E&O Insurance for Businesses

To get started with obtaining Professional Liability insurance, your FCA broker will require a thorough understanding of your firm’s operations, services and completion of relevant applications. From here your broker will work to provide competitive quotes from the market and help you develop a robust risk management process in the effort to avoid future claim activity.

The majority of E&O policies in today’s market are Claims Made policies. These means that claims must be reported during the policy term and when the insured becomes aware of the claim. A failure to report a claim, or even a potential claim, during this time will likely lead to an unfunded liability exposure.

A Claims Made Errors & Omissions Liability policy will also have such conditions as a retro-active date. A retro-active date is the effective the date that the policy is officially placed for the first time, essentially when the coverage for professional services commence. If, however, you or your firm has offered professional services prior to this first effective date of professional services then the Claims Made policy will not afford coverage.

This is an area that the specialist at FCA Insurance Brokers can provide appropriate advice and direction to avoid any unfunded liabilities. Once a retro-active date has been established then this date should always be noted on the declaration of the policy documents. In some cases, the insurer may offer an open retro-active date.

Professional firms should generally purchase a Commercial General Liability Insurance (CGL) policy to complement the professional liability policy. The CGL covers the cost of property damage or bodily injury caused to your client or third parties on your premises. Many professional firms also require property, equipment, cyber and auto insurance as well. Your FCA advisor will complete a thorough review of your professional firm and will recommend a full suite of customized coverages tailored to your specific needs.

A self-insured retention, is a form of deductible, is an amount that an insured retains and covers before insurance coverage begins to apply. This allows the insurer to not defend a claim unless the insured intends to call upon the policy.