E&O. Professional Liability or Errors & Omissions Liability insurance appropriate to the Consultant’s profession. Architects’ and Engineers’ coverage is to be endorsed to include contractual liability.
E&O. Life Insurance Corporation and partnerships must maintain E & O insurance coverage with a minimum of $1 million coverage per incident and an aggregate limit of $2 million with two years tail coverage and extended coverage for fraud. The name of the coverage provider and the policy or certificate number must be provided with the corporation or partnership application. All applications for a corporate agency must be accompanied with a copy of the current Errors and Omissions certificate in the legal name of the corporate agency. A mandatory fraud coverage/ONTARIO endorsement of $1,000 is also required. If your E&O policy holds a vicarious liability: E&O policy is intended to protect you as a licensed advisor, and your unlicensed employees, if applicable. However, you can add coverage for the following firms to your policy: Firm(s) in which you hold an ownership interest, under which you provide financial advisory services (see reference to “Personal Corporation” below) Firm(s) with which you are contracted to do business that require their name(s) to be shown on your Certificate of Insurance Note that under certain circumstances, the addition of any of the above firms to your coverage is provided in a very limited capacity: that of “Vicarious Liability”. For firms with whom you do business i.e. a contracted mutual fund dealer, vicarious liability protection is adequate and will satisfy their requirements. However, vicarious liability coverage may not be adequate to fully protect your firm. What is “Vicarious Liability”? In Common Law and under the Civil Code, the principle of vicarious liability establishes that an employer or agency may be held liable for the conduct of its employees/agents, without proving actual negligence. However, should a claim be brought against your firm alleging negligence (“direct” liability), such as allegations of improper hiring, negligent supervision or training, your Agent’s E&O policy won’t respond to defend your firm. Also, where a licensed agent has left the firm, and a suit is brought against the firm alleging negligence on the part of the former employee, your firm could be called upon by the courts to respond. Under these circumstances and many other situations, your Agent’s E&O policy won’t respond to protect your firm. Any legal expenses or court awards would be borne entirely by your firm. In certain circumstances, agents can obtain full coverage beyond vicarious liability under their individual Agent’s E&O insura...
E&O. With respect to the Errors and Omissions and Bankers’ Blanket Bond policy no. FB 0405788 issued by certain Underwriters at Lloyd’s, London (the “Lloyd’s E&O Policy”), the Parties agree to negotiate with the insurer and use their commercially reasonable efforts to obtain an endorsement to that policy which will provide as follows: (i) the policy is amended to provide that the named insured is Lazard Ltd and its subsidiaries or affiliates; and (ii) the policy, subject to its terms, covers Lazard Ltd and its subsidiaries or affiliates for claims made through June 30, 2005, or such later expiration date as may be agreed upon between Lazard Ltd (in its absolute discretion) and the insurer. Lazard Ltd and LFCM and each of their respective subsidiaries or affiliates acknowledge that in light of the “change of control” provision in the Lloyd’s E&O Policy, LFCM and its subsidiaries or affiliates may be eligible for coverage for claims made through June 30, 2005, or such later expiration date as may be agreed between Lazard Ltd (in its absolute discretion) and the insurer, but only for acts and omissions occurring prior to the Separation Date; provided, however, that LFCM and its subsidiaries or affiliates may only make a claim under the policy with Lazard Ltd’s consent, which will only be granted if Lazard Ltd (in its absolute discretion) is satisfied that the aggregate limit is sufficient to pay any such claim. Lazard Ltd may, in its absolute discretion, agree with the insurers to extend the term of the Lloyd’s E&O Policy beyond June 30, 2005, but is not obligated to do so.
E&O. For policies that provide coverage per Mortgage Loan, the maximum deductible amount for each Mortgage Loan cannot be more than five percent (5%) of the insurer’s liability per Mortgage Loan. For policies that provide coverage per aggregate loss, the highest deductible permitted for E&O insurance is the greater of $100,000 or five percent (5%) of the actual amount of insurance in force. For example, if a policy provides $100,000 liability per Mortgage Loan, the deductible amount for each Mortgage Loan cannot exceed $5,000, regardless of the actual Principal Balance of the Mortgage Loan.
