E&O prevention tip for the month of June! Be sure to review policy exclusions to prevent an E&O claim from happening to you.
Claim Example:
A customer purchased his first car and asked his agent for a personal automobile policy that would provide comprehensive coverage. The agent suggested a personal automobile policy. The customer asked if the policy would provide coverage for injury or property damage he may cause when driving his vehicle. The agent explained the policy would cover any unintentional injury or property damage and the customer purchased the recommended policy. A few months later, while the customer was attempting to park his car in his driveway, he accidentally hit and damaged his garage door. When the customer filed a claim, he was surprised to learn his automobile policy did not provide coverage for property that he himself owned. The customer filed a claim against his agent for misrepresenting coverage.
E&O Prevention Tip:
Customers who have very little experience purchasing insurance may not understand policy details that seem obvious or familiar to an experienced agent. As an agent, be sure to carefully explain all policy coverages and exclusions to the customer, no matter how obvious or self-explanatory they may appear to be. Also, make sure to provide a copy of the policy to the customer and advise him to read it. Sometimes customers do not read the entire policy and may attempt to hold their agent accountable for not pointing out certain coverage details.
At the American Agents Alliance, we want to make getting the quality E&O insurance for insurance agents coverage you deserve as affordable and as easy as possible. Get an online quote for E&O in 10 minutes or less right here.
