CLIENTS DECREASING COVERAGE IN EXTREMELY HARD MARKET?

Ben Albright

May 2023

The dangers it presents for Agents E&O and how to protect yourself

We are regularly hearing from members about how their clients are being forced to buy less coverage or go without coverage because of the massive increases in rates in our current market crisis. While this is certainly an understandable, if unfortunate, reality of our situation, it can present some real challenges for agents. From an Agent’s Errors & Omissions perspective, any time a client moves from more coverage to less coverage is a potential exposure. It’s important for us to be vigilant during this market upheaval, and to take extra precautions to document our files and protect against E&O

What can I do to minimize my exposure? 1 2 3

Document, Document, Document!

Don’t recommend decreases in coverage or going bare

Require a signature when a policyholder wants to decrease or remove coverage