E&O Claims: Have You Ever Had One or Know Someone who Has?

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Just curious about E&O and if any of you have had one or know someone who has?

I would assume P&C E&O claims are the most common, but I'm just assuming. I guess my main wonder is what the most common reason for E&O claims are and how to avoid them.
 
I've never seen anyone on here talking about ever having a claim. Most people think of it as "better safe than sorry"....like taking whiskey on a date.
 
Unfortunately, I have had two. One was P&C I knew that I was in the right, but I turned it in and let them handle it. They denied it.

The other more recent one was for a securities related issue. I was pretty much given bad advice from an advisor for a company that I was selling a product for. My E&O paid out and gave me this advice:

When you get advice on how to handle a situation that you are not familiar with, ask them to send you the advice in the form of an email so that you have a written record of it.
 
Unfortunately, I have had two. One was P&C I knew that I was in the right, but I turned it in and let them handle it. They denied it. The other more recent one was for a securities related issue. I was pretty much given bad advice from an advisor for a company that I was selling a product for. My E&O paid out and gave me this advice: When you get advice on how to handle a situation that you are not familiar with, ask them to send you the advice in the form of an email so that you have a written record of it.

Did your rates go up? If so, how much?
 
Did your rates go up? If so, how much?

I am also very curious to hear the answer.

I thought an E&O claim was pretty much an end to an agents career. Are there companies that will still insure you even if you've had a claim? Even if they will, won't most, if not all companies, not appoint you if you've had an E&O claim?

I'm not sure where I came up with this information, for some reason it's something I've always believed to be true.

I'd like to be set straight though.
 
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There was no effect on the first one. Then again, they didn't pay anything.

They just paid on the second one, and I do not renew until January. I spoke with an underwriter before I turned it in. They said that because I have been with them so long with no losses, they did not see me getting cancelled. It would probably affect my rates though.

On an interesting side note, back in October I received a call from a solicitor who wanted me to change my E&O carrier. I told him that I was in the middle of a claim, so I could not. He told me that if the claim was settled before I renewed, then he would still like to quote me. I don't think that getting covered is going to be an issue. My rate may be another story.
 
We sell E&O insurance to insurance agents. E&O claims are more common on the P&C side than on the life/health side in part because P&C insurance policies are less standardized than life/health policies and tend to have a lot more exclusions that vary by insurance company.

The most common E&O claims we see are insureds who have their claim denied by the insurance company because of policy exclusions and turn against their agent for compensation.

It is typical for carriers to non-renew the E&O policy after a claim. There is a market for agents with claims but you can expect to pay a lot more for the policy.
 
There are many reasons for being subject to an E&O claim - and these arise not only in the P&C community but most anywhere involving business connections. Mistakes may occur pre-binding (in determining and communicating what coverage should be considered and placed), during the contract phase - for example, if mistakes are made in documentation - or post placement - for example, if arising during endorsements, claims process or renewals.
 
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