Should I keep E and O? A change in my circumstance

[somarco]

Tail coverage isn't what you think . . .

Mostly used in P&C and pertains to runout claims. Those incurred while the policy was in effect but not submitted until after the policy terminates.

Health insurance is generally considered short tail coverage since claims submitted more than 6 months after the end of the policy (generally) are not eligible for reimbursement.

WC is long tail. Claims are tied to the individual and the incident that created the claim. Joe is injured on the job in 2010 but is still receiving treatment and/or payout 7+ years later. Those claims are charged against the 2010 policy.

 

[VolAgent]

Tail coverage isn't what you think . . .

Mostly used in P&C and pertains to runout claims. Those incurred while the policy was in effect but not submitted until after the policy terminates.

Health insurance is generally considered short tail coverage since claims submitted more than 6 months after the end of the policy (generally) are not eligible for reimbursement.

WC is long tail. Claims are tied to the individual and the incident that created the claim. Joe is injured on the job in 2010 but is still receiving treatment and/or payout 7+ years later. Those claims are charged against the 2010 policy.

Remember, E&O is a Casualty policy form. Most carriers do offer tail coverage for it. The question is for how long and at what price?

E&Oforless.com, which use to be a forum sponsor, offers it. But basically you are just paying for that period of time in advance, so no real benefit other than you can forget about it. Also only offered for 2 or 3 years, so doesn't go out super long either.

 

[somarco]

Thanks Kirby, but I was addressing Tyler's question about "tail". And yes, E&O is casualty coverage.

Frankly I have never researched E&O to see if they are an occurrence policy or claims made. But I do believe the bulk of them are claims made however many of them will pay for claims incurred prior to the effective date if you have had continuous coverage without a break.

 

[somarco]

Presuming you have current E&O coverage, you should probably keep it at least for a while. I believe most policies are claims made. They would probably pay for any claims incurred prior to the policy date as long as you had continuous coverage.

You may view your liability as minimal based on just "servicing" existing policyholders, but anything can happen.

 

[WinoBlues]

Here is a different idea for you.

In read your past post it does no seem that straight commission is just your thing. Absolutely nothing wrong with that.

Depending on the size of your book, how old the term polices are and so on. Maybe you find someone to pay a year or so of your E and O and you AOR your book to them. With or without renewals. You get covered, you don't have to service a book for free, the clients get an active agent, the agent gets an additional 'warm' market to work.

 

[myinsurebiz]

I've a question about E and O and if I should keep it or not. Bear with me though because I do think a little explanation is needed.

I used to work for a call center, they covered my E and O and considering how I was mostly just selling FE insurance. I started to sell part time on the side and did some term policies and a few FE polices. Because I was selling outside my company I decided to get some E and O to cover my ass.

I considered going full time independent but found a call center job where I can get an hourly wage + commission + residuals. However I'm not allowed to do any outside sales and have to cancel of current appointments. All my old business then will simply be serviced.

The new job is mostly Medicare (Sups and MA plans) with smaller accessory plans (dental, vision, cancer, etc) on the side. I might have the odd FE here and there as well.

I don't see any reason to carry E and O and I'm not sure but I think the company would cover me anyway. I'm checking that on Monday.

So should I keep it just for safety's sake or save myself the cash?

You can sell Med Sups and MA's over the phone with One Life America and get an hourly wage, commission + have your E&O covered. Holler at me . . .

 

[Markthebroker]

Ive never heard of "tail coverage. "But that a much better idea! Also calling the E&O carrier is probably a great idea too... or the agent... lol.

I have to say, I love that the "Worldwide Expert of Everything" has never heard of tail coverage.

 

[jerryrut]

There have been times that I wished I had tail coverage, like coyote ugly situations