InFocus: Financial Lines D&O and E&O

Brokers, here’s how to choose an intermediary

Brokers, here’s how to choose an intermediary

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Working with an expert wholesale intermediary who can service a range of markets and niches is a real game change for insurance brokers. For brokers, knowing they have an experienced and specialized professional on the end of the phone or email helps create peace of mind. Working with a top level intermediary also helps a broker increase their day-to-day efficiency and concentrate more of their time on what matters most: serving their clients.

But for brokers who haven’t developed close ties with an intermediary, what should they look out for? “It’s really important to ensure the intermediary carries Errors and Omissions (E&O) insurance and Directors and Officers (D&O) insurance with a recognized, licensed Canadian insurer for substantial limits,” says Barb Pattenden, Director, Insurance Operations, South Western Insurance Group.

Pattenden also advises brokers to investigate the range of products that an intermediary offers and in which markets they specialize. Getting this information before you make any decisions is imperative for your clients. “Brokers really should check on the markets the intermediary represents,” Pattenden says. “Solid, well-known Canadian licensed insurers will indicate the credibility and strength of the intermediary.”

Getting a strong understanding of the markets that a client requires is an important step that brokers should take. “Be extremely careful if an intermediary is using non-admitted or unlicensed markets, particularly for business of a general nature,” Pattenden says. “Your E&O may not cover you for using an unlicensed market. Insist on only licensed markets being used for your business.”
 

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South Western Insurance Group Ltd. (SWG) is a Wholesale Insurance Intermediary / Managing General Agent offering a broad range of insurance solutions for specialty, niche, program and hard-to-place business. Since 1961 we have proudly provided underwriting expertise to independent insurance brokers across Canada.
We have earned a reputation for excellence in underwriting, risk management and customer service. We are continuously perfecting the way we do business and are satisfied with nothing less than the absolute highest level of service.
Using electronic delivery systems and paperless file management we have been able to significantly reduce document delivery time as well as more quickly respond to broker needs.
This gives brokers the ability to service their clients faster and increase their business.