The insurance protection afforded to an Insured for Errors and Omissions claims is $1,000,000 for any one claim and an annual aggregate of up to $3,000,000 in the event of multiple claims within a Policy year. These limits apply only to damages, not legal costs.
Effective September 1, 2009, risk rating was introduced to the Policy in the form of a graduated deductible. The deductible amount increases with each additional claim settlement made on behalf of the same registrant within a three-year period. This means registrants with more than one claim will contribute more towards the cost of each additional claim settled on their behalf. The deductible payable by a registrant for the first claim paid is $2,500. However, any further claims paid by the insurer within any three-year period will result in an increase to the deductible by $2,500 for each paid claim with no maximum. i.e., $2,500 for claim one, $5,000 for claim two, $7,500 for claim three, etc. Note, however, that deductibles only apply to damage payments, not defense costs.