E&O & Surplus Lines

[TiredAgent]

One of the criteria for my E&O is to have less than 10% premium volume in E&S, this is my 7th year renewal with this carrier. However due to conditions in California, my E&S volume is now in the 20+% range. I've tried shopping my E&O and even the ones with 20+ E&O markets have declined to quote due to "excess E&S".

1) Where do retail agents/brokers that have a lot of E&S get their E&O?
2) If I get a claim, would this affect my coverage/defense?

TIA

 

[adjusterjack]

1 - Probably through the E & S market at much higher rates. Possibly with a liability self-insured-retention (SIR).

2 - Not really understanding the question. Once you have the proper coverage, a claim is a claim is a claim.

 

[TiredAgent]

2 - Not really understanding the question. Once you have the proper coverage, a claim is a claim is a claim.

Would a claim be denied because of failure to disclose (material misrep) I'm over the underwriting guidelines of no more than 10% in E&S? My current E&O is on auto-renew.

Yes I understand the increase in $$, but I've had E&S carriers declined to quote, go figure.

 

[AZDave]

I would read the policy and look for that specific exclusion or limitation. One would think if it is 'auto renew' that they would include some verbiage for you to inform them. My EO did adjust up due to the E&S volume. I'm sitting at 15%.

Not good if an Agent cannot find E&O in CA. Bad enough with the Carrier access that led to this. Now more collateral damage.

Oh happy days!