Specialty Insurance Blog

Professional Liability Insurance (E&O) Placement Tips

Professional Liability Insurance (E&O, D&O, EPL, Cyber) does not operate quite the same way as other lines of coverage. Part of this is driven by the use of claims-made insurance forms, and part is based on the services, exposures and legal basis for claims. Some tips from Curtis Pearsall on working with professional liability insurance (here): A new application is required every year Underwriters need time Accounts change, exposures change The client should complete and sign the app – it is their representation Ensure the scope of services actually covers everything the client does Review the policy – they are not all the same Additionally, work with an expert. Exposures, coverages and underwriting appetite are not all the same, so... Read more →

Cyber Insurance – Update on Bank Account Takeover

We continue to hear that the threat to a smaller organization of cyber-attack is real (see prior post), and we have talked about Cyber Insurance as one (essential) method of protection. A bank account takeover attack is just one of these threats, but the consequences to a small business are significant (prior post). One attack we have previously noted is the Choice Escrow attack (see here). Subsequent to the attack, litigation ensued between Choice Escrow and their bank over responsibility for the loss of funds. The litigation went to appeal, where the bank prevailed. Rather than continue the appeal process, the parties settled, agreeing to each pay their own legal fees (see here). The obvious lesson is that Cyber Insurance... Read more →

Buying or Selling An Insurance Agency – Coverage

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... Read more →