Errors and Omissions Insurance (E&O insurance/Professional Liability Insurance) is designed to insure a corporation, LLC, non-profit organization or an individual in the event of alleged error or omission of the organizations or individual professional performance. For example, architects and engineers liability exposure is the professional service that they provide. Should there be a claim against the alleged faulty design of the architect and engineer the E&O insurance policy will indemnify them according to the policy limits and terms. Most common cost of an E&O claim are judgments, settlements and defense costs.
Claims Made vs. Occurrence
Claims Made Coverage
E&O policies are typically written on a “claims made” basis to provide a lower cost alternative to a “Occurrence” based policy. “Claims made” coverage will respond to incidents arising on or after the policy retroactive date and which are reported during the term of the policy. For example, if a claim is filed against you while you are insured, your policy will indemnify you. However, if you cancel/end/non-renew your policy and a claim is filed against you, even if the plaintiff became a client while you were insured, your claim will be denied. There are three solutions to this. You may purchase “Extended Reporting or Tail Coverage” or “Prior Acts-or Retroactive Coverage” or “Occurrence” based policy.
Extended Reporting Period or Tail Coverage
Extended Reporting Period or Tail Coverage covers claims resulting from incidents or occurrences that occurred on or after the policyholder's retroactive date and before the policy termination date.
The difference between “Prior Acts and Retroactive Date”
A prior acts and retroactive date have the same meaning. A claims-made policy covers you for claims-made during that one policy year. The retroactive date allows you to also add coverage for incidents that happen after your retroactive date. The process of covering those past years is called prior acts. For example, is you have had a professional liability policy for two years with one carrier and decided to switch to another insurance company.
It is necessary for you to purchase coverage dating back to the inception date of your original policy. If you don’t purchase this coverage and a claim is filed against you by a client whom you entered into a contact with while insured with the prior carrier. The new insurance company will not provide coverage for “prior acts” or “prior clients” unless prior acts coverage was purchased from the new insurance company.
Errors and Omission
Occurrence
Occurrence based professional liability policies are the recommended policies by Calco Commercial Insurance. They do cost significantly more and provide coverage years after you end your policy. For example, an architect or engineer is in his/her last year in business before retirement. If he/she has an “Occurrence” based policy he can retire without purchasing Tail or Extended reporting Period Insurance coverage.
Error and Omission/Professional Liability Insurance/E&O Insurance offered but not limited to business listed below:
§ Environmental consultants
§ Computer Consultants
§ Agent
§ Expert Witness
§ Consultants
§ Mortgage brokers
§ Messenger/courier services
§ Telephone answering services
§ Travel agents
§ Financial planners
§ Home inspection companies
§ Photographers
§ Printers
§ Public relations consultants
§ Real estate agents/brokers
§ Software developers
§ Temporary employment agencies
§ Medical Professional Liability
§ Medical Professional liability
§ Private Company Management liability
§
§ Architects
§ Engineers
§ Technology Firms
§ ACUPUNCTURISTS HOME HEALTH CARE
§ ADULT DAY CARE HOSPICE FACILITIES
§ AMBULANCE COMPANIES HOSPITALS – ALL KINDS
§ ASSISTED LIVING FACILITIES LABORATORY – IMAGING/MRI
§ BIRTHING CENTERS LABORATORY – PATHOLOGY
§ CHIROPRACTORS LABORATORY – DENTAL
§ CLINICIAL TESTING LABS LABORATORY – MEDICAL/CLINICAL
§ CLINICS – ABORTION LOCUM TENENS/TEMP STAFFING
§ CLINICS – FERTILITY MANAGED CARE
§ CLINICS – OUTPATIENT MENTAL HEALTH FACILITIES
§ CLINICS – WEIGHT CONTROL NATUROPATHIC HEALTHCARE
§ CORRECTIONAL FACILITIES NURSE REGISTRY
§ DENTISTS NURSES – V.N.A.’S
§ DENTAL LABORATORIES NURSING HOMES
§ DIALYSIS CLINICS OCCUPATIONAL HEALTH
§ DRUG/ALCOHOL CLINICS OPTICIANS/OPTOMETRISTS
§ EMERGENCY MED. TECH (EMT’S) ORGAN/TISSUE BANKS
§ FERTILITY CLINICS PHARMACISTS
§ GROUP HOMES PHYSICIANS – GROUPS/INDIVIDUAL
§ HALFWAY HOUSES REHABILITATION FACILITIES
§ HEMO & PERITONEAL DIALYSIS
§ ACUPUNCTURISTS HOME HEALTH CARE
§ ADULT DAY CARE HOSPICE FACILITIES
§ AMBULANCE COMPANIES HOSPITALS – ALL KINDS
§ ASSISTED LIVING FACILITIES LABORATORY – IMAGING/MRI
§ BIRTHING CENTERS LABORATORY – PATHOLOGY
§ CHIROPRACTORS LABORATORY – DENTAL
§ CLINICIAL TESTING LABS LABORATORY – MEDICAL/CLINICAL
§ CLINICS – ABORTION LOCUM TENENS/TEMP STAFFING
§ CLINICS – FERTILITY MANAGED CARE
§ CLINICS – OUTPATIENT MENTAL HEALTH FACILITIES
§ CLINICS – WEIGHT CONTROL NATUROPATHIC HEALTHCARE
§ CORRECTIONAL FACILITIES NURSE REGISTRY
§ DENTISTS NURSES – V.N.A.’S
§ DENTAL LABORATORIES NURSING HOMES
§ DIALYSIS CLINICS OCCUPATIONAL HEALTH
§ DRUG/ALCOHOL CLINICS OPTICIANS/OPTOMETRISTS
§ EMERGENCY MED. TECH (EMT’S) ORGAN/TISSUE BANKS
§ FERTILITY CLINICS PHARMACISTS
§ GROUP HOMES PHYSICIANS – GROUPS/INDIVIDUAL
§ HALFWAY HOUSES REHABILITATION FACILITIES
§ HEMO & PERITONEAL DIALYSIS
§ Adjusters Management Consultants
§ Advertisers Manufacturers Engineering
§ Agricultural Consultants Marketing Agencies/Consultants
§ Answering Services Media Liability
§ Association Professional Liability Multiple Listing Services
§ Benefit Plan Administrators Premium Finance Companies
§ Bookkeepers Printers
§ Broadcasters Programmers
§ Claims Adjusters Process Servers
§ Collection Agencies Property Managers
§ Communications Consultants Public Relations Firms
§ Computer Consultants/EDP Services Publishers
§ Court Clerks/Court Reporters Real Estate Agents/Brokers
§ Credit Bureaus Relocation Services
§ Employment/Executive Search Agencies Risk Management Consultants
§ Energy Auditors/Consultants Software Development Services
§ Environmental Consultants Tax Preparers
§ Forensic Investigators Technology/Telecommunications Services
§ Freight Forwarders/Custom Brokers Testing Laboratories
§ Geological Consultants Title Agents & Abstractors
§ Insurance Agents/Brokers Third Party Administrators
§ Insurance Consultants Travel Agents/Tour Operators
§ Insurance Investigators Web Site Designers & Hosting
§ Acupuncturists
Occupational health
Adult day careA
mbulance companies
Assisted living facilities
Birthing centers
Chiropractors
Clinical testing labs
Clinics - abortion
Clinics - fertility
Clinics - outpatient
Clinics - weight control
Correctional facilities
Dentists
Dental laboratories
Dialysis clinics
Drug/alcohol clinics
Emergency Med. Tech (EMT)
Fertility clinics
Group homes
Halfway houses
Hemo & peritoneal dialysis
Home health care
Hospice facilities Hospitals - all kinds
Laboratory - imaging/MRI
Laboratory - pathology
Laboratory - dental
Laboratory - medical/clinical
Locum tenens/temp staffing
Managed care
Mental health facilities
Medi spas
Naturopathic healthcare
Nurse registry
Nurses - VNA's
Nursing homes
Occupational health
Oncology centers
Opticians/optometrists
Organ/blood/tissue banks
Pharmacists
Physicians - groups/individual
Rehabilitation facilities
Social service agencies
Surgical centers
