Specialty Insurance Blog

Insurance Agents E&O – Limits & Terms

What Insurance Agents/Brokers E&O (errors & omissions) insurance limits do you buy? Insurance agents/brokers buy limits based on a variety of factors. A primary driver is the contractual requirements required by insurers. A recent post by Curt Pearsall at Agents E&O Tips (see here) has a number of good reminders regarding limits for Insurance Agents/Brokers E&O: Large E&O claims occur, including at smaller agents & brokers – buy enough limit. It is hard to change limits mid-term, so choose wisely at policy inception. The best use of your dollars is on limits We would add the following points: It is not always preferable to buy a higher aggregate limit than an each claim limit. On the same budget amount, it... Read more →

Professional Liability Insurance (E&O) – Duties

Professional Liability Insurance (also called Errors & Omissions or E&O) policies contain duties required of the insured like any other insurance policy. Most of these duties are common sense, such as cooperation. However, professional liability policies tend to be more specific and not all policies are the same. Different wording may lead to different conclusions when faced with a specific fact pattern from a potential or actual claim. These provisions are some primary duties: Cooperation Notice – claim and potential claim Do Not Admit Liability or Waive Rights In particular, notice provisions concerning potential claim situations vary. For example, some policy provisions require notice of a potential incident and in some policies notice of incidents is optional. Additionally, some notice... Read more →