TIPS Committees

Insurance Agent and Broker E&O 2018: The Year In Review

The evolution of insurance agent and broker errors and omissions (“E&O”) law has been highlighted in recent years by: continued erosion of the “duty to read” defense; increasing perceptions of agents and brokers as possessive of specialized experience and expertise necessary to advise and guide their customers with respect to their insurance coverages and overall risk management; and ever expanding E&O risk concerns. In 2018, while these trends did not abate, there were a number of positive developments for insurance agents and brokers as well. These include: decisions touching on choice of law analysis in resolving conflict of law issues; accrual of failure to procure claims for statute of limitations purposes; the continued vitality of the “duty to read” defense in a number of states; and even the continued viability, in certain jurisdictions, of the absolute defense of contributory negligence on the part of the insureds.