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 may possible to buy higher absolute limits if the each claim and aggregate limits are the same.
- Using the same reasoning, it is not always preferable to buy defense outside the limits. Again, budgetary considerations may result in higher total limits with defense inside – so it depends.
- It is preferable (and important) to aggregate the deductible (but not always possible).
- Other terms will also impact coverage, and can be as important as limits. Pay attention to terms.
Our advice regarding coverage and professional liability, including Insurance Agents/Brokers E&O, is to get an expert to help (yes – like eSpecialty Insurance).
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. We look forward to working with you.
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