Provide the requested limits and deductible for your Errors and Omissions (E&O) insurance policy.

This question helps the insurance carrier understand the scope of coverage you are seeking. Your requested policy limit and deductible are the primary factors that determine the level of risk the insurer takes on and, consequently, the premium you will pay. This information allows the carrier to provide a quote that is tailored to your firm's specific risk tolerance and financial capacity.

• What is a "Policy Limit"? The policy limit is the maximum amount the insurance company will pay for covered claims during the policy period. This is often structured with a "per claim" limit (the max for any single claim) and an "aggregate" limit (the max for all claims combined during the policy year).
• What is a "Deductible"? The deductible is the amount of money you must pay out-of-pocket for a covered claim before the insurance company's coverage begins. For example, with a $10,000 deductible on a $50,000 claim, you pay the first $10,000 and the insurer pays the remaining $40,000.

To answer this question, you need to state the desired dollar amounts for your policy limit and deductible.

You are free to request any limit and deductible that suits your firm's needs. If you would like guidance, these are the starting points Box Professional uses, based on your firm's Assets Under Management (AUM):

• $0 - $200M AUM: $1,000,000 Limit
• $200M - $450M AUM: $2,000,000 Limit
• $450M - $650M AUM: $3,000,000 Limit
• $650M - $900M AUM: $4,000,000 Limit
• Over $900M AUM: $5,000,000 Limit

These are general starting points, not a recommendation for your firm. Every firm's needs are different: your client base, services, largest accounts, claims history, and any limits your custodian or clients require can all point to a different limit. No limit guarantees that a claim will be fully covered, so talk with your broker before you choose.

Deductibles can be selected based on your firm's risk tolerance and financial capacity, often ranging from $5,000 to $50,000 or more.

Please provide the specific dollar amounts you are requesting for both the Policy Limit and the Deductible.

• Mistake: Choosing a limit without considering your actual risk exposure.
  • A limit should be high enough to protect your firm from a worst-case scenario claim. Consider the size of your largest accounts and the potential for a significant market-related loss.
• Pitfall: Selecting a deductible that is too high for your firm's cash flow.
  • While a higher deductible lowers your premium, you must be financially prepared to pay that amount out-of-pocket at the start of a claim.
• Mistake: Believing that higher limits are always better.
  • While higher limits offer more protection, they also come with higher premiums. The goal is to find the right balance between adequate coverage and a sustainable cost. Over-insuring can be an unnecessary financial strain.