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 email@example.com.