Ten years ago, many title underwriters did not require their agents to carry E&O coverage. Years ago, most underwriters made that a requirement. Today, the coverage you may have previously questioned as necessary possibly saved your business when you had your first claim.
Your professional liability coverage is one of the most important pieces of your business. Just like all lines of insurance, your E&O is in place to protect against a possible loss. Five years ago the idea of a possible claim against your company may have seemed unlikely. Today, not having a claim is unlikely and, by the way, highly congratulated! As more title agents are beginning to see another impact of the real estate market rise and fall, it is our hope to have some influence on your business, in both risk prevention and education relating to your specific industry.
In order to answer any questions you may have, here is an overview of what you need to know:
1. Cost of Insurance. Unfortunately, premiums are not going down. This seems to be everyone’s number one question. If business is down, insurance premiums should be down, right? Sadly this is not the case. Title agents are still considered a distressed class of business with insurers paying out huge amounts on E&O claims daily.
2. The Chances of a Claim. You are not immune to the claim issues. Remember when business was booming? Are you completely confident that you, and all of your employees, made sure to cross every “T” and dot every “I”? Insurance carriers are not paying claims for intentional errors that were made. We can now recognize more than ever that the saying is true, everyone makes mistakes.
3. Your account is personal to us! When your renewal approaches, every step of that renewal process is specifically tailored to you and your agency’s needs. We know what questions to ask! We need to fully comprehend your exposure in order to help protect it. No matter how many years you have been with us, your renewal is a time for us to go back to the basics with you. Even if you have not made any changes, carriers writing this coverage may have, requiring a comprehensive review. With your help we can make sure the policy you have is the best one for you.
4. If you do make changes, call us! Even small changes in your business routine can impact your E&O coverage. You should be aware of the exclusions, conditions and responsibilities set forth in your policy. Carriers rely heavily on policy language in determining if coverage should apply in a claim circumstance. You want to make sure any change in exposure is covered and that you are following your duties as an insured throughout the policy term. Your policy is now likely changing from year to year. If you have questions or uncertainties, please call.
5. You trust us. Sometimes I am reminding you, other times you are reminding me, but the fact remains the same. We are on your side when it comes to your coverage, your premiums and protecting your business, and we have, in hand, all of the best resources to do so. Although renewing coverage has become a long and tedious process, our goal to provide you with exceptional, “stress – less” service has, and will remain the same.