THE USELESS AND THE USEFUL
Every time you lick a stamp, you consume 1/10 of a calorie.
Before buying or selling an agency, always discuss the transaction with your E&O underwriter for the options available to you.
Most E&O policies are not transferrable in the event of an ownership change. These policies will go into a runoff mode, supplying coverage to the old ownership only up to the date of the sale.
Others will simply not provide any coverage after the sale. Buyers should want to protect themselves against being held responsible for the acts of the old ownership.
Sellers need to protect themselves against E&O claims that occur on policies written during their ownership.
This is done by purchasing an Extended Reporting Period (ERP), sometimes called a “Tail”. A Tail allows the Named Insured the ability to report claims after the agency is sold.
Tail periods can be from one year to six years. Depending on the policy, sometimes the price can be negotiated.
The entity serves as the exclusive national administrator of an E&O product designed to address the unique liability exposures faced by insurance agents generating gross written premiums of $2 million or more.
- Broad definition of professional services; includes notary, premium financing, and risk management activities
- Punitive damages covered where applicable.
- Independent Contractors automatically covered
- Wholesaler, MGA, and PA risks considered
Rockwood Brokerage also offers a diverse array of other professional and management liability products.
These include Private Company D&O, Cyber Liability, Gun Show Event Liability, and Active Assailant Event Coverage.