Perform the "Mirror Test"
to Help Reduce Your E&O Exposure
by Curt Pearsall, CPCU, AIAF, CPIA
President – Pearsall Associates, Inc.
and Consultant to the Utica National E&O Program
A substantial number of E&O claims continue to involve failure to identify customers’ exposures and subsequently offer insurance proposals to address these exposures.
MAKE SURE THE CUSTOMER KNOWS
With hard market conditions and the economy, many agencies have remarketed their personal and commercial accounts to additional carriers in the hope of getting a degree of premium relief. As a result, the potential exists for differences between the current carrier’s policy and these additional markets.
What if the coverage with the new carrier is deficient in some areas compared to the incumbent carrier? Are the sub-limits less in some areas? Is the definition of “who is an insured” more limited? What is excluded on one policy compared to another? What about the carrier’s rating?