The role of the insurance agent is a straightforward one. However, it is also a position that comes with a variety of risks. When you’re helping clients find sensible coverage options for their assets, even the slightest mistake can lead to major complications for the policyholder. For example, you might fail to address a major gap in the plan that the individual takes out. Should they discover that their plan won’t cover a specific claim, it can lead to you or your agency being served a lawsuit.
Preventative Steps To Take
Though it can be frightening to consider the ramifications that come about when claims like this are put in against you, preventing E&O claims as an insurance agent is not an impossible endeavor. There are several easy steps you can take in order to reduce the odds of this type of lawsuit happening. First, be sure that you understand the needs of the client. If you’re unsure of anything, ask direct questions. As an agent, educating the client about policies is one of your top priorities. By communicating, this task becomes easier. Other considerations to take include:
- Review policies to ensure you understand the details
- Take out appropriate E&O liability coverage
- Keep communication open with clients throughout the process
Create a Strategy
While you might not be able to cover every single detail of a policy during the process of creating a new plan for a client, you can still hit all of the main points and provide literature on the rest. As long as you do your part to provide all relevant information, you can feel confident that you’ll avoid legal troubles.