Are there Errors in your Firm’s E&O Policy?
Are there errors in your firm’s E&O policy?
At our website www.oneminutefromnormal.com we ask visitors the question: What if an unscheduled event suddenly seizes control of your business? Are you ready?
Having insufficient or incorrect Errors & Omissions (E&O) coverage can financially devastate your firm one minute from normal. Following are a few best practices regarding E&O policy “hygiene”:
- Every E&O policy includes a list of covered professional services and activities within the definition of professional services. Review this list prior to binding any E&O policy to determine if there are activities your firm is performing, but for which coverage may not be included. Change when necessary.
- The size of your firm has no bearing on the size of a potential E&O claim. Small firms can and do frequently get hit by big claims.
- Understand how your deductible / retention work. Are you required to pay only if your firm is determined to be liable, or are you responsible for defense costs on claims even when you are absolved of wrongdoing?
- Don’t wait for an E&O claim to occur to determine how your policy works. Spend time with your broker so they understand the scope of services you perform.
To learn more about your firm’s professional liability risk, and to discuss if your E&O coverage will protect it one minute from normal, please contact a relationship manager at KMRD Partners. He can provide advice regarding this critical coverage.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®
We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To identify and correct coverage and service gaps in your business insurance risk profiles contact us at contactus@kmrdpartners.com before one minute from normal strikes.
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