The National Association of Professional Agents raised its E&O program revenue cap to $3M and introduced click-and-bind coverage for independent marketing organizations, underwritten by CNA.
NAPA, the National Association of Professional Agents, expanded its errors and omissions insurance program Tuesday to cover life and health agencies with up to $3 million in annual revenue. The association also launched a new product for independent marketing organizations.
The enhanced program raises the previous revenue cap by $2 million, bringing high-volume agencies into NAPA's instant-issuance system. Agencies can now get certificates online with upfront pricing and automatic renewal, rather than shopping multiple carriers over weeks, NAPA said.
"The new E&O enhancements allow established Life & Health Agencies to enjoy instant issuance for NAPA's best-in-class E&O program," said Ted Baran, a Senior Consultant with NAPA.
The IMO product targets Independent Marketing Organizations, which include field and national marketing organizations. Baran said these groups often struggle to find coverage that protects both the entity itself and its exclusive downline agents. The new policy offers click-and-bind options for IMOs with revenue up to $3 million, matching the agency program's cap.
Covered activities include the sale of life, health, Medicare, annuity, and investment products. The policy also covers claims of errors, omissions, negligence, and other wrongdoing, including acts by downline agents and support staff.
Both programs are underwritten by Continental Casualty Company, a unit of CNA Financial Corp. (CNA). Continental Casualty holds an "A+" (Superior) rating from AM Best, the fifteenth-highest of sixteen rating tiers. CNA stock page
NAPA, founded in 1989, provides E&O insurance, cyber liability coverage, and member benefits to insurance agents, agencies, IMOs, registered investment advisors, and investment advisor representatives. The association said the expanded program and new IMO product are available immediately for online applications.
The E&O insurance market for insurance agents has seen carriers tighten capacity for larger books in recent years, particularly for agencies writing over $1 million in premiums. NAPA's expansion targets that gap, offering a streamlined alternative to the multi-carrier shopping process that high-volume agencies typically face.
Baran said the new IMO offering is "unlike anything else on the insurance market," citing the combination of entity and downline agent protection in a click-and-bind format.
NAPA's program includes coverage for licensed agents and support staff, auto-renewal, and instant proof of insurance. Members also gain access to NAPA Benefits, which provides discounts on business and personal purchases.
The previous revenue cap of $1 million excluded many established agencies that had grown beyond that threshold. The $2 million increase brings those firms into a program that previously served smaller agencies. NAPA said the expanded cap means agencies no longer need to manage multiple E&O quotes or wait days for binding.
For IMOs, the new product addresses a specific pain point. Many marketing organizations operate with exclusive downline agents whose actions can expose the parent entity to liability. Standard E&O policies often exclude downline acts or require separate endorsements. NAPA's product bundles that coverage into a single click-and-bind policy.
Continental Casualty Company, the underwriter, is a subsidiary of CNA Financial, a commercial insurer with $45 billion in assets. The "A+" rating from AM Best indicates strong financial stability, which matters for agencies selecting a carrier for long-tail E&O risk.
NAPA said the new IMO product is available now for online applications through its website.
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