Chair of the Board's Message

E&O CONCERNS IN A HARD MARKET

A lot has been said about this hard market – and rightfully so. For some of us, it’s the first we’ve experienced. And for all of us, it’s been a challenge. It’s truly a great leveler in our industry. No matter what lines of business we write, or what types of clients make up our book, we’re all feeling the strain.

The January Primary Agent looks at another repercussion of the hard market – increased errors & omissions exposure. Customers may drop or reduce coverage to offset premium increases. Agency staff may make mistakes in their haste to remarket policies. Companies may deny claims due to new exclusions – or they may struggle with their own financial stability. All of these, of course, may contribute to an increase in E&O claims.

In this issue, you’ll find ways to reduce your agency’s risk by properly handling certificates of insurance (pages 3 and 4), as well as strategies for responding to carrier rating downgrades (page 10). Find more resources at IABforME.com/EO-prevention and more tips during upcoming E&O courses (see IABforME.com/education).

I would be remiss if I didn’t remind you of IA&B’s own insurance agency. IA&B Insurance Agency Senior Director Kevin Hord and his team are uniquely positioned to build insurance programs for independent agencies. And you can take it from me that their customer service can’t be beat!

While we enter this new year with challenges – the hard market one of them – let’s face it with optimism. The independent agency channel is resilient, our agents’ association is supportive, and I’m confident we’ll come through this stronger than ever.

Until next time,

Sarah Brown, CIC, CRM, AFIS

Chair of the Board