What is a challenge often faced when obtaining Errors and Omissions Insurance?

Obtaining full coverage under Errors and Omissions Insurance can often be a challenge due to several factors. Insurers assess the risk associated with the services provided by the professional or business seeking coverage. If the services carry high risk or the applicant has a history of claims, obtaining comprehensive coverage may not be straightforward. Additionally, some insurers may limit coverage or exclude certain areas of liability, making it crucial for applicants to carefully evaluate policy terms and find an insurer that can accommodate their specific needs.

While availability, cost, and automatic coverage might seem appealing, these aspects do not typically reflect the reality of the insurance market for Errors and Omissions Insurance. Availability varies based on the insurer's assessment of risk, and costs can fluctuate widely based on the nature of the services offered. Furthermore, coverage is not automatic simply upon application; thorough underwriting processes are involved to determine the eligibility and extent of the coverage provided.