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E&O
Carriers
Warnings and
Recommendations
Warning
ORT has not had a
favorable experience with all insurers.
For
example, ORT
recently had a large E&O claim with Lloyd's
of London where agent liability was
clear and indisputable, but instead of
accepting a verified chronology of facts,
Lloyd's forced ORT to file a
lawsuit against the agent. During the
course of the suit, Lloyd's deposed
many of the Company's personnel who neither had
knowledge of the specific claim nor, in fact,
knowledge of the agent . Like the vast
majority of E&O policies, the Lloyd's
policy reduced the policy limits by the
attorney's fees expended to defend its insured.
This type of harassment litigation
has not been our first
negative experience with
Lloyd's.
Recommendations
ORT has
established long term relationships
with two insurers, AIG
and the Title Industry Assurance
Company ("TIAC"), that
together insure over
400 ORT
agents. Our claims
experience with these two carriers have been
favorable.
The
TIAC policy
is not only
endorsed by ORT but it also
offers ORT agents special premium pricing and
enhanced coverage.
AIG, although not formally
endorsed by ORT, offers advantageous premium
pricing to ORT agents, if the policy is issued
through Merriam Insurance Agency.
AIG has
settled our claims without
litigation, provided ORT submits a chronology of the
facts supported by documentation causing
the claim.
Switching
Carriers
Even
though ORT
recommends that its agents procure E&O
coverage through TIAC or AIG, please be
aware that switching carriers may cause a break
in coverage. If your agency has coverage already -
and you seek a recommendation for another
carrier, you may risk a break
in coverage. Unless the new, or
replacement carrier, provides "prior acts"
coverage, claims caused by a negligent act
during the policy period of the former policy, but
discovered during the new policy period, will
not be covered under new policy.
Therefore, consider the need for continuous
coverage before switching to another carrier
that will create a break in coverage.
Contact
Information
AIG insures 225
ORT agents
through the Merriam Insurance Agency in Schenectady, New
York. Merriam is licensed in 48
states - excluding North Dakota and
Hawaii. ORT agents are
also insured by AIG through other
insurance brokers making AIG our largest E&O carrier
by a wide margin.
TIAC, our second
largest insurer, insures 182 ORT agents.
The contact information
for Merriam Insurance
Agency and TIAC is:
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