retired agent e and o still needed???

[marindependent]

The other thing that would matter is the exposure of your personal assets (vs your agency "company" ones). This would depend on how you legally set up your agency (and if you are maintaining that agency even if is isn't conducting business). For example a sole proprietorship, although easy to set up, means you can lose the shirt off your back and your family's collective backs if you get sued and lose and whatever you have for coverage doesn't cover all the judgement. Limited partnerships give you more protection for your own assets (but not the business assets).

I am not certain of what you are saying here - its a bit convoluted, [or I am just not smart enough to understand it.] But this question is about the need for E&O Insurance. And for individual producers out there it really doesnt matter too much if you are a sole proprietor or an LLC or a Corporation if you are sued for an E&O issue.

You need E&O insurance for insurance sales. One you are no longer active, as @Markthebroker said "you need is something called "tail coverage"."

See this post for more information.

 

[annon123]

I am not certain of what you are saying here - its a bit convoluted, [or I am just not smart enough to understand it.] But this question is about the need for E&O Insurance. And for individual producers out there it really doesnt matter too much if you are a sole proprietor or an LLC or a Corporation if you are sued for an E&O issue.

You need E&O insurance for insurance sales. One you are no longer active, as @Markthebroker said "you need is something called "tail coverage"."

See this post for more information.

I was probably being convoluted. Sorry about that. LLC's have some advantages over sole proprietor and under some, but not all, circumstances personal assets are protected. It doesn't mean you don't need E&O insurance which does cover one of the very narrow reasons when, as a single owner and sole employee of an LLC, your personal assets are at risk if you get sued. (I should probably just shut up since I am not totally on topic).

 

[rmhaire]

I am not certain of what you are saying here - its a bit convoluted, [or I am just not smart enough to understand it.] But this question is about the need for E&O Insurance. And for individual producers out there it really doesnt matter too much if you are a sole proprietor or an LLC or a Corporation if you are sued for an E&O issue.

You need E&O insurance for insurance sales. One you are no longer active, as @Markthebroker said "you need is something called "tail coverage"."

See this post for more information.

You got my attention when you mentioned tail coverage. But then I noticed you were still talking about E&O.

Never mind ...

 

[Allen Trent]

I was probably being convoluted. Sorry about that. LLC's have some advantages over sole proprietor and under some, but not all, circumstances personal assets are protected. It doesn't mean you don't need E&O insurance which does cover one of the very narrow reasons when, as a single owner and sole employee of an LLC, your personal assets are at risk if you get sued. (I should probably just shut up since I am not totally on topic).

Actually, a lot of LLCs get collapsed in court cases because the LLC wasn't truly being run as separate entity & commingled check books, employees, expenses, equipment.

Seen it from landlords to farmers & everything in between where the person creates multiple LLC and/or sole prop to attempt to have more protection of assets from creditors or lawsuits. 1 LLC for building or land, another for equipment, another for the business operations. Or landlord having separate LLC for each property

But, if you deposit revenue into different accounts or pay expenses of 1 from another LLC, or share an employee of 1 LLC with the other LLC, etc then the LLC doesn't end up having protection from the others.

Plus, in insurance. The individual is licensed as a producer & many times appointed or contracted by carrier. Individual agent can still be sued in many cases

 

[PrivClientSG]

Simple, and safe, answer is yes. Especially if you are still servicing clients, business, etc. If you are you are conducting business, even though you are not writing business.

However, perhaps the real question is, will your former/previous E&O carrier still provide coverage for a claim made today, but the policy was written years ago (for when you were covered and doing business back then)? Good luck!

 

[DonP]

In 17 yrs my e@o for life has never went up in price . The reason being there's few few few claims . I've never heard nor seen an fe agent sued for a $5-$20 k policy not paying . The reason why few layers would ever touch such a small claim for 30% . It's takes 1-3 yrs for a lawyer to get paid $1500-$6 k . They got more money in expenses . Same thing with Medicare . All claims are basically paid . Maybe they didn't know about there moop being $6-$9 k . Yet again no lawyer would touch . No annuities is another thing . Especially if the carrier goes under like Colorado bankers and you had $500 k in their and will lose $200-$250 o not insured .Another area is larger life policys $100 k to millions . The lawyer payoff could be big .

 

[Allen Trent]

In 17 yrs my e@o for life has never went up in price . The reason being there's few few few claims . I've never heard nor seen an fe agent sued for a $5-$20 k policy not paying . The reason why few layers would ever touch such a small claim for 30% . It's takes 1-3 yrs for a lawyer to get paid $1500-$6 k . They got more money in expenses . Same thing with Medicare . All claims are basically paid . Maybe they didn't know about there moop being $6-$9 k . Yet again no lawyer would touch . No annuities is another thing . Especially if the carrier goes under like Colorado bankers and you had $500 k in their and will lose $200-$250 o not insured .Another area is larger life policys $100 k to millions . The lawyer payoff could be big .

The major e&o risk is PC & commercial or farm insurance. Life, annuity & FE are very clear specific policy contracts, so the E&O exposure is more to improper sales. PC has hundreds of moving parts & risk of forgetting to put coverage on something, not enough, some perils not being covered, some operations conducted not being disclosed, staff mistakes on policy changes & on & on & on. PC E&O claims happen regularly and can be massive amounts, so rates are high & have went up tremendously the last 25 years as the values of people's stuff has increased, products have gotten more complicated & agencies have gotten huge with tons of staff & sub producers doing the work, not just 1 knowledgeable small agent and 1 staff person

 

[marindependent]

In 17 yrs my e@o for life has never went up in price

That is astouding

 

[Markthebroker]

Actually, a lot of LLCs get collapsed in court cases because the LLC wasn't truly being run as separate entity & commingled check books, employees, expenses, equipment.

Seen it from landlords to farmers & everything in between where the person creates multiple LLC and/or sole prop to attempt to have more protection of assets from creditors or lawsuits. 1 LLC for building or land, another for equipment, another for the business operations. Or landlord having separate LLC for each property

But, if you deposit revenue into different accounts or pay expenses of 1 from another LLC, or share an employee of 1 LLC with the other LLC, etc then the LLC doesn't end up having protection from the others.

Plus, in insurance. The individual is licensed as a producer & many times appointed or contracted by carrier. Individual agent can still be sued in many cases

Great point, Allen.

 

[Markthebroker]

In 17 yrs my e@o for life has never went up in price .

That's about as believable as some of the other things I've seen you say on here.