Rockwood’s Custom E&O Solution for Insurance Company’s Agents Is a Win-Win
An Alabama insurance company asked Rockwood to help solve an issue relating to the marketability of the carrier to their prospective agency force in the southeast US.
The agency and the carrier were facing a potential lose-lose situation if it couldn’t be resolved.
Overcoming a Ratings Obstacle
At that time, most agency E&O policies had an insolvency exclusion for carriers rated B or below; this carrier had an AM Best rating of B-.
Agencies that were considering using them had concerns that their E&O wouldn’t cover claims related to insolvency if the carrier went out of business.
The management of the carrier was worried that agents wouldn’t sign up to sell their products if they thought they wouldn’t be covered for the business placed with the carrier.
They wanted a solution to offer their agents when their marketing people did site visits to prospective agencies.
A Winning Solution that Lasts
Through its contacts at Lloyds, Rockwood was able to negotiate and craft affordable, custom coverage for the carrier to provide its agents insolvency coverage if their primary E&O policy did not.
This custom coverage allowed the carrier to appoint an additional 50 agencies and quickly increase the inflow of premium.
Six years later, the carrier is still purchasing the coverage on behalf of their agency force and their agents are secure knowing that their E&O claims will be covered.
Are you in need of a custom solution?
Do you service a niche market? Have your clients asked for certain coverage(s) that none of your markets will offer? Let Rockwood assist you with finding a market and developing a unique policy/endorsement to meet the needs of your clients, association, or member group.
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