High E&O Limits Difficult For Small Tech Accounts

We were recently approached by a small tech prospect who requested a $10,000,000 Errors & Omissions Liability limit (AKA 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 $5,000,000. Our MGA provided quote indications for an excess layer for an additional $5,000,000 from two carriers. However, the minimum premiums for this excess layer were $25,000 and $30,000 respectively.

Any carrier providing a limit approaching $10,000,000 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.