How to Change E&O Insurance

Next Video:
Definition of Business Income Insurance....5

Changing E&O insurance requires you to follow a few basic, easy to manage steps. Change E&O insurance with help from an insurance professional in this free video clip.

Part of the Video Series: Insurance Information
Promoted By Zergnet


Video Transcript

Hi, I'm David Sumpter, commercial insurance specialist with Wateridge Insurance in San Diego, and today I'm going to tell you about changing E&O insurance. So, first of all, E&O insurance is errors and omissions insurance, or professional liability insurance. It's a little bit different than some of the other insurance policies you might have in one specific way: Professional liability, or E&O coverage is typically written on what we call a claims-made basis. Now, what does that mean? Claims made policies are different from occurrence policies. Your general liability policy's probably an occurrence policy. But, typically, professional liability E&O policies are written on a claims-made form. Claims-made is a very specific rule. The insurance carrier's saying one of two things need to happen: Number one, you need to stay with the same insurance carrier forever, as long as you have your business, or, if you change to another insurance carrier, you need to tell the old rules to the new carrier. Let me go into a little bit of an example here. So, if I have a claims-made policy and I'm with insurance carrier A, and I want to move to insurance carrier B, insurance carrier B is going to have to cover any claims that followed all the way back to insurance carrier A's coverage. You have to go back in time. That's done by what we call a retroactive date. Check with your broker to make sure that if you move E&O coverage, that he looks at that retroactive date and references it on your new policy. If it's a little confusing, don't worry. It is a confusing subject, but make sure you talk with your broker about it. Why? If you just move carriers and you start fresh with a new carrier without a retroactive date, everything that happened prior to that date is not covered. You start fresh, but you have no coverage for the coverage that you paid for. Again, check with your broker to help you navigate this slightly difficult form to understand. I'm David Sumpter, commercial insurance specialist with Wateridge Insurance, and now you know what you need to know about changing E&O coverage.


Related Searches

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!