How do errors and omission policies work?
E&O policies typically have a claim limit and an annual limit, based on the policyholder’s liability exposure. The claim limit is the maximum that will be paid for any single event, while the annual is the maximum that will be paid in any one year. Typical errors and omissions insurance claim limits range from $250,000/$500,000 to $2,000,000/$4,000,000.
