If admitted carriers become insolvent, guaranty funds typically cover losses. But hard-to-place risks, which require the broker to access the surplus lines market, can present a virtual minefield.

Courts generally believe that an insurance broker is required to perform varying levels of investigation before placing coverage with a carrier, and failure to do so may render the broker liable to the insured for resulting losses due to the insolvency. Learn three best practices to avoid these types of...

Savvy business owners always look for new business opportunities, and client service professionals running insurance agencies or law firms are no different. Nobody likes to turn away business. But when it comes to avoiding E&O claims, the most effective strategy is to avoid certain clients altogether.

When they generate headaches and E&O claims, problem clients are worse than no clients.

Individuals or businesses sometimes require insurance before an insurer can fully evaluate an application and prepare, execute and deliver the policy. To meet this need, many insurers authorize their agents to issue binders, which are documents that evidence the existence of insurance during the application process and before a policy...

Although they serve a purpose, binders can expose agents to serious E&O claims.

It's no secret that most E&O claims against agents arise from their clients' own uninsured claims. While the law regarding the duty to recommend insurance varies by both state and circumstance, if you happen to be aware of an uninsured risk your client faces, it is never a bad idea...

Many years ago a trusted colleague and friend told me not to be afraid to specialize in particular areas of the law. He told me it is impossible to be all things to all people. By specializing, he said, I would gain deeper knowledge in certain subjects and would be...