What is Errors and Omissions Insurance?
Errors and Omissions Insurance (E&O) is a professional liability insurance that protects you in the performance of your professional services. This coverage is an absolute necessity for any independent adjuster, even if your client does not require that you carry it.
E&O will cover the cost of providing you legal representation and also pay any damages (up to your policy limits) for which you may ultimately be found liable.
Common claims made against this coverage can include:
- Mistakes in estimating
- Misleading Statements
- Failure of communication (including missing deadlines)
Additionally, independent adjusters can find themselves named as a party to a lawsuit that is unrelated to their actions in the claim. For example, you complete your estimate and turn in your report, and at a later date the insured and the insurance carrier have a dispute about the amount the insurance is willing to pay. Often, every professional that worked on the claim is named as a party at the initial filing. The parties that are not related to the actual complaint can generally get their names dropped, but that takes time and money. E&O coverage would handle that representation for you. This frees up your time and the funds you would have otherwise had to spend directly on an attorney.
CPLIC, RRG’s policy was written with the needs of independent adjusters and IA firms in mind. The miscellaneous professional liability policies generally offered through traditional insurance carriers often contain exclusions that can leave you exposed. As a risk retention group, we have more control of the content of our policies and have been able to close some of those gaps in the protection available to independent adjusters.
Our E&O coverage is offered with limits from $500k to $10m with deductibles available ranging from $1k to $25k.
An additional coverage that is generally quoted at the same time as E&O is General Liability coverage.