Agents are frequently provided insureds’ contract requirements in order to determine insurance needed. But contract requirements can go well beyond limits and Additional Insured status. Does an agent owe a duty to their insured to provide the coverage required by the contract? Or even more frightening — does the agent owe a duty to the insured’s client?
Agents are often befuddled when a professional liability carrier refuses to provide an additional insured endorsement or excess limits appear to be too expensive.
Carriers usually restrict the limits they’ll quote based on an insured’s asset size or revenue. However, with defense costs running amok, is this a valid benchmark?