Errors & Omissions

Your clients count on you for professional advice and services. Unfortunately, mistakes can and do happen — sometimes resulting in a lawsuit.

Why is E&O Coverage Important?

Any business or licensed professional who offers advice or provides a service needs an errors and omissions (E&O) insurance policy, also known as professional liability insurance. An E&O policy protects your livelihood in the event you are sued for negligence or inadequate work by financially supporting you in the event of a claim made by a client (in excess of your deductible). Your insurer pays the cost to defend you as well as any settlement amount up to your limit of liability.

Even if a claim made against you seems frivolous and without merit, the cost in defending you in that claim could be several thousands of dollars. E&O insurance is there to protect you against claims and provide peace of mind.

Frequently Asked Questions

Does my WFG E&O insurance cover me for activities outside of WFG?

Your WFG E&O insurance only applies to products and services sold and approved through WFGIA and TFA.

How are prior acts handled?

The insurance coverage is written on a claims made and reported basis, which means that in order to be covered, a claim must be presented to you and reported to the Insurer, in writing, during the current policy period to trigger coverage. Coverage for prior acts is provided as long as this condition is met, along with the following:

You are not aware of any circumstances that may give rise to a claim as of the effective date of coverage.
There is no other insurer providing coverage for such claims
The act, error or omission must have occurred after the date of first continuous, uninterrupted professional liability insurance or the date you first contracted with WFGIA or TFA, whichever is earlier.

What is a claim and what does ‘Claims Made and Reported’ mean?

A claim is formal written demand for monetary relief or if you are formally served with process or papers in a lawsuit.

A claim is ‘made’ when you receive a written demand or you are provided with or formally served with process or papers in a lawsuit, arbitration or disciplinary proceeding. Once a claim has been ‘made’ against you or you are aware of a potential claim, you are required to report the claim to the insurer during the policy period.

How do I report a claim?

As soon as you are aware of a claim or potential claim, complete the claim report that is in your Handbook and promptly submit it as instructed on the form.

What happens if my contract with WFG or TFA is terminated?

If your contract with WFG or TFA is terminated, you will no longer be eligible for this coverage and it will be cancelled on the date you are terminated. Your coverage does include an Automatic Discovery Period of sixty (60) days following your termination date, provided termination is not for disciplinary reasons. This allows you to report claims under the policy, but only for wrongful acts that occurred prior to your termination date.

If separate E&O coverage with prior acts is not secured, any claims or incidents reported after the cancellation date of your coverage (or discovery period, if applicable) will not be covered, even though the alleged wrongful act occurred prior to your termination date.

You also have the ability to purchase a one-year Optional Discovery Period, to report claims under the policy for wrongful acts that occurred prior to your termination date. This optional Discovery Period would be effective as of your termination date and would continue for 12-months thereafter.

Am I required to purchase my E&O insurance through Marsh?

All Agents of WFGIA and its subsidiary agencies with an active provider appointment and all representatives of TFA are required to have E&O Insurance through the companies' provider. Participation in this program is mandatory pursuant to your Associate Membership Agreement (AMA) or Agent Agreement. An Agent cannot decline coverage for any reason. (Please note: Because of state law, WFGIA agents and TFA reps in NY are exempt from this policy.)

When will my credit card be charged?

Your credit card will be charged by Marsh approximately 45 days prior to your next installment date according to your payment schedule.

Is premium paid refunded at time of policy termination?

Yes. Any unearned premium due will be credited to the credit or debit card on file.

What is the Optional Discovery Period?

Your E&O coverage is written on a claims made and reported form and includes an Automatic Discovery Period of sixty (60) days following your termination date* or until the end of the policy period, whichever is earlier. This Automatic Discovery Period allows you to report claims under the policy for wrongful acts that occurred prior to your termination date.

In addition to the Automatic Discovery period, you also have the ability to purchase a one-year Optional Discovery Period, to report claims under the policy for wrongful acts that occurred prior to your termination date*. This optional Discovery Period would be effective as of your termination date and would continue for 12-months thereafter.

To be eligible for the Optional Discovery Period, you must:

Submit your request to EandOServices@marsh.com or call us at (800) 380-0451 to purchase the Optional Discovery Period from Marsh within 60-days of your termination date.
Pay the additional premium due, which is 100% of the expiring annual premium paid for enrollment (we will charge the payment method that we have on file unless you provide alternative method for payment).

This additional premium is deemed fully earned upon payment and non-refundable.
The Optional Discovery Period cannot be cancelled.

*You are ineligible for the Automatic and Optional Discovery Period if you are terminated for cause.

Where can I obtain more information?

Once you have enrolled successfully, you will receive an E&O Handbook and a Certificate of Insurance. If you have additional questions, you can contact the Marsh Service Center at (800) 380-0451.