The professional E&O market (excluding medical)

This market offers nearly $12 billion in premium

The professional E&O market (excluding medical malpractice) accounts for $11.83 billion in premium, according to data compiled by MarketStance, Middletown, Connecticut. It is a market that is dominated by small and mid-sized enterprises, key targets for independent agents.

However, it also is a market that requires considerable expertise, which explains the rapid growth of the Professional Liability Underwriting Society (PLUS) and in the number of Registered Professional Liability Underwriters (RPLU), the profes­sional designation that was instituted by PLUS.

The small and middle market accounts represent 76.5% of the total market, with the balance in national accounts. The one-person shops represent 11.5%; small commercial accounts (37.9%) and middle market accounts (27.1%).

The service sector, which includes important E&O classes like attorneys, engineers and accountants, represents the largest segment of this market, with $7.93 billion in premium; followed by the financial, insurance and real estate segment, with $3.35 billion in premium. These two sectors account for more than 95% of the total E&O premiums.

In the service sector, engineering, accounting, research and manage­ment services represents the largest niche, with $2.86 billion in premium; followed by legal services at $2.83 billion, and business services at $985 million.

Real estate agents E&O represents the largest niche in the financial, insurance and real estate segment, with $1.78 billion in premiums; followed by security-commodity brokers E&O at $849 million and insurance agents E&O at $375 million.

Only two states have more than $1 billion in E&O premium—California with $2.19 billion and New York with $1.8 billion. Texas ($784 million), Illinois ($733 million) and Florida ($727 million) round out the top five.

For more information on this market, contact MarketStance at (888) 777-2587 or e-mail at info@marketstance.com.