E&O Through Two Separate Companies?

[LifeWorth]

My GA provides E&O, which covers whatever I write through the agency. However, I am getting appointed with a couple of companies on the side as well. I assume it is not ok to use the GA's existing E&O, since the business I will write with these other companies will be through a direct independent contract, and NOT through the GA. Is this correct?

So, that leaves me to find another E&O coverage for my direct contract. Is an agent allowed to have two E&O coverages at the same time? One company will cover what I write through my GA, the other company will cover what I write as an independent.

 

[LifeWorth]

Man, this part of the forum is dead dead dead...when will I get an answer?

 

[LifeWorth]

Can anybody help me with this?

 

[Tahoe Ray]

Can anybody help me with this?

Maybe not pertinent to your situation but...

Yes it is possible to have two E&O policies. I work with a lot of financial advisors and they have one for their business processed through their B/D and another one for the business that they write through me.

Your best bet is to pose this question to your personal E&O carrier and see what they say.

 

[DHK]

My GA provides E&O, which covers whatever I write through the agency. However, I am getting appointed with a couple of companies on the side as well. I assume it is not ok to use the GA's existing E&O, since the business I will write with these other companies will be through a direct independent contract, and NOT through the GA. Is this correct?

That is correct. You cannot use e&o from a captive company to cover your acts for writing business with another company.

In short, if you ask for a certificate of your coverage, your GA will not only ask you "why?" but may not even make it available to you, because they need to cover what you do as an employee.

So, that leaves me to find another E&O coverage for my direct contract. Is an agent allowed to have two E&O coverages at the same time? One company will cover what I write through my GA, the other company will cover what I write as an independent.

E&O is not like car insurance. You have to have your own separate policy to get appointed with other independent carriers outside of your captive situation. It is done all the time.


Here's where it gets tricky: You have to keep your GA business separate from your personal business. Any leads that agency gives you, you have to represent only your GA's interests. Otherwise, if you sell an outside product, and there's a complaint, your GA will hear about it, and cause a mess of problems.

Treat them as two separate businesses and don't mix them.

 

[LifeWorth]

Here's where it gets tricky: You have to keep your GA business separate from your personal business. Any leads that agency gives you, you have to represent only your GA's interests. Otherwise, if you sell an outside product, and there's a complaint, your GA will hear about it, and cause a mess of problems.

Treat them as two separate businesses and don't mix them.

Thanks DHK. Helpful as always. A few other questions:
1. the contract for the company I'll be writing for asks for a business address. Well, I don't have an office. What do I use as a business address? Does it have to be my home or can it just be a PO BOX?
2. the "new contract requests" asks for "Natural RLO (if different from submitting RLO)". I don't have the faintest idea what this means. Any guesses?

Another E&O question: when filling out an app for my new E&O, the app tells me to make sure no lapse of existing coverage will happen.

Huh? Why would a lapse happen? A new policy does NOT affect existing policies, I thought. I assume they mean if I were to leave from one policy to another, to make sure the transition from one to the other does not leave any gap without coverage?

I also noticed E&Oforless asks if I have existing coverage. NAPA does not ask. Any reason why?
Gracias.