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Category Archives: Errors and Omissions Insurance

If you’d like to have an E&O claim, make sure you…

Best seller ribbon awardOnly advise your clients and potential clients what is covered under their policy; they do not need to know what their policy excludes.

Research has shown that clients and potential clients are more interested in what is not covered by their policy than what is. A good practice is to provide specimen policies and riders with proposals. This will help clients and potential clients have a better understanding of their policy benefits. This will also allow the client or potential client to identify any concerns. By furnishing this information, clients and potential clients may ask you to sell them additional protection.

Sell your clients and potential clients what you want them to have and do not ask them what they actually need.

Failure to provide proper insurance is one of the top causes of errors & omissions claims. Be sure to conduct an analysis of your clients’ insurance needs and what they hope to accomplish by having you handle their insurance. Have the client or potential client sign-off on any insurance recommendations you make which they elect not to purchase.

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Is Your Guard UP?

ID TheftYou have E&O Insurance in place in the event you are sued for having rendered covered professional services.  However, doing business through the use of a computer has opened a whole new world of exposures to insurance agents.

If you haven’t been paying attention to the vast amount of articles regarding businesses whose computers and websites are getting hacked, you should.

Cybercrime is on the rise.  A recent survey revealed that ransomware isn’t only after big businesses, it’s targeting small businesses too.

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E&O Insurance Doesn’t Have To Be Difficult to Obtain

E&O Insurance for Health and Life Insurance CoverageInsurance Specialties Services, Inc. is pleased to offer a streamlined process for Life and Health Insurance Agents to obtain affordable Errors and Omissions Insurance Coverage. Our agency is the administrator of the new A+ E&O Insurance Program, which is underwritten by Berkley Insurance Company.   Berkley Insurance Company is rated A+ (Superior) by A. M. Best, W. R. Berkley Corporation was recognized as one of the 2014 Ward’s 50 Top Performing P&C Insurers.

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Department of Labor Fiduciary Ruling

Dept of Labor Fiduciary RulingThere is much talk in the insurance industry regarding the possible upcoming Department of Labor Fiduciary Ruling and the impact this will have on insurance agents and advisors. Whether the new administration approves or does not approve the proposed ruling, many companies have indicated they will still be implementing best interest contracts.

The basis of the ruling really comes down to how an insurance agent or advisor is compensated by the insurance company so that the insurance agent or advisor is working in the best interest of the client and not swayed by the compensation offered by different products available. Much information regarding the ruling can be found here.

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Part 6 of a 6 Part Series: Why Didn’t This Agent Offer an Inflation Rider?

E&O Claims in Bucks CountyWhen selling insurance, you need to have more in mind than just finding the sweet-spot where you think your prospective client is comfortable with the premium.

Selling a disability policy can be compared to buying a car.  Would your client want a compact car at claim time, or would they prefer to have a luxury model? Although many E&O claims in Bucks County can stem from buyer’s remorse, it’s important that you have documentation that you took the time to offer the best options available through the insurer that you are representing and explained the differences in benefits.

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Part 4 of a 6 Part Series – When You’ve Really Done Nothing Wrong, E&O Steps Up

E&O insurerOne of the most important aspects of having Errors & Omissions Insurance is the defense that it provides to you as an insured.  There are many claims made against insurance agents that are groundless; however, without having an E&O coverage policy, you, as the agent/defendant, would be left to secure your own attorney in order to be defended.  Your E&O Insurer has a network of attorneys that are experienced in handling matters that arise from your profession.

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Part 3 of a 6 Part Series – Be certain to fully explain benefits and pitfalls of a policy!

errors and omissions coverageMeeting with a prospect that has already expressed an interest in needing life insurance is an exciting time for an insurance agent.  Once the prospect is aware of the need and has you as the agent they wish to use for securing insurance, it is extremely likely that the application will be completed and a sale will be made.  As a well-versed agent you are also likely to receive referrals from this client and should not hesitate to ask for them when delivering the policy.

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Part 2 of a 6 Part Series – How Documenting Files Can Save the Day!

documenting files for Errors & OmissionsAs an insurance agent, you face the fear of having an errors and omissions claim being made against you on a daily basis. Though, many agents will insist that they do everything by the book and have no possibility of an errors and omissions claim being made against them, the chances of being named in a lawsuit are still very much a reality. You should always conduct your business practices as a true professional and document all interactions with your clients and prospective clients.

A big part of knowing what mistakes to avoid when handling your clients insurance needs is to review errors and omissions claims that have been made against other insurance agents. We will be presenting a 6 part blog series on claims scenarios and provide some helpful information on how to avoid or mitigate such claims being made against you.

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Part 1 of 6: How a Conditional Receipt Could Have Saved the Day!

errors and omissions checklist: conditional receiptAs an insurance agent, you face the fear of having an errors and omissions claim being made against you on a daily basis.

Though, many agents will insist that they do everything by the book and have no possibility of an errors and omissions claim being made against them, the chances of being named in a lawsuit are still very much a reality. You should always conduct your business practices as a true professional and document all interactions with your clients and prospective clients.

A big part of knowing what mistakes to avoid when handling your clients insurance needs is to review errors and omissions claims that have been made against other insurance agents.

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Stay Cool, Calm & Collected: E&O Claim Info

E&O claim infoWhat to do if you have a claim

  • Promptly report any claim or error of concern and provide the necessary details, including name of the claimant and description of the claim or incident. Your E&O carrier can decide if the matter qualifies as a claim or only as an incident.
  • Do not alter records involving the claim or incident
  • Do not allow the inspection, copying or removal of your records without consulting your E&O carrier
  • Do not provide recorded or written statements concerning an error or claim involving your agency unless the E&O carrier has granted permission to do so

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