Specialty Insurance Blog

TeleMedicine Liability

Telemedicine brings efficiency and cost savings, but may increase liability for the provider utilizing it. Medical malpractice insurance coverage is essential, along with appropriate risk management, to address the new exposures from telemedicine. - An article from OneBeacon Pro (see here) provides detail on the exposure and insurance issues associated with tele-radiology provided in the US and abroad. The article includes a case study which shows some of the pitfalls of telemedicine. For example, intricacies of state law can create unexpected liability, poor implementation can result in a breach the providers own medical and risk management protocols, and failure to ensure compliance can result in inadequate insurance coverage. Many of these exposures can be addressed with thorough risk management, including:... Read more →

Lawyers as Actuaries

Trial lawyers have decided that medical malpractice insurance rates are too high, and have taken action in Connecticut with the Insurance Department against a key medical malpractice insurer. The Connecticut Trial Lawyers Association (CTLA) has completed a study and sent a letter to the insurance department demanding that rates be lowered. The insurer, Connecticut Medical Insurance Company (CMIC), did not raise rates in 2006 and is not planning to raise rates in 2007 (see here and here). The CTLA says that CMIC shows a consistent pattern of over-reserving for claims, and its surplus - the financial cushion - is disproportionately high in relation to premiums. The trial lawyers might have a vested interest in rates. According to one report, the... Read more →

Submission Covers

The quality of a specialty lines submission from an insurance agent or broker to an underwriter can significantly impact the terms and conditions received, if any. One of our markets, Tudor Insurance, has a summary of what they prefer in professional liability submission cover notes (see here) – the covers they receive that summarize professional liability applications. They point out some of the obvious. Include your name and contact information, and the account name. Additional points include: Include current coverage info – expiration date, limit, deductible, expiring premium, retro date Highlight important points, such as claims Note any changes or unusual characteristics Most importantly, tell the underwriter what you want to write the business. This includes pricing, timing, and specific... Read more →

Mid-Term Quotes

Insurance agents and brokers request mid-term quotes from us every once in a while, and we typically decline because our professional liability insurance markets will not quote mid-term without a strong reason. Here is how one of our underwriters described his position on mid-term quotes: We do not provide mid-term quotes on in-force polices. We routinely decline to offer terms on in-force polices unless there is a significant reason, such as the current carrier being unwilling or unable to provide the required coverage or extension. In its simplest form, we don’t want to do to others what we don’t want them to do to us! Professional liability insurance underwriters do not want their business taken mid-term, and generally honor others’... Read more →

Net Promoter Score

Insurance agents and brokers are sales driven organizations, and the Net Promoter Score can be valuable in assessing the degree to which a sales organization is providing value to its customers. The net promoter score is a simple method for measuring the propensity of the customer base to promote a particular company or product to others. The approach is centered on one key question for customers: How likely is it that you would recommend this company to a friend or colleague? A formula relates the resulting number of promoters with the number of detractors. An organization with a high ratio of promoters to detractors has a strong base of customer support, and a high number of detractors indicates the opposite,... Read more →

Litigation Trends

You have undoubtedly read about a new study on litigation trends, which indicates that litigation continues to grow, but how does it impact insurance agents & brokers, and insureds? The study concludes that insurers are the biggest litigation magnets, and no one else was even close. Coverage disputes between insureds and insurers are not good for the agent, and in many cases the agent is brought in as a defendant. For insurance agents and brokers this means E&O. Another key conclusion is that lawsuits are a fundamental part of doing business. The study was completed by Fulbright & Jaworski, a law firm located in New York (see here and here, and here and here for articles). Key points of interest:... Read more →

Overtime Lawsuits

Overtime lawsuits are on the rise, and impact small employers such as insurance agents and brokers as well as larger employers. A recent article in CFO magazine highlights the problems for well intended employers arising from recent changes in labor law (see here). While the key issue is a lack of clarity over who is owed overtime, the issue is more complex than that. In addition to recent changes in federal law, state law applies, often with more restrictive and outdated regulations. Some key points: The Department of Labor revised the Fair Labor Standards Act (FLSA) to provide clear guidance on who was entitled to overtime, but it still is not clear Overtime claims under the FLSA have increased by... Read more →

Insurance Agents E&O Pricing

Insurance agents E&O is a critical coverage for all types of insurance agents and brokers, but it also represents a significant expense. A recent survey by Insurance Journal (see here) suggests that insurance agents E&O costs may continue to rise. The survey, recently completed, indicates that 77% of respondents said their insurance agents E&O had risen over the last 3 years, and 60% said their premium increased in 2006. More than 25% said the increase totaled more than 25%. But the article points out that the tide may be turning as there is some softening in the market. We are seeing more competition, greater pricing flexibility and broadening terms. eSpecialty Insurance is your specialty insurance expert. We have developed a... Read more →

Agent Licensing Reform?

Insurance agents and brokers still struggle with licensing requirements despite dramatic changes over the last few years. The NAIC met recently, and continued discussions towards agent and broker licensing reform (see here). The NAIC’s Producer Licensing Working Group identified four key issues that they would work on: the elimination of duplicative licensing burdens imposed on agencies reform and perhaps elimination of the appointment process the development of an optional best practices handbook the creation of a centralized system where producers could report address changes, administrative actions and/or criminal prosecutions to all appropriate jurisdictions It would be nice. eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers,... Read more →

Beat the Gecko

This insurance agent (see here) has put together a series of ads aimed squarely at the gecko. Very funny – worth a quick look. The one entitled Me Too is funny – like catching flies. Good to see an agent compete head on against a well-known direct writer. eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. We look forward to working with you. Read more →