Lets Make E and O Companies Fight Over Us!

[1manshow]

Add P & C to your arsenal and see what the E&O rates go to.

Mark, when some little old lady kicks off and her heirs decide to sue you for some trivial matter...hopefully your walmart E & O will have the coverage you need

 

[Mark]

Does E and O have some kind of a rating system like a.m best or something?

So the price you pay, makes you think that one is better then the other with the same about of coverage?

I bet a lot of you just buy the name brand stuff, and pay the higher price.

Some of the E and O brokers can reduce the price on the E and O by 15%... I have talked some of them into lowering the price for me and my agents a couple of times..

This can be done, if you have send them the right message or at least show them where another company offers the same thing at a much lower price.

 

[briko3]

Mark, one of the differences I've seen is how far back the company will cover you. For example, some policies won't cover something you did more than a few years ago while some will. Guess which one ends up being more expensive. It's like any insurance policy...it's up to us to find the best VALUE.

 

[stuy119]

What if we were just to go to an E&O company as a group, and say that we're willing to all sign up at our renewal date if they are willing to give us great rates? Why would they say "No" to a large group, if our experience is OK?

And, we should do this with a good, reputable company. I firmly follow the "quality" adage.

 

[scagnt83]

Does E and O have some kind of a rating system like a.m best or something?

All insurance companies (E&O included) can be rated by the big rating companies. Whether they choose to do so is a different matter (getting rated costs the company $$$$$$)!

But remember that this is only indicative of their financial stability. Not of the features or quality of the product!
While you do want a well rated company...a company can have a lousy product but have a stellar financial rating!!
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So the price you pay, makes you think that one is better then the other with the same about of coverage?

I bet a lot of you just buy the name brand stuff, and pay the higher price.

E&O is not just about the amount of coverage.
The max is what most insurance companies look at mainly because its the easiest and most efficient way to judge if an agent has a sufficient amount of coverage. But this is mainly just so they can claim they where diligent in appointing you.

There is a lot more than just the maximum amount of coverage:
-Retro provisions.
How far back does the policy cover. Does it cover past appointments or just current ones. Past agency, or current one. And does the look back cover all lines of insurance that you sell, or just some?
-Defense costs and payment procedures.
What is the max for defense costs? Are they paid up front by the company or just reimbursed? Do they have to approve the lawyer? Are defense costs separate from the claims max, or are they deducted from it? Is there a time limit to providing defense costs? Are all of the defense costs provisions included in the retro provisions?
- Carrier ratings and coverage.
What is the minimum financial rating of a covered company? What happens if the company underwriting a major block of business falls below the rating minimum? Is the carrier rating min the same for all lines of business?
-Coverage limits
How much coverage can you write? Is there a limit to the DB or disability benefit, etc.? Is the max different for retro biz?
-Business activities
What are your business activities defined as? Are your product related referrals covered?(people can be sued for a referral to an attorney or CPA who wrongs a client, its been done)
Are there any state specific exclusions if you happen to do business in that state? What kind of advice do you give in relation to your products? How much of that advice is covered? Is any advice covered? If product or service related advice is covered, how is it defined??


All of this and more varies between E&O policies. If you think your $500 policy w/ 2mill max, protects you the same amount as my $2k policy w/ 2mill max I guarantee you your wrong.

Im not saying its better just because its more expensive. Im saying its better because I have compared it to the $500 plans, and the coverage is much more extensive.
(plus my B/D wont accept a lot of the cheaper plans because their) liability insurance wont cover it!)
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Some of the E and O brokers can reduce the price on the E and O by 15%... I have talked some of them into lowering the price for me and my agents a couple of times..

This can be done, if you have send them the right message or at least show them where another company offers the same thing at a much lower price.

Basically this is the theory of wholesale and buying in bulk. And if one individual E&O company could provide a product for the entire market it would be done and monopolized by now.

The e&o marketplace is a free market for the most part. Yes you can group together to gain buying power, but what if your needs dont fit that group? Or change from it.

Any *** can google insurance e&o and find $400-$500 coverage. So why dont they all do it and flock to the cheaper companies already?....Because they dont find value in it.

Its the same way Whole Foods and other higher end grocery stores can stay in business against Walmart. People see value in it that they cant find from Walmart, and Walmart cant provide at their normal price structure.

Its the same reason some people on DI policies choose a 90 day elim vs a 30 or 180, or a cola rider, or own occ, or NC vs GR, etc, etc, etc.

If there was one solution for everyone insurance would be sold in a box on a shelf at Walmart!!

 

[Richieg2u]

LOL

Don't give providers OR walmart any ideas!
Just my two cents.
RichieG

PS. Doesn't ILIAA AND IHIAA have a "group" discount on E&O?

 

[Norwayguy]

That will vary depending on your broker dealer and who they use. My BD changed last year from allowing us to get coverage anywhere to using the carrier they contracted with.

My E&O went from just under $1k to $1,566. About a $600 increase. I have no idea what it will be when it renews this April.

Also, all E&O is not created equal. Anyone who tells you this isn't being truthful.

So correct...My biggest complaint with having my B/D's E&O is it only take 10 rogue brokers maxing out their limit to max out the companies total retention and then I have no coverage. Not to mention I'm not a fan of how outside busines is covered....However I have spoken with a couple of E&O providers and have never gotten a satisfactory answer about how coverage would be coordinated if I purchased an additional policy for myself. Funny I've never even come close to a claim but this is coverage I don't want to skimp on.

Mark, Please do not take this the wrong way because I think you might be a great consumer trying to get the lowest price. But you buy your car insurance without an agent want people to buy E&O based on price....How can you look people in the eye and explain the value of having an agent and paying a higher price for better coverage.

 

[Freddie]

I think we need to send them a message that we are going to go with the cheapest one and if they are not the cheapest, we wont use them.

I want the price go down.

Can we also get lead companies to fight over us?

There used to be guys on here who could get you better than street contracts on annuities. Are they still around?

 

[Bertolinoins]

Not all e&o coverage is created equal. Does it cover prior acts? What is the retro date? Is defense inside or outside the limits? Are independent contractors covered? Exclusions or carrier limitations (am best of A-7 or better?).

Of course somebody can sell a cheaper policy... By reducing or limiting coverage.

 

[souldeux]

LOL

Don't give providers OR walmart any ideas!
Just my two cents.
RichieG

PS. Doesn't ILIAA AND IHIAA have a "group" discount on E&O?

We both have sponsored plans, yes.