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...r professionals, such as doctors, lawyers, architects, engineers, and CPAs, ha...iligence can help reduce the frequency and severity of E&O claims as well ...

...e vulnerable to charges of broker errors and omissions (E&O). Savvy brokers and agents have been advising their client...t to learn the details of EPL coverage and sell more coverage with confidence, there's no substitute for reading and understanding as many different policy forms as you can. Knowing what to look for and what to avoid is essential, but lea...

...ay be forced to pay for court and lawyers' costs incurred by the company, win ... recognizing the concerns of the other and with cooperative rather than advers...

...C anti-fraud rules. This includes errors of omission, as well as errors of commission. Liability can extend t...ary E. Jacobson, JD can be reached at Vander Wel, Jacobson, & Bishop ...

... areas of litigation exposure are errors & omissions, and protection of expirations. Proper insu... the agent's lawyer, accountant, or insurance agency specialty consultant.

... treatise. On complex matters such as mergers and reorganizations, it can only suggest the objectives to be sought, rather than the specifics on how they are accomplished. It cannot deal with specific fact situations. It is no substitute for competent personal advice from the agent's lawyer, accountant, or insurance agency specialty consultant. Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself ... owner's death or departure will be handled. I feel that all agencies and producers should have such contracts for everyone's protection. Litigation exposure can be reduced if the agent understands how the risks arise, and makes plans to avoid them. Major areas of litigation exposure are errors & omissions, and protection of expirations. Proper insurance can reduce but not eliminate exposure. Alternate dispute resolution if properly used may reduce litigation risks and cost. A producer who is aware of his legal rights is in a better position to protect them without litigation ... An established producer who joins a larger agency can lose his expirations if he does not take steps to protect them. We are all mortal. Selling or otherwise transferring an ownership interest in an agency, such as with sales of stock or assets, corporate mergers, partnership liquidations, or use of Employee Stock Ownership Plans (ESOPs), is something all agency principals will ultimately do. It is important to plan ahead, since otherwise it may be too late to take important steps when the moment actually arrives. A wise agent ...

... (structure, business plan, and cash flow), lay them out for the seller, so that there won't be any surprises. If possible, deal with agents you know. Work out the details with the other principal(s ) personally. Don't let lawyers and accountants in on it until everyone is ready. Achieve a good personal fit. This is important, not only on the personal level, but also in regard to the two agencies' philosophies (i.e., fair treatment of clients and employees, and ... a thorough investigation of the agency in question. Look at: Its five-year figures; its relationship with its companies; the breakdown of its premiums (Commercial Lines vs. Personal Lines); its history in regard to ownership, claims, employee agreements, and prior Errors and Omissions claims. Find out which carriers it has lost. Also, take a look at the accounts receivable. Does the current agency/owner let payments ride? If it's tightened, will the accounts go elsewhere? Take a good look at the other ... loss ratio, especially Personal Lines. Some companies today are gearing future commissions on the last three years' loss ratio. Get an independent appraisal by a consultant. Determine the average age of at least the key accounts. People like to do business with their contemporaries. If possible, do your own financial analysis and have it checked by an accountant. Determine how the newly formed agency will work. Deal with the "nuts and bolts" of the agency's operations. Talk to carriers about the agency in question. They're excellent ...

... (structure, business plan, and cash flow), lay them out for the seller, so that there won't be any surprises. If possible, deal with agents you know. Work out the details with the other principal(s ) personally. Don't let lawyers and accountants in on it until everyone is ready. Achieve a good personal fit. This is important, not only on the personal level, but also in regard to the two agencies' philosophies (i.e., fair treatment of clients and employees, and ... a thorough investigation of the agency in question. Look at: Its five-year figures; its relationship with its companies; the breakdown of its premiums (Commercial Lines vs. Personal Lines); its history in regard to ownership, claims, employee agreements, and prior Errors and Omissions claims. Find out which carriers it has lost. Also, take a look at the accounts receivable. Does the current agency/owner let payments ride? If it's tightened, will the accounts go elsewhere? Take a good look at the other ... loss ratio, especially Personal Lines. Some companies today are gearing future commissions on the last three years' loss ratio. Get an independent appraisal by a consultant. Determine the average age of at least the key accounts. People like to do business with their contemporaries. If possible, do your own financial analysis and have it checked by an accountant. Determine how the newly formed agency will work. Deal with the "nuts and bolts" of the agency's operations. Talk to carriers about the agency in question. They're excellent ...

...rincipal(s) personally. Don’t let lawyers and accountants in on it until ever...at the agreement contains non-compete and non-piracy clauses that are reasonable and enforceable. If poss...

... (structure, business plan, and cash flow), lay them out for the seller, so that there won't be any surprises. If possible, deal with agents you know. Work out the details with the other principal(s ) personally. Don't let lawyers and accountants in on it until everyone is ready. Achieve a good personal fit. This is important, not only on the personal level, but also in regard to the two agencies' philosophies (i.e., fair treatment of clients and employees, and ... a thorough investigation of the agency in question. Look at: Its five-year figures; its relationship with its companies; the breakdown of its premiums (Commercial Lines vs. Personal Lines); its history in regard to ownership, claims, employee agreements, and prior Errors and Omissions claims. Find out which carriers it has lost. Also, take a look at the accounts receivable. Does the current agency/owner let payments ride? If it's tightened, will the accounts go elsewhere? Take a good look at the other ... loss ratio, especially Personal Lines. Some companies today are gearing future commissions on the last three years' loss ratio. Get an independent appraisal by a consultant. Determine the average age of at least the key accounts. People like to do business with their contemporaries. If possible, do your own financial analysis and have it checked by an accountant. Determine how the newly formed agency will work. Deal with the "nuts and bolts" of the agency's operations. Talk to carriers about the agency in question. They're excellent ...