E&O Prevention
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April 28, 2011
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What is AgentsofAmerica.org?
AgentsofAmerica.ORG is an Insurance Agent's Association and indispensable resource for news, products, services, education, and industry information throughout America. The organization's Mission is to deliver the BEST people, products, information, and services to Agents on a daily basis all designed to help them manage and grow their business, increase their revenues and provide ongoing value to their clients. Our motto is "Bringing the BEST Together."

AgentsofAmerica.ORG is offering a FREE MEMBERSHIP to anyone interested in learning about the valuable benefits the new organization offers. All members are eligible for additional discounts and access to an extensive array of other membership programs.

AOA All Chapters

Letter from the Editor

In the coming weeks, AOA will be releasing the Table of Contents of each of its 26 chapters of its E&O Loss Control / Risk Management Manual for Insurance Agents and Brokers.  This comprehensive one-of-a-kind e-book will have 26 distinct chapters and will represents a collaborative effort by more than 25 top E&O insurance attorneys and experts from across the country.

This project has been in the works for over the past year, and once completed will offer tremendous value and benefits to the insurance industry. The book will provide E&O loss control techniques and a compendium of the relevant law from the quoting process up through claims reporting.  It will also feature special chapters on licensing, security and privacy, social media, and placements in the London market, as well as best-practices check lists for hands-on use at the agencies and brokerages.

AOA is in the process of partnering with a third-party provider to obtain continuing education accreditation for the project, which will serve as a platform for the creation of E&O loss control webinars and seminars.  It is our expectation that we will be able to create a CE component, thus making the content even more valuable to both agents and their carriers.

Since our announcement in February, AOA has had a number of discussions with insurance companies interested in partnering with us regarding both the development and distribution of this product.  For those interested, we have included a link to the Table of Contents which includes the title of each chapter and the name of the expert authors.


Also next month, Agents of America will be launching their newest service available to its members and readers, AOA Market Solutions. AOA Market Solutions was developed primarily as a way for our members and readers to strategically market themselves, their unique selling points, their programs or business strategies with a blend of both online and traditional techniques.


AOA Market Solutions will be available as a separate site to access assistance in marketing your business traditionally or digitally.  You will be able to connect to AOA Market Solutions through the AOA site. 


Our service is unique, specifically tailored to your business needs & very hands on.  We've taken marketing into the 21st Century. If you have a program, specialty or division you want to focus on, please reach out for additional information hand contact John W. McGovern at JohnMcGovern@agentsofamerica.org or 732-706-5305.

Again, we want to thank everyone for their support.  Remember to tell your friends and business associates that AgentsofAmerica.ORG is now offering FREE MEMBERSHIP


"Bringing The Best Together."


 Brit Britton

Table of Contents
By Charles T. Wilson, CMC, CRM, RPLU
By Ashley L. Christensen, Esq.
By Wendy Wilcox, Esq.

10 Critical Reasons Why You Need E&O Insurance NOW!

By Brown & Brown of California, Inc. dba CalSurancAssociates

Recent Epsilon Data Breach Highlights Necessity for Understanding and Pursuing Insurance Coverage for Data Breaches

By Scott N. Godes Esq., John A. Gibbons Esq., David L. Elkind Esq.

Avoid Potentially Significant Penalties:Comply with the New York State Wage Theft Prevention Act

By Keith Gutstein Esq., Andrew Richardson Esq., and Ellen Storch, Esq.
vendorVendors = Invisible Risks
By Charles T. Wilson, CMC, CRM, RPLU 
Vendors, suppliers, service providers, and consultants have become indispensable to many businesses.  'Vendor' is a generic term for many sales and service providers, such as couriers, cleaners, accountants, bookkeepers, strategy or insurance consultants, lawyers, brokers, out-sourced HR, IT gurus, engineers, architects, contractors, handy-men, and etc. 

priorPrior Knowledge Condition Bars Coverage Under Errors and Omissions Policy

By Ashley L. Christensen, Esq.


An E&O insurance policy's prior knowledge condition precluded coverage for a negligent retention and supervision claim and the Tenth Circuit therefore affirmed the grant of summary judgment in favor of the insurer. Cohen-Esrey Real Estate Servs., Inc. v. Twin City Fire Ins. Co., No. 10-3159 (10th Cir. Feb. 28, 2011). The Insured's plausible defense of the claim did not satisfy the policy's prior knowledge condition.


Read More...  


Insurance is Precluded to Contractor

Under "Products-Completed Operations Provision" Because the Contractor was Fired and Could Not Complete the Work

By Wendy Wilcox, Esq.


On March 30, 2011, the California Court of Appeals, Second District, published the opinion titled Clarendon America Insurance Company v. General Security Indemnity Company of Arizona.  The interesting point in this case pertains to the appellate court's decision regarding the products-completed operations provision.


Read more... 


ten10 Critical Reasons Why You Need E&O Insurance NOW!

By Brown & Brown of California, Inc. dba CalinsuranceAssociates


Many Insurance Agents have put-off, indefinitely, the purchase of Errors & Omissions insurance, simply because they have not experienced sufficient claims activity to warrant the expense of this vital coverage.  Although this may have demonstrated prudent risk management in years past, it is simply not the practice of sound business management now.

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recentRecent Epsilon Data Breach Highlights Necessity for Understanding and Pursuing Insurance Coverage for Data Breaches

By Scott N. Godes Esq., John A. Gibbons Esq., David L. Elkind Esq.


You may have heard the news about the Epsilon data breach.  In light of the event, we wrote an alert for our firm and the insurance coverage practice regarding insurance coverage for data breaches and what companies should consider in the context of insurance coverage for data breaches in general and for the Epsilon data breach in particular.  Here's the alert:

avoidAvoid Potentially Significant Penalties:

Comply with the New York State Wage Theft Prevention Act

By Keith Gutstein Esq., Andrew Richardsor Esq., and Ellen Storch Esq.

As a reminder, the New York State Wage Theft Prevention Act ("WTPA") goes into effect on April 9, 2011.  The WTPA applies to all New York employers and mandates that certain information be provided to all employees (both exempt and non exempt).  The bottom line of WTPA:

  • It modifies new hire notification requirements (that have been in effect since 2009);
  • It imposes an annual notification requirement; and
  • It requires certain information to be included on pay stubs. 

architectArchitect Potentially Liable to Indemnify Owner for

Electrical Subcontractor's Negligence

By Donald A. O'Brien, Esq.


The Massachusetts Appeals Court has held in LeBlanc v. Logan Hilton Joint Venture, 78 Mass. App. Ct. 699 (2011), that an architect and its electrical engineering consultant can be held liable to indemnify the owner of a hotel construction project for an electrical subcontractor's negligent failure to place a warning sign in an electrical switchgear cabinet that allegedly caused plaintiff's decedent to be electrocuted five years after the construction was completed.

This newsletter is produced in conjunction with Agents of America, www.agentsofamerica.org. The contents of which may not be reproduced without the express written permission of Agents of America.