$1M Professional Liability (E&O) Insurance for Immigration Consultants

A $1M Professional Liability (E&O) requirement means your policy pays up to $1M for a covered claim. This guide is for non-attorney immigration consultants whose law firm, employer or agency client asks for it.

What does a $1M requirement mean for immigration consultants?

Professional Liability (E&O, short for Errors and Omissions) covers claims that a mistake in your services caused a client a financial loss. A clause from a law firm or relocation company might read:

• Per claim: the most the policy pays for any one claim. Here, $1M.
• Aggregate: the most the policy pays for all claims in one policy year. Here, $2M. A $1M/$1M policy falls short of this clause. A $1M/$2M policy matches its limits, but check the rest of the contract.
• Claims-made: Professional Liability is almost always written this way. The policy covers claims made while it is active, for work done on or after the retroactive date (the earliest work date the policy covers). See claims-made vs. occurrence.

Who asks immigration consultants for $1M?

Individual clients rarely ask. The $1M request usually comes from organizations, such as:

• Law firms that outsource form preparation, translation or document gathering.
• Employers and HR teams supporting workers who need visas or work permits.
• Relocation and global mobility companies.
• Universities and hospitals with international students, scholars or staff.
• Nonprofits that fund or refer immigration help.
• Government agencies and courts buying translation.

How is $1M built?

At $1M, the limit is usually one primary policy (the policy that pays first), with no extra layers. A $2M requirement usually means a higher per claim limit, often for larger employer or university programs, while $1M/$2M raises only the yearly total. Read the clause to see which one it asks for (see $2M for immigration consultants).

Non-attorney immigration consultants usually buy Miscellaneous Professional Liability, a form made for service businesses without their own policy type. Immigration attorneys need lawyers professional liability instead, not this form. If you store passport numbers and other personal data, Cyber insurance is worth a look too.

A commercial umbrella almost never covers Professional Liability. Clients usually cannot be added to a Professional Liability policy as an additional insured (a third party given rights under your policy). A broker review can check that the policy names your services, that the aggregate matches the clause, and whether defense costs (lawyer fees to fight a claim) are paid inside the limit.

What will underwriters ask for?

An underwriter is the person at the insurer who decides whether to offer coverage and on what terms. For immigration consultants, they usually ask about:

• Your services, such as form preparation, translation or relocation support.
• How you stay within what non-attorneys may do where you work, including any registration or bond, and whether attorneys review your work.
• Your mix of individual clients and business clients.
• How you track filing deadlines and check form versions and fees before filing.
• Engagement letters, client sign-off on final forms, and how your ads describe your services.
• How you store original documents and personal data, plus prior claims, complaints and your current retroactive date.

What affects the cost?

• Service mix. Work tied to deadlines and legal status may cost more than pure translation, depending on the insurer.
• Revenue and client type. More files and larger business contracts mean more chances for a claim.
• Claims and complaint history. Prior claims or regulator complaints can raise the price or narrow options.
• Aggregate and retention. A higher aggregate usually costs more. A higher retention (the amount you pay per claim before the policy pays) usually lowers the premium.
• Defense and prior acts terms. Defense paid outside the limit usually adds cost, and so can full prior acts coverage (cover for work you did before the policy starts) for a new insured (see defense costs inside or outside limits).

Frequently asked questions

Do I need $1M Professional Liability as an immigration consultant if my contract asks for it?

Yes, if the contract requires it, you usually must show proof before work starts. Send the clause to Morrow to review the limits and services listed.

Will Professional Liability cover me if a regulator says I gave legal advice?

Often not. Many policies exclude fines, penalties and work outside the services you describe on the application.

Is $1M/$1M enough if a law firm contract says $1M/$2M?

Usually not, because the yearly total is lower than the clause asks. Morrow can request quotes for a new $1M/$2M policy and ask that your retroactive date and prior acts coverage carry over where the market allows. Keep your current policy in force until the new one starts, and report known incidents to your current carrier first.

Does Professional Liability cover claims after I stop working with a client?

Only if the claim is made while a policy covering that work is active. A claim first made after your policy ends is generally not covered. A new policy that keeps your retroactive date can protect past work. So can an extended reporting period, or "tail" (see tail coverage explained).

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.