The talent at E&O Pros works with a wide variety of clients. We work closely with each to find ways to make E&O an important solution to each client’s unique business needs.

Here are a few examples of client needs and the solutions created.
 

Client 1 - This large life insurance IMO requires each subagent to maintain E&O, and they have tens of thousands of subagents.

The need: When a subagent’s E&O expired they were faced with the choice of either terminating the subagent, chasing down proof of E&O from a subagent who may or may not produce another piece of business, or delaying the processing of a new business application from a subagent while they secured E&O.

The solution: We created the industry’s first (and perhaps still the only) “per transaction” E&O option. This means that the Client does not need to terminate the agent for lack of E&O, nor chase down a certificate at a time when it may not be profitable to do so. When an uninsured subagent presents a new business application the subagent is offered the choice of enrolling in the Client’s traditional sponsored E&O program or simply have a deduction of $150 from the subagent’s commission. This works especially well for new agents who are just getting started in the business.
Client 2 - This securities broker-dealer has a complex corporate structure and broad service offering to its clients.

The need: This Client conducted market research and sold this information to institutional investors. They also started a hedge fund and related registered investment advisor firm to serve high net worth clients. This array of services can be perceived by underwriters to contain some potential conflicts of interest. Further, stand-alone policies would have their own high minimum premiums and deductibles.

The solution: We explored the details of to whom these services were offered, what risk management safeguards were in place and why the potential for conflict of interest was minimized or eliminated. We then presented these facts to a few insurers and found a single-policy solution with the appropriate coverage at the right price.
Client 3 - This large life insurance IMO specializing in medicare supplement products wants to gain loyalty from its subagents. The Client has the talent and motivation to heavily market the E&O to its agent base.

The need: Help this Client provide a very valuable E&O benefit to its subagents at a very low premium, with options for additional premium for agents with greater need.

The solution: We created a program with various coverage levels, with the basic level at a reduced rate. There is enough room in the rate to allow for the addition of a fee to recoup some of the marketing expense.
Client 4 - This securities broker-dealer has a large base of registered representatives and IARs that are also investment advisors serving the 401K market.

The need: The advisors require an ERISA bond naming each of their employer/sponsors’ employee benefit plans. However, the Client does not know which or how many of their representatives need this additional coverage.

The solution: We helped our Client secure an ERISA bond that allows for the additional endorsement of employee benefit plans throughout the year which enabled the Client to meet a few representatives’ immediate needs while researching the scope of the need as respects other representatives. The underwriter indicated that this was the first time this type of solution was negotiated.
Client 5 - This securities broker-dealer client contacted us while insured through another E&O broker with a particular insurer.

The need: They had registered representatives who maintained their own RIAs outside of the Client’s broker-dealer firm and wanted coverage for this activity. They had been told by their current E&O broker this coverage was unavailable.

The solution: We informed them that we routinely negotiate this coverage with their insurer for our clients. In addition to educating them about what was available, we provided them with a sample endorsement so they could “help” their current broker get the job done. Not surprisingly, we became their broker upon renewal.
Client 6 - This securities broker-dealer grew very quickly could not sufficiently keep up with risk management and compliance oversight. This resulted in many claims, some which were severe. Due to claim activity, the firm was nearly uninsurable and experiencing huge rate increases.

The need: Find relief from the unmanageable costs.

The solution: It was necessary to provide the underwriters with information as to why this claim trend was not likely to continue. We developed a risk management plan with the Client, which included E&O seminars with the reps. We also analyzed the claims in detail and interviewed many members of the Client’s team. We were able to communicate to the underwriter the steps taken to reduce the potential for similar future claim trends. Not only did their E&O rates stabilize, so did their E&O claims.
Client 7 - This very well known firm serves independent Registered Investment Advisors and wanted E&O as an additional recruiting benefit for their advisors.

The need: Traditional E&O available to RIAs does not cover much of what they do and rates and deductibles are high.

The solution: Develop the industry’s first group E&O program for investment advisors. A group program means easy access and automatic eligibility, broad coverage and low rates (as the combined group satisfied the underwriter’s premium need).
Client 8 - This securities broker-dealer hires only seasoned registered representatives. A registered rep that has been in the business for any length of time won’t move to a new BD if they are going to lose coverage for past activities. It is possible to secure an E&O program for the BD that covers the reps for activities done with prior broker-dealer and covers outside non-BD activities.

The need: The broker-dealer doesn’t want their E&O program to have undue claims exposure for activities not performed through their firm, but doesn’t want to deny their reps appropriate protection. In addition, they need a solution in order to recruit properly.

The solution: Offer the newly contracted reps coverage for their past activities at a manageable, but higher, deductible. That way the reps obtain the needed coverage, but the E&O program is insulated from claims exposure arising from firms and activities that have no relation to the Client.
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