Protect your business with American Guardian Insurance

Admiral, Arch Insurance, Allianz Global, Aspen American, Capitol Indemnity, Continental Casualty, General Star, Great American, Landmark American, Technology Insurance Co/AmTrust, USLI, Wesco Insurance, and others recommend that insurance agents keep E&O coverage separate from Cyber Liability Coverage. This separation helps to mitigate the risk of Errors and Omissions claims that may arise from Cyber Events.

The Arch Insurance E&O program includes a Vanishing Deductible feature as part of its comprehensive E&O coverage. If the Named Insured has consistently upheld Errors and Omissions policies through the designated Program Administrator listed in the policy Declarations for the past 5 consecutive 12-month Policy Periods, and has not faced any Claims during these periods, the per Wrongful Act Deductible will be waived for the first covered Claim made in the current Policy Period, up to a maximum of $25,000 or the Deductible amount, whichever is lower. In addition, loss prevention counseling stands out as a significant advantage of the Arch Insurance E&O program. Insurance agents will benefit from direct access to an experienced senior risk management attorney for confidential discussions about potential claims, incidents, or risk management inquiries. This valuable feature is designed to help our clients avoid minor issues from escalating into larger problems and costly claims. The counseling offered through this program focuses on concerns such as representing oneself as a specialist, managing potential claims, recognizing client exposure, communicating potential errors to clients, and developing office policies, procedures, and administration to prevent problems.

Endorsements can be added to Errors and Omissions (E&O) coverage policies to further protect your agency. One such option is First Dollar Defense (FDD), which can enhance your E&O coverage. This additional insurance coverage provides agencies with greater financial security when faced with claims. Also referred to as a Damages Only Deductible, Loss Only Deductible, or Indemnity Only Deductible, First Dollar Defense Coverage ensures that if a claim arises, the insurance carrier covers the initial costs to defend the agency, with the agency responsible only for their deductible if indemnity is awarded. This specific coverage option delivers significant support in claim situations. With First Dollar Defense, if only defense costs are incurred without any indemnity or loss payout, the insured agency won't bear the burden of the deductible, as the insurance carrier pays those defense costs. For example, if your agency is named in a claim and is found not at fault, you would not need to pay the deductible, while the insurance carrier covers the defense expenses. On the other hand, Defense Outside the Limits (DOL) ensures protection against potentially high legal expenses that can rapidly deplete your E&O coverage. It's crucial for insurance agents to determine whether their liability policies, including general and product liability, feature coverage for legal defense either outside or inside the limits of the policy. Defense Inside the Limit indicates that all defense costs reduce the overall limit available for claims payments. In contrast, with Defense Outside the Limit Coverage, separate limits are maintained for legal defenses and court-awarded damages, safeguarding the overall policy limits. This distinction is vital for insurance agents to consider regarding their potential financial responsibility when facing a lawsuit.