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Experts Expect Surge in ...
March 11, 2021 by Andrew G. Simpson
"Insurance agents and brokers should prepare for a big agency errors and omissions (E&O) litigation wave to crash their shores in 2021.
Agency E&O claims are a lagging indicator, meaning plaintiffs typically only go after agents and brokers after they exhaust other legal avenues -- most often suing insurers -- and come up short, according to experts at the 2020 virtual Professional Liability Underwriting Society (PLUS) conference.
While E&O claims from the pandemic of 2020 have not happened yet in noticeable numbers, they will, just as they happen following major storms or other disasters, the experts warned.
"When a loss like this happens, first party claims are immediately filed with the carriers. A lot of the carriers still haven't made final decisions yet on the COVID claims. So we're still waiting on those," according to James Redeker, who is involved in overseeing E&O claims across the country as vice president of claims for Westport Insurance Corp., a member of Swiss Re Corporate Solutions.
In addition, with large events, there's often some form of federal relief as has been already seen with COVID and for victims of disasters. "So it's usually not until after all of these sources of recovery are exhausted that the third party claim start to pour in.," Redeker estimated."
He noted that during the first four months following Hurricane Katrina, there were 55 agency E&O claims filed against Louisiana insurance agents. However, over the next eight months, an additional 745 claims came in. "So they're coming," he added.
The year 2020 was packed with events to spark lawsuits over claims, including most obviously the pandemic with its lockdowns that shut down much of the economy for periods of time, strained health care systems and drained employers' and employees' coffers. The year's claims generators also included multiple hurricanes, cyber attacks and the hard market."
Read the rest of the article here: Experts Expect Surge in Insurance Agency E&O Lawsuits in 2021 - MyNewMarkets.com Articles about Property Casualty Insurance Coverages
March 11, 2021 by Andrew G. Simpson
"Insurance agents and brokers should prepare for a big agency errors and omissions (E&O) litigation wave to crash their shores in 2021.
Agency E&O claims are a lagging indicator, meaning plaintiffs typically only go after agents and brokers after they exhaust other legal avenues -- most often suing insurers -- and come up short, according to experts at the 2020 virtual Professional Liability Underwriting Society (PLUS) conference.
While E&O claims from the pandemic of 2020 have not happened yet in noticeable numbers, they will, just as they happen following major storms or other disasters, the experts warned.
"When a loss like this happens, first party claims are immediately filed with the carriers. A lot of the carriers still haven't made final decisions yet on the COVID claims. So we're still waiting on those," according to James Redeker, who is involved in overseeing E&O claims across the country as vice president of claims for Westport Insurance Corp., a member of Swiss Re Corporate Solutions.
In addition, with large events, there's often some form of federal relief as has been already seen with COVID and for victims of disasters. "So it's usually not until after all of these sources of recovery are exhausted that the third party claim start to pour in.," Redeker estimated."
He noted that during the first four months following Hurricane Katrina, there were 55 agency E&O claims filed against Louisiana insurance agents. However, over the next eight months, an additional 745 claims came in. "So they're coming," he added.
The year 2020 was packed with events to spark lawsuits over claims, including most obviously the pandemic with its lockdowns that shut down much of the economy for periods of time, strained health care systems and drained employers' and employees' coffers. The year's claims generators also included multiple hurricanes, cyber attacks and the hard market."
Read the rest of the article here: Experts Expect Surge in Insurance Agency E&O Lawsuits in 2021 - MyNewMarkets.com Articles about Property Casualty Insurance Coverages
