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CCarr
Canada
1200 Posts |
 Posted - 02/06/2004 : 08:27:09
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I was going to make a comment in the E&O thread that started as a classified ad, but I see that that door has closed.
Many people look at their E&O coverage as their security blanket, and many people don't realize how porous that blanket is; that you paid a fair chunk of your real dollars for, that came off of your bottom line.
If you think we have troubles agreeing on relatively normal claim situations within an HO3, imagine the quagmire that is your E&O wording. |
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trader
USA
236 Posts |
Posted - 02/06/2004 : 14:21:08
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| I handled some E & O many years ago for Engineers- Designers type. Porous is not the word. The only person who will come after you is the one you are working for. Example you do the carriers bidding. You are named in the lawsuit. The carrier will usually defend you at no cost.... if no conflict.... Why ?if they can hit you, the carrier will get the same bullet thru the heart.(agency) I have never had E & O in my name for 39 years of adjusting and I always seem to get work. If every adjuster in the US stopped purchasing this farce coverage we would save $1800.00 per year and all would still work. Some one fax me a copy and I will disect it and report back to the whole community. 281-359-5222. |
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trader
USA
236 Posts |
Posted - 02/06/2004 : 15:03:18
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| Regards E & O for adjusters. First policy to my knowldge including General Liability cost less than $100.00 per year. An IA purchased it and used it as a marketing sales tool. Soon the local claim manager used it as a "weeding tool" to "weed" out all the new start up IA,s. "Do you have 2 mil E &O & GL" ? " My home office requires certificates of insurance". This is the primary benefit today, and the only reason to purchase this sieve coverage. If your vendor can not provide for you....pass. |
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CCarr
Canada
1200 Posts |
Posted - 02/06/2004 : 16:21:29
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Ray, you mention an E&O policy inclusive of a GL (CGL?), for less than $100.00 per year; is that a typo (less a 'zero') or is it per month?
Security blankets are an intangible benefit to their holders. Because there is no standardized wording for an E&O policy, each carrier that writes the coverage squeezes or embellishes certain coverage components. The specific value of any one wording or policy may not extend much beyond being a glorified 'legal defence policy', that is thin on any real coverage for loss.
It would be interesting to examine a range of E&O wordings, to explore the benefits or pitfalls contained in them; that relate to the real world of claims adjusting.
For those that do not have an E&O policy in their name, and believe that they rely on the vendor's policy; how do you know you are covered on that policy? Is that mentioned in writing, as part of your contract with that vendor? Do you have a certificate of insurance with respect to the vendor's policy? Have you seen the vendor's policy? If you have "seen" it, have you read the definition of "insured" in that specific policy? Hopefully you are not relying solely on a verbal coverage committment. |
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Davey
USA
38 Posts |
Posted - 02/07/2004 : 18:37:20
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| Most of the vendors can and will cover you under their E & O as well as W/C. But it will cost you 1 to 2% each. I prefer to have my own E & O as well as W/C. It's cheaper in the long run, covers my daily work, and gives the hint of professionalism when you supply certificates of insurance. |
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E&O Policies versus swiss cheese
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