INSURANCE GUIDE
Changing E&O Insurance Carriers: What to Review First
Changing E&O carriers can affect prior acts, retroactive dates and claim reporting. A lower premium is only one part of the comparison.
Start with continuity, not price
When comparing E&O carriers, the most important question is whether the proposed policy preserves the protection you need for prior professional services. A premium reduction can be outweighed by a narrower retroactive date, different insured-services wording or a gap in reporting protection.
Compare the retroactive date
Confirm the retroactive date shown on the expiring policy and the date proposed by the new carrier. If the new date is later, work performed between the two dates may not be treated the same way.
Learn how prior acts coverage works →
Review claims and known circumstances
Report claims and potential claims according to the expiring policy's requirements. Do not assume a new carrier will pick up an incident that was known before inception. Applications often ask about complaints, demands, incidents or facts that could reasonably lead to a claim.
Compare insured services
Policy definitions can change from carrier to carrier. Confirm that the activities your firm actually performs are included, such as real estate sales, property management, mortgage services, escrow, appraisal, consulting or transaction coordination where applicable.
Read more about insured services →
Defense costs, retentions and limits
Two policies with the same headline limit can behave differently if defense costs reduce the limit, if separate retentions apply, or if certain coverages are subject to sublimits.
Understand defense costs inside and outside the limit →
Consider an extended reporting period
If the expiring policy will not be replaced with continuous claims-made coverage, an extended reporting period may provide additional time to report certain claims arising from services performed before the policy ended, subject to the policy terms.
Read the guide to tail coverage and ERPs →
Carrier-change checklist
- Retroactive date and prior acts
- Insured-services definition
- Known-claim and known-circumstance questions
- Limits, sublimits and retention
- Defense-cost treatment
- Exclusions and endorsements
- Extended reporting options
- Effective date with no lapse in coverage
In this guide
Start with continuity, not price
When comparing E&O carriers, the most important question is whether the proposed policy preserves the protection you need for prior professional services. A premium reduction can be outweighed by a narrower retroactive date, different insured-services wording or a gap in reporting protection.
Compare the retroactive date
Confirm the retroactive date shown on the expiring policy and the date proposed by the new carrier. If the new date is later, work performed between the two dates may not be treated the same way.
Learn how prior acts coverage works →
Review claims and known circumstances
Report claims and potential claims according to the expiring policy's requirements. Do not assume a new carrier will pick up an incident that was known before inception. Applications often ask about complaints, demands, incidents or facts that could reasonably lead to a claim.
Questions about this coverage?
Talk with ECLICK about your current policy, upcoming renewal, or the coverage you are comparing.