Agency E&O Market Consistency
by Amanda Juratovic
The professional liability marketplace is ever changing. Carriers enter and exit the marketplace, change rates, and shift their underwriting appetites and priorities. Inflation, reinsurance capacity and carrier financial strength also factor into an errors & omissions carrier's consistency.
Typically, the longer a carrier has been in the professional liability marketplace, the more stable it is when it comes to rates, coverage and deductible requirements. With longevity, a carrier can utilize its experience to properly price and underwrite the line of business to maintain profitability. As a result, the insured will experience fewer changes.
Longevity also impacts a carrier's ability to effectively handle claims. Carriers long active in agency E&O business have established strong relationships with their panel counsel to advise on the potential defense of a claim. Experienced claims adjusters are well-versed in handling insurance agents' professional liability claims, which typically will result in a more favorable outcome for the insured.
Many carriers offer a deductible waiver or reduction after they have been continuously insured with a carrier and remain loss free during that time. However, it isn't uncommon for a carrier to enter and then exit the marketplace within two to four years. In these situations, the insured would never reap the benefit of this coverage enhancement. Without longevity in the marketplace, the deductible waiver features could be meaningless.
Big "I" Professional Liability-endorsed provider Swiss Re Corporate Solutions checks all the stability boxes: Consistency in coverage; stable rates; flexible deductible options; and best-in-class claim service, with many Swiss Re adjustors also being attorneys.
We invite you to contact your Big "I" state association program manager to receive a proposal and be part of the largest, most stable agency E&O program in the country.