No-one is surprised to learn that we require each agent to carry errors and omissions (E&O) insurance. People are sometimes surprised that we require them to buy their E&O policy through Firefly.
The reason behind this requirement is well-illustrated by an experience we once had with a commercial insurance policy.
A few years ago, we insured a contractor who did some incidental snow plowing. (And yes, we rated him for it.) While he was plowing a parking lot, he hit an enclosure that surrounded a dumpster. It was a small claim, totaling $3,000. The kind that usually gets paid quickly.
But then the finger pointing began. The adjuster for his auto policy said that since this claim arose from his work, it should be covered by the carrier with his general liability policy. And as you might expect, the adjuster on the general liability policy said this was a collision claim and should be covered by the carrier with the auto policy.
Both adjusters made compelling points, and this could have slowed down the payment for the claim – EXCEPT – the same carrier wrote the auto and general liability policies. As a result, the claim was paid quickly, and the adjusters worked it out after the claim was settled.
We sure hope you never have an E&O claim. Whether or not you made a mistake, filing your own E&O claim is unpleasant. We don’t want to make it worse by having your policy say that our policy should pay, and vice versa.
You buy your E&O policy through us, with Utica National. Our policy is also through Utica National, and it has policy language that specifically makes it dovetail with the policies that our agents have. This way, if there is ever a claim, we won’t have to worry about two carriers arguing over who should provide legal defense or cover your customer’s claim.
There’s one more benefit:
You have to get your E&O coverage in place before your carrier appointment forms can be submitted. Our automated onboarding process gets you your E&O within a few days of completing the application. This lets you start writing business as soon as possible.