It is the job of any insurance agency to provide clients with knowledgeable information pertaining to any policy that they purchase. Selling insurance requires the knowledge, skill, and preparation to go over the policy in detail and ensure that their customer knows exactly what the policy provides protection for or against. This simply means that an agent should not provide false or erroneous information at any time, since it could result in a professional liability claim.
A client who is particularly dissatisfied with what their policy actually provides, as opposed to what they believed is covered, can be the source of a lot of frustration, not to mention financial compensation from you. Insurance agents and brokers and their insurers need to work on cutting-edge, practical errors and omissions loss control procedures to deal with issues of this nature. Once in place, their insurers then need to help them implement those techniques.
By having Austin Insurance Agents Liability Insurance in place, in the event of an errors and omissions claim or lawsuit, attorneys will work closely with the agents and brokers, as well as claims representatives and claims counsel, to swiftly develop and implement a winning strategy while trying to lower both indemnity and defense costs.
Examples of issues that could lead to a rift between clients and their agents
Insurance agents must carefully evaluate the work they do for each and every client to ensure that no mistakes take place. A missing signature, a poorly worded contract, or any number of errors could all end up voiding their contract. The importance of checking all customer contracts and policies before sending them out is necessary in order to be sure the coverage’s are exactly as agreed upon. In addition, if a client declines a particular coverage the agent needs to have that in writing as well.
Errors and omissions (E&O) is the type of insurance that covers your company, or an individual, in the event that a client holds you responsible for a service you provided, or failed to provide, or that did not have the expected or promised results. Austin Insurance Agents Liability Insurance is a professional liability policy that covers you for errors (or omissions) that you may have made, or that the client perceives that you’ve made.