- 5,503
This reminds me of one of my favorite sayings.
Proper insurance is an expense you can afford. Improper or no insurance is an expense you may not be able to afford.
Is E&O needed?
- Thread starter Augustus Aurelius
- Start date
This reminds me of one of my favorite sayings.
Proper insurance is an expense you can afford. Improper or no insurance is an expense you may not be able to afford.
- 2,802
You should have it before you sell even your first policy.
- Thread starter
- #13
Augustus Aurelius
New Member
- 9
Yeah doesn't sound like a fun time!
- Thread starter
- #14
Augustus Aurelius
New Member
- 9
Have yet to be part of an IMO yet but I have one in mind. Just making sure all my ducks are in a row before I start!
- 2,301
No insurance is necessary, not auto, not homeowners, not life, not professional liability..........until you need it. Of course by then it is too late. Enter the insurance field in your 20's and work until your 60's. Pay $1000 per year in premium, total 40K. Get 1 suit for $100K and tell me that you would not have been better with the coverage.
- 26,086
I have had E&O for many years. Just got my renewal notice. About the AP of a small FE or term policy. Or a dinner and drinks a month. A tank of gas,or a Bourbon and bag of Chicarones.
I came close to using it earlier this year. On a small FE case I didn't even write.
So yeah.
I came close to using it earlier this year. On a small FE case I didn't even write.
So yeah.
- 2,802
Yep. I handled over 6000 claims in 7 years as an adjuster before I retired. Nobody ever said that they wished they'd never bought the insurance.
What many did say was "I never thought this would happen to me."
WTX2WY
Expert
- 29
Not sure the relevance. The guy sold a policy to someone who lied on the health questions, the guy dies, the claim is denied. Widow threatens to sue, settles with the insurance company. At no point did the actual agent incur any costs, at no point did an E & O policy come into play.
Can someone give some real world examples of when an E & O policy paid and what the circumstances were?
Pretty much everything I can think of would be a lawsuit between the insured and the insurance company, excluding the agent committing fraud when taking/submitting the application.
I am not opposed to E & O insurance and have carried it my entire career, but have never known of or even heard of anyone in my industry (supplemental) ever having to use it.
Maybe it makes a difference which carrier one works with. Fortunately, my carrier has never denied a claim that was valid. If you work with a shady carrier that finds any excuse possible (legal or not) to deny claims then E & O might be a bigger concern.
- 11,505
The bigger the premiums, the more E&O could be brought into the equation.
Term, FE, Med Supp, cancer, CI, etc., the more the company would just take care of it and just charge back the commission.
WL, IUL, GUL, VUL, FIA, VA, LTC... these premiums can be (should be) much larger.
- 2,378
If you are [for some reason] against having an E&O policy -than just get one and consider it a selling advantage. You can than accurately state that you are a "licensed and insured" agent and for others of us a "licensed, insured, and bonded" agent.
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