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Messages

Errors & Omissions Insurance

Hopefully some of you will be willing to share information on whether you carry Advertisers Liability Insurance (errors & omissions coverage), your coverage and annual premium. For $2,000,000 in coverage, our insurance carrier has just increased our annual premium from $4155 to $5549. Seems high to me? I also think it is incorrect to base premiums on capitalized billings instead of gross billings too.

Any thoughts?

Joey Pless Operations Nerve, Inc.

We are in the process of applying, now. Have never carried prior to this. Interesting info from you're end; I'm willing to share once I know something.

Pamela A. Brosch, CPA Chief Financial Officer HSR Business to Business Inc.

Oh my goodness, that is very, very high. What state are you licensed in? I am in Alabama, I have business owner's insurance, designed for service industry, I have an additional computer/electronic insurance coverage and of course workman's comp and my grand total for the year is approximately 2500.00. I can't imagine why that is so high. I would be interested in hearing more about this type of insurance. Hit me back if you get a chance.

Thanks, Felica

Felica Sparks Office Manager Benton Newton & Partners Advertising

We don't carry E&O. Too expensive. We have a rider in our personal property liability package for "advertising injury" coverage.

But we are a privately held corporation. What circumstances would require one to carry E&O? (a Board requirement? or Bank covenant?)

Roxanne M. Cowan Director of Finance Rutherford Bolen Group

I just checked our policy. We pay $2,894 for $1,000,000 of coverage. It is a policy that we got through AAAA's and is with National Casualty. I agree with your comment on capitalized billings but have not seen other ways of calculating the premium.

Ann Adams Controller J. Stokes & Associates

seems high huh? Two other quotes came in even higher. We are an Oregon corporation. Errors and omissions insurance is separate from business liability, and specifically covers media/professional exposures such as trademark.

Joey Pless

We are an Oklahoma corporation and have $1,000,000.00 coverage. Our premium is $1,636. It's with Collectors Risk in Chicago.

Good Luck,

Kathy Sellon

I've read previous messages regarding coverage amounts, but has anyone heard of or purchased errors and omissions coverage from Media Professionals? If so, can you share what your experience has been with them? We are in the process of shopping for $1,000,000 of coverage and the premiums increase sharply when based on capitalized billings vs. actual billings. Just wondering what others are doing.

Thanks,

Carolyn Lorence Core Creative, Inc.