E&O exposure/freakout

[William76]

But....do they provide E & O on business you don't place through them?

Thanks, but that's not what I'm asking about. My policies, still at their agency, where they're no longer informing me of service needs.

But....do they provide E & O on business you don't place through them?

We're talking about policies that remain at the old agency. The new agency has my E&O coverage for the policies I write there. The question is whether I, or anyone, faces a potential E&O claim because the agency (old) is keeping policy-related communications from me, the agent. Contractually, even though I'm leaving one agency, I'm still an agent at two agencies.

No kidding, I think this might be helpful:

Bob is a homeowner. Bob's mortgage changes hands. Bob never notifies his agent, Bill. The mortgage company sends the notification to Bill through the old agency, but Bill's old agency never shows it to him. Instead, they file it away. They misled Bill to think there was nothing he needed to address, and Bob's policy lapses. Bob's house catches fire after the lapse, and Bob has no coverage. I would think both Bill, and the old agency, are now facing a possible E&O claim because documents were mishandled, and certainly damage to their reputations.

NOTE: The new agency isn't really a factor here. The documents were hidden from the agent by the old agency, where the policy was in-force before the lapse, waiting to transfer to the new agency.

 

[goillini52]

Thanks, but that's not what I'm asking about. My policies, still at their agency, where they're no longer informing me of service needs.


We're talking about policies that remain at the old agency. The new agency has my E&O coverage for the policies I write there. The question is whether I, or anyone, faces a potential E&O claim because the agency (old) is keeping policy-related communications from me, the agent. Contractually, even though I'm leaving one agency, I'm still an agent at two agencies.

No kidding, I think this might be helpful:

Bob is a homeowner. Bob's mortgage changes hands. Bob never notifies his agent, Bill. The mortgage company sends the notification to Bill through the old agency, but Bill's old agency never shows it to him. Instead, they file it away. They misled Bill to think there was nothing he needed to address, and Bob's policy lapses. Bob's house catches fire after the lapse, and Bob has no coverage. I would think both Bill, and the old agency, are now facing a possible E&O claim because documents were mishandled, and certainly damage to their reputations.

NOTE: The new agency isn't really a factor here. The documents were hidden from the agent by the old agency, where the policy was in-force before the lapse, waiting to transfer to the new agency.

Here's a thought...ask both FMO's. Are you having to pay anything for the E & O? Sometimes the deductible will be higher on business not placed through them. You should have a copy. For $40 a month you can take your own that covers all your business, even annuities.