What's the difference between an admitted and a non-admitted insurance company?
An admitted insurance company is a carrier which is licensed by the state and regulated by the insurance department of that state. Most P&C lines of business are written by admitted carriers.
A non-admitted insurance company, also called surplus lines, is not licensed and not regulated by the state. These carriers have more flexibility regarding policy wording and rates since they don't need the approval from the insurance department. Therefore, non-admitted insurance companies typically accept risks that the admitted market is not willing to insure. The types of risks placed on the surplus lines market are typically those who cannot find coverage on the admitted market. A significant portion of the errors and omissions insurance market is written by non-admitted carriers.
What's the difference between a claims made policy and an occurrence policy?
A claims made policy generally covers claims which are reported to the insurance company during the policy period, regardless as to when the act that gave rise to the claim occurred, but as long as that act was on or after the retroactive date.
An occurrence policy generally covers claims arising from acts which occurred during the policy period, regardless as to when the claim is reported to the insurance company.
Errors and omissions insurance for insurance agents is only available under a claims made form.
What are some common exclusions in errors and omissions policies?
Errors and omissions policy forms vary from carrier to carrier and all have their own list of exclusions. The insured vs. insured exclusion is common in all errors and omissions policies and bars coverage if an insured under the policy files a claim against insured. Claims related to any type of criminal, fraudulent, or dishonest act are excluded. Claims related to any type of liability which was assumed by the insured under a contract are also excluded. Another important exclusion relates to the insolvency or bankruptcy of an insurance carrier with which business was placed, unless such carrier had a certain AM Best rating when the business was placed (such as A- or better, or B+ or better). Other common exclusions include fee disputes, fines, penalties, sanctions, and disciplinary proceedings. You should always review the entire policy, including the actual exclusions and limitations, before binding your errors and insurance coverage.
Why are there two numbers in my policy limit?
Policy limits usually contain two numbers, such as $1,000,000/$1,000,000. The first number is the limit that the insurance company will pay for each claim, while the second number is the annual aggregate, which is the maximum the insurance company will pay in a single year. The second number only comes in play if an insured has more than one claim in a single year.
Can I pay my premium in installments?
We operate under agency billing, which means that we have to collect the total premium from our policyholders and remit it to the insurance company. We give you the option to pay by check or credit card. However, if you cannot or don't want to pay all of your premium at once, we can finance it through a third party finance company. Under this option, you would pay a down payment to us, the finance company would pay the other part of your premium to the insurance company, and you would make a monthly payment directly to the finance company.