E&O Insurance Prevention Tip: Act on Coverage Requests Immediately
When people suffer losses and turn to their insurers for reimbursement, they are understandably upset when they discover they do not have coverage for loss. Sometimes, this is the fault of the agent who failed to act on a coverage request.
This is exactly the type of situation that E&O insurance for insurance agents is designed to cover. Review the example below and the E&O insurance loss prevention tip that follows to help reduce your E&O insurance exposure.
Pay Attention to This Claim Scenario: A long-time client of an agent had a large family with several children of driving age. This client made frequent changes to his auto policy to add or remove vehicles and drivers. On one occasion, the client called the agent to discuss two changes. First, he wanted to add a daughter and her new car. Second, he thought he might be removing a pickup truck that he was selling because a potential buyer was returning in a day or two with the money to purchase the truck. The agent made notes to his file and told him to call back as soon as he knew the truck was sold. The agent then put the file aside, figuring he would handle both changes at the same time. Three months later, the client called to report that his daughter had totaled her new car. The agent pulled the file and realized he had failed to act on the customer’s request to add coverage for the client’s daughter and her new car.
Damages: $15,000 | E&O insurance prevention tip: Act on coverage requests immediately. Establish a diary system to follow up on potential policy changes requested by clients.
Need E&O Insurance for your Insurance Agency?
If you're in need of quality E&O coverage we can help. At the American Agents Alliance, we want to make getting the quality insurance agency E&O coverage you deserve as affordable and as easy as possible. Learn about the highlights of our exclusive, members-only E&O insurance and get an online quote for E&O in 10 minutes or less right here.