E&O Insurance Information

Insurance brokers and carriers face unprecedented exposure, not just from claims, but from how they identify and communicate gaps in risk coverage. Recent legal precedent makes one thing clear: when brokers see a material risk, they have a duty to inform their clients. Silence is no longer a safe option.

This raises an important question: when will other critical risk areas, such as worker classification, become a common source of E&O claims? For clients operating under a 1099 or independent contractor model, misclassification is a well-documented risk that has cost contracting companies millions in litigation, penalties, and settlements.

At Openforce, we help contracting companies mitigate worker classification risk, giving brokers a way to deliver more comprehensive protection, while reducing their own E&O exposure.

Insurance Gaps & Limitations

A Florida appeals court recently held that insurance brokers can be held liable not only for failing to procure coverage, but also for failing to inform clients when requested coverage cannot be obtained, even if no such coverage exists in the marketplace.

This decision marks a significant shift in broker liability, creating a clear duty to communicate coverage gaps and limitations to clients to ensure they can make informed risk management decisions. For more information, read the Insurance Business article here. ore omrehensive protection, while reducing their own E&O exposure.

Worker Classification

Worker classification is the determination of whether a worker is treated as an employee or an independent contractor for legal, tax, and compliance purposes. If worker classification is done wrong, the ramifications can include lawsuits, government audits, back taxes, fines and penalties, unpaid overtime and benefits, and significant legal liability.

In 2024 alone, Openforce's software helped multiple clients successfully mitigate 164 misclassification claims, providing crucial records, data, and audit trail documentation that together saved businesses over $10 million in potential litigation costs. This milestone highlights the effectiveness of proactive risk management.

Attention Insurance Companies & Brokers.

When You Know Something, You Must Now Say Something.

Worker Classification

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