Will Agency E&O Claims Be The 'Next Wave' of COVID-19? - Article MyNewMarkets

[marindependent]

Will Agency E&O Claims Be The 'Next Wave' of COVID-19?

August 26, 2020 by Andrea Wells

As many states keep watch for the "next wave" of COVID-19 infections, the insurance industry is keeping watch for the "next wave" of potential claims that could be directed at independent agents.

In a recent webinar by RiskGenius, E&O in the Age of COVID, moderator Chris Cheatham, CEO of RiskGenius; and panelists Dave Hulcher, executive director of the Kansas Association of Insurance Agents (KAIA); and Will Larson, attorney for the KAIA, discussed what agents can expect following the pandemic.

Full article: Will Agency E&O Claims Be The 'Next Wave' of COVID-19? - MyNewMarkets.com Articles about Property Casualty Insurance Coverages

 

[Markthebroker]

Yeah, there will definitely be a rise in e&o claims. I got a call a while back from a client, where a Farmers agent lied to them and told them if they switched insurance to Farmers, their drop in income for the shop from Covid would be covered. It's the same agent that sent them a competing quote several months ago lying about the coverage left and right in the email. It's shocking to me that agent is still even in business.

For the most part, it's going to be agents like that who are going to get hit with E&O claims. If you're running a clean shop, you don't have much to worry about, but yes, the risk will go up for everyone.

 

[AZDave]

Thankfully for us there was no virus endorsement available to offer and we failed to.

 

[Markthebroker]

Thankfully for us there was no virus endorsement available to offer and we failed to.

Oh geez, could you imagine? What if there was a virus waiver, like the terrorism waiver that almost everyone signs. Gee wiz, we'd all be in deep doody.

 

[AZDave]

ISO was quick to issue an endorsement for Covid . Wonder if we will ever see it and one could only imagine the premium for this.

ISO Provides Business Interruption Endorsement in Response to Coronavirus | FCS Insurance

 

[AZDave]

The E&O issues are real. Lots of money being lost by business owners and too many scumbag attorneys. Between the employer liability potential and the gl issues, suits will be filed. Hopefully the E&O carriers fight those suits and not settle. But I seen E&O pay on totally bs claims, just to make them go away.

 

[Markthebroker]

The E&O issues are real. Lots of money being lost by business owners and too many scumbag attorneys. Between the employer liability potential and the gl issues, suits will be filed. Hopefully the E&O carriers fight those suits and not settle. But I seen E&O pay on totally bs claims, just to make them go away.

Exactly. The e&o carriers will pay on some of these, because it's cheaper than fighting, and the agency owner has to pay the e&o deductible and the higher premiums. Or, the e&o carrier spends a bunch of attorney money fighting and wins, and the agency owners are paying for it in higher premiums. Either way the agents are going to pay for this.

 

[marindependent]

Its a good reminder for us all to tighten up on our exposure.

 

[InsCommentary]

COVID-19 and Possible Agent/Broker E&O Claims | Insurance Commentary with Bill Wilson