Insurance Agents E&O
Insurance agents are there to help protect corporate, family and personal assets by providing insurance and risk management.
An agent is often the first to respond when a client or business makes a claim, but who insures the agent if they make a mistake? Insurance agent errors and omissions (E&O) coverage is designed to protect those who protect the masses. With one out of every six insurance agents facing an E&O claim at some point during their career, adequate coverage is important.
Why Insurance Agent E&O is Important
If and when a professional or business:
- fails to add or procure coverage;
- provides an incorrect explanation of benefits or terms;
- provides an incorrect certificate;
- fails to review and explain coverage or policy changes, and properly advise the client;
- fails to obtain excess coverage;
- allows a gap in coverage; and/or
- falsely states that coverage exists.
Common Insurance Agent E&O Coverage Topics:
1: Develop and distribute a one-page sales sheet about insurance agent E&O coverage.
2: Provide training to qualified staff.
3: Document all conversations and date pages on proposals/summaries.
4: Establish written procedures for handling accounts.
5: Use checklists for all renewals and new clients.
6: Conduct annual file audits.
7: Ensure every policy summary has a disclaimer.
8: Provide written documentation to the client if they decline coverage.
9: Document if the client chooses not to renew coverage.
helpful information: