New Agency E&O

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GrowthAgent
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Joined: Thu Jun 22, 2006 2:33 pm

New Agency E&O

Post by GrowthAgent » Thu May 24, 2007 7:26 am

What is the typical premium for $500K & $1M limits for an agents E&O policy?

Prolines
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E&O

Post by Prolines » Thu May 24, 2007 11:04 am

There are a number of factors that go into the pricing of Agency E&O.

How much premium volume is projected in the first year?
How much fee and commission income will be generated?
What is the split in regards to placement (GL, Auto, Professional, Transportation, Personal, Aviation, Marine, etc)?
What is the experience level of the Principals?
How many Agents?

INTLXS
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Post by INTLXS » Thu May 24, 2007 12:24 pm

Simple answer.... $1,000 give or take $500 based on certain factors.

wlunday
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Location: WA

Post by wlunday » Thu May 24, 2007 2:15 pm

There are only a few (maybe 10) markets for this stuff. It would be easy to submit a few applications to get a good idea. Or. just call the marketing people at the MGA's that sell it. Good Luck.

Swymmer

mhutch69
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Insurance Agent E & O

Post by mhutch69 » Fri May 25, 2007 9:09 am

What state are you located in? I can help with AZ and NV. I have markets for new producers through seasoned large agencies. As the other post stated, several factors are considered to provide an indication of premium for each agency.

Premium Written
Type of Coverage sold
Annual Commissions
In-house procedures
Historical complaints
DOI actions
Historical claims
Experience in the business
Are securities sold?
Percentage of revenues attributed to each line of coverage

etc.

If you are in AZ or NV, I can send you several apps to complete and get you an immediate indication.

If you are in CA., contact Arrowhead General. They got it covered.

Hutch

aplessing
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Post by aplessing » Fri May 25, 2007 3:22 pm

Aon has a program for small new agents called Agency Advantage
http://www.agency-advantage.com/

They also announced a program through the PIA a couple of weeks ago.

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