Insurance Agents E&O - Summary

Insurance agents and brokers have seen some softening in the market for insurance agents professional liability (E&O) despite increasing exposures and claims.  A recent article in American Agent & Broker provides an excellent summary of the segment (see here), so a short sabbatical from our sabbatical is warranted.

The article starts with a key point:

There are two types of insurance agencies: those that have had E&O claims and those that are going to

Another key point is made in a more roundabout way: virtually all agents E&O claims are avoidable or defensible if proper procedures and documentation are in place.  Since the average agents E&O claim is over $25,000, and since claims significantly impact premium, putting effort into loss prevention is imperative. Important loss prevention techniques include:

• Documentation is your best defense
• Have a well documented procedures manual
• Monitor to ensure compliance with procedures

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Comments

[Affordable Insurance]

E and O Coverage is definately a necessary evil but my clients and me really deserve to have professional insurance to help both of us in the event that I make a major mistake.

Thanks for the post.

[Wm E Morrell Inc]

Great post explaining the need for E & O insurance.

E & O Insurance is now becoming the norm for many businesses and professions. We offer our customers in the Lower New York Area a complete offering of professional Liability insurance.