| Incumbent agent was not “aware”
his insured was a public company and wrote the D&O coverage
on a private company form. When he realized his mistake he renewed
it on the correct form but forgot to do two things: explain
why the premium increased 186% and the retentions by 500% and;
to place Employment Practices coverage, which was included automatically
in the private form. What now happens to any EPL prior acts
that the company is sued for? (we hope the agent has E&O
insurance himself). On top of all of this the market cap of
the company is $45M and he had only recommended $1M of coverage.
Solution: Upon discovering the source of
the large renewal increases for the client, and the gaps in
coverage, and the fact that the client was underinsured, they
immediately placed $4M of excess D&O coverage and a separate
EPL policy with InsureCast, and fired the agent.
Moral of the Story: For six months after
the renewal, and until they brought in an insurance consultant
and retained our firm, the client was unaware there was a
problem. Once this was brought to their attention, they immediately
concluded they had outgrown their agent and should align with
a firm with the necessary professional liability expertise
to advise them properly.
At InsureCast, D&O is our specialty. Whether a large
privately-held firm or a small-cap public company, we understand
the appropriate forms, have access to all carriers in the
market place (typically 15-20), and the skill and experience
to effectively negotiate your coverage and premiums. |
