facts, premium adjustment, and exclusions.