June 2010 Dec Page

Question of the Month

 Professional liability insurance for insurance agents and brokers is a required coverage for most insurance producers; the exposure to liability claims from alleged negligence in the operation of the agency or brokerage is far too real and potentially catastrophic to realistically permit any other consideration. Agents' practices will, by default if for no other reason, come under close scrutiny and subject even the most minimal mistake to charges of negligence. For this reason, a professional liability policy is a basic part of doing business.

 There is no standard form for the coverage since each insurer in the market develops its own policy in accordance with its own underwriting principles. However, this article offers a general and useful overview of an errors and omissions (E&O) policy's coverage agreement, exclusions, and other provisions. Also in this article are E&O prevention suggestions that will enable one to gauge the agency's exposure to E&O claims. See Agents and Brokers Errors and Omissions.

The Insurance Agents' and Brokers' E&O Report

 The following is taken from the Professional Liability Monthly, a national professional liability newsletter published monthly by Goldberg Segalla, LLP. The Editor of this article is Colleen M. Murphy. This article is reprinted with permission.