At Let’s Insure, serving San Diego, CA, we know how crucial it is to protect your business from potential risks. Errors and Omissions (E&O) insurance can help safeguard your company. Here are a few key considerations to keep in mind.

Understand Your Coverage Needs

First, assess the specific risks associated with your industry. Different professions face different types of claims. Tailor your E&O policy to address these unique risks.

Policy Limits

Evaluate the policy limits to ensure they meet your potential exposure. Consider the per-claim limit and the aggregate limit. The per-claim limit is the limit an insurer will pay for one claim. Alternatively, the aggregate limit is the maximum that can be paid out during the policy period. 

Deductibles

Deductibles can vary widely between policies. You may pay a lower premium if you opt for a higher deductible. But that means you pay more out-of-pocket when filing a claim before insurance pays. Balance your deductible with what you can afford to pay upfront in the event of a claim.

Claims-Made vs. Occurrence Policies

E&O policies are usually written on a claims-made basis, meaning the policy must be in effect both when the incident occurs and when the claim is filed. Understanding this distinction is crucial, as it affects your coverage continuity, especially if you switch insurers.

Legal Defense Costs

Check if your policy covers legal defense costs. Legal fees can add up quickly, and having a policy that includes defense costs can provide significant financial relief during a claim.

At Let’s Insure, our priority is protecting your business in San Diego, CA. If you have questions about E&O insurance or need assistance with your policy, don’t hesitate to reach out. We’re here to help you make informed decisions.