Even in a soft market, the purchase of insurance agent’s E&O (professional liability) insurance is not always simple. Despite the soft market, the class is still fragmented and carefully underwritten (mostly). While the current financial challenges with AIG and others may have a limited impact on this market, the overall market continues to be driven by typical soft market conditions.
A set of article in American Agent & Broker on insurance agents professional liability insurance coverage makes some key points:
The market remains soft Shop around, but pay close attention to coverage, carrier rating and other non-price attributes Risk management & staff training are critical in preventing losses Report an incident quickly, do not sit on it
One of the articles (see here) includes some specific recommendations for the time a claim is presented. In addition, some loss prevention tips are discussed. For example, the old adage - document everything - still applies even this era of technology. In addition, thoroughly knowing your clients, your markets and your products is critical.
Despite the soft market and the lower E&O premiums that come with it, don’t take your eye off the ball when it comes to prevention and employee education. The best insurance agent E&O claim is the one that never happens
The third article discusses web site exposures for insurance agents (see here). This excellent article put some perspective on insurance agents use of websites and representations they might make. The key message is that representations made for marketing purposes might be interpreted differently by clients who turned into claimants.
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Hi,
Nice information.
The opportunity for insurance agents is great. The article about web presence (agentandbroker) is thought provoking.
Thanks for sharing.
:-)
Posted by: Bendz | September 17, 2008 at 10:44 AM