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COVERAGE MATTERS

Agencies Should Consider the
Premium Financing Endorsement

The main form of our Premium Financing Endorsement includes arranging premium financing through a non-related entity. The endorsement broadens the coverage to apply to arranging premium financing with no condition that it be a non-related entity.

Endorsement language: 14-E-0064

What’s needed to apply for the endorsement? Premium Financing Questionnaire 14-Q-143.

 Don't Limit Yourself When
Addressing Limits with Clients

Most E&O carriers report that 6-8% of all E&O claims involve inadequate policy limits. The following tips can help agencies address limits with their clients while helping to protect themselves:

• Communicate to your clients that they should review their limits and assess if they are sufficient for their risk. While you can offer guidance, refrain from recommending specific limits or making any statements confirming that the limits provided are adequate to respond to a claim.
• Be cautious when using insurance-to-value tools. They may be outdated and not reflect current conditions.
• Offer multiple limit options. Have the client acknowledge that additional limits were offered, and that they have independently chosen the option they believe best meets their needs. Be particularly cautious when a client is reducing limits.
• Use disclaimers on your coverage proposals.
• Document discussions regarding limits in your file. Further reinforce discussions with a written communication to the client reiterating the conversation.

Related articles:

• Be Aware of the Growing Concern of Insurance to Value
• Boost Your Agency’s Defense with Disclaimers
• Are Your Clients Carrying Adequate Limits?

READY TO HELP

Do you have a client looking for risk management guidance on a particular topic and you aren’t sure what to suggest? Reach out to Tabitha DeGirolano of our E&O team at tabitha.degirolano@uticanational.com for help. 

This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group ("Utica National") are not providing legal advice or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues.

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