Claims Made E&o Coverage

Milkman1265

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Ok here's a tough situation i can't seem to figure out.

Professional E&O claims made policy for Mr. Smith

after 3 months Mr. Smith decides he needs a llc and opens Smith Agency LLC and buys E&O for the company, how will claims made and reporting be effected for Mr. Smith personally for the 3 months he's been doing business?

Do you ask the E&O carrier to cover prior acts but different name or have Mr. Smith buy tail coverage individually?
 
Ok here's a tough situation i can't seem to figure out.

Professional E&O claims made policy for Mr. Smith

after 3 months Mr. Smith decides he needs a llc and opens Smith Agency LLC and buys E&O for the company, how will claims made and reporting be effected for Mr. Smith personally for the 3 months he's been doing business?

Do you ask the E&O carrier to cover prior acts but different name or have Mr. Smith buy tail coverage individually?

Why not endorse the policy and add Smith Agency LLC as a named insured?
 
he's going to partner up with another person.

so he should endorse his LLC and partner as AI?
 
he's going to partner up with another person.

so he should endorse his LLC and partner as AI?

Present the situation to the current E&O underwriter and see what they suggest. They will likely need additional information and require additional premium, but they can usually add the additional entities as an AI to the current policy.
 
it is but i was just wondering insuring a company to cover prior acts of an individual was iffy.
 
There should be guidelines in the policy as to how this situation is handled. Depending on how the new agency is formed, he may already have built in coverage. Do not have Mr. Smith buy tail coverage, that would be a mistake. Mr. Smith should be covered from the effective date of the first policy he had for himself alone, even if he alone (and not the agency) is covered retroactively.
 
You should really take a look at the definition of insured. I would guess the carrier could amend the policy's named insured to be the LLC and the owner would still be covered under the definition of insured. Retro would stay the same.
 
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