Proper E&O insurance coverage is critical for both the buyer and seller of an insurance agent/broker. And the form of the transaction will have a significant impact on insurance agent/broker E&O insurance needs. Curtis Pearsall points out some of the concerns (here, and our prior post here):
- Buyer & seller should address the coverage concerns consistently
- Advise your E&O carrier on what is happening
- Buy the longest tail option
- The acquisition of an agency with a different exposure may require a new underwriter
Based on our experience, we would add:
- Do not wait until the last minute
- One size does not fit all – get an expert. Your deal structure will impact your insurance needs
- Asset sales and entity sales are not the same
- Go to market – there are competitive options for Standalone Tail coverage
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place accounts, including special situations such as Standalone Tail coverage.
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