ITS ALL COVERED RIGHT??? EMERGING E&O EXPOSURES FOR INSURANCE AGENTS.

IT’S ALL COVERED RIGHT???

EMERGING E&O EXPOSURES FOR

INSURANCE AGENTS

MODERATOR: • Lisa Doherty, CEO, President and Co-Founder, Business Risk Partners

PANELISTS: • Sally Combs, Technical Director, Professional Liability Claims,

Fireman’s Fund Insurance Company • Scott Goodreau, Esq., MBA, Chief Legal Officer, HUB International

Limited • Daniel V. Kohls, Esq., Partner, Hansen, Kohls, Jones, Sommer &

Jacob, LLP • Sabrena R. Sally, CPCU, Senior Vice President, Corporate Solutions,

Swiss Re Corporate Solutions

Introductions

I. Foundations of Liability

II. Trends in Claims / Litigation

III. Considerations When Buying E&O Coverage

IV. Loss Control / Risk Management

V. Claims War Stories

VI. Q&A

VII.Contact Information

Agenda

• Defining the Relationship– The relationship of the intermediary with the insurer

and to the insured will define liability– Dual agency

• Defining the Liability – Contract– Tort– Fiduciary duty



• Typical Causes of Action – Negligent misrepresentation

– Fraudulent misrepresentation

– Duty to procure insurance

– Improper insurance advice

– Negligent failure to add additional insured

– Placement with an insolvent carrier

– Maintenance of coverage

– Negligent issuance of policy

– Disclosure of compensation

• Overall– Claims against insurance agents and brokers are up slightly

• Types of Claims– Inadequate or insufficient coverage / no coverage– Reporting issues

• Emerging Issues – Retail brokers accessing surplus lines markets – Agents going beyond their area of expertise and procuring

coverage's

II. Trends in Claims/Litigation

II. Trends in Claims/Litigation

• Complex Issues– Extended Reporting Periods – Producer claim advocacy in carrier denials or reservations– Producer involvement in situations where the client does not want to settle

and has a refusal to consent clause in the policy

• Compensation Issues

• Hard vs. Soft Market– Frequency and Severity – Coverage availability– Trends: Staffing cuts; outsourcing; service expansion to generate revenue

III. Considerations When Buying

E&O Coverage• Carrier Considerations

– Financial strength– Longevity in the market– Claims handling– Product expertise

• Policy Terms – Claims made vs. claims made & reported– Professional services definition– Defense coverage– Insolvency exclusion regarding carrier– Exclusions– Claims reporting requirements– ERP provisions– Territory definition

• Carrier Considerations– Financial strength– Longevity in the market– Claims handling– Product expertise

• Policy Terms – Claims made vs. claims made & reported– Professional services definition– Defense coverage– Insolvency exclusion regarding carrier– Exclusions– Claims reporting requirements– ERP provisions– Territory definition

III. Considerations When Buying

E&O Coverage• Merger & Acquisition Activity – Automatic coverage?

• What are Adequate Limits?– Contractual requirements– Sleep well limit– What assets are exposed

• Loss Control vs. Loss Prevention– Establish a good defense– Aid in loss mitigation

• An Ounce of Prevention – Balance against the cost of loss– A good quality program can help with sales

IV. Loss Control/Risk Mitigation

• The Basics Are Key– A written and consistently enforced quality program

MUST exist– Documentation, documentation, documentation – with a

technology twist! – Product, market and environment knowledge– Working with intermediaries

• Trend Issues– Property valuation and limits– Privacy and data

IV. Loss Control/Risk Mitigation

V. Claims War Stories

Questions&

Answers

VI. It’s All Covered RIGHT???

• Sally Combs, Technical Director, Professional Liability Claims, Firemans Fund Insurance Company. 415-899-3648 [email protected]

• Lisa Doherty, Chief Executive Officer, President & Co-Founder, Business Risk Partners. 860-903-0002 [email protected]

• Scott Goodreau, Vice President & Chief Legal Officer, HUB International Limited. 312-279-4886 [email protected]

• Daniel V. Kohls, Esq., Partner, Hansen, Kohls, Jones, Sommer & Jacob LLP. 916-781-2550 [email protected]

• Sabrena Sally, Senior Vice President, Swiss Re Corporate Solutions 614-262-9480 [email protected]

VII. Contact Information

mailto:[email protected]







ITS ALL COVERED RIGHT??? EMERGING E&O EXPOSURES FOR INSURANCE AGENTS.

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Transcript of ITS ALL COVERED RIGHT??? EMERGING E&O EXPOSURES FOR INSURANCE AGENTS.