LARSON’S LESSONS
been offered. The only time I had seen this defense
work is when the agent documented he offered the
coverage, and the insured rejected it.
2. In my experience, Lloyd’s and companies like it
will write almost anything if you pay them enough
money. So, it is hard to argue that additional
coverage or higher limits are not available. That was
the original position of the agent in this case, but
the plaintiff’s expert was able to find a carrier that
would write substantially higher limits.
3. The agent should at least explore the E&S market
in situations like this. In the alternative, the agent
can explain he cannot get more than $50,000 per
seat passenger liability coverage with his standard
markets and ask the owner if he wants him to try
and get a quote from a non-admitted carrier, even
though it is likely to be expensive. If the insured says
“no,” the agent should make sure to document it.
4. The expert, in this case, told me his agency used
a stamp on policies they delivered, and other
insurance documents, that said, “Additional
coverages or higher limits may be available. If you
are interested, please contact us” or words to that
effect. That is not necessarily a “silver bullet,” but I
think it can help defend or avoid E&O claims.
Will Larson is an attorney who has practiced E&O defense work
in Kansas for 36 years. Over the course of his career, he has
represented insurance companies and agents throughout the state.
He is a consultant for KAIA on legal and policy issues.
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