FOR A QUICK QUOTE AND TO BEGIN YOUR APPLICATION CLICK HERE
NOTICE: This site is not affiliated in any way with Farmers Group Inc. and no individual agency operations information will be provided to any party other than the program administrator and the association plan insurer.
WHY DO YOU NEED TO REPLACE YOUR FARMERS GROUP E&O POLICY COVERAGE?
Most of all agencies placing coverage with this plan save premium
All improved their coverage as compared to the Farmers Group
Inc. E&O plan
- Your agency will be rated on its own loss history and merits providing you with professional liability coverage designed and priced specifically for your Farmers and non Farmers coverage placements without subsidizing Farmers and larger or high risk operating agencies.
Exclusionary wording in the Farmers group E&O plan (that is not present in any typical E&O coverage form) states:
Coverage is excluded for your claim if you fail to provide an available Farmers coverage that
- Was within your binding authority with Farmers
- Would have met Farmers Underwriting Guidelines
- Would have covered your insured's loss
- Once your loss is excluded it is then submitted to Farmers to have the policy "retroactively reformed"
- Per Farmers own written statements Farmers has no written obligation to pay your loss
- Each excluded agent claim is decided on a case by case basis
- If Farmers refuses to pay the loss and as it has been excluded under the group coverage
Your agency is exposed to all defense and settlement costs
- Farmers Group Inc. is the sponsor, acts as the policy owner and is a vicariously named insured in conjunction with the agency force. When the agent is named in the claim (and normally they are) Farmers enjoys complete coverage with the agency force paying premium for Farmers coverage.
- Farmers Group, Inc. is an agent of the plan insurer Arch for agent claims, giving Farmers personnel access to your claims data for both Farmers or non-Farmers policyholders
- Farmers has filed claims directly with the plan carrier without notifying the agent first giving them a chance to defend their actions
There are many Plan Advantages as compared to the Farmers group plan
- No Class One Exclusion as outlined above
- Carrier requires your approval to settle any claim
- Optional Employment Practices Liability Coverage endorsement
- Coverage for Punitive Damages where allowed by law
- Coverage not limited to specific insurance carriers you have coverage for: Farmers, FFS and non Farmers carriers
- Full Policy limits apply to FFS products, not limited to 1 / 2 as in the current Farmers group plan
- Coverage for all employees and Agency producers at no additional cost
- Coverage for unintentional release of confidential client data
- Broader personal Injury coverage definition
- Broader Defense Costs and Damages definition
- Provides Spousal coverage even if not an agency owner or employee
- Joint Venture Coverage when rendering services as part of a joint venture with another entity
- Less restrictive carrier insolvency wording
- Deductible amount the same for Farmers or non Farmers placements and may be waived at no additional cost by compliance with Deductible Waiver Endorsement
- No agency subsidizes another operations or losses and no subsidy for Farmers claims costs
- Only agencies with an acceptable loss history are accepted keeping your rates low
- Loss control documents and evaluation provided to each agency individually
- Your agency termination status with Farmers does not alter your policy benefits as it does with the Farmers Plan
- Subrogation is not waived for Farmers which decreases plan costs
- Your claim is handled by the plan insurer only, no data supplied to Farmers
You are NOT required to place your coverage with the Farmers group plan
- Per Farmers benefits documentation, your participation in the Farmers group plan is voluntary and you may insure wherever you wish
- Neither your agency appointment or FFS agreements require you to carry Farmers group coverage, allow FFS to "approve your coverage" or provide proof of coverage to Farmers or your DM
- You may change coverage at any time during the year by written request to the company benefits department without penalty as your coverage is monthly not annual
COVERAGE COMPARISON
The links below provided coverage comparisons between the current Farmers Group, Inc. and the Agents Association plan. A sample policy form is provided and the agent's association website will provide you with a copy of the current Farmers Group, Inc. policy form.
If one or more of these files will not open, please click on the corresponding link below to download the newest version
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to email me and I will send it to you.
Click here for the procedure to obtain your binding authority limits.
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