Agency Operations

In today’s volatile market, independent agencies face various emerging challenges that can lead to significant financial consequences.

As agency managers strive to perpetuate their agency, here are key areas to focus training and administrative efforts to reduce errors & omissions exposures.

Before implementing artificial intelligence in your agency, understand the product and what it can do, Test the product before purchasing it, and simultaneously use human processes.

The wave of post-pandemic lawsuits has prompted independent insurance agents to review their errors & omissions (E&O) coverage and risk mitigation strategies.

“In the past, E&O coverage for seed dealers has been very cost-prohibitive,” says independent agent Shelly Turner. “Educating both clients and other agents on the availability of a lower cost, higher coverage option is a big focus.”

A well-documented agency file can mean the difference between outright vindication and a murky swearing contest that results in a lawsuit, settlement or both.

Generally, when consumers feel they are paying more and receiving less in return, problems arise.

The agency errors & omissions environment has become more complicated, and the result has led to several implications for independent agencies.

Agency errors & omissions coverage has been impacted by the hard market, with premiums increasing over the past few years, and difficulty in replacing waves of retirees with younger workers.

It is possible to offer a quote without substituting your judgment for your customer’s, which is a leading cause of E&O claims.