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Reducing Insurance Agent E&O Risk
Posted on: March 8, 2016 by Newmark Insurance
As an insurance professional, you are an expert in evaluating the needs of your clients and providing them with specific, tailored coverage. However, just as important as protecting your clients is protecting yourself. Here are some ways to reduce your Insurance Agent E&O risk and to help you determine if you are financially prepared for a potential claim against you.
Allegations of misrepresentation are among the most common suits that insurance agents face. 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 the firm you work for inadvertently misrepresented or advertised a product, the client or clients who were affected have a right to bring a lawsuit against them. For example, the client may have relied upon you and your firm to provide accurate information and coverage for their business. However, if the proper coverages were not applied and the client was left exposed and on the hook for financial and reputational damage, that lawsuit could devastate you.
While there isn’t a one-size fits all policy for protection and not all damages are foreseeable, there are ways to reduce your risks as an insurance agent. First and foremost, be honest about policies and never attempt to dodge important questions about policy limits, deductibles, pricing, etcetera. When a customer seeks your expertise, it is your responsibility to assure them that they are in good hands and to follow through with their requests. Build a trusting relationship with clients and communicate effectively by being prompt and transparent.
At NewMark Insurance Services, we understand that you’re in the business of protecting your clients against unforeseen risks that could cause property damage, bodily injury, and financial loss. We also know that everybody makes mistakes, and insurance agents are no exception. For more information about our Errors and Omissions products for Insurance Agents and other various professions, please contact us today at (855) 777-6549.