E&O enhancements to reduce cost of claims available now from MGA

MGA releases new enhanced Errors and Omissions policy is it suitable for your clients?

Commercial Solutions

By Libby MacDonald

Managing general agent ENCON Group Inc., announced this week an enhanced Errors and Omissions (E&O) policy for many professionals, including legal, financial and insurance professionals, environmental consultants, health care professionals and facilities, and professional services companies and consultants to be effective immediately.

For qualifying classes of business, the coverage enhancements include first dollar defence coverage, split damages deductible, loss of earnings coverage under certain circumstances, coverage for claims made anywhere in the world, with duty to defend in Canada and the United States of America.

“These coverage enhancements will help to reduce the cost of a claim for our insureds, both in terms of deductibles and potential lost earnings,” said Senior Vice-President, Errors and Omissions, ENCON, Stefanie McKay. “The financial stress that may be caused by a request to attend discoveries, mediation or trial as part of the defence of a claim, will be eased by the loss of earnings coverage that is now in place.”

Two key additional enhancements will also apply to qualifying small firms that are claims free with revenues of less than $2 million. These enhancements include: defence costs (including investigation, legal and expert expenses) in excess of the policy limits and zero dollar deductible.

“The additional enhancements for small firms are significant because they help to preserve the limits available to resolve claims made against our insureds,” explained McKay. “This means that defence costs, which have been on the rise in recent years, will not erode a policy’s available limit to settle claims and pay judgements.”

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