When the NationalAssn. of Professional Insurance Agents (PIA) was formed in1931, one of its major selling points was that it offered membersE&O coverage. Fast forward 80 years, and PIA's latest agencyE&O offering seems like the natural evolution of that originalidea.

Introduced last September, PIAPRO, the PIA Professional LiabilityInsurance Co., is a risk retention group for agentE&O—exclusively owned and controlled by and for PIAmembers.

With up to about 100 policies in force, PIAPRO, an A-ratedadmitted program offered by Argo Group andunderwritten by Argonaut Midwest Insurance Co. and ArgonautInsurance Co., offers agents stability and availability in arapidly changing market.

“Insurance agents are professionals, like doctors and lawyers,”said Andrew C. Harris, PIA National's incoming president. “Doctorsand lawyers have RRGs and the ability to control their owndestinies. We thought that it would be good for our members to puttogether a similar program.”

Read related: “ParentalAdvisory.”

Currently limited to availability in 10 states and licensed withArgo Group in all others, the program's growth is controlled by PIAto ensure solid pricing and stability, said Fred Thomas, formernational PIA president. “Although the agency E&O marketplace isstill competitive, we want to make sure we're there and stable, andcan supply capacity when the market becomes harder,” he said.

The program is also available to new agents, who sometimes havedifficulty getting E&O coverage in the standard market. Thetypical target is the smaller agency with between one to fiveemployees.

Besides the element of ownership, PIAPRO is unique in that thepolicy terms were designed by PIA members, Thomas said.

Policy highlights include:

• Pay on behalf of contract
• Consent to settle does not include a “hammer clause” andincludes a peer review option
• Claims expense allowance is outside of policy limits, subjectto cap
• Broad definition of “insured”
• Broad definition of “professional services” that includesactivities like consulting, an instructor of insurance relatedsubjects, insurance expert witness, and others insuranceactivities
• Deductible reduction for the use of mediation
• Pay no more than two deductibles in a policy year
• Offering a Standard and Enhanced policy
• Some reimbursement outside of limits and not subject to thedeductible for loss of earnings while attending a trial, hearing,arbitration proceeding or regulatory proceeding concerning acovered claim
• Some expense reimbursement outside of limits and not subject tothe deductible for attorney fees and expenses while attendingregulatory proceedings.

Although PIAPRO has yet to process a claim, the program promisesto be aggressive in that area, Harris said. “Claims won't behandled like a typical E&O,” he said. “An allegation against anagent or office that they didn't do something right is a personalaffair. In claims handling, we'll jump in with a differentattitude, listening to the agency about what happened andinvestigating more thoroughly.”

Read related: “Ruling Reveals Broker E&O Risk in Surplus LinesAgreements.”

Ideally, PIAPRO will generate 25 to 50 new policies a month, fora total of 300 to 600 new policies a year, Harris said. “But wewant to keep it solid as a rock, to continue its A rating andcontinuity of program. We don't want to grow too much or toofast.”

For more information, go to pia-pro.com.