Tag Archives: Errors and Omissions

“Stated value” vs “Agreed Value” – aren’t they the same?

No, they are not. Which one is better? Let’s take a look… Here is the traditional definition of “Stated Value”: “In the event of a total loss we will pay the Stated Value or the Actual Cash Value, whichever is … Continue reading

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Include specimen policies with the proposals

Have you ever had a situation where your client had a loss before the policy was even issued? It happens, and it actually happened to me back in my days as an underwriter. My account (a big printer) had a … Continue reading

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Does your proposal include this?

Let me ask you a question: When you provide a proposal to a client (current or prospective), what information are you using to develop that proposal? While there may be some information you can gather from websites or other third … Continue reading

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How does your E&O policy address “subpoenas”?

One only needs to access the news on virtually a daily basis to hear the reference to a subpoena. It is vital that agencies (especially management) be aware that the word subpoena can find its way into the insurance agency … Continue reading

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Frequency down; Severity up

Going back to the late 80s (when I first started in an E&O management position), the frequency numbers were off the charts (but not in a good way). Frequency (a measure of the number of E&O claims as a percentage … Continue reading

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When selling the agency, how long of a “tail” should I buy?

You may be thinking that this is not an issue you need to worry about as you have no plans to sell your agency. While that certainly may be true today, there just may come a point where selling your … Continue reading

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Are you familiar with the U.K. Insurance Act dealing with “Fair Presentation of Risk” ?

Oftentimes, I have used this media to communicate issues dealing with the importance of being honest with your carriers, This includes the material used to communicate the nature of the risk (the application) as well as other communication (i.e. answers … Continue reading

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Designing and Implementing an E&O loss prevention program is really not that difficult

From time to time, I become aware of agencies that have not officially implemented an E&O loss control program. They may have addressed some of the key issues but without any real formal recognition of the need for an increased … Continue reading

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Those crazy Certificates of Insurance

Where would you think the “improper execution of certificates” ranks among the leading causes of E&O claims? After all, it is just a piece of paper that clearly states the certificate is issued as a matter of information only and … Continue reading

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A key issue every employee needs to know

What is the key one?      When to report an issue to your E&O carrier. You will notice that I did not say “when to report an E&O claim”. This is because there are going to be times when … Continue reading

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