The hard market isn't likely to end soon, and insureds are feeling the sting in the form of higher premiums and fewer coverage options. (Credit: Photocreo Bednarek/Adobe Stock)
Errors and omissions (E&O) coverage for insurance agents has always been a high frequency and high severity class of business. But with the current hard market conditions making it more difficult for insureds to get the coverage they need, agents and brokers face even greater exposure.
Insurance providers are restricting coverage capacity and raising rates in response to more intense catastrophes and social inflationary trends, which is impacting their bottom lines. Profitability across the property and casualty industry is down, with companies experiencing a "$26.9 billion net underwriting loss in 2022," according to financial data from Verisk and the American Property Casualty Insurance Association (APCIA).
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