I need some help from you guys. Who can tell me the best company to use for Professional Liability or E&O Insurance for our industry? And if you do have that information what would you think a reasonable rate for an independent adjuster who's revenue is say less than $100k? I have called a few and these people just don't seem to have a clue on what the process is or how long it takes, so any words of wisdom would be greatly appreciated. I have a new client that has a decent amount of work for an independent but require this insurance first. So, I need to find it and get it as quick as possible. Thanks Everyone.
Here is a link about Risk Retension Group insurance. The Liability Risk Retention Act (LRRA) was passed by Congress in 1986 that was designed to enable companies, business professionals and municipalities to obtain affordable and attainable liability insurance. A risk retention group is essentially an insurance company that is owned by its members, who in turn, retain the risk themselves.
Some are looking into developing an E&O insurance company for "adjusters only" under the LRRA I understand. While this is a major undertaking I think it is doable based on the article link included in this post and will save adjusters a lot of money. Some think this could become a reality by the end of 2004 but even if took much longer it sounds like a good thing to research and develop if possible. I guess the big question is can adjusters agree to agree on anything for their benefit. :)
Reading the article should get you up to speed on the 1986 Act. Of course without reinsurance no insurance would be available. I think there is talk going with 90% reinsurance until some strong reserves are built. After that even larger savings could be realized by the "adjuster owners" of the E&O insurance company.
Personally I think if most all adjusters in the US could work together to provide themselves affordable E&O coverage then it would open the door to work together in other areas for the benefit of the "whole" industry.
Professional Liability Insurance or E&O Coverage
Forum Locked
Posted - 05/23/2003 : 12:06:21
