Key Takeaways
- Documentation and signed declination forms are the most effective E&O prevention tools.
- Carrier diversification (no carrier above 30-35%) and surplus lines capability protect against market cycle and carrier risks.
- Decision gates prevent premature scaling that can destabilize operations and finances.
- Agency acquisitions require thorough due diligence, retention-contingent pricing, and rapid client communication.
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Test Your Knowledge
1.What is the maximum recommended premium concentration with any single carrier?
2.What percentage higher attrition do agencies experience when they delay client communication after an acquisition?
3.At what policy count should an agency pass the decision gate for hiring the first CSR?