Mr. Paige said lately the cost of insurance protection for E&O coverage has risen dramatically, with both deductibles and premiums seeing increases. He added that agents are finding it difficult to find E&O plans as more carriers exit the market or consider leaving.

However, the bigger problem with E&O issues, he said, is not in finding the coverage but suffering through a claim that causes difficulties for the agency or brokerage firm, taking up time that could be spent selling and tarnishing the firm's reputation, which can eventually cost it accounts.

However, an E&O claim, Mr. Paige noted, has nothing to do with making a mistake, because mistakes happen all the time. The issue arises, he said, when a claim is not paid and the client feels he or she has not gotten the coverage they should have.

He said there are three things producers should do to avoid an E&O claim: understand what your obligations are, plan to prevent E&O losses, and keep detailed records of transactions.

Mr. Paige advised that in some of these areas, such as understanding the obligation requirement, the responsibility can remain muddled because the law is not clear on the subject. As courts and juries make determinations on specific cases, agent/broker obligations are constantly changing and regulations differ from state to state, he said.

"The truth is that the courts and the public are confused over what the insurance broker is suppose to do," he observed.

Among the issues that lack clarity, he said, are, "What should you do if a company is downgraded, and when should you tell the client?"

"I wish I could get up here today and tell you ?These are the rules,' where I could draw a box and it all fits in. But it's not like that," he remarked.

Problems do arise for those agents who begin to give advice outside of the purview of what is considered the traditional boundary of insurance. However, he noted, as professionals, advising clients on subjects related to their coverage is essential.

He advised that when giving advice, "you have the responsibility to make sure you are right."