E&O exposure/freakout

[William76]

I recently moved from one agency to another.

The old agency offered E&O coverage to me as part of a written agreement.

My book transferred with me in phases to the new agency, but many policies remain at the old one, pending transfer.

Without telling me, the old agency stopped informing me of requests from insureds, mortgagees, pending cancellations, etc. on policies that remained there. Instead of leaving the hard copies on my desk as they've done for years, they were repeatedly telling me I had no paperwork to process, and were sending them straight to client files.

When I caught them at this, they said it was because I stopped coming in to process such paperwork, which is demonstrably false. They then said I was welcome to come inspect the hundreds of files, as if I'd be able to do that daily to see what they filed without keeping any kind of log for me.

I would think there has to be an E&O risk to the old agency, myself, and since the policies are transferring, the new agency. Feedback appreciated.

 

[William76]

Wouldn't the carriers want to know about the increased exposure, possible damage to their reputation, etc.?

 

[PA Bill]

You quit the team. You're lucky they're even willing to let you in the office. I wouldn't.

 

[William76]

You quit the team. You're lucky they're even willing to let you in the office. I wouldn't.

Thank you. That might be relevant under certain circumstances you don't have. I was a subcontractor there. I'm a subcontractor where I'm going. I've never "quit." I was strictly commission, and we have a written agreement. Please try to address the E&O question, if you have something to offer.

 

[somarco]

My book transferred with me in phases to the new agency, but many policies remain at the old one, pending transfer.

So you "own" the book, and you have that in writing?

You left.

If you own the book where is the former agencies liability?

 

[William76]

So you "own" the book, and you have that in writing?

You left.

If you own the book where is the former agencies liability?

Correct, I own the book. That's how I have the authority to transfer it to another agency.

One carrier transfers policies at renewals, the others have mostly completed already. Our written agreement is open-ended. I work there as much now as I ever have. The responsible agency is the old one, and technically, I am the agent.

Try to imagine that a home policy cancels for non-payment, because a mortgagee change occurred, and no one processed it. Maybe the homeowner even reaches out to me and their request is filed, rather than addressed. I am the agent on file for that policy. Post-cancellation, a loss occurs, and without the homeowner knowing, the policy has cancelled. Later, an angry, litigious homeowner will be able to prove as I have that pertinent information in the form of mortgagee communications were ignored, and could've kept the policy in-force. I would think there's got to be potential for an E&O exposure.

Or maybe an inspection is done (again, home) and improvements are needed to keep the policy in-force.

Just a couple of common scenarios.

 

[goillini52]

Thank you. That might be relevant under certain circumstances you don't have. I was a subcontractor there. I'm a subcontractor where I'm going. I've never "quit." I was strictly commission, and we have a written agreement. Please try to address the E&O question, if you have something to offer.

Simply buy your own. You left/quit and are no longer under the last FMO's umbrella. You can get it foor around $40 a month. Problem solved.

It's the carriers(not all require it) that want you to carry E & O. Some of them want a copy of your renewal or new policy every year.

 

[William76]

Simply buy your own. You left/quit and are no longer under the last FMO's umbrella. You can get it foor around $40 a month. Problem solved.

It's the carriers(not all require it) that want you to carry E & O. Some of them want a copy of your renewal or new policy every year.

Thank you. I'd considered that. Wasn't sure if it was necessary since I still have policies at the old agency, and have in writing that they provide E&O. I'll chalk it up to the cost of doing business, I guess.

 

[goillini52]

Thank you. I'd considered that. Wasn't sure if it was necessary since I still have policies at the old agency, and have in writing that they provide E&O. I'll chalk it up to the cost of doing business, I guess.

But....do they provide E & O on business you don't place through them?

 

[fed up]

Did you notify your customers of the agency or contact change? Did you mail or email your book to give updated info for you? I've seen many agent who do not want to disclose that they bought or sold a book, never quite understood why.