6 Questions to Ask Your Errors & Omissions Insurance Broker

Attorney Ken Kirschenbaum suggests security dealers and other service-oriented businesses request these statistics to select the best E&O insurance provider.


If you’re a service-oriented business that’s been around for a while, chances are you’ve been sued … or will be at some point. That’s why you’ll probably want an insurance policy that covers errors and omissions (E&O). Such a policy can protect your business from claims of negligence or failure to perform properly – claims that might not be covered under general liability insurance.

The need for E&O coverage is especially pressing in the alarm industry, where an “error” in performance could lead to loss of life or property.

Attorney Ken Kirschenbaum, who specializes in the security industry, suggests alarm dealers and other businesses vet insurance providers based on “premium, coverage and how they handle claims.”

In particular, he suggests business owners request this data from their brokers:

For the past year …

  • How many claims were denied coverage in last year?
  • How many claims were handled under Reservation of Rights?    
  • How many claims were settled with payment?
  • How many cases were dismissed without payment?
  • How many policies were not renewed or had more than 10% increase in premium on renewal?
  • Why are you recommending this company over others and what others are available through you?

While these questions make sense for any buyer of E&O insurance, alarm dealers in particular might want to check out brokers listed on The Alarm Exchange.  

Related: More Industry-Related Legal Advice from Ken Kirschenbaum