I'm a licensed insurance agent and I received an automated call (Robo call) about getting E&O coverage for just over $400 per year. I then went to their website to see who they are and what they really offer. First thing I noticed is they only post a PO Box address on their website... This is a red flag. I dediced to call and ask what their physical address is but the receptionist told me she is not allowed to give out that information... ANOTHER HUGE RED FLAG, ANY LEGITIMATE COMPANY WILL ALWAYS BE WILLING TO GIVE THEIR ADDRESS.
I asked who the actual E&O insurance provider is and was told there isn't one because they do not provide E&O insurance. They provide E&O coverage but not insurance. This is a total waste of time & money because any insurance provider that you want to contract with will require E&O "insurance". This company istrying to use the word "coverage" to make it sound like you're protected however the fine print listed below which was taken right from their website clearly indicates that you have no guarantee of being paid for any claim that may arise:
Below is info taken right from their website:
E and O Coverage of America is a Nonprofit Corporation, not an insurance company, and therefore cannot offer any insurance products. They are a non-regulated Risk-Sharing Plan. They are not regulated by the Insurance Commissioner's Office, thus the office has no ability to force such companies or plans to take any action should a consumer have a problem. These programs are not intended to replace insurance.insurance requires a contractual transfer of risk in exchange for payment. When transfering the risk, insurance products also transfer your control of your legal and claims processes. This allows the insurance company to make decisions on your behalf with or without your consent. E and O Coverage of America's coverage is unique in that you retain the risk and, therefore, the complete control of your legal process. Now you and your attorney are allowed to decide what is best for you and your case. Their coverage may simply assist you in the reimbursement of the expense for your legal claims through the money available in the community pool that their Nonprofit Corporation has set up for their members. Based on the reserves in this pool, there is no guarantee that a need will be paid. This allows them to offer you a plan at a substantial savings. Many insurance agents prefer their convenience and rates, compared to what they can obtain in the traditional insurance market.
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