E&O Coverage

[steve32]

We are currently with CNA, but they are withdrawing soon because of changing market conditions. Can anyone recommend an E&O carrier in CA?

Thank you in advance.

[flyeres]

Our agency is new to the P&C side, so I have been looking around for possible E&O coverage. Here are some companies I have looked into so far:

http://www.aon.com (Program through NAIFA)
http://www.doranxs.com
http://www.rockwoodinsurance.com
http://www.bbinsurance.com

[picinsur]

Agents with contracts with Infinity Ins., Co. received reduced rates with CalSurance, so you might look in that directiong. You might also contact USEO.com - I don't know what they have to offer in CA, but it's worth looking to. Good Luck

[briand]

You might want to try your local agents association.

[micheleepstein]

I would be delighted to help you out with your E&O placements and more!

I am:
Michele Epstein, AAI, AIS, ACSR, CISR, CPIW, DAE
Branch Vice President
ELM Insurance Brokers
3450 Clayton Road
Concord, CA 94519
925-688-2396
mepstein@e-o.com

Feel free to check out our website at www.e-o.com

[jbinsure]

I have used the PIA in Washington State, as they oversee CA. They are quoting a new program through PACO, who is apparently A Rated and admitted.

I've posted the info below:

Lisa Tucker
lisatucker@piawest.com
3205 NE 78th St., Ste 104
Vancouver , WA . 98665
888-246-4466
888-346-4466 (fax


Hope that helps! jbinsure

[wlunday]

We also use the PIA plan thru Lisa Tucker's office in Vancouver, Washington. They are very responsive and friendly to work with.
I have also looked into the NAIFA program. If your agency will be primarily P/C then it's not for you. If your income is more than 50% Life /Health and financial products then they will consider you, but if it ever grows to more than 50% P/C you will not fit their plan any longer. There is talk about a little better allowance, but they are not there, yet. For now, the PIA plan is designed well and priced right. Call Lisa.

Wayne Lunday, LUTCF, CLU, ChFC

[kmeadows]

I would be happy to help get you into PACO, an admitted carrier. Feel free to contact me at kmeadows@gray-stone.com and we can discuss further.

[steve32]

Does anyone else have suggestions? I got a quote from Paco and then also Fireman's fund. Fireman's fund sounds like the best option so far, but I appreciate any other recommendations.

Thanks in advance.

[bbixby@iiabny.org]

You should try Westport they are very competitive and have an excellent form. In California you can get a quote through:

Cooper & McCloskey, Inc., 111 Pine Street, Suite 1530, San Francisco, CA 94111. Program Administrator Jamie Whitington, 415-321-7756 (direct); Fax: 415-433-7707; Email: jamie@cmiprorisk.com. Visit CMI’s website at http://www.cmiprorisk.com.

[steve32]

Does anyone else have experience with Westport?

[Brenda H]

We use Westport in our Texas Agency. Access them through our Independent Insurance Agent's assocation. They give us a discount for having over 50% of our employees having the ACSR designations. Very competetive rates (at least in texas)

[mhutch69]

So you know, in AZ., to my knowledge, the "Big I" exclusively sells Westport. In my experience, They try to make you believe you are getting a better rate by going with that market.

From quotes I received, the rates in AZ. are 2 x's greater than the market for typical P & C agencies. Just speaking from my own experience.

Now, in addition, you MUST add the Big I dues to the cost of the E & O and IF you do not renew the membership, your E & O is non-renewed as well. The Dues, from my recollection range from $1,000 per year and higher? It is irrelavant as the association does very little for my agency over 25+ YEARS.

So, figuring in the costs, it is NOT worth it. Great company, poor selection of distribution systems in AZ.

The Big I in AZ., is now the Little I. I dropped my membership due to the Association NOT doing ANYTHING for brokers. The association just continually TRIES to justify their existence, but failes miserably. Mailing newletters with the personal agendas/opinions of one long time (too long) employee gets boring and does not apply. Rumor is the members are dropping like flies.

Typically, if you fail as an actual agent, or other industry entity, you can ALWAYS become an employee of the association.

Just my experience.

[gregcw]

Steve32,
I've been with Employers' Re/Westport since 1989. That's the year I went I/A after being encumbered with Farmers Insurance Group. I've had two claims with them, one in '92 and the other in '98 and been satisfied at how they both handled and paid the claims.

RE: mhutch69's comment, I got the Empoyers' Re policy through the Life Underwriters Association back then even though I'm through IIAB now. I also had access to them through a GA. The difference was the Association discount, I believe 10%, with IIAB. One reason that I haven't shopped has been because of the tail. I'm also a PIA member and just recently learned that their policies (through severeral different companies) all provide unlimited prior acts coverage.

On his comment about the dues.. My discount for being a "Big I" member pays the dues. I also currently have a 10% claim free discount plus the 10% discount for the E&O prevention class with 3 hrs of CE and they are now offering an additional 10% discount for agencies that have completed the Agency Shield Program No CE for that but it is a three year discount as opposed to the E&O prevention class which is only two years.

So you know, in AZ., to my knowledge, the "Big I" exclusively sells Westport. In my experience, They try to make you believe you are getting a better rate by going with that market.

Now, in addition, you MUST add the Big I dues to the cost of the E & O and IF you do not renew the membership, your E & O is non-renewed as well.

[mhutch69]

I am speaking of my individual experience with Westport's quote on my multiple agency location E & O back 2 years ago. The quote was DOUBLE several other markets I obtained quotes from.

The non-renewal unless membership dues are paid is accurate. The discount MAY pay the IIAB dues, but the initial starting rate was MUCH higher than all other quotes.

Therefore, just like any insurance, if you fit the exact risk they are shooting for, your rate may be competitive. I also think many agencies that are insured there have not shopped adequately.

I have sold Professional Liability for insurance agents in AZ. and never had a problem beating their rates with any risk I quoted.

If the market was properly shopped, more than not, the price can be beaten. As far as prior acts, I do NOT have a market that will not consider a prior acts retro date when quoting an incoming risk. That is certainly not a reason to pay double the market rate with IIAB.

Just my experience.