Is E&O needed?

[WinoBlues]

If you are [for some reason] against having an E&O policy -than just get one and consider it a selling advantage. You can than accurately state that you are a "licensed and insured" agent and for others of us a "licensed, insured, and bonded" agent.

Hahaha

Never thought of that. Not for me but I can see people using that same as designation letters.

Kinda like having a gun, not something I am going to advertise. it is for my protection, not theirs.

 

[kpbdy99]

No, not necessary at all. And while you're at it, go ahead and drop your homeowners, health, and auto insurance. None of that stuff is really necessary, either, just a waste of money.

Whomever it is telling you this needs to be slapped upside the head.

 

[fed up]

Not sure the relevance. The guy sold a policy to someone who lied on the health questions, the guy dies, the claim is denied. Widow threatens to sue, settles with the insurance company. At no point did the actual agent incur any costs, at no point did an E & O policy come into play.

Can someone give some real world examples of when an E & O policy paid and what the circumstances were?

Pretty much everything I can think of would be a lawsuit between the insured and the insurance company, excluding the agent committing fraud when taking/submitting the application.

I am not opposed to E & O insurance and have carried it my entire career, but have never known of or even heard of anyone in my industry (supplemental) ever having to use it.

Maybe it makes a difference which carrier one works with. Fortunately, my carrier has never denied a claim that was valid. If you work with a shady carrier that finds any excuse possible (legal or not) to deny claims then E & O might be a bigger concern.

Ine of the first HO policies I wrote came back to bite me. I was a brand new agent and was asked about sump pump coverage. I asked my agency manager and district manager and was told the carrier covered it. The endorsement showed coverage. The policy I sold had new policy language which explicitly stated no coverage. The sump failed, the basement had water, the claim was denied. I got sued. I escaped paying because the insured never followed through with the claim but I was wrong and have since made sure any question is researched before an answer is given.

 

[marindependent]

since made sure any question is researched before an answer is given.

Well Said