Posted On: October 15, 2006, 6:07 pm CDT

Posted By: Agent 007

We are paying more for E&O because the companies are paying claims on agents that have losses, some of these are agents that are posting on this blog and some is due to the character of the agent and the risks they are willing to take in business.
It is probably a good thing that more E&O carriers do not pull credit checks on the principals or the rates may go up more. Face it folks we have customers that good and bad and we have fellow agents that are good and bad, this is not to say that you are bad if you have an E&O claim. If these agents don;t understand why the E&O rates are going up I am glad they are not my agent.
It would be impossible to cancel contracts with companies that offer lower commissions, especially for agents along the gulfcoast and Florida, since most of these carriers are chopping commissions or sticking them with HUGE non commissionable fees. I just wish that more companies thought of agents as a good resource and a profitable partner instead of a way to cut expenses by lowering commissions.

More than my 2 cents worth