Posted on: February 27, 2017 by Huntersure LLC.
As insurance professionals, your clients understand how to service their customers and give them the coverages they need to thrive. However, while they are providing tailored coverage with outstanding service, your clients are experiencing their own set of risks. Are they protected from the exposures and potential lawsuits they claim from their everyday tasks? In addition to equipping them with a comprehensive Insurance Agent Professional Liability policy, share the following information with them.
Misrepresentation allegations are the most common reason for lawsuits against insurance agents. In fact, Insureon states that 24 percent of E&O claims are due to these types of scenarios, and can cause you and your firm damage. For example, if your clients misrepresented a product, and the customer were to be negatively affected or end up paying more for the coverage, this could result in a lawsuit. Or, if a customer experiences a loss when he or she believed he was adequately covered by your clients’ expertise, this could also turn out to be an expensive lawsuit.
Not all damages are foreseeable, and there is no such thing as a one-size-fits-all policy. However, the good news is that insurance agents can still get the protection they need. In terms of workplace ethics, always be forthcoming about policies including deductibles, coverage limits, and options. Next, follow the industry regulations for selling insurance, and never approve changes over the phone or via email. As we discussed in a previous post, it’s important to get everything in writing and document each change as they occur. Afterward, ensure that your clients obtain the right insurance policies to protect their operation.
At Huntersure, we strive to provide insurance professionals with E&O policies to cover their entire operation. We are well versed on the type of professional liability exposures the insurance industry faces, and provides Errors & Omissions insurance for those in the insurance industry including Claims Adjusters, Third Party Administrators, Benefit Consultants, Captive Insurance Managers, Risk Management Consultants, and more. Our comprehensive policies can be tailored to match whatever needs your clients may have. To learn more, we invite you to contact us today at (855) 585-6255.