Agency Operations

Errors & omissions claims usually arise from a specific type of error. But once in a while, a claim comes up that’s downright bizarre. Would your agency be susceptible to a similar claim?

Too many errors & omissions claims still result in a he said/she said credibility dispute. Documenting all interactions with customers and carriers as well as every insurance transaction can be critically important in defending an E&O claim.

Swiss Re Corporate Solutions has found that the following three issues are the most common causes of E&O claims arising from placing workers comp coverage: location, premium and time.

Lack of communication and poor documentation present significant E&O exposures for insurance professionals—risks compounded by a language barrier between agent and client.

While the name on the policy has changed to “Westport Insurance Corporation” and the ownership of the carrier to Swiss Re Corporate Solutions, financial stability and strength has remained a constant.

From homeowners to auto, personal lines policies typically renew automatically without a formal process that enables agents to check for changes in customer needs. Coverage gaps often result—and the potential for an E&O claim goes hand in hand.

Effectively utilizing an agency management system can reduce potential E&O exposure, position an agency to build a quality defense against allegations and ultimately lead to overall revenue growth.

What does the clear upward trend in E&O claims carriers make against agents and brokers mean for your agency?

Your E&O carrier’s claims team might be able to offer serious assistance when your agency is facing a potential E&O disaster. Are you taking proper advantage?

Here are just a few E&O exposures agents face from the change in health insurance delivery—and some risk management considerations that could help prevent E&O claims.