High E&O Limits Difficult for Small Tech Accounts

Cyber Risk Insurance

Such requests are often red flag for high risk work

We were recently approached by a small tech prospect who requested a $10 million Errors & Omissions Liability limit (also called Professional Liability) to comply with contractual requirements of a project owner. Our primary E&O market for tech accounts is approved to handle limits only up to $5 million. Our managing general agent provided quote indications for an excess layer for an additional $5 million from two carriers. However, the minimum premiums for this excess layer were $25,000 and $30,000 respectively.

Any carrier providing a limit approaching $10 million will be wary of why the project owner would require such a high limit in the first place. This is likely to be a red flag that the type of work is high risk and as a result the underwriters will closely scrutinize such a submission.

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