Errors & omissions (E&O) insurance rates fell between 5% and 10% in 2009, with the exception of financial institutions, which saw double-digit rate increases early in 2009 but smaller increases later in the year, according to Guy Carpenter & Co. Excess supply in the E&O market drove the prices down.

"While insurers don't publish results specific to E&O, it is our belief that E&O remains a profitable line," noted Anthony "Sandy" Codding, Marsh's Errors & Omissions Advisory Practice Leader.

"Insurers expect increased claim activity due to the economic downturn, so they are posturing for increased rates. However, with supply continuing to exceed demand, our overall expectation is that rates will continue as they are for the near term — at flat to 5% down," Codding added.