Agent Liability for Property Undervaluation
According to Marshall & Swift/Boeckh, two-thirds to three-quarters of buildings are underinsured by 25-40%. If an insured suffers an underinsured loss, whose fault is it? According to one recent court…
VU Resources
E&O Issues Dealing with Small Wholesalers
An agent asks, “What is considered ‘best practices’ for entering into agency agreements with smaller wholesalers who have niche or specialty markets, many of whom are Internet based? Is it…
The Role of Agency Procedures in E&O Loss Control
An insured has a loss that exceeds her policy limits. She claims that, a short time ago, she had called and increased her limits. The agency has no record of…
Increasing Policy Limits Without Permission
An agent inquires: “We are going to be updating our auto clients in a new program to $500K if there has been no increase or a decrease in premium. We…
E&O and Recording Phone Conversations
An agency’s new phone system allows them to record incoming and outgoing conversations. The agency thinks this will be good for E&O and be better than relying on handwritten notes.…
What E&O Limits Do I Need?
In determining the limits an independent insurance agency should carry in an E&O/excess liability policy, what factors should be considered? Is it a matter of how much the agency can…
Do Agencies Need to Archive Policy Forms?
A recent issue of our IIABA “Insurance News & Views” email newsletter included an abbreviated version of a VU article entitled “Lost Policies…No Coverage?” The article included the statement that,…
Agent Disclosures of Known Hazards
If an agent is aware of a known hazard at an insured’s business, is there an obligation to advise the insurance company? Does the agent or company have an obligation…
Can Agents Sign on Behalf of Insureds?
Question: “We are wholesale agents. One of our retail agents has invoked the “law of agency” as a rationale for submitting applications with his signature only, in lieu of the…
Documenting Coverage Reductions
An agent asks, “From an E&O standpoint, is documentation of a reduction in coverage, removal of drivers, etc. in our agency management system enough, or do we need to have…