Don’t Let These E&O Claims Happen to You
Insurance Agents Should Watch Out for These Common E&O Claims
Every job comes with certain risks. Making mistakes is one of them. It’s only natural because we’re only human. Right? However, it can be prevented. As an independent insurance agency owner, being aware of the simple mistakes that can lead to errors and omissions claims is critical. Thinking ahead will help you prevent these common E&O claims from happening to your agency.
Communication errors are standard and can lead to a lot of trouble down the road. Having multiple people involved in the process of collecting and communicating information about a client increases the risk of making a mistake. Client management is essential and helps skip the game of “telephone.” Designating specific agents to work with particular clients helps minimize this risk so that they can take care of the whole process, from the very first consult to ongoing maintenance.
Inability to Properly Explain Coverage
Every agent is the insurance expert that will deal with your precious clients. Making sure that your agents are up to date with all the products that they sell is a must. That is how you ensure that all the right information is getting to your clients.
Being transparent at all points of a transaction is vital. Don’t keep any information to yourself and make sure your clients understand every single thing about their policies, coverages, and everything in between.
Failure to Provide Correct Client Info
Every channel of information in the insurance sales process needs to be carefully managed. It’s the agent’s job to communicate all client information to their insurer accurately. When a claim is filed, make sure you monitor the activity on both ends —the client and the insurer— and keep a close eye on your carriers loss ratios, so that you can anticipate potential problems. If you follow up on the whole process, it will be more accessible to identify when you need to get involved, to either help speed things up or provide extra input that is valuable to the process.
You have power over how vulnerable you become. Keeping an eye on the details makes a big difference and keeps you out of trouble. Join AAI today and become the best independent insurance agency owner you can be.