Can I Change My Business Insurance or Professional Liability Insurance Limits as my Needs Change?

claim is filed. With few exceptions, once an E&O policy lapses, all coverage is lost, and it is as if you never had insurance. When your policy lapses and a new policy is started, the new policy will only cover work that is done after the new policy’s effective date. There is no coverage for work that was done prior to that date, even though you might have had coverage in force at that time.

How do I determine how much errors and omissions coverage I need?

It is difficult, if not impossible, to predict exactly how much errors and omissions coverage you might need under future circumstances. When helping you determine limits, we assess your exposure to risk based on the size of the contracts you work on – small contracts typically suggest lower maximum liability – and how mission-critical your services are to the client. For example, you might be working on a small project, but a failure could result in your client being unable to process business orders or do payroll. Depending on the size of the client, the financial loss could be substantial. In general, million in coverage is the most common amount required by contracts and is the amount we suggest most often.