Avoiding E&O Claims: 5 Best Practices for Insurance Agents

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By Amanda Federici
Vice President, Berkley Service Professionals, a Berkley Company

December 2, 2025

Even the most experienced agents and brokers can find themselves facing an Errors & Omissions (E&O) claim­—­I’ve seen it firsthand.

These claims are more common than many realize. In fact, one in eight agents will report an E&O claim each year. The average claim costs around $40,000, and that number is climbing by about 10% annually, according to InsuranceThoughtLeadership.com. Whether the claim comes from a policyholder or a carrier, the financial and reputational impact can be serious.

At Berkley Service Professionals, we help agents navigate these risks every day. One of the best ways to protect yourself is by building habits that not only help defend against claims but often prevent them altogether.

Know your legal duties

Understanding your legal responsibilities as an insurance agent is key to avoiding E&O trouble. Two concepts that come up often in claims are agents’ “duty of care” and fiduciary duty.

  • Your “duty of care.” When you help a client secure insurance, the law generally sees you as working on behalf of the insured, not the insurer. That means you’re expected to act in your client’s best interest, using reasonable skill and diligence to help them get the right coverage.

If a client asks for specific coverage, or if their situation clearly calls for something more comprehensive, you’re expected to advise them accordingly. That includes discussing higher limits or additional protections they might not have considered.

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Respond to Subpoenas with Confidence with Subpoena Assistance Coverage

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By Kevin Marrs
Claims Examiner, Berkley Service Professionals, a Berkley Company

November 5, 2025

Getting served with a subpoena is never on anyone’s wish list. Depending on the individual and their familiarity with the legal system, responses can range from calm compliance to complete panic or ignoring the subpoena entirely.

A subpoena is a court order. It’s how the legal system compels individuals or firms to provide testimony or documents related to a matter in court. And because it’s mandatory, failure to comply can lead to fines, contempt of court charges, or even arrest.

Fortunately, professionals insured with Berkley Service Professionals don’t have to navigate this legal issue alone. Berkley Service Professionals includes subpoena assistance coverage with every professional liability policy. This built-in coverage is designed to help policyholders respond to subpoenas efficiently and correctly without incurring excessive costs or scrambling to find outside counsel.

What is subpoena assistance coverage?

Berkley Service Professionals’ subpoena assistance coverage is a dedicated sublimit that sits on top of the professional liability policy’s regular limits of liability. It is not subject to the insured’s deductible, meaning there’s no out-of-pocket expense to the policyholder for using it.

When a policyholder reports a subpoena, Berkley Service Professionals’ claims team will review it to confirm that it pertains to a matter that would be covered under the Policy if a Claim were to be presented, and, if necessary, Berkley will retain vetted panel counsel — experienced attorneys who specialize in professional liability insurance matters, often with industry-specific expertise — to guide the response. These attorneys work at pre-approved rates, helping policyholders avoid the burden of excessive legal fees.

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How Berkley Service Professionals Helped a Broker Turn a Crisis into a Long-Term Success

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By Tom Rea
Executive Vice President, Berkley Service Professionals, a Berkley Company

August 12, 2025

Success in excess and surplus (E&S) lines insurance is not only about having the most competitive pricing or the broadest coverage. It’s also about partnership, problem-solving and putting in the work when the stakes are high. Berkley Service Professionals is built around these values.

Here’s how we helped one broker rescue a key client after a seven-figure loss and why brokers continue to count on us for fast, reliable solutions to their most complex errors and omissions (E&O) challenges.

A Broker in Crisis

The broker’s client was a seasoned insurance professional who experienced a single, substantial claim under the agency’s E&O policy. Ultimately, the agency received a non-renewal notice, and their broker had to approach the market for a new solution.

The broker worked hard to find the same $5 million coverage limit, but most markets either declined the risk or provided only retro-inception coverage, leaving the client without prior acts protection. With the expiration date just weeks away, the broker asked for help from Berkley Service Professionals.

A Collaborative Process

We reviewed the seven-figure claim details with the broker and saw it for what it was: an unfortunate, isolated incident at an otherwise well-run insurance agency with no prior claims.

To confirm that understanding, our underwriting team arranged a call with the insured’s leadership, general counsel, and producers. This gave them the chance to explain what had happened and to share the safeguards they had put in place to prevent future claims.

This conversation showed a level of professionalism, transparency, and proactive risk management that gave our underwriters the confidence to take on the risk. We offered the full $5 million policy the client needed, including prior acts coverage. Two years later, we’re still on the account, and the relationship with the broker is stronger than ever.

Why Brokers Choose Berkley Service Professionals

This example shows the value we provide to brokers through our extensive underwriting insight, engagement and speed of service.

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Understanding Claims Reporting: Empowering Brokers for Success

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May 7, 2025

When it comes to helping your client navigate professional liability insurance, it’s essential to be well-versed in all the aspects of the policy including when to contact the carrier and how to report a claim. Whether your client is in Real Estate Services, Insurance Services, or other service industries, knowing the ins and outs of the policy can help your client better understand their coverage and how the policy responds to various incidents that may occur. While it may seem simple, there are nuances to even the basics of a professional liability insurance policy. You’ll be prepared with answers if your client asks the following questions.

When should you or your client contact the carrier?

In addition to reporting a claim, there are several reasons you or your client may need to contact us, such as:

  • Changes to the ownership structure of a firm
  • Acquisitions/mergers
  • Changes to services performed (adding or removing services)
  • Requests for changes in coverage, such as a policy enhancement or exclusion.

What do I do when my client lets me know that they have a claim?

At Berkley Service Professionals, we encourage you to promptly report any claims, potential claims, notices of subpoena, or requests for documentation from a law firm. Doing so will benefit your client and enable the carrier to manage the claim proactively.

It also helps to have something reported earlier so that your client does not admit liability or agree to pay without the carrier’s consent.

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Knowing the Policy Helps Brokers Provide Top-Notch Service

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By Tom Rea
Executive Vice President, Berkley Service Professionals, a Berkley Company

January 22, 2025

As an insurance professional, it’s vital to have a good understanding of professional liability insurance policies. It’s especially important to know what the policy covers and how it responds to various incidents that may occur. Whether your client works in real estate services, insurance services or other service industries, you can provide better assistance if you are well-versed in the nuances of professional liability insurance policies. To prepare yourself for any questions your client may have, it’s important to know who qualifies as an insured, what professional services are covered, what endorsements are needed and what exclusions are in the policy.

Who is an Insured?

For Berkley Service Professionals’ Professional Liability policies, an insured typically is the Insured Organization, which means any named insured designated on the policy declaration, and any subsidiary, which is generally defined as an entity in which the named Insured owns more than 50% interest.

In addition, an independent contractor and an employee are both considered insureds, but only for services performed on behalf of the organization. Other individuals who may qualify as insureds include a partner, principal, officer, director, shareholder, managers, and members, but only for services performed on behalf of the organization.

Finally, named insureds and additional insureds may be added via endorsements to the policy. If you have any questions, always refer to the policy for specific and complete definitions and speak with an underwriter for additional clarification.

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Protecting Manufacturers: The Critical Role of E&O Insurance

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By Jude Sedliak, RPLU
Senior Vice President, Underwriting, Berkley Service Professionals, a Berkley Company

October 21, 2024

In today’s rapidly evolving technology landscape, the demand for products like computer chips, semiconductors, electric vehicle batteries and embedded software is skyrocketing. This surge presents significant opportunities for manufacturers, but it also introduces a range of professional liability exposures that many manufacturers may not fully understand. As brokers, it’s crucial to educate your clients about the importance of Manufacturers Errors and Omissions (E&O) insurance to safeguard their businesses against these risks.

Catalysts for Industry Growth
The manufacturing sector is experiencing unprecedented growth, driven by federal initiatives such as the Infrastructure Investment and Jobs Act (IIJA), the CHIPS Act, and the Inflation Reduction Act (IRA). According to Deloitte’s 2024 Manufacturing Industry Outlook*, investments in semiconductor and clean technology manufacturing have surged, with commitments nearly doubling in 2021 compared to 2019. Additionally, around 200 new clean technology manufacturing facilities have been announced since the IRA’s passage, representing an $88 billion investment.

Manufacturers are under pressure to accelerate product development and enhance delivery efficiency. However, in their pursuit of growth and efficiency, manufacturers may overlook the professional liability exposures that can arise during the manufacturing process.

Protecting the Client’s Business
While most manufacturers are aware of risks like property damage or bodily injury, they may be less familiar with the professional exposures related to negligence, defective products, design flaws, or quality control issues. This is where Manufacturers E&O insurance becomes indispensable. It protects companies from third-party financial losses and litigation resulting from alleged product or work defects.

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