ABOUT THIS EPISODE
In this episode of Business Refocused, Carey and Lindsay sit down with Cari Senefsky of Canary Insurance Group to talk about a part of selling an agency that can easily get overlooked until the last minute.
When an agency sells, the financial side of the deal gets a lot of attention. But the seller also has to think about how they will protect themselves from claims tied to work done before the transaction. That is where extended reporting period coverage, often called tail coverage, comes in.
Cari explains why this conversation should start well before closing, how the cost of tail coverage can become part of the negotiation, and why there is no one-size-fits-all answer for how long coverage should last. The right answer depends on the agency’s book of business, the lines it writes, the policy language, and the seller’s own risk tolerance.
They also talk through what can happen when an owner waits too long, how open claims can complicate a transaction, and why the details of an E&O policy matter so much once the business changes hands.
A few things we cover
- What tail coverage actually does
- Why sellers should start planning for it early
- How tail coverage costs can affect a transaction
- Why three, five, or more years of coverage may make sense depending on the agency
- What happens if you wait until after the deal closes
- How open E&O claims can affect a sale
- Why policy limits, retroactive dates, and named insureds need to be reviewed before cancellation
- The biggest mistakes agency owners make when handling E&O coverage during a sale
Connect with us:
Follow AgencyFocus for more conversations that help agency owners build clarity, confidence, and long-term value. Learn more at https://agency-focus.com/
Show previously named Insurance Refocused
