$2M Professional Liability (E&O) Insurance for Immigration Consultants

A $2M requirement means your policy must pay up to $2M on one claim. This guide is for non-attorney immigration consultants whose employer, law firm or program partner asked for $2M.

What does a $2M requirement mean for immigration consultants?

Professional Liability (E&O) covers claims that a mistake in your work cost a client money. E&O stands for Errors and Omissions. An employer clause might read:

• Per claim: the most the policy pays for any one claim. Here, $2M.
• Aggregate: the most the policy pays for all claims in one policy year. Here, also $2M.
• Claims-made: Professional Liability almost always covers claims made and reported while the policy is active, for work done on or after the retroactive date (the earliest work date the policy covers).

For more on reading limits, see Professional Liability (E&O) limits explained.

Who asks immigration consultants for $2M?

Business clients set insurance limits. $1M is a common starting point (see $1M Professional Liability for immigration consultants). $2M often shows up when one mistake could affect many workers at once. You may see it from:

• Large employers that outsource paperwork for sponsored workers or transferees
• Relocation and global mobility companies that bring you in as a subcontractor
• Law firms that hire you for document gathering, form preparation or translation under attorney supervision
• Staffing agencies placing foreign workers
• Universities and hospitals with international staff or students
• Government agencies and nonprofits funding resettlement

Attorneys need lawyers professional liability, a separate form, not the coverage described here. Rules for non-attorney immigration services vary by state and by type of service. A qualified attorney can tell you what you may offer.

How is $2M built?

A $2M requirement is often met with one primary policy (the policy that pays first) written at $2M/$2M. Immigration consultants often look at Miscellaneous Professional Liability, a form made for service businesses that do not have their own policy type. The right form depends on your services and underwriting.

Some clients also accept a $1M primary policy plus a $1M excess layer (a second policy that sits above it). The excess should follow form, meaning it adopts the primary policy's terms. Confirm with the client that primary plus follow-form excess meets the clause.

Already carry $1M? Request new $2M quotes through Morrow, as a new primary policy or an excess layer. A commercial umbrella almost never covers Professional Liability, so it usually cannot help you reach $2M (see Does a commercial umbrella cover Professional Liability?).

What will underwriters ask for?

An underwriter is the person at the insurance company who decides whether to offer coverage and on what terms.

• Each service you offer, such as form preparation, document gathering, translation or relocation support, with a share of revenue for each
• Whether you work for individuals, employers or law firms, and whether any work is under attorney supervision
• How you avoid giving legal advice, including engagement letters that say you are not attorneys
• How you track filing deadlines and who reviews forms and translations before they go out
• How you store passports and other personal data, and who can access them
• The contract asking for $2M, loss runs (a report listing past claims) for three to five years, any known incidents, and your current policy with its retroactive date

What affects the cost?

• Your services. Work that sits close to legal advice usually costs more to insure than translation or relocation logistics.
• Who you serve. Large employer programs can mean many files and bigger losses from one error.
• Claims history. Past claims can raise the price or narrow your options.
• Retention. This is the amount you pay per claim before the policy pays, like a deductible. A higher retention usually lowers premium (the price of the policy).
• Defense terms. Many policies pay defense costs inside the limit, which leaves less for a settlement. Defense outside the limit usually costs more.

Frequently asked questions

Can one claim against an immigration consultant reach $2M?

Yes, a large claim can. Here is a hypothetical. Your firm handles renewals for an employer's sponsored workers at many sites. A tracking error makes many filings late, workers must stop working, and the employer claims lost projects. Damages could grow toward $2M. Many policies also pay defense costs inside the limit, so those costs leave less for a settlement.

Does Professional Liability cover claims that I gave legal advice as an immigration consultant?

Often not. Many policies exclude work you are not allowed to do, such as practicing law. Describe your services accurately on the application. If you are unsure what you may offer in your state, ask a qualified attorney.

Does Professional Liability cover a data breach of client files?

Often only in part. Many policies limit or exclude breach costs such as notifying people. Cyber insurance is built for those costs (see Professional Liability vs. Cyber).

Is $1M/$2M enough if my contract says $2M?

Often not. A $1M/$2M policy pays at most $1M on any one claim, so it may not meet a clause that asks for $2M per claim. Confirm the wording with your client, then request $2M/$2M quotes through Morrow.

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.