Errors & Omissions Coverage Questions

Who is an Insured under the program?

  • Any Agent/Rep enrolled in the E & O Program.
  • Any Corporation, Partnership, or business entity that is owned or controlled by an Insured Agent/Rep, but only with respect to those operations of the business entity related to the covered Professional Services provided by an Insured Agent/Rep.
  • Any secretarial, clerical or administrative employees of the Insured Agent/Rep while acting within their capacity as such, solely while acting by or on behalf of an Insured Agent/Rep as long as they work solely in that capacity and do not produce, sell insurance, or receive any commission income.


What type of policy is this?

This policy is a 'Claims-Made and Reported' policy, which means the policy only covers those Claims against you that are both made and reported to the Insurer during the same policy period. Claims made against you must be report immediately to Continental Casualty Company, in written form along with supporting documents, in order to be recognized by your E&O carrier. Additionally, you must immediately report incidents or circumstances, which may result in a Claim against you, provided (1) you do so while an Insured under this policy and (2) you first become aware of the incident or circumstance during the policy period.


What activities are covered under this policy?

Sale or attempted sale or servicing of:

  • Life Insurance
  • Accident & Health Insurance
  • Long Term Care Insurance
  • Disability Insurance
  • Fixed Annuities  
  • Employee Benefit Plans, Individual Retirement Arrangements, IRAs and KEOGH Retirement Plans (other than multi-employer, self-funded, 412 or 419 plans)
  • Variable Products (if purchased)
  • Mutual Funds (if purchased)
  • Financial Planning incidental to the sale of the above products


What exactly am I covered for in the sale and/or servicing of Employee Benefit Plans?

You are covered for the sale and/or attempted sale of Employee Benefit Plans, IRA's and KEOGH Retirement Plans. In addition, you are covered for your administration of Employee Benefit Plans (consultation with participants in an employee benefit plan in order to explain the provisions of such plan, enrollment, record keeping and filing reports with governmental agencies). There is no coverage for the design or implementation of employee benefit plans or for third party claims administration nor is there coverage for 412 plans, 419 plans, multi-employer (including but not limited to Taft Hartley) or self-funded plans.


Am I covered for any activities related to Property and Casualty Insurance?

No, you are not covered for the sale of Property and Casualty Insurance. You are covered only for your incidental referral of Property and Casualty Insurance.


Does the policy cover claims arising out of tax advice to the clients?

The policy will cover claims against you for rendering tax advice as long as it was incidental/advice given in conjunction with covered Professional Services.


What if I have sold an insurance product from an insurance company that becomes insolvent?

If the Carrier was rated "A-" at the time of placement the insolvency exclusion will not apply.


Does the policy cover products offered by other insurance companies?

Yes, it provides coverage for the sale, attempted sale or servicing of non-AIM sponsored products. The retention is higher for non- AIM sponsored products.


Am I required to report all circumstances that could give rise to a Claim?

The policy requires you to immediately report circumstances involving a Wrongful Act, which may reasonably give rise to a future claim. Continental Casualty Company will determine what Claims are covered under the policy.


How do I determine if something is qualified as a Claim?

a. A written demand for monetary damages; or
b. A civil adjudicatory or arbitration proceeding for monetary damages


Who should I report claims to?

Continental Casualty Company
By Email:

By Mail:
CNA - Claims Reporting
PO Box 8317
Chicago, IL 60680-8317


Is there an Extended Reporting Period, (ERP / tail) provision?

If an Agent, General Agent or Registered Representative terminates their coverage under this program the Agent, General Agent or Registered Representative is entitled to a one (1) year Automatic Extended Reporting Period (ERP) for no additional premium effective as of the termination date.  This benefit has the following exceptions:

  1. If an Agent, General Agent or Registered Representative is non-renewed for coverage due to not satisfying Eligibility Requirements then such Agent, General Agent or Registered Representative shall be entitled to an automatic extension of this Policy for ninety (90) days beginning on his or her date of termination and terminating ninety (90) days thereafter at no additional charge, but only with respect to a Claim made during such Automatic Extended Reporting Period arising out of a Wrongful Act which was: (i) committed after the applicable Prior Acts Date; (ii) committed before his or her termination date; and (iii) which is a Wrongful Act that is otherwise covered under the terms and conditions of this Policy.


  1. An Agent, General Agent or Registered Representative shall not be entitled to such Automatic Extended Reporting Period if he or she is currently enrolled in any broker, dealer, life agent, registered representative, registered investment adviser, financial planning or professional liability policy, other than this Policy, whether or not that policy actually affords coverage for the Claim in question.


For New York domiciled Agents, General Agents or Registered Representatives, please contact Gallagher.

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