Errors & Omissions insurance provides an essential form of protection to professionals, but as many people know, a generic policy may not offer a high enough level of protection. There are various ways that professionals can enhance their coverage under an E&O policy, but the following two policy additions are especially worth considering as a starting point.
Prior Acts Coverage
Most E&O policies offer coverage on a claims-made basis, in which claims made while the policy is active are covered. However, some policies exclude claims arising from acts that occurred before the policy was active. Prior Acts coverage extends the policy coverage period back. With Full Prior Acts coverage, any past occurrences are covered. Often, though, limited Prior Acts coverage sets a limitation on how far back a professional’s mistakes or omissions are covered.
Cyber Liability Coverage
Cyber security breaches that result in privacy violations or financial losses represent a growing concern for most professionals. Anyone who stores electronic client data faces a risk of cyber liability issues. A specialized E&O policy can provide coverage for breaches that result from the policyholder’s mistakes or failings in setting up adequate security measures.
Other Policy Additions
There are various other policy additions that benefit certain professionals, including Innocent Insured coverage, First Dollar Defense, Independent Contractors coverage, and HIPAA compliance. Professionals should work closely with an insurance agent, preferably one with experience in the professional’s particular industry, to identify the most beneficial options.