Avoid Lapses in Your Errors and Omissions Insurance Policy
The best way to avoid lapses in your errors and omissions insurance policies is to know the specific dates that your policy started and the definitive date of when it ends. There may be some nuances that determine whether your errors and omissions insurance policies policy covers prior events in which case your inception date might be pushed back, but your insurance agent will be able to help you understand that better.
You must also remember to file the claim while the errors and omissions insurance policies policy is still active. Even if the event occurred while the policy was active, if you let your coverage lapse and then try to file a claim, in most cases, you will NOT be covered. A supplement to errors & omissions insurance is what is called “tail coverage.” This allows you to still make claims on a policy even if your coverage has lapsed. There are very few circumstances where you will ever want your policy to lapse, but if you do fall into that category, it will be essential that you append tail coverage to your policy. You can generally purchase this addition to last for anywhere between 1 and 5 years – speak to your insurance agent about the specifics.
