Reducing Professional Liability Claims: 8 Tips

Posted on: November 13, 2015 by Newmark Insurance

Working professionals of all kinds are constantly exposed to liability risks. While employers do their best to reduce claims as a result of any violations, these claims are inevitable. As such, an Insurance Agent Professional Liability Program can provide a safety cushion for insurance employers of all types. Here are some tips in order to reduce the frequency of claims.

Thoroughly understanding the professional liability coverage is critical in order to prevent the staff from violating any policies, whether it’s accidental or otherwise. As the odds of a claim being filed are one in seven, the National Ethics Association has recommended some tips to minimize claim activity.

  1. Ethical business procedures and practices should be followed at all times, and employees should be trained on guideline compliance.
  2. Life Health Pro states that professionals should sell insurance by the book and do rigorous fact-finding and only sell insurance products that are appropriate for the prospect’s needs, resources, and risk tolerance. Never underestimate the effectiveness of doing business the correct way.
  3. Document client interactions to provide a paper trail of proof. If a major decision is discussed, is it important to provide an “understandings” letter for the client to sign with approval.
  4. Follow up with requests diligently and consistently. Touch base with clients periodically to ensure their coverage is accurate and up to date.
  5. If a complaint letter is submitted, acknowledge the issue and receive the constructive criticism gracefully. If you are worried about the potential for a lawsuit to ensue, notify your insurance carrier immediately.
  6. For policy replacements, ensure all forms and regimens are completed properly. Each change should be made with the acknowledgement and the approval of the client.
  7. Deliver policies in person, if possible. This will ensure customer satisfaction and expectations coincide.
  8. Ensure no coverage gaps exist for your clients. It is critical to be an expert in your field and know the products inside and out.

At NewMark Insurance Services, we strive to protect the insurance agents who provide such services. Our programs provide ample coverage with underwriting expertise that is unmatched by our competitors. To learn more, contact our experts today at (855) 777-6549.

Posted in: blog Professional Liability