E&O Loss Control

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.

The purpose of employee incentive compensation is clear—it encourages employees to sell more insurance, which generates more income. But what’s the relationship between incentive compensation and E&O risk?

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.

Though the vast majority of the language contained in these two policies may be identical, subtle differences can lead to very different outcomes. And take it from an E&O professional: They’re not all good.

Unless your clients only accept cash and do not receive anyone’s personal information, they need cyber insurance. Do not fall prey to the thought that a traditional CGL policy will cover a cyber event.

An agent needs two sharp eyes at all times to stay on top of the market. Keep abreast of new product offerings to prevent a future E&O claim.

Within every agency’s customer base lies a labyrinth of coverage limitations and policy exclusions—a potential roadmap to increased revenue.

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.

It may seem like a natural extension of the service agents provide to customers, but advocating on behalf of the customer on claims can create E&O problems for you in the long run.

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