Some insurance agents and brokers do not realize that their insurance agents E&O policy does not cover all of their services. Insurance agents are always looking for an edge, and differentiation strategies can lead to a variety of value added services (see our prior post). Some of these value added services may not fit within the standard definition of covered services in an insurance agents/brokers E&O policy. An example:
An insurance agency specialized in a specific class of business, and also provided value added services to its clients including risk management, compliance and training services. The insurance agency requested insurance agents E&O coverage without realizing that there was a shortfall in the standard coverage. The value added services did not completely fall within the standard definition of covered services, so a customized solution was provided in the E&S market.
The coverage provided by your insurance agents & brokers E&O policy should match the services you are providing to ensure proper protection should claims arise. We have experienced an increase in inquiries from insurance agents & brokers with deficient coverage. Let us know if we can review your own insurance agents & brokers E&O coverage.