The Best Private Errors and Omissions Insurance

Insurance Business America has engaged the country’s top brokers in one-on-one interviews and surveys to determine the leading Private E&O products. IBA’s inaugural Five-Star Excellence Award in Private E&O celebrates companies not only with outstanding product offerings, but also first-class broker support and industry knowledge. The Five-Star Excellence Award allows brokers to understand the partners their peers have chosen to present to clients – giving you an upper hand when selecting insurers to work with.

 

Methodology

Determining America’s top insurance products takes a keen understanding of the market offerings – that is why IBA has enlisted the help of thousands of brokers to determine the 2021 Product Awards. Read more about how we determined our winners here.

 

5-Star Excellence Awards

  • Admiral Insurance Group
  • Allied World Assurance Company Ltd.
  • Argo
  • Beazley
  • CapSpecialty Insurance
  • CFC Underwriting
  • Chubb
  • eRisk Solutions
  • Hiscox
  • Markel American Insurance Company
  • RSUI
  • Travelers
  • Vela Insurance

What is private errors and omissions (E&O) insurance?

Errors and omissions (E&O) insurance is a form of professional liability coverage that protects companies against the costs of a claim made by a client against professionals who give advice or particular services. These professionals include consultants, financial advisers, insurance brokers, and legal and medical practitioners.

 

A policy’s cost is determined by a range of factors, including the nature of the business, where the business is located, and claims that have been paid out previously.

 

Depending on the contract, E&O insurance may provide cover for temporary employees, claims resulting from events before the policy was in force, or claims in different jurisdictions. E&O policies do not protect against costs stemming from criminal prosecution and liabilities arising from civil lawsuits.

 

What is the purpose of private E&O Insurance?

Errors and omissions (E&O) insurance, also called professional liability insurance, provides private companies protection against claims of inadequate work or negligent behavior. Policies typically cover for legal expenses stemming from litigation and settlement, thereby giving private businesses some form of financial cushion.
 

How much does E&O insurance for private companies cost?

The cost of E&O policies depends on a range of factors, all of which have an influence on the level of risk exposure a private company has. This includes a firm size, revenue, where it is located, and the industry it is in. The kind of employee training and how their contracts are written also impact the premium prices. Previously paid out claims and coverage limits are among the price determinants for errors and omissions insurance as well.

 

On average, E&O coverage ranges from $500 and $1,000 per employee annually. Many major insurance providers offer coverage limits of up $10 million per risk.

 

What is the difference between private E&O insurance and private D&O coverage?

Director’s and officers’ (D&O) insurance, also known as management liability insurance, protects members of the executive management team of a private company from monetary losses incurred from lawsuits as result of their management decisions. Errors and omissions insurance, also known as professional liability insurance, protects private businesses from accusations of negligence or failing to deliver services. E&O policies provide cover for any representative or employee of a private company, not just its upper management.

 

What is the difference between E&O and general liability insurance?

Both E&O or professional liability insurance and general liability insurance are designed to alleviate the financial burden stemming from claims made against a business, but the policies differ in the types of risks they cover.

 

E&O insurance protects a business from financial losses incurred from claims resulting from the professional service that it provides. These include misrepresentation, negligence, inaccurate advice, and violation of good faith.

 

General liability coverage provides protection against claims of physical injury to people or damage to property arising from a business’ daily operations. These also include slip and fall incidents and advertising errors.

 

How do you choose the right E&O insurance for your private company?

E&O policies vary in coverage, key features, and premiums depending on the industry the private company is in. To find the right professional liability policies that suit your business, it is still best to talk to an experienced broker from a reputable insurance provider.

 

This year in E&O insurance...

2020 has caused many changes in the insurance world. From new risks to mitigate, to understanding how the pandemic would impact clients, brokers had daily challenges to overcome. Here are some of the biggest news stories in E&O this year: 

 

Hanover study reveals golden opportunity for insurance agents in E&O

A recent survey found that while nearly half of professional service providers face considerable professional liability exposure, a fifth of respondents say that they do not have any professional liability insurance at all.

 

Professional liability risks pile up during the pandemic

As companies return their employees to work across the US, and then have to bring them home again as reopening plans in certain states shift in the face of the coronavirus, they face a litany of professional liability challenges.