Technology has done wonders to increase an insurance agency’s productivity and sales goals. But the statements an agency makes on its website and marketing materials can lead to serious, unintended consequences from an E&O perspective.
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.
At the time of the initial meeting with a customer, you must discuss not only necessary coverages but also when they need to be effective.
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?