Leaving a captive or franchise agency? Don't overlook your new E&O application.

The goal isn't to overcomplicate the process. It's to make sure the underwriter understands who you are, what entity is applying, and what lines of business you expect to write.

Do your homework first

• Limits of liability. Ask for the required limits from your carriers or new agency network.
• Additional insured wording. Any requirements will be spelled out in your contract.
• Beware of online quoting. Platforms often don't let you add an additional insured by endorsement, or include the required manuscript wording.

What I'd know before requesting a quote

• Your agency name. If your corporation hasn't been filed yet, use your licensed name and any applicable DBA. Confirm filing requirements with the Department of Insurance and local offices where applicable.
• Your entity status. If you're moving out of a captive arrangement, confirm whether you can use a prior licensed entity, or whether your contract or new agency network restricts it.
• Your revenue estimate. Even if the agency is new, prepare a realistic 12-month estimate of premium volume and commission income rather than listing zero expected revenue.
• Your line-of-business split. Start at 100% and allocate expected business across Personal Lines, Commercial Lines, and Life & Health, then add detail where appropriate.
• Your procedures. If an application question doesn't apply to the business you'll produce, think through how you'd handle the situation, including coverage declinations, or documenting an insured's decision to decline coverage.
• Your prior exposure. A new E&O policy usually begins on the date coverage is bound and generally won't provide prior-acts coverage for the former entity.

Start the conversation early

The cleaner and more complete your application is on the front end, the easier it is for your broker and underwriter to help you get an accurate quote.

If you're making this transition, don't wait until the last minute to review your E&O options. If you're unsure what to have ready, start the conversation early. I'm happy to help agents think through the E&O application process before they make the move.