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Insurance agents & brokers solutions
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Tennant Risk Services provides Errors & Omissions insurance for all types of insurance agents and brokers, and related insurance services.  We are experts in Insurance Agents/Brokers E&O, and can provide custom solutions to meet your needs.  We will provide quick turnaround with competitive pricing and coverage from a range of markets. 

Our programs are designed for unique organizations of all sizes, particularly those agents and brokers that may not fit well in the standard programs.  Classes include:

  • Property/Casualty Agents/Brokers
  • Underwriting Managers/MGAs
  • Surplus Lines Brokers
  • Life/Disability Agents
  • Risk Management Consulting
  • Retail & Wholesale Organizations
  • Insurance Consultants
  • Third Party Administrators/Adjusters
  • Reinsurance Intermediaries
  • Premium Finance Companies

Tougher accounts?  Some operations are considered higher exposure to underwriters, and can lead to higher pricing and more restrictive coverage.  However, with the right approach, tougher accounts can obtain more competitive pricing and improved coverage.  Tougher accounts typically include:

  • New operations and startups
  • Agents and brokers with adverse claim history
  • Business concentrations in non-standard classes are our standard fare. Tougher classes include aviation, medical malpractice, marine, and bonds

Coverage.  Special coverage provisions are available for operations with unique insurance exposures.  These can include:

  • Insolvency coverage for special risk-taking entities (self-funded plans, captives and RRG's)
  • Risk management and related services
  • Affiliated entities
  • Independent contractors

The Class.  The insurance agents/brokers segment is large in numbers of organizations and in premium volume. The two primary segments are property/casualty agents/brokers and life/health/benefits agents/brokers. In addition to the standard retail agent, there are many other types of agents and brokers, including wholesalers, underwriting managers, specialty agents and related service providers. Virtually all insurance agents and brokers are required by their insurance markets to carry professional liability, also called errors and omissions (E&O), insurance.

While there is a legal distinction between agents and brokers, that distinction is beginning to erode and the terms are frequently used interchangeably. In this document we will use the term broker to describe both agents and brokers.

Claims.  Insurance brokers have professional liability claims. The average claim frequency generally varies from one out of six to one out of eleven each year depending upon size, location, type and business.  Overall, approximately one out of eight insurance brokers has a professional liability claim each year.  Of course, these statistics will vary significantly for individual organizations.

Severity varies greatly and is most impacted by the specific circumstances of the claim. The type of coverage provided by the broker to the claimant and the claimant's industry also have a significant impact on the severity potential of a particular claim. For example, the severity of an insurance brokers claim for failing to place property coverage on an auto that has a tree fall on it is significantly less than the severity of a claim for failing to place coverage for a large ship that sinks.

The typical insurance brokers claim involves a claim by the insurance broker's insured client that is denied by the insurer. The client then brings a claim against the insurance broker for failure to place coverage or failure to place adequate coverage on behalf of the client. Errors can vary dramatically depending upon the type of operation and the particular situation. Examples of claims can be found by clicking on Claim Examples. In addition, insurance brokers may be liable for insurer insolvency (Click here for details)

Often, a claim or lawsuit may not involve a clear error or omission. For example, a client may not be happy with the result of a claim filed with an insurer and therefore brings a claim to obtain additional compensation. For an insurance broker, these types of claims can be just as difficult and expensive to defend as a clear-cut error. Insurance typically pays for the cost of defending this type of claim as if it were a clear-cut error on the part of the insured consultant.

Because the operating characteristics of insurance agents and brokers vary and will impact claim frequency and severity, underwriters want a detailed look at the operations of an applicant.  The basic exposure base used is typically either revenues or premium volume.  Added to this base rate are deviations bases on a whole range of business and operating factors including location, management experience, prior claims, internal procedures and employee training.

Buying Coverage.  The market for insurance agents & brokers E&O is competitive, but finding the right combination of coverage, quality carrier and price can be a challenge.  Coverage and pricing can vary greatly depending upon the type of professional operation, the specific services provided, the broker's size and its location.

How can we help?  Tennant Risk Services is an expert in insurance agents and brokers professional liability insurance, and we have the specialty markets you need.  Tennant Risk Services provides coverage for a wide range of insurance agents and brokers.

Please give us a call or send us an email to discuss your specific needs.  We will provide you with information and assistance with your particular situation or account, and professional liability coverage.  Put our specialty insurance expertise to work for you in obtaining E&O for you or your client.

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Tennant Risk Services
124 LaSalle Road
West Hartford, CT 06107
Phone: (860) 969-5201
Fax: (860) 216-5845

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