Opinion on E&O for Less?

Discussion in 'E&O - Errors and Omissions for Insurance Agents' started by Denise509, Jan 12, 2012.

  1. Denise509
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    Denise509 Well-Known Member

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    Hi guys!

    I need to get an E&O policy ASAP, so far E&O For Less is the least expensive with the coverage I need. Their deductible is a bit high but I'm willing to go for it. I'm only getting it for p&c. Does anyone here have their E&O through them? How do you like it? I need some opinions.....I guess I'm still in shock that their policy will only cost me $787 a year vrs. $2,000 + a year.....any thoughts?.
     
  2. Mark
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    Mark Well-Known Member

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    They are a big sponsor on this forum.
     
  3. djs
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    djs Super Moderator Moderator

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    I wish they wrote in California for P&C.
     
  4. b61mack
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    b61mack Well-Known Member

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    Be careful, it may not be insurance. It sounds like one of , out of the county, shared claims,type e&o insurance. first clue, is the cost. 2nd clue. pay it all up front. 3rd clue. it will not be accepted by your insurance companies.
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    You may want to look at PDI, they are on agency equity web site. it sounds like they maybe an option. they are in ca. don't know them, but spoke with mark in the past. 310-496-5772. good luck...
     
    Last edited: Jan 12, 2012
  5. Josh
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    Josh Well-Known Member

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    I've had it for a while now and don't have any complaints. Not sure I'd know until I had to make a claim, but I'm pretty good with the CYA stuff, so don't expect to have to find out anytime soon.
     
  6. Mark
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    Mark Well-Known Member

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  7. b61mack
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    b61mack Well-Known Member

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    Josh do you have their P&C,E&O.or life and health. the p&c looks like a uniteddefend type coverage. PDI maybe be an option for new start ups, e&o and appts, with the group, we need RBA opinion on PDI.
     
  8. jtm1240
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    jtm1240 Member

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    _________________________________________________

    Other than being a risk sharing program the main problem is that the policy only covers an individual agent and not an agency. The reason it costs less is because it covers less.

    You should be able to find quality coverage in the 1,500 to 1,800 range.
     
  9. Denise509
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    Denise509 Well-Known Member

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    I totally didn't know this info. I will be the only agent in my office while I get everything up and running :1laugh:
     
  10. jtm1240
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    jtm1240 Member

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    Guru,

    You can disagree, but that has no bearing on the fact that "there is quality E & O Coverage for a start up P & C agency available in 1,500 to 1,800 price range. Each case is priced according to its merits, limits, deductibles and options.

    Commenting on your points I offer the following:

    1. You are correct. That is the reason P & C E & O is priced about 75-80% higher.

    2. Consider there are many E & O carriers writing P & C agencies and they specialize in different areas. Utica chooses to write established traditional agencies and I would not submit a start up to them. There are quality carriers that will write start ups.

    3. There is no such thing as a standard E & O policy. There are admitted and non-admitted carriers. All E & O policies are manuscript forms developed by each carrier and none are the same. Understand that many insurance products and programs, including all types of E & O are written through Excess & Surplus Lines agencies and they are as good and in many cases superior to what is available in the Standard Market. E & S agencies (wholesalers) represent admitted and non-admitted carriers.

    Also, It is not true that policies secured through E & S agencies only cover the agent. The only policy I have read that only covers the agent is the "E & O For Less Policy. I am sure there are a few others. I know of at least 15 that provide quality coverage for the agency and all of it's agents, sub-agents and employees. It is also not true that defense expense is inside the limit. Most carriers give you the choice to buy Defense Inside the Limit (DIL) or Defense Outside the Limit (DOL)

    4. When considering an inexpensive policy for your initial coverage be aware that you may be defeating the purpose of having prior coverage if you up grade later.

    A Utica or other main stream carrier will know of the coverage deficiencies in your inexpensive policy and they will definitely consider that in their pricing. Even worse they may not give you prior acts coverage.

    If you were to find a principal agent / agency that would allow you to work under them and have your own E & O policy you need to make certain that nether policy contains a "Other Insurance Clause" (most policies have them). In most cases the clause says a variation of "if there is other valid and collectible insurance available to the assured this policy becomes exess to the limits available".

    Bottom line; don't buy any insurance policy or sell any insurance policy that you have not read and fully understand what it covers and does not cover.

    All of the above comes from a P & C agency owner for more than 40 years and an owner of a specialty agency providing E & O coverage to P & C agencies.

    Please let me know your questions and comments.

    Respectfully submitted.
     

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