Preventing Insurance Professional E&O Claims

Posted on: April 22, 2016 by Huntersure

While insurance agents work hard to protect their clients, it’s impossible to please everyone. While the best practices and worth ethic can reduce their liability, not all claims can be prevented. Therefore, the right E&O Professional Insurance is a necessity for your clients. Here are some tips to share with your clients in order to reduce their risk of facing an errors and omissions claim.

In such a litigious society, insurance agents have a one in seven chance of facing a claim, says the National Ethics Association. This staggering figure is reason enough to minimize potential claim activity and exposure. Here are some ways to achieve this.

1. Sell insurance by the book. Clients’ risks should be thoroughly examined and guided toward the right coverages. Any gaps or holes in policies can land the agent in a position to face litigation, so reviewing existing policies annually is also recommended.
2. Document all changes in policies to provide a paper trail. If a client wishes to update or reduce their policies, ensure their new coverage is fitting for their risk tolerance, needs and resources.
3. Ethics is of utmost importance. While this may seem obvious, upholding good business practices and being familiar with the state and federal regulations can minimize the potential for litigation.
4. Work diligently. Your clients should follow-up with customers regularly, be prompt in their responses, and provide knowledgeable and thoughtful advice. After all, it is their responsibility to protect their customers.
5. Be graceful about feedback. If your client was to receive a negative comment or review, it should be accepted with ease. While it may be difficult to swallow and your client may not agree, it’s important to remain professional and take care of the customer regardless.

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.

Posted in: blog Insurance Professionals

Tagged: Insurance Agent Professional Liability Insurance Insurance Professional E&O reducing insurance professional exposures