Earthblog

For those of you who are old enough to remember the 70's show "The Odd Couple", I tend to visualize underwriters as Felix Unger types on steroids - obsessing about every potential eventuality and then some. In the case of Errors & Omissions for Public Adjusters, however, most of the policy exclusions are both easy to understand and worth adapting your business practices around. Here is a list of some common exclusions:

1. Let's start with one exclusion almost everyone will agree with: The Nuclear Exclusion. Worded in different ways from policy to policy, the thought remains the same: your Errors & Omissions policy does not apply to any claim arising out of (resulting from, based upon or in consequence of, directly or indirectly) any bodily injury or property damage resulting from radioactive, toxic or explosive properties of nuclear materials.

2. As seemingly far-removed from everyday life as the Nuclear Materials Exclusion is, The Bankruptcy/Insolvency Exclusion is one that is especially relevant in this economic climate. One policy exclusion reads: "In consideration of the premium paid, it is agreed that this policy does not apply to any claim arising out of, based upon, or attributable to: 1.) the bankruptcy, insolvency or financial failure of the Insured; or 2.) The Insured's seeking protection under federal bankruptcy laws (or any similar laws); or 3.) the bankruptcy, insolvency or financial failure of any entity with whom the Insured transacts business." Think about that for a second... I'm sure you can imagine a scenario or two where that is possible - especially with regards to #3. Imagine the insolvency or financial failure of an entity with whom the Insured (you) transacts business! The list here is long and varied; everything from financial institutions to software estimating companies and subcontractors.

3. Now, here's a controversial one among my adjusting friends: The Mold Exclusion. Here's the exact wording of a policy for reference:

There are all kinds of storms heating up the Summer! At one point last week there were three storms in the Atlantic and an local law firm had placed an ad in a Miami newspaper soliciting disgruntled customers of Public Adjusters for class action lawsuits. In one week the Summer doldrums were gone and the radar was full of oranges and reds.

In any other Summer, those items would have been noteworthy. In this Summer, with the economy squeezing adjusting firms just as tight financially as any business, those items are even more significant. 

In a downturn, all businesses examine and re-examine their budgets to cut every bit of excess they can. Line items are reviewed and scrutinized over and over again. "Can we live without this item?" is the question that is asked in boardrooms and informal meetings in front of the QuickBooks screen. As the budget is examined, all eyes tend to congregate in front of the larger ticket items first. Depending on the size of the firm, one of those items may be your Professional Liability Insurance (E&O). Small to medium sized firms are paying less than $1500 to $2000 a year for their E&O coverage. That works out to less than $200 a month - which is probably not the biggest expense on the list of budget items. What does happen however, is that E&O coverage gets cut because it is seen as "unnecessary" or a luxury.

Here's the link to an article published today in the Washington Post:

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/20/AR2009082004721.html

It highlights Harvey Goodman, president of Goodman-Gable-Gould Adjusters International in Rockville, Maryland and paints a very fair view of the claims process, including some good pointers for those who have just gone through a claim. 

Welcome to the only spot on the web with information, resources and applications for Public Insurance Adjusters who are looking for Professional Liability Insurance (Errors & Omissions). This site will provide you with an overview of what Professional Liability is as it pertains to Public Adjusters as well as detail about the coverage items unique to the profession.

As a former Public Insurance Adjuster, Andrew Giambarba has built a reputation as a tireless resource for the adjusting community nationwide - now as an Independent Insurance Agent and specialist in Professional Liability. An associate member of Florida Association of Public Insurance Adjusters (FAPIA), he stays on top of the issues, the environment and the legislative changes that affect Public Adjusters. Andrew has consistently found better and less expensive coverage options for his clients and built a very loyal clientele. Whether your adjusting firm is a one man operation or a large firm with dozens of 1099 subcontractors and a principal who spends most of his or her time doing Umpiring work, Andrew can find a fit for you.