Understanding Marsh Errors and Omissions Insurance Coverage

Marsh errors and omissions insurance is a type of professional liability insurance designed to protect professionals, such as insurance brokers and agents, from lawsuits alleging errors or omissions in their work.

This coverage helps to mitigate financial losses resulting from such lawsuits, which can be costly and damaging to a professional's reputation.

Marsh errors and omissions insurance policies typically cover claims related to negligence, breach of fiduciary duty, and misrepresentation, among others.

These claims can arise from a variety of situations, including failure to provide adequate insurance coverage, misinterpretation of policy terms, and failure to disclose relevant information.

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If your agent contract is terminated, the E&O policy will automatically be cancelled, and you'll receive a pro-rated refund of the policy premium based on the termination date.

The policy will also be cancelled if you submit a written request to ASR, which will be effective 30 days after the notice is received. You'll receive a pro-rated refund of the policy premium based on the cancellation date, not the notice date.

If you paid with a credit card, the refund will be processed back to the original payment method.

You can choose from three different E&O policy limit amounts: $1,000,000 per claim & $3,000,000 per year per agent aggregate, $2,000,000 per claim and $6,000,000 per year per agent aggregate, or $5,000,000 per claim and $8,000,000 per year per agent aggregate.

EPL policy limits are also available, with two options: $1,000,000 per claim, included with the base E&O policy, or $2,000,000 per claim, available at an additional 15% of the E&O policy premium.

If your agent contract is terminated during the year, your E&O policy will automatically be cancelled.

You can also choose to cancel your policy yourself, which will be effective 30 days after ASR receives your written request.

A pro-rated refund of the policy premium will be issued based on the cancellation date, not the date you submitted your request.

If you paid with a credit card, the refund will be processed back to the original payment method, but if the card is no longer valid, you'll need to call ASR at 800-538-7802 to arrange an alternative refund method.

Policy Limits are a crucial aspect of insurance policies, and it's essential to understand the different options available.

There are three E&O policy limit amounts to choose from: $1,000,000 per claim & $3,000,000 per year per agent aggregate, $2,000,000 per claim and $6,000,000 per year per agent aggregate, and $5,000,000 per claim and $8,000,000 per year per agent aggregate.

EPL policy limits are also available, with two options: $1,000,000 per claim, which is included in the base E&O policy, and $2,000,000 per claim, which comes at an additional cost of 15% of the E&O policy premium.

The E&O policy limit amounts are quite substantial, with the highest option offering $5,000,000 per claim and $8,000,000 per year per agent aggregate.

Here are the E&O policy limit amounts in a concise table:

It's worth noting that the cost of the EPL policy limit options varies, with the higher limit coming at an additional cost.

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Errors and Omissions Insurance is a type of liability insurance that protects professionals from financial losses due to errors or omissions in their work.

There are three different limits available for E&O insurance, ranging from $1,000,000 to $5,000,000 per claim, with corresponding annual limits of $3,000,000 to $8,000,000.

The deductible for any option selected is $1,000 per claim, which is a standard amount that you'll need to pay out of pocket before the insurance kicks in.

E&O insurance covers a wide range of risks, including oversights, errors, or mistakes incurred during work, professional negligence, and failure to meet a deadline or deliver a service promised to a customer.

Here are the available E&O policy limits:

Errors and Omissions Insurance is a type of coverage that protects professionals from lawsuits resulting from mistakes or oversights in their work.

The policy limits for E&O insurance vary, but three different limits are available: $1,000,000 per claim/$3,000,000 per year, $2,000,000 per claim/$6,000,000 per year, and $5,000,000 per claim/$8,000,000 per year.

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The deductible for any option selected is $1,000 per claim, which means you'll need to pay that amount out of pocket before the insurance kicks in.

E&O insurance covers a range of issues, including oversights, errors, or mistakes incurred during work, professional negligence, material defects, and failure to meet a deadline or deliver a service promised to a customer.

Breach of contract and inability to meet a specific standard of care are also covered, as well as legal and court costs if a lawsuit is filed.

However, E&O insurance may not cover criminal prosecutions, claims from work done before a policy was enacted, or claims in certain jurisdictions.

Here are the available policy limits for E&O insurance:

In New York, the law and liability limit can significantly impact errors and omissions insurance claims. Specifically, New York law applies to certain brokerage contracts, including one between Marsh and Harvard, which specified a $10 million liability limit for Marsh for any malpractice law.

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This is a critical consideration for agents and brokers operating in New York, as it can limit their liability in the event of a claim.

Under New York law, a six-year statute of limitations applies to contract claims, which means that any claims must be filed within six years of the breach. This is a key factor in determining whether a claim is timely.

Marsh has calculated that any breach of contract claims by Harvard would have expired in September 2022, thirteen months before Harvard filed suit in late 2023.

Here are the available E&O policy limit amounts:

Additionally, there are two EPL policy limit amounts available: $1,000,000 per claim, included as part of the base E&O policy, and $2,000,000 per claim, which can be added at a cost of 15% of the E&O policy premium.

Insurance claims and disputes can be a major headache for marshes and their clients. Insurance claims can be denied if the policyholder fails to disclose a material fact, such as a pre-existing condition.

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A policyholder's failure to disclose a material fact can void their insurance policy. This means they won't be covered in the event of a claim.

Insurance companies have a team of experts who review claims and may request additional information or documentation. This can delay the claims process and cause frustration for policyholders.

Marshes can help mitigate this risk by working closely with policyholders to ensure they disclose all relevant information.

Disputes can arise if the insurance company and policyholder disagree on the terms of the policy or the amount of the claim. This can lead to lengthy and costly legal battles.

In some cases, policyholders may try to dispute the insurance company's decision, but this can be a difficult and time-consuming process.

If you're facing a lawsuit related to a marsh error or omission, understanding the statute of limitations is crucial. The statute of limitations for a marsh error or omission lawsuit varies by state, but it's typically between 1-3 years.

You'll need to file your lawsuit within this timeframe to avoid having your case dismissed. Failing to do so can result in your case being barred from court.

Factual issues may affect the outcome of the lawsuit between Harvard and Marsh. The statute of limitations is just one of the potential roadblocks.

Harvard's complaint notes that Marsh claimed it was instructed not to notify Zurich, which could be a game-changer if proven. This fact alone could resolve Harvard's claim in favor of Marsh.

The four counts of "Broker Malpractice" in Harvard's lawsuit against Marsh include a breach of the brokerage contract between the two. Harvard is seeking to recover damages from the denied excess insurance coverage and related legal costs.

Harvard's complaint alleges four counts against Marsh, which are summarized below:

Harvard's lawsuit stems from the loss of $15 million in excess insurance coverage due to Marsh's alleged failure to notify Zurich of a 2014 discrimination claim against Harvard.

In New York, contract claims have a six-year statute of limitations. This means that if a claim isn't filed within six years of the breach, it's likely to be dismissed.

Under New York law, the statute of limitations clock starts ticking from the date of the breach. Marsh argues that the latest possible breach date was January 30, 2016, when the Zurich policy's notice deadline passed without Marsh notifying the excess carrier of the discrimination claim.

The six-year clock then expired after September 15, 2022, according to Marsh's math, taking into account COVID-related tolling. This means that if Marsh's calculations are correct, the statute of limitations on any of Harvard's breach of contract claims expired thirteen months before Harvard filed suit.