Joe and Jo, Intrepid Agents

First there was GI Joe, then Joe the plumber. Now, though, there’s Insurance Agent Joe, or Josephine (Jo), if you prefer.

Participating in the exclusive 2008 Insurance Journal Agency E&O Survey, Joe and Jo had a lot to say. They were fearless, you might say. (Their answers were confidential, after all.)

They discussed risk management techniques adopted by their agencies aimed at preventing errors and omissions claims. They described changes they’d like to see in the pricing, terms and conditions of their agency E&O policies. And they dished about the concerns they have over what E&O risks they might face as a result of the troubles at American Insurance Group.

Joe and Josephine, of course, are fictional. But their views, based on responses of more than 1,000 agents to Insurance Journal’s annual agency E&O survey, are very real. Their responses to open-ended questions about their E&O policies, their own risk management strategies and the potential fallout from the precarious financial position of AIG are revealing.

One of the recurring complaints agents seem to have about their E&O coverage is that their premiums keep climbing even though they’ve never had a claim against them. They would like to see a policy designed for agencies that are and have been claims-free and would like that policy to be priced accordingly. Agents also expressed interest in a comprehensive policy that would cover activities in all the various revenue producing, and non-revenue producing, aspects of their business.

Agents who responded to our survey were extremely forthcoming about what preventative measures their agencies have taken to guard against E&O claims. Better and more documentation was a common response. But many agents described more comprehensive plans that required the involvement of everyone in the agency from the principals on down.

Many agents think there will be no significant impact on their business from AIG’s troubles. Others are worried they might not have other markets to turn to for difficult-to-place risks should their customers want to move from AIG insurance subsidiaries.

The results and analysis of the 2008 Insurance Journal Agency E&O survey begin on page N22 of this issue. Check it out. It’s a great opportunity to see how your agency’s E&O experience stacks up to those of other independent agents across the country.

And, you’ll get to see what Joe and Jo have to say.

Topics Agencies Professional Liability