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...of clients. Agents, like other professionals, must demonstrate their knowledge...amp;O exposure that the insurance professional should deal with in fact-finding and at renewal. What about the exposure of an individual who’s a director for either type of corporation? The Personal Lines agent needs to be aware of the corporation’s coverage to pick up the exposure for this person. State laws vary, but often non-profit directors have less individual exposure than for-profit directors. In any case, if the corporation has no D&O coverage and the director is actively involved in decision-making, the agent needs to address this. D&O policies aren’t standard, and neither are the duties directors perform. Directors and officers often don’t realize their exposures or know the extent of the corporation’s D&O coverage and limitations. The agent needs to review the policy with both the management and the board of directors and have a discussion about the general differences among D&O contracts. INTELLECTUAL PROPERTY Patent, trademark, and copyright infringements are the main areas of intellectual property exposure. There are also various Personal Injury exposures related to libel, slander, defamation, violation of right of privacy, piracy, unfair competition, and title or slogan infringement. In some cases, directors and officers may be held accountable. The issue is more widespread than you might think: A recent market survey of a low- population Southwestern state found that about 150 businesses controlled more than 5,600 patents. Use of the Internet has worsened the problem. The ability to download information from World Wide Web can be an enormous exposure to the downloading party and the source alike. There are intellectual property exposures for those who’ve been infringed upon and those who do the infringing. Either way, there’s a long-term, complicated legal process for both parties and substantial legal expenses. There’ve been minimum estimates of $250,000 to $300,000 to take such a case to trial. Most carriers are very conservative about offering Intellectual Property coverage, and there’s no standard way to deal with the exposures. An agent’s best course is to know about the exposures a business faces and to be able to offer risk management and coverage options. At the very least, the agent should point out the exposures so the client knows the areas that lack coverage or for which coverage isn’t available. From an E&O standpoint, not discussing a problem until after there’s been a loss and the claim denied for lack of coverage will certainly tarnish the agency’s position. COMPANY SOLVENCY A wealth of articles, reports, and statistical studies tell us that an enormous number of companies and groups is vulnerable to insolvency. Inefficient operations, poor management, high loss ratios, low investment returns, automation problems, misguided marketing strategies, and poor reserving practices are just a few of the problems. Any one or combination of these can lead to disaster. In the past it was probably sufficient for an agency to check ratings in A.M. Best’s “Key Rating Guide” or a similar publication every year. Today there’s so much data available on demand and reaction time is so tight that ongoing ratings diligence is necessary. Many E&O policy contracts deny such claims because they have company insolvency exclusions. Sometimes a company might amend its exclusion by limiting it to companies below a certain ratings category or to an unrated company. Whatever the particulars, this exclusion alone means an agency should carefully scrutinize the financial performance and ratings of the standard and surplus lines carriers it uses. Sometimes your only choice may be a carrier that’s not up to par, and you’ll have to make a business decision whether to use it. In such a case, give the client a very specific and careful explanation of the risks involved in using the carrier. If you go ahead, carefully document your file with written confirmation that the client understands their decision and that the client received a copy of the confirmation. It’s probably preferable to have an agency policy never to use a carrier that A.M. Best’s or another secure ratings organization rates below a certain level. When a carrier falls below the standard, agency and client must decide how to proceed. CONCLUSION These are only a few of the emerging E&O exposures that agencies face. Making sure producers and staff know about them and practicing due diligence in day-to-day activities will go a long way toward reducing agency exposures. There’s no guarantee that asking the proper questions and taking appropriate action will prevent an E&O, but doing nothing is certain to leave an agency in a poor position to defend itself. Due diligence can help reduce the frequency and severity of E&O claims as well as give your clients a valuable service.

... conversion, and so on-in conjunction with complaints alleging discrimination, sexual harassment, or wrongful discharge. [2 ] Tail coverage is usually restricted to covered acts occurring during the policy period or retroactive period. There's usually no coverage for claims based on covered acts taking place after the policy expires. The goal of the CompleteMarkets editor is to bring valuable content to the CompleteMarkets members. Providing content to insurance professionals to enhance their sales process, increase revenue streams, understand their clients and provide value to their agency. 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 a whole lot of time & money when you use our directory of carriers ... like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back Employment Practices Liability Insurance: Occurrence Forms versus Claims-Made Forms 10/20/2016 12:00:00 AM by CompleteMarkets Editor This content has not been rated yet. Before the advent of specialized Employment Practices Liability (EPL) insurance policies, many employers sought coverage under one or more of their standard Liability insurance policies. Because some of the early EPL claims were paid under these general policies, it's fair ...

... conversion, and so on-in conjunction with complaints alleging discrimination, sexual harassment, or wrongful discharge. [2 ] Tail coverage is usually restricted to covered acts occurring during the policy period or retroactive period. There's usually no coverage for claims based on covered acts taking place after the policy expires. The goal of the CompleteMarkets editor is to bring valuable content to the CompleteMarkets members. Providing content to insurance professionals to enhance their sales process, increase revenue streams, understand their clients and provide value to their agency. 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 a whole lot of time & money when you use our directory of carriers ... like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back Employment Practices Liability Insurance: Occurrence Forms versus Claims-Made Forms 10/20/2016 12:00:00 AM by CompleteMarkets Editor This content has not been rated yet. Before the advent of specialized Employment Practices Liability (EPL) insurance policies, many employers sought coverage under one or more of their standard Liability insurance policies. Because some of the early EPL claims were paid under these general policies, it's fair ...

... conversion, and so on-in conjunction with complaints alleging discrimination, sexual harassment, or wrongful discharge. [2 ] Tail coverage is usually restricted to covered acts occurring during the policy period or retroactive period. There's usually no coverage for claims based on covered acts taking place after the policy expires. The goal of the CompleteMarkets editor is to bring valuable content to the CompleteMarkets members. Providing content to insurance professionals to enhance their sales process, increase revenue streams, understand their clients and provide value to their agency. 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 a whole lot of time & money when you use our directory of carriers ... like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back Employment Practices Liability Insurance: Occurrence Forms versus Claims-Made Forms 10/20/2016 12:00:00 AM by CompleteMarkets Editor This content has not been rated yet. Before the advent of specialized Employment Practices Liability (EPL) insurance policies, many employers sought coverage under one or more of their standard Liability insurance policies. Because some of the early EPL claims were paid under these general policies, it's fair ...

...Floater IX. Commercial General Liability X. Commercial Crime XI. Umbrella Liability XII. Premium Summary XIII. Acco...MBRELLA Limit of Liability Premium Limit of Liability Premium ENERGY SYSTEMS Limit Deductible Premium "ALL SYSTEMS GO" Business Equipment Protection KEY PRODUCT FEATURES Total Systems approach, including: Heating Systems Cooling Systems Electrical Systems Mechanical Systems Computing Systems Communication Systems Limitless Policy, including: Property Damage Business Interruption Extra Expense Consequential Damage No Sublimits on: Water Damage Ammonia Contamination Expediting Expense Sublimits of: Additional Expense $25,000 Business Interruption 12 months Single Combine Deductible Spoilage Settlement on Selling Price Off-Premise Power coverage included Eligibility to Building Value of $18,750,000 Designed for "Main Street," Non-Manufacturing Accounts SAMPLE LETTER: PRESENT CLIENTS (Just put this letter in your word processing system and send it out on your personal letterhead.) Date Name, Title Company Name Address City, State, ZIP Dear [name]: An important new form of business protection has just come on the market, and I wanted to make sure you knew about it. Until now, most property or fire insurance policies specifically excluded accidental breakdown coverage for computer systems, telephone equipment and fax machines, duplicating equipment, and other critical business systems. All that has changed. One of America's oldest and best respected insurance companies, The YYY Company, has introduced a policy called "All Systems Go." It protects all the equipment I've mentioned, plus your heating, cooling, and electrical systems. "All Systems Go" reimburses you for the repair or replacement of failed or damaged systems. It also compensates you for lost revenue or spoilage caused by equipment breakdowns. One of the best features of this policy is its low cost. It's a good value, especially compared to what an equipment breakdown could cost you. I'll call shortly and give you a few specifics on how this protection can enhance your property insurance portfolio. Cordially yours, [YOUR NAME] ACCOUNT SERVICING TEAM Account Executive: NAME OFFICE PHONE Account Assistant: NAME(S) Claims Reporting: NAME(S) ALL CLAIMS REPORTING USE WATTS LINE NUMBER: (800) 555-XXXX XXX & Company Street Address City, State Phone: Fax:

Employment Practices Liability Insurance: Occurrence Forms versus ...hly competitive, and high limits of Liability are available for most insureds. The widespread availability of prior-acts coverage and the affirmative grant of coverage for intentional acts under most claims-made EPL policies represent important features that may be missing under occurrence-based EPL insurance. NOTES [1] Employees may make various claims-assault, battery, false imprisonment, slander, libel, fraud, negligent misrepresentation, conversion, and so on-in conjunction with complaints alleging discrimination, sexual harassment, or wrongful discharge. [2] Tail coverage is usually restricted to covered acts occurring during the policy period or retroactive period. There's usually no coverage for claims based on covered acts taking place after the policy expires.

...he past 15 years, the issue of professional goodwill has often arisen. When ...mine that elusive value: personal professional goodwill. Roy L. Phillips, CIC, CPIA, can be reached at Dan R. King & Associates, 4888 Loop Central Drive, #100A, Houston, TX 77081, (713) 667-0333, fax (713...

...rkers Compensation and Employers Liability policy.' With employers eager to as... coverage like Employment Practices Liability (EPL) insurance. A company's employee manual might have several chapters devoted to maintaining sensitivity toward others' differences, giving equal treatment to all persons, and showing respect to everybody, but it might have little influence on what actually occurs in the business. If a worker misbehaves, the company will bear the consequences unless it has EPL coverage. This protects the company against damages arising from inappropriate criticism, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination, or termination of any employee or any personnel practices, policies, acts, or omissions. EPL coverage grows more popular every year, and insurance companies offer competitive premiums to attract business. Some EPL policies have added risk-management services that provide such assistance as loss-prevention specialists, helpful literature, and procedures to protect against EPL claims.

...s customers, they expect fast, professional service with no hassles when they ... and his RRSPs with his bank. His Professional Liability and Income Protection are with his professional association. Andrea had her Auto and Homeowners insurance with a broker and her RRSPs with her bank. Her Income Protection and Group Benefits package are with another broker. Andrea had an at fault accident three years ago. John has no violations and is claims free. Andrea’s goal was to place all the insurance with the same company for one-stop shopping and to maximize discounts. Because service had been poor with all of her previous insurers, she decided to use a direct writer who advertised good service. The first policy up for renewal was John’s Auto insurance. When she called the direct writer, NewWay, Andrea emphasized that she’d had an accident and needed to be able to place the two Auto and Homeowners policies with the same company. She was told that would be no problem. When Andrea’s Auto policy came due two months later, she called NewWay, but was placed on hold for more than 20 minutes. This happened three times in one week. No matter when she called, Andrea wasn’t able to get through nor was she able to leave a message. The following week, she called while doing some administrative work, waited 45 minutes, and still didn’t get through. In the third week, she called right at 8:30 and was eventually put through after a 15-minute wait. When she spoke to the agent, she was told they couldn’t accommodate her because of her accident. Company policies had changed and there were no exceptions. To top it off, her current insurer no longer offered accident forgiveness, so her Auto premium increased $1,200 over the previous year. Andrea spent the next week calling around to see what she could do about coordinating their policies, but no one was interested in the business because of her accident. After three months of planning and organizing, Andrea and John are in the same position as when they began. Andrea and John: 'Any organization that comes up with a better game plan will attract customers. My brother also had a terrible service experience with his insurance agent. There’s a cauldron of discontent that has been created by shortsighted business practices and disregard for customers.' HOW DID THIS HAPPEN? Our industry’s financial difficulties are creating an inward focus that excludes long- simmering customer service issues. This happens for two reasons. First, we’ve done a less than adequate job on the distribution side in identifying which customers create profitability and delivering the quality service needed to retain those relationships. Second, insurance company decision makers are disengaged from customers and their needs. The closest they come is through sterile research that analyzes internal company data and actuarial models. Unfortunately, this information lacks nuance, doesn’t view the customer as a human being, and only provides data on past activities — ignoring what would happen if customers were treated differently. Because no carrier or distributor has enough information on its customers to cultivate profitable relationships with them, it’s all too easy to ignore their demands for quality service. This deadly two-step means that we’re missing profitable opportunities with existing customers and new prospects, using rate increases as a blunt instrument to correct poor financial results, and treating customers disrespectfully. We’ve inadvertently created a process that disappoints and alienates customers faster and more efficiently. This raises some key questions. How did service delivery spiral out of control so quickly? What will be the long-term implications of today’s poor quality? Most important, how can we get off this reactive treadmill to deliver the quality service needed to foster profitable lifetime relationships with our customers? OTHERS TIDBITS FROM THE BARBEQUE AMBUSH: 'Savvy consumers like us know and respect good service when we receive it. Since we have lots of choices, we’ll leave the minute we are treated badly.' 'All businesses are going through tough economic times. The best way to stay in the black is to treat your long-term customers very well so that they stay with you. Previously, if my agent had asked for referrals, I would have given them. Now, I won’t.' 'Some consumers will now view a claim as an opportunity to get even. They’ll see it as an entitlement issue because of bad service and unreasonable rate increases and find ways to pad the claim.' 'Nobody’s stupid. We recognize bad business practices when we experience them. The insurance industry is over-promising and under-delivering.'