A prospect recently showed me their Errors and Omissions policy, and what I discovered in it was shocking. This Business Valuation / M&A firm had limiting language in its coverage that exposed the practice to great risk. Namely, the policy had a clause stating that it became null and void for any transaction where the company sales price might exceed 5 million dollars.
Well, this firm routinely engaged in company transactions with sales prices from 20 to 25 million dollars. As a result, their expensive insurance policy from a well-known carrier had a gaping hole in its coverage.
What good is a policy if it doesn’t cover what you do? A lot of times exposure comes not from failure to place coverage; it’s that the policy doesn’t cover a claim.
This type of vulnerability is all too common these days. I can’t stress enough the importance for business owners to read their E&O policies to see if they cover the activities they are doing on a day-to-day basis. I’ll be happy to help you examine your current policy to see if it is up to snuff.
As if this coverage gap wasn’t bad enough, I found another gaping hole in the firm’s E&O policy. Find out more and Be In the Know of how you can better protect your practice in the video below.
Program Insurance specializes in your industry so we have the know-how to ensure you have the right coverage for your business. If you would like to see how Program Insurance can help you improve the sustainability of your practice, let us know.