E&O Forced Upon an Agent
- Thread starter Neptune1
- Start date
- 15,041
So you want to go without E&O, or you just want to buy from someone other than your broker/dealer?
Most broker/dealers will want you to use their E&O so they can control it and make sure you are current. New York law may allow you to opt out, but the b/d could also just drop your registration. Also, picking a fight with your new b/d is not the way to start things off on the right foot.
Most broker/dealers will want you to use their E&O so they can control it and make sure you are current. New York law may allow you to opt out, but the b/d could also just drop your registration. Also, picking a fight with your new b/d is not the way to start things off on the right foot.
- 8,707
X2... Every B/D I was ever with required us to use thier E&O, it was more costly than what I could find out on the private market and the other thing that was crazy is a rep or group of reps somewhere else could be sued and use up the entire companies coverage leaving you exposed and tough luck for you. The problem is you might have a law on your side but there is nothing requiring the B/D from just dropping your registration.
- Thread starter
- #4
- 15,041
Then find another b/d or drop your registration.
Right or wrong, getting into pissing contests with companies you wish to do business is generally unrewarding. Either pay for their E&O, find a company with better E&O, or a company that will allow you to secure your own E&O. But you might lose more than you gain.
And get use to it. New York is full of "consumer protection" laws regarding insurance that are counterproductive.
Right or wrong, getting into pissing contests with companies you wish to do business is generally unrewarding. Either pay for their E&O, find a company with better E&O, or a company that will allow you to secure your own E&O. But you might lose more than you gain.
And get use to it. New York is full of "consumer protection" laws regarding insurance that are counterproductive.
- 14,809
I'm not sure there's any "winning" with that battle. So what...you try to legally force your B/D to allow you to get your own E&O. They'd make your life a living hell and look for the first reason to terminate you.
Not all E&O policies are created equally. Not all provide the right coverages. BD's don't want to deal with this, they want a policy they know will cover the incident, if needed.
Seriously, how much money would you save if you used your own? Weigh that against the relationship with your BD. If you don't save enough, then go elsewhere. Pretty simple.
Dan
Seriously, how much money would you save if you used your own? Weigh that against the relationship with your BD. If you don't save enough, then go elsewhere. Pretty simple.
Dan
- 483
RE-read DJS' post.....the end. NEXT!
(That was too easy, was that real?.....Come on' man)
(That was too easy, was that real?.....Come on' man)
- 8,707
Whats funny though is the 2 B/Ds E&O policies I looked up (required that I participate) had cap on my claims of 1 Million but only a 5 Million total cap for the company....Just think about that for a minute it would be very easy for 1 bad branch to use up the entire coverage and thenI get hit with a claim and be totally uncovered. Compare that to me purchasing my own coverage...
For me this is just a matter of principle as I dropped my registration almost a year ago.
sergman89
Expert
If you read all of the posts above, you will see they simply say that if you can get your insurance on your own NOT ONLY IS IT CHEAPER but YOU DONT HAVE TO WORRY ABOUT THE WORSTE CASE SCENARIO. After all thats what insurance is supposed to cover.
Lets say 6 agents F up at once reading the post above me they may use up all of the 5 mill since noone sues for bare minimum. But if each agent has his own you still have that 1 million and didnt was 100 a month for the past year. I cant comment on this to much since I have never been forced to use a B/D's E&O and the company I am with now pays for the E&O as long as I produce.
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