California Dreaming Insurance Agency
AVM Insurance Services | California | Nevada | Arizona
(800) 378-1354

California Dreaming Insurance Agency

Does your Agency Carry a High enough Errors & Omissions coverage
Limit?

I was providing a E&O quote to a new Agency owner in Irvine, CA the other day.
When I asked what liability limits he would consider? He replied" as low as possible and still keep my carriers happy". Earlier the agent had told me that
he was going to own the Orange county, CA Auto insurance Market.

I had to admire his energy and optimism. However, he was under the impression because he was just starting out in the business and had almost no assets he would not be a target for a large claim. I had to inform him he was mistaken and could be exposed to a very large E&O Insurance claim, even if just writing personal
lines Insurance. Also, I had to point out that he was in one of the most litigious areas of the United States.

In the end he agreed to purchase $1,000,000/$2,000,000 limits with defense cost outside the policy Limits. I think we both felt a little better
that he decided to make that choice

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