E and O Deductible Amount Question

[Mark]

What does the avg Company that requires E and O require you to have on your deductible?

Right now, I'm paying $495 with a $500 deductible but I've found other places that are now cheaper and also I can raise the Deductible and save tons of money.

Like $361 for $5,000 Deductible.
$446 for $1,000 Deductible.


Do you know how much each company requires you to have on a Deductible? I know most require you to have 1M coverage, but what about the Deductible.


IT does not seem like most of the insurance companies care about the amount of the Deductible but the amount of coverage.

I just spoke with Assurity and it is $10,000 max.

 

[GreenSky]

Never had a carrier request that information and really, why would they care? If the biggest e&o risk was $5K, you wouldn't be required to even have insurance.

Rick

 

[Fisher]

E&O has a deductible?

(jk)

 

[Mark]

Never had a carrier request that information and really, why would they care? If the biggest e&o risk was $5K, you wouldn't be required to even have insurance.

Rick

The light bulb just went off in my head today. I'm over paying for my E and O.

Right now, I'm paying $495 and I could be paying like $361.

I just want to have enough to met the companies guidelines.

 

[desert boy]

I have seen max limits of $1000.

But really look at the numbers,

In your example, there is a decent savings from 500 to the 1000.

There isnt enough savings to go to $5000 deductible.

Also remember, if you have office staff or producers under you, then what if they screw up, you are the one paying.

so you can save $85 a year, but possibly payout an extra $4000 if something happens, how many years will you not have to have a claim to save that $4000 back? Thats $47 years.

 

[Josh]

I have seen max limits of $1000.

But really look at the numbers,

In your example, there is a decent savings from 500 to the 1000.

There isnt enough savings to go to $5000 deductible.

Also remember, if you have office staff or producers under you, then what if they screw up, you are the one paying.

so you can save $85 a year, but possibly payout an extra $4000 if something happens, how many years will you not have to have a claim to save that $4000 back? Thats $47 years.

I don't know you or how long you've been licensed and doing business, but I rarely see you saying anything that makes sense.

First and foremost, you have to really go out of your way to screw up and actually have the deductible come in to play. It's not like car insurance, anyone can get into a car accident, but an e&o claim requires one to really screw up AND for the legal defense to not be able to stop it.

Next, if you have an office staff or producers under you then they most likely have to have their own e&o. Even if they are covered under your agency certificate, let's not forget the first point, you have to really screw up. for p&c agents that's easier because of the sheer volume of the number of policy changes that are being made and how easy it can be for an agent to screw that up. Even at that, you should have folks working for you that are competent enough to not really screw things up.

Lastly, if I could have a deductible of $50,000 I would take it because I'm never going to have that type of exposure. If I was doing health insurance and was risking someone getting declined coverage for $300k of cancer treatments after I changed their plan and they were out for blood and wanted to come after me then I would be more concerned about there ever being a claim, but for most life and senior products agents will NEVER be in a situation where the exposure matters. To take that yet another step further, even if the above situation where the cancer treatments were declined because when they changed plans they had symptoms of cancer and didn't now it, but the carrier disagreed, they would go after the carrier and fight with the carrier long before they'd ever blame the agent. Only after speaking with the attorney would they then take a look at possibly going after the agent, but odds of them doing anything but fighting with the carrier are slim to none.

 

[desert boy]

I don't know you or how long you've been licensed and doing business, but I rarely see you saying anything that makes sense.

First and foremost, you have to really go out of your way to screw up and actually have the deductible come in to play. It's not like car insurance, anyone can get into a car accident, but an e&o claim requires one to really screw up AND for the legal defense to not be able to stop it.

Next, if you have an office staff or producers under you then they most likely have to have their own e&o. Even if they are covered under your agency certificate, let's not forget the first point, you have to really screw up. for p&c agents that's easier because of the sheer volume of the number of policy changes that are being made and how easy it can be for an agent to screw that up. Even at that, you should have folks working for you that are competent enough to not really screw things up.

Lastly, if I could have a deductible of $50,000 I would take it because I'm never going to have that type of exposure. If I was doing health insurance and was risking someone getting declined coverage for $300k of cancer treatments after I changed their plan and they were out for blood and wanted to come after me then I would be more concerned about there ever being a claim, but for most life and senior products agents will NEVER be in a situation where the exposure matters. To take that yet another step further, even if the above situation where the cancer treatments were declined because when they changed plans they had symptoms of cancer and didn't now it, but the carrier disagreed, they would go after the carrier and fight with the carrier long before they'd ever blame the agent. Only after speaking with the attorney would they then take a look at possibly going after the agent, but odds of them doing anything but fighting with the carrier are slim to none.

Wow, Your a bafoon, stick to the medical side of insurance,

I have READ tons of stories of P&C agents having E&O claims.
P&C E&O cost more because of the more claims. People will argue that I had ths ir that coverage, or I requested 250/500 limits and not 50/100 AFTER they have a horific crash.

You might not see it on the medical side of insurance, but it is more common on the P&C side.

 

[Josh]

Wow, Your a bafoon, stick to the medical side of insurance,

I have READ tons of stories of P&C agents having E&O claims.
P&C E&O cost more because of the more claims. People will argue that I had ths ir that coverage, or I requested 250/500 limits and not 50/100 AFTER they have a horific crash.

You might not see it on the medical side of insurance, but it is more common on the P&C side.

Why thank you sweetie! Maybe for next Valentine's Day I'll looking into getting you enrolled in an English 101 class at the local community college so that you can stop embarrassing yourself with by using improper grammar, punctuation, and capitalization all at the same time.

Apparently you're basic reading skills are on par with your critical thinking skills, if you read what I had posted you'd see that I made special note of p&c agents having more exposure.

That said, care to share with us all of these stories of agents having e&o claims? I'm sure folks (after their attorney or adjuster explains to them what 50/100 means) claim they asked for 250/500, but enough so to actually file action?

Recently there was a thread where a health agent, who I can only assume is fantastically honest and a stand up guy, felt bad about someone thinking their doctor was in network and one of the solutions he suggested was helping the client fill out an e&o claim. I think that shows a fundamental flaw in the way insurance agents look at e&o. I don't fault that agent any, he was simply trying to go above and beyond to do the right thing and be an honest man and props to him for that, but that probably would have even been denied as an e&o claim (aside from the deductible). You have to actually screw up for their to be an e&o claim.

So cupcake, can you point out to the rest of us some of these "tons of stories of P&C agents having E&O claims"?

 

[GreenSky]

Wow, Your a bafoon, stick to the medical side of insurance,

I have READ tons of stories of P&C agents having E&O claims.
P&C E&O cost more because of the more claims. People will argue that I had ths ir that coverage, or I requested 250/500 limits and not 50/100 AFTER they have a horific crash.

You might not see it on the medical side of insurance, but it is more common on the P&C side.

That would be you're a buffoon.

Athough Mark did not spell it out for you, he was talking about life and health insurance, not P&C. For the P&C broker, $5,000 is really the MINIMUM deductible they would find and the premium would be in the several thousand dollar range, not several hundred.

Clearly you do not know the proper use of the English language nor how to spell. Might not be your fault if you are new to this country or was not able to complete your GED. But perhaps you could enlighten us as to your experience in the insurance industry. You can use number of weeks if you prefer.

Rick

 

[Mark]

Right now, I'm at $500 for life and health and I need to increase it to $5,000 to save some money.

I just thought about it and the companies that I"m with allow you to go as high as $10,000 on it.