Anyone shopping their E&O better pay attention to the retroactive date. If there is an old claim bouncing around and suddenly a suit arises, the E&O carrier might try to get out of it if their retroactive date doesn’t cover it. When I first bought our agency, we had an association plan through the Independent Agents. Our premium practically tripled in three years with no claims because their carrier was having trouble overall. We had no choice but to move it and got a much better premium, better coverage and direct bill. We have had some minimal increases over the past 5 years, but we have never approached the premium of the prior carrier in their last year.
“If there is an old claim bouncing around and suddenly a suit arises, the E&O carrier might try to get out of it if their retroactive date doesn’t cover it.”
One would hope that an insurance company “might” try to get out of a covering a claim that their policy doesn’t cover. That seems only fair if one isn’t paying for prior acts coverage.
Wayne, you are misinterpreting what I am saying. Any E&O carrier puts a retroactive date on their policy and any claim that comes to attention after that date will not be defended or paid even if the claim in question happened prior to the coverage being written. Tail coverage is important to make sure that unforeseen incidents will be defended and/or paid if they have merit. We had to pay extra for tail coverage to the old E&O carrier when we switched E&O carriers. Thank goodness we had no claims during that period and we have been good for several years now.
What concerns me is someone twisting what was actually said? Do you read policies with more detail?
“It’s no different than personal insurance, she said. “If you’re getting the coverage you need for the exposures you have at a fair price and you’re satisfied with the claim service if you’ve had a claim, and there’s been no change in the financial stability of your carrier, I question why anyone would want to shop,” Sally said.”
Her first quote…if you’re getting the coverage you need.
Is there some other executive quote you’re discussing?
Actually wayne, we did have two potential claims on our E&O that had little merit, the carrier defended and got the claims dismissed. We had good information on the incident and documented our files. Both were closed without payment to the claimant. That is good risk management and we have an excellent record as a result.
Mr. Solvent, the association carrier had poor experience with other agents, so they were giving all agents huge rate increases and we could not negotiate with them with our loss free record. No experience credits offered, just rate increases. They wore out their welcome and I have not considered even letting them quote again. That was 6 years ago and their renewal offer back then was much higher than we are paying currently.
We are a GA for niche commercial auto program.
Is it sufficient for me to have E&O or does the GA itself also need E&O? The GA is a TX corporation.
Can my individual agent E&O be ext3nded to the agency itself?
Thank you
Check with your E&O carrier. Either they will endorse the policy or they won’t depending on the information you give them. My E&O covers the agency and all the partners and our prior entity name back to a retroactive date.
Does it concern anyone else that an executive says they don’t know why anyone would shop for coverage?
Anyone shopping their E&O better pay attention to the retroactive date. If there is an old claim bouncing around and suddenly a suit arises, the E&O carrier might try to get out of it if their retroactive date doesn’t cover it. When I first bought our agency, we had an association plan through the Independent Agents. Our premium practically tripled in three years with no claims because their carrier was having trouble overall. We had no choice but to move it and got a much better premium, better coverage and direct bill. We have had some minimal increases over the past 5 years, but we have never approached the premium of the prior carrier in their last year.
“If there is an old claim bouncing around and suddenly a suit arises, the E&O carrier might try to get out of it if their retroactive date doesn’t cover it.”
One would hope that an insurance company “might” try to get out of a covering a claim that their policy doesn’t cover. That seems only fair if one isn’t paying for prior acts coverage.
Wayne, you are misinterpreting what I am saying. Any E&O carrier puts a retroactive date on their policy and any claim that comes to attention after that date will not be defended or paid even if the claim in question happened prior to the coverage being written. Tail coverage is important to make sure that unforeseen incidents will be defended and/or paid if they have merit. We had to pay extra for tail coverage to the old E&O carrier when we switched E&O carriers. Thank goodness we had no claims during that period and we have been good for several years now.
What concerns me is someone twisting what was actually said? Do you read policies with more detail?
“It’s no different than personal insurance, she said. “If you’re getting the coverage you need for the exposures you have at a fair price and you’re satisfied with the claim service if you’ve had a claim, and there’s been no change in the financial stability of your carrier, I question why anyone would want to shop,” Sally said.”
Her first quote…if you’re getting the coverage you need.
Is there some other executive quote you’re discussing?
Actually wayne, we did have two potential claims on our E&O that had little merit, the carrier defended and got the claims dismissed. We had good information on the incident and documented our files. Both were closed without payment to the claimant. That is good risk management and we have an excellent record as a result.
Who determines what a fair price is? Agent has it right, and I’m sure the association’s carrier thought triple the premium WAS a fair price.
Without shopping there’s very little insurance market isn’t there?
Mr. Solvent, the association carrier had poor experience with other agents, so they were giving all agents huge rate increases and we could not negotiate with them with our loss free record. No experience credits offered, just rate increases. They wore out their welcome and I have not considered even letting them quote again. That was 6 years ago and their renewal offer back then was much higher than we are paying currently.
We are a GA for niche commercial auto program.
Is it sufficient for me to have E&O or does the GA itself also need E&O? The GA is a TX corporation.
Can my individual agent E&O be ext3nded to the agency itself?
Thank you
Check with your E&O carrier. Either they will endorse the policy or they won’t depending on the information you give them. My E&O covers the agency and all the partners and our prior entity name back to a retroactive date.