© 2011 Farmin Rothrock & Parrott
Companies We Feature...
© 2011 Farmin, Rothrock & Parrott, Inc
Errors & Omissions
Insurance
Errors and Omissions insurance, commonly called E&O is also
called Professional Liability in some cases. The standard
Commercial General Liability policy that most businesses carry
excludes coverage for any professional liability. Therefore, those
businesses that offer a professional service need this additional
coverage. Many professions have this exposure but some of the
most common are physicians, accountants, engineers,
architects, attorneys, Realtors and consultants.
If an engineer designs a balcony for a building which later
collapses under its intended use, the General Liablity policy will
not defend the resulting claim because it resulted from the
engineer’s professional advice to the contractor. Only an E&O
policy will respond to the claim.
In most cases, E&O insurance is written on what is called a
“claims-made” policy which can actually cover incidents that
happened years prior to the claim being actually made. This type
of policy has unique features like the “retroactive date” that
determines how far in the past the policy will cover. Another
unique feature is the Extended Reporting Period which is
normally referred to as “tail coverage”. When the policy ends, the
typical claims-made policy will only cover claims lodged against
you for 60 days after the expiration unless a special “tail policy”
is purchased.
E&O policies, because of their unique features, need to be
compared for more than just premium differences. The company
that writes the policy will be the company that defends the
reputation you have worked years to establish, so it is important
to choose wisely. Since 1922, Farmin Rothrock & Parrott has
been helping Inland Empire professionals and business owners
make the important decisions regarding insurance protection.
Contact us today for a complete coverage review.
Request a Quote for
Errors & Omissions
Insurance
For Even Faster
Service, Call Us
Right Now!
(509) 323-3232
8:00AM - 4:30PM
Monday - Friday
Companies We Feature...
Errors & Omissions
Insurance
Errors and Omissions insurance, commonly called E&O is also
called Professional Liability in some cases. The standard
Commercial General Liability policy that most businesses carry
excludes coverage for any professional liability. Therefore, those
businesses that offer a professional service need this additional
coverage. Many professions have this exposure but some of the
most common are physicians, accountants, engineers,
architects, attorneys, Realtors and consultants.
If an engineer designs a balcony for a building which later
collapses under its intended use, the General Liablity policy will
not defend the resulting claim because it resulted from the
engineer’s professional advice to the contractor. Only an E&O
policy will respond to the claim.
In most cases, E&O insurance is written on what is called a
“claims-made” policy which can actually cover incidents that
happened years prior to the claim being actually made. This type
of policy has unique features like the “retroactive date” that
determines how far in the past the policy will cover. Another
unique feature is the Extended Reporting Period which is
normally referred to as “tail coverage”. When the policy ends, the
typical claims-made policy will only cover claims lodged against
you for 60 days after the expiration unless a special “tail policy”
is purchased.
E&O policies, because of their unique features, need to be
compared for more than just premium differences. The company
that writes the policy will be the company that defends the
reputation you have worked years to establish, so it is important
to choose wisely. Since 1922, Farmin Rothrock & Parrott has
been helping Inland Empire professionals and business owners
make the important decisions regarding insurance protection.
Contact us today for a complete coverage review.
Request a Quote for
Errors & Omissions
Insurance
For Even Faster
Service, Call Us
Right Now!
(509) 323-3232
8:00AM - 4:30PM
Monday - Friday