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E&O Insurance Rates, Claims, and Processes

When you’re comparing E&O insurance rates, it’s definitely important to take a look at annual premium costs and deductibles. Many people overlook how claims are made when they are shopping for insurance rates.

Claims Made vs. Claims Made and Reported
E&O insurance covers and errors or omissions made by professionals when said professionals fail to effectively perform a service for a client. There are generally two types of E&O policies. These are “claims made” and “claims made and reported” policies.

These types of claims determine how and if a certain incident will be covered. Every policy will have a certain policy period. If you own a ‘claims made’ policy, then a claim must be made while you are covered by the policy. If you own a ‘claims made and reported’ policy, then an official report must be sent to the insurance company during your policy period.

Know Your Retroactive Date
Any claims made before the policy went into action will not be covered by the insurer. So, make sure to look at the retroactive date on your policies. This is why it is beneficial to obtain a retroactive date that goes far back.

You need to acquire a policy that will cover defense expenses and punitive damages. Some policies explicitly exclude coverage for these expenses. So, carefully analyze your policy to make sure you are covered for these issues.

Go With a Company with E&O Experience
It’s a good idea to investigate specialty insurance companies that have experience in E&O. This is a very specialized field, so you should only entrust your company to top-notch professionals. Ask around and check your insurer’s rating before you purchase E&O insurance.