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 Agents/Brokers E&O 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
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.
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