The “Bigger is Better” Myth

“International brokerage firms have deep pockets and will reach into those pockets to pay claims the insurance company won’t pay or the broker missed.”
The only way any broker of any size would do this is if they knew they were negligent. The entire insurance industry is set up to protect the consumer, with many fail-safes and backup systems in place. Insurance companies and sales outlets are pretty much left on their own to be professional and thorough. In good faith, insurance companies and brokers seek to cover risks for a premium. The broker buys professional liability called Errors and Omissions Insurance as is mandated by statutory regulations. When a dispute arises and it is found that the broker did something they shouldn’t have or failed to do something they should have, the E&O insurance responds to protect the consumer. Swift Insurance strives to not make mistakes. To date, we have never made a claim on our E&O coverage. Still, Cornerstone carries limits of E&O Insurance that far exceed the legislated minimum acceptable standard to better protect our clients.
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