What is the maximum amount of protection provided by the E&O insurance program for all claims in one policy year?

• A. 1 million dollars
• B. 20 million dollars
• C. 5 million dollars
• D. 50 million dollars

Answer: (B)

E&O coverage uses an annual aggregate limit—the total amount the insurer will pay for all claims in a single policy year. For this program, that annual cap is twenty million dollars. That means no matter how many claims arise in the year, the combined payouts cannot exceed twenty million, though each claim may have its own per-claim limit within that overall cap. The other dollar amounts reflect different possible limits, but the program’s maximum for all claims in one policy year is twenty million.