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Jul 15
Positive Changes Coming Our Way


If your agency is insured for E&O insured through Swiss Re/Westport, you likely already know that you’re insured with the top dog carrier for insurance agent’s professional liability around . . . rated A+ by AM Best I might add!
Well, effective September 1, 2016 this policy form gets even better!  Before I read the entire policy myself and give it the ‘ole dissection, I would like to give you a few snippets of some of the changes in store: 
  • 1st party breach of personal data coverage limits are being increased from $10,000 per incident to $25,000 per incident with a $25,000 per policy period aggregate.  This coverage is featured automatically on all Westport E&O policyholders through the Big “I” Risk Purchasing Group (RPG) at no charge! 
  • Automatic regulatory defense coverage (also automatic and free in the RPG) is being increased from $25,000 per policy period to $60,000. 
  • Loss of earnings reimbursement is being increased form $500 per insured per day to $750 per insured per day.
Two of my favorite changes are the elimination of the insured versus insured coverage extension (which previously cost an additional $250 premium) and the improved deductible reduction feature: 
  • Because of a policy language modification, it is no longer necessary to purchase an insured versus insured coverage extension listing entities that have a 10% or greater ownership interest in the agency.  In fact, that endorsement has been eliminated altogether, but coverage will still extend to insurance written on said entities.
  • Also, the current policy form features a deductible reduction clause, which states (in essence) that if the insured generates and maintains contemporaneous written documentation of the refusal by any customer or rejection of limits offered, that the deductible could be waived by 50%.  The new policy form increases this waiver to 100%!
There are other changes on the new form (including some new optional coverages); however, until I learn more, the above changes are the ones that I’m most comfortable sharing at this time.
With the new form, all policies will be rewritten beginning with the September 2016 renewals; however, please note that the liberalization clause in your current policy will extend these coverage/limit enhancements to you before your policy is rewritten at your renewal date.
Thank you so much for your business!  I love working with each and every one of you and feel enormously blessed to serve in such a rewarding profession.  If you have any questions, please know that you’re welcome to call or email me anytime.  I love hearing from you and particularly enjoy those challenging questions!
Take care and have a lovely rest of July!


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