PhxSunsFan
Guru
- 594
If not doing any active business,, in FE and Adv. but getting renewals etc,, must you have e and o to get paid from the carriers>??
e and o question
- Thread starter PhxSunsFan
- Start date
- 29,503
Wow, you're out of the business.?
That was fast!Wow, you're out of the business.?
- 2,625
That's something you should be asking your carriers in case each one has a different requirement.
That being said, as long as your name is associated with your clients' policies you risk an E & O claim.
When you put it that way, it does not sound unreasonable. If you continue accepting payment for work done, how can you disassociate yourself when sued? I swear I learn something from you genius' everyday.
- 19,015
Not a lawyer but I would think that as long as E&O was in place when you were actively writing you would be protected. I don't have to have insurance on a car I don't own anymore.
But some companies will require you keep E&O updated to receive renewals. So as someone else advised, check with the companies. But I would also check with my attorney on it.
I just got my E&O statement for next year. $422. That's cheap enough to just keep for the unknown.
- 4,585
Vested renewals from a carrier after you have terminated/retired are not servicing agent fees. So, receiving vested renewals from a carrier likely has no bearing on liability of servicing. Not saying a carrier might not have their own rules on who has to keep active E&O or that carriers contracts might have stipulations on ending vested renewals if they are below X amount per month or year
Also, there is a period of time after sale/service that you can still be liable even if you are no longer the servicing agent or have retired/sold book. Most E&O carriers offer tail coverage that may extend coverage 2-3 years. Some have a window of time in the policy that a claim would need to occur within 6-12 months after policy expires without the added tail extended period.
- 2,196
Based on what information?
That is a HUGE assumption.
Tail Risk Insurance that @Allines suggested may be an option. Call and speak with your E&O Agent to get clarification.
Lastly, everyone on here seems to be considering the risk from when the policy was sold...not the attempted ongoing servicing of the policy. If the client sends you an email in 2022 asking to change their address and the email does not get delivered [because you are not working] and hence the address does not get changed and the policy cancelled - where will the coverage come from? What administrative steps did you go through to notify clients that you are no longer working? Did you sell off the book of business to another agency?
- 19,015
Based on 19 years experience. But in your zest to get on a soapbox you skipped over this part; "But I would also check with my attorney on it."
