Many agents serve on boards of directors, frequently non-profit, sometimes for-profit, and end up writing the entity’s insurance. From a D&O perspective, this creates an inherent conflict of interest, and from an Agents E&O perspective, often creates an uncovered cause of loss, should a claim arise.
I think most agents who write insurance under these circumstances have not thought through the ramifications. It all looks so simple on the surface. But it’s not.
Next week’s Knowledge Knugget will discuss this topic in more depth. Sign up prior to 2/4/10 to receive the KK in your mailbox bright and early. I’ll post it here sometime after its distribution to my mailing list.