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Agency E & O or individual E & O

May 11, 2018

  1. Abctx
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    Abctx Expert

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    I have a question, If I have an agency that just me as an agent, no other agent or recruiter beside me. Can I buy my E & O under individual policy or it has to be under an Agency policy. I called the Texas Department of Insurance to ask but the rep that I talked to just hung up on me. I've been paid and written under my personal tax ID and individual license, also have my agency license with E & O showing my name and the name of the entity, but bought under my individual E & O policy.
     
    Abctx, May 11, 2018
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  2. adjusterjack
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    adjusterjack Guru

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    You should be talking to your E&O insurance agent.

    Both you and your "entity" should be listed as Named Insureds.

    Examples:

    Joe Agent DBA Joe's Insurance Emporium

    Joe Agent and Joe's Insurance Emporium, LLC

    Joe Agent and Joe's Insurance Emporium, Inc
     
  3. Abctx
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    I called my E&O, and they told me to contact department of insurance. I just registered for assumed name for both so I want to update in correct way and each one gave me different answers so I’m really confused
     
    Abctx, May 11, 2018
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  4. adjusterjack
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    E&O what? Agent? Company?

    Seems odd. Did they say why, exactly?

    Both what?

    Me, too.

    I can't imagine anybody at the insurance department being able to tell you how your policy should be written.
     
  5. VolAgent
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    VolAgent Guru

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    Why in the world would your E&O agency or carrier tell you to call the DOI? Assuming your question was clear, it sounds like they are clueless or blowing you off. Time to find new E&O.

    Anyone licensed definitely should be covered by a policy, including the agency if licensed. You'd have to read the policy, but I kind of doubt there would be coverage for the agency if not licensed itself.
     
    VolAgent, May 12, 2018
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  6. Abctx
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    I called E&O company and spoke with the agent. I explained to her I just registered an assumed name for both my individual license and agency license. I need to update form Fin533, report of changes to TDI but they need to attached new updates E&O along with the form. So I called them to see if I need the E&O for agency or can I use the one I had which is individual E&O but listed my name and my corporation entity. She said she can’t give me an advice on that, I need to call TDI and ask. I then called TDI and they gave me the answer above
     
    Abctx, May 12, 2018
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  7. Abctx
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    That’s what I’m trying to find out. I want to change my contract with carriers from my personal account to my agency account. so I want to know if I need agency E&O insurance or can I use the one I had as individual to operate both license. Does this make sense?
     
    Abctx, May 12, 2018
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  8. adjusterjack
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    I looked up the FIN533 and noticed this:

    THIS FORM IS TO BE USED TO CHANGE THE FOLLOWING:
    Your mailing, resident, or business address, ONLY if the address change includes a change from one state to another state (Ex: TX to NM or KS to OK).
    Your individual licensee’s name registered with the department.

    http://www.tdi.texas.gov/forms/finagentlicense/fin533.pdf

    That form has nothing to do with your business name.

    It appears that the proper form is FIN528:

    http://www.tdi.texas.gov/forms/finagentlicense/fin528.pdf

    As for whether you need a new E&O policy all I can say is if your current policy covers you and your Insurance Inc company then you should be able to just add the additional business name to the policy.

    I can't read your policy but I don't imagine that there is a difference between a policy on an agent and a policy on an agency. Maybe you should do as another responder suggested: Find an E&O agent who knows what he is doing.
     
    Last edited: May 12, 2018
  9. Abctx
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    You are correct. I typed the wrong form. That’s the one I did.
     
    Abctx, May 12, 2018
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  10. adjusterjack
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    adjusterjack Guru

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