Big “I” Virtual University and Professional Liability Offer a New Tool to Avoid E&O Claims When Rolling Books of Business

• By: Nancy Germond
• April 28, 2026

Rolling a book of business from one carrier to another or between agencies occurs for a variety of reasons. Because this process is essential yet presents errors & omissions (E&O) risks to the agency, we developed a carrier book roll tool to help you avoid most problems that can occur.  

Why Roll aBook? 

In today’s world of rapidly changing carrier appetite, the book roll process is essential for building agency value and adapting to market dynamics. There are a variety of reasons agency owners and managers may decide on a book roll. These include the most frequent reasons a book roll occurs.  

• Carrier Exit: When a carrier discontinues coverage in a specific area, stops offering a product, or ends its contract with the agency, the agency must roll the book to avoid losing customers. 

• Carrier Downgrades or Insolvency: When a carrier you have relied on for decades experiences a rating downgrade or becomes insolvent, a book roll can impact your clients. Any undertones in the industry of carrier instability or a downgrade in the carrier’s rating calls for more investigation and a potential book roll. However, you should carefully consider the thoughts and feelings of your customers.  

• Uncompetitive Terms or Disadvantageous Claims or Underwriting Changes: If a carrier’s rates, coverage, or service no longer align with the agency’s standards or customer needs. For example, many carriers have nationalized claims service, and you find this approach no longer suits your customers in a certain niche, such as farm and ranch clients.  

• Declining Business: Less volume with a carrier can make servicing the book inefficient or hinder contingency agreements. It can also mean you have less “weight” with the carrier should difficulties arise such as a strong relationship with an underwriter when a new application is a bit outside the carrier’s normal appetite.  

• Strained Relationships: Poor relationships between the agency and carrier can complicate operations. My parents were insurance agents and my dad encountered a poor relationship with one national carrier marketing rep in Arizona. After one meeting that ended very badly, my father told him to take his carrier manuals with him, or he would, “Put them in the middle of Grand Avenue,” a state highway at the time. My folks had to roll that entire book of business, which had dwindled by then anyway due to the adversarial relationship he had.  

• Strategic Reorganization: Agencies may combine coverage to fewer carriers to increase commissions, boosting revenue. 
  

The Pros and Cons of Books Rolls 

Books rolls can be advantageous if part of a well-planned growth strategy. However, according to one agent, “My advice [a book roll] is not something I would voluntarily undertake. If you have reached the point of a book-roll, then you have reached a point where you and that insurer are no longer having a beneficial partnership.”  

According to one agent, “We’ve done it once at our agency with a book that was right around $1M. It is a mountain of work, even with a carrier’s book-roll team helping the process.”  

It may be better to strive to improve a carrier relationship before considering a book roll. Meeting with carrier chief decision makers, showing your productivity and the goals, you have met and exceeded. This is a first step before you say, “The heck with it,” and roll your book.  

According to another agent in a large agency, “The way we did it was starting as the policies renewed. We would send in declaration pages with any updated and pertinent information to the book roll team, and they would take it from there. Simultaneously, we sent form letters out to each insured before they got their non-renewal notice from the carrier explaining what was happening and that it was nothing they had done. It was not something I want to do again for a while, if ever.” 

The documented benefits of a book roll are harder to find. However, any time an agency successfully brings on a new carrier and can place potentially profitable business there it previously could not write, that’s a plus for the agency.  

Book Rolls During Agency M&A 

When you buy an agency, book rolls may be inevitable, especially if the policies are with carriers where there is no preexisting contract between the carrier and the acquiring agency. When one agency buys another, it must transfer the acquired book of business. Similarly, agencies may buy specific books of business, such as personal lines or homeowners’ policies, or retiring agents may want to sell their book. These moves often require a transfer to a new carrier.  

As an insurance agency consultant, Mary LaPorte, the founder of LaPorte Insurance Agency Consulting and the author of the book roll handbook, has seen many book roll oversights leading to E&O claims. “Having a strong book roll system in place can help minimize your exposures,” she says. “Built-in checks and balances reduce costly mistakes that can result in coverage gaps and potential litigation.”  

Our book roll handout, exclusive to Big “I” members, provides essential insights and resources for managing book rolls effectively. 

Avoiding Errors & Omissions Claims During Book Rolls 

Book rolls can create errors and omissions if the agency does not handle the process carefully. Even without carrier oversight, these risks can lead to an agency’s financial and reputational damage.  

Here are some common E&O issues to consider as you complete a book roll.  

Policy Gaps or Lapses 

• What Can Happen: During the transfer, policies may fall through the cracks, fail to be renewed or rewritten in time. This leads to coverage lapses for clients. 

• How to Avoid: Ensure all policies are transferred and active before the original coverage expires. 
  

 Incorrect Policy Details 

• What Can Happen: Errors in transferring client information, such as coverage limits, deductibles, or endorsements, may result in clients receiving incorrect coverage. For example, the name of an LLC may transfer incorrectly, or a sub-entity such as another subsidiary may be left off at transfer.  

• How to Avoid: Double-check all policy details during the transfer process and confirm accuracy with the new carrier upon receipt of the new policy.  
  

Lack of Adequate Notice to Clients 

• What Can Happen: Despite your best communication efforts, clients may not feel informed about the book roll. This can lead to customer confusion or complaints when they learn their policy has been moved to a new carrier. Remember that for older clients, the need to open a new online account or grow accustomed to communicating with a new insurer can seem like a big task.  

• How to Avoid: Communicate with clients proactively and frequently about the book roll, explaining the reasons and benefits of the transfer. Any help you can provide will help avoid reputational damage.  
  

Missed Coverage Needs 

• What Can Happen: If the new carrier does not offer the same coverage options as the previous one, clients may lose formerly offered protections. 

• How to Avoid: Do a close coverage comparison between forms. Review the new carrier’s offerings to ensure they meet or exceed the client’s existing coverage. Point out any differences, paying special attention to items like roof coverage schedules, new or stricter warranties and claim reporting requirements. 
   

Failure to Secure the Necessary Contracts 

• What Can Happen: If the agency does not have a contract with the new carrier, the carrier will not provide coverage, leaving clients without coverage. 

• How to Avoid: First things first! Confirm that your agency has all signed carrier contracts before starting the book roll. 
  

Inadequate Documentation 

• What Can Happen: Poor record-keeping during the transfer will make it difficult to resolve disputes or prove compliance with regulations. It will also lead to a more difficult-to-defend errors & omissions claim should one occur.  

• How to Avoid: Ensure you have taken all client communications steps necessary before completing the roll. Maintain thorough records of all communications, policy changes, social media posts and client notifications. 
  

Client Dissatisfaction or Loss of Client 

• What Can Happen: Especially when clients have had positive claims experiences with their carrier, they may feel you aren’t listening to their objections. This can lead to regulatory complaints or losing your customer to another agency. 

• How to Avoid: Provide excellent customer service and explanations of why the move is necessary throughout the process and address any concerns promptly. If you feel you are going to lose the client if they wish to stay with their present carrier (if that option is still available), refer them to a local Big “I” agent still writing with that carrier. It’s better to offer a strong referral than to have a customer walk away upset with your agency.  
  

Regulatory Non-Compliance 

• What Can Happen: Be sure you follow state or industry regulations during the book roll can result in fines or legal action. Your state Big “I” can help you through that process because each state may have varying regulations.  

• How to Avoid: Stay informed about regulatory requirements and ensure all actions comply with them. 

If you carefully plan and execute a book roll, you will minimize these risks and keep strong client relationships.  

For further tips on mitigating these risks, be sure you download our members-only Book Roll Handbook – IndependentAgent.com. 

Copyright © 2026, Big “I” Virtual University. All rights reserved. No part of this material may be used or reproduced in any manner without the prior written permission from Big “I” Virtual University. For further information, contact nancy.germond@iiaba.net.