Claims-Made Coverage

FENNER & ESLER INSURANCE
The Professional’s Choice
Claims-Made Coverage

A policy which provides coverage only for claims made during the policy period. If there is a retroactive date given for the policy, then a loss occurring before that date will not be covered.

Claims-Made Insurance Policies For Architects And Engineers

Your company has a limited protection from general liability insurance. Should a contractor or client sustain an injury while in your office this coverage will relieve you of having to pay major out of pocket damages. Professional liability insurance or Errors & Omissions insurance will offer a more extensive security however, on a claims-made basis, for those events that occur due to oversight or negligence during the provision of products and services.

If your client sustains a loss due to a professional error on your part, you are offered protection by Errors and Omissions insurance, but the protection offered will vary from provider to provider and policy to policy. It is important to understand the import terms of this form of coverage in order to select one that offers you premium security. Many companies will offer terms that require businesses to pay defense costs that are within the limits of coverage, while other policies afford for no out of pocket payments for defense fees.

Most policies will include advantages for settling claims out of court using mediation. If a settlement is reached in mediation the insured is often offered a reduced deductible by as much as 50%, but generally not exceeding a total of $15,000 in reductions. Because of the proclivity for there to be a significant difference in the coverage that is offered due to varying terms, it is imperative to shop for your policy and provider using a seasoned and reputable broker who can not only find value but terms and features that are necessary for maximizing on the advantages of having Errors & Omissions coverage.

One huge change from how general liability issues are dealt with is the claims-made basis upon which all professional liability policies operate. With general liability, claims will be honored even if filed after the end of the policy’s duration as long as the event occurred before. Error & Omissions however, requires that claims be made before the termination or end of a policy and will not honor those filed after even if the event occurred while the insurance was still in effect.

Opting to have an all inclusive insurance package will increase the marketability of your business. Online ratings and reviews can help in your broker or provider selection. Make certain to know the key terms that you should seek before committing by using the various available online resources for your research.