This is an excerpt from an Insurance Journal article that I authored in the November 16, 2015 edition.
“Most agents’ errors and omissions (E&O) carriers report that commercial lines generates the majority of E&O claims. However, a significant number of E&O claims arise from the sale and service of personal lines. For agents selling personal lines, understanding the risks and knowing how to minimize the potential of an E&O claim are vital.
On average, when an E&O claim involving personal lines occurs, the severity (size of the claim) is much less than the commercial lines counterpart. However, depending on the agency’s clientele, E&O claims involving personal lines can easily reach the $1 million-plus level.”