In some cases, a business professional may decide to obtain stand-alone or independent Errors and Omissions Insurance coverage that is not part of a larger comprehensive Professional Liability Insurance program. This may be because the professional has their other liability needs covered by an employer or through a group policy but may choose, or be required to have, an additional independent Errors and Omissions Insurance policy. For this reason, Errors and Omissions Insurance coverage can also be purchased separately from other professional liability insurance if needed.
Some professionals, however, may not possess other professional liability exposures and need only the coverage provided by an Errors and Omissions Insurance policy. Others may find that they can get a better rate by unbundling Errors and Omissions Insurance from their other liability insurance coverage. In some cases, a professional or business owner may have an Errors and Omissions exposure that is so large that he needs to purchase a separate policy to cover it.
If a professional purchases Errors and Omissions Insurance independently, he is individually underwritten. If the insured has had very few or no claims in the past, he may receive a better rate. Additionally, an employer may want certain employees or contractors to be underwritten separately under independent policies because of a higher level of risk.
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