Best time to buy E & O ???

[CJ Tibbs]

Hi all,

I'm thinking of leaving my captive post and going Indi.

I noticed that E&O has weird pricing structure depending on What time year you purchase it.

• Is there an optimal time to buy it... or does it matter ?

Thanks for your input!

 

[goillini52]

Hi all,

I'm thinking of leaving my captive post and going Indi.

I noticed that E&O has weird pricing structure depending on What time year you purchase it.

• Is there an optimal time to buy it... or does it matter ?

Thanks for your input!

The pricing is based on how many months are left in the E & O carrier's policy year.

 

[Allen Trent]

Hi all,

I'm thinking of leaving my captive post and going Indi.

I noticed that E&O has weird pricing structure depending on What time year you purchase it.

• Is there an optimal time to buy it... or does it matter ?

Thanks for your input!

Before you need it for sure

 

[WinoBlues]

Before you need it for sure

Better to have it and not need it, than to need it and not have it.

 

[Allen Trent]

Better to have it and not need it, than to need it and not have it.

This isn't a backhanded joke is it about a transgender person needing to use something but no longer has it to use? Never know when to take you serious or not.

 

[maxherr]

Nearly all E&O policies offered to those of us in the industry have effective dates of 12-1. So if you are purchasing a new policy after that date, the premium is being pro-rated to the next 12-1 renewal date (typically quarterly). All the E&O policies I have ever had have been issued with "fully earned" premiums, meaning no refunds for early termination.

The **most important** thing to know and remember is to NEVER have a lapse in coverage under E&O insurance. Feel free to change insurance companies every year, if necessary, to find the lowest cost, but a lapse in coverage means a loss of the retroactive coverage afforded in a CLAIMS-MADE policy . . . which is the type of policy that nearly all E&O policies are.

Along with this, you need to keep track of ALL E&O policies you've ever had (at least the insurer and policy number) from year to year in order to determine which policy is supposed to cover a CLAIMS-MADE claim for contribution purposes if sued -- your current E&O provider will provide your defense and pay the judgment, but they'll try to get reimbursed by the carrier that covered the time period of the alleged negligence, if different. (If you've had that lapse in coverage and cannot pinpoint the insurer/policy that would have covered it, you'll be SOL past that point.)