Hello,
Long time lurker and this is my first post. I'm stuck in a pretty bad situation and was looking for advice. I understand that I am asking for advice on a online forum and that this might not "professional" advice, but just one person to another.
Here is the story: I started a P&C agency in 2009 and built a book of business of over $3million since then. The book is 90% auto and home. Every year I have renewed my E&O insurance on time, never had a lapse and never had a claim. In 2012 I had an agent, that I used to work for, find me E&O insurance through one of his MGA's. I figured he had everything taken care of when I cut him a check. Long story short, the E&O insurance did not have a retroactive date back to 2009, it was only as of inception of the policy in 2012. I was never mailed a policy and only given a quote and policy number by him when it was issued. I figured since this is an "old friend", everything is fine and didn't worry about it. When he offered me a renewal this year, the quote was more then double and I decided to look for my own E&O. This is when I found out that they never retro dated the policy they did. Now I can not find anyone willing to retro any new policy further back then 2012.
My question is, how screwed am I?
Should I just look into selling the agency?
I don't know of any claims in the works and we are really good about documenting points of contact and document retention. Im just freaking out, I have my first kid on the way and I just don't know what to do.
Does anyone know of a work around? Again, have never had a lapse or a claim.
Long time lurker and this is my first post. I'm stuck in a pretty bad situation and was looking for advice. I understand that I am asking for advice on a online forum and that this might not "professional" advice, but just one person to another.
Here is the story: I started a P&C agency in 2009 and built a book of business of over $3million since then. The book is 90% auto and home. Every year I have renewed my E&O insurance on time, never had a lapse and never had a claim. In 2012 I had an agent, that I used to work for, find me E&O insurance through one of his MGA's. I figured he had everything taken care of when I cut him a check. Long story short, the E&O insurance did not have a retroactive date back to 2009, it was only as of inception of the policy in 2012. I was never mailed a policy and only given a quote and policy number by him when it was issued. I figured since this is an "old friend", everything is fine and didn't worry about it. When he offered me a renewal this year, the quote was more then double and I decided to look for my own E&O. This is when I found out that they never retro dated the policy they did. Now I can not find anyone willing to retro any new policy further back then 2012.
My question is, how screwed am I?
Should I just look into selling the agency?
I don't know of any claims in the works and we are really good about documenting points of contact and document retention. Im just freaking out, I have my first kid on the way and I just don't know what to do.
Does anyone know of a work around? Again, have never had a lapse or a claim.