Reply by Joan_OH on 1/28/08 7:53pm
Msg #232896
Check your State Farm Specialty Products. In Ohio they offer and Miscellaneous Liability E&O with about 50 diffrent riders, including a Notary Rider. Here they sell $100K, $250K, $500K.
Before you switch, talk to your current carrier. I'm not a licensed insurance agent, but I heard that if you have professional liability, there is an "exit" premium involved should you not renew or cancel. This continues to cover you for prior liabilities for a period of time. Source of title has a good article on their blog about this "exit premium". Do not, unknowingly, leave yourself uncovered.
Joan-OH
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Reply by Dennis D Broadbooks on 1/29/08 5:37pm
Msg #233019
"Claims Made" Vs "Occurrence"
I'm a licensed insurance agent & what you're referring to Joan is referred to as a "claims made" type of E&O policy. For a loss to be insured the claim itself must be turned in during the policy period. Let's take a hypothetical example. A "claims made" policy is issued with an annual policy period of 01/01/2007 to 01/01/2008. For argument's sake let's say the insured decided they didn't want the policy anymore on renewal & let the policy lapse for non-payment. An insured loss was sustained on 12/01/2007 but the insured & the E&O insurance company weren't notified of the loss until today, 01/29/2008. Because the claim itself wasn't "made" during the policy period of 01/01/2007 to 01/01/2008, there's no coverage. So what is a person to do if they want to switch carriers or let the policy lapse because they're no longer in the type of business the E&O was covering them for? They need to purchase what is known as a "tail". The "tail" can be purchased to cover any losses that weren't reported during the normal policy period. The premium for this type coverage is usually less than what the normal policy costs & gives the insured the peace of mind knowing that a previously incurred loss won't leave them unprotected after the policy period is over with.
E&O is also sold on an "occurrence" basis which is what most people are familiar with. Any covered loss must occur during the policy period & it matters not (within certain limits) when the loss is reported.
My comments should not be construed as advice. Please contact an insurance professional in your own state for the definitive answer to any questions you may have regarding the difference between these two types of policies.
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