Captive P&C E&O Question

[Aram Fingal]

So as a captive agent, my company makes me buy my E&O through them. No big deal, at least not until very recently.

We had a carrier they let us write business through because they were the underwriters for it. Apparently that company decided to go with a different company as underwriters. Ok, no problem, just don't write with the company any more.... BUT we just got a communication saying that our E&O insurance is only going to cover the business we placed through that carrier up until the next renewal.

So, does that mean that I'm going to have to call up the carrier and tell them to not pay me commissions on any of that business any more to get myself out of a situation where I would have exposure with no coverage? I'm assuming it at the very least means I can't service any of that business any more, and I would assume that means no service commissions. Any input on the actual implications of this would be greatly appreciated.

My other question would be, can I just go out and buy my own E&O insurance in addition to what they make me buy? If they're going to do this kind of thing, I'm thinking I might like to have my own policy as a backup...

 

[Guest]

This is a way they are trying to force you to write the business with their company.

 

[Aram Fingal]

This is a way they are trying to force you to write the business with their company.

Ya, I know that. But the problem is there is no way all of these people are going to switch. So I'm going to end up with some of these policies out there still. I'm more worried about the implications of that then the fact that they're trying to force me to switch the clients.

 

[JP Savage]

What does your contract say?

 

[CaptiveBroke(r)]

Since the renewal is not here yet, does you captive carrier allow you to write through any other agencies or carriers or just the one you are mentioning?