In this month's February E&O insurance prevention tip we focus on the importance of providing written confirmation.
Claim Example: An agent took an application for auto coverage. The agent prepared the quote which included collision coverage. The client stated that the car would just be parked and therefore he would not need collision coverage. Shortly thereafter, the client had an accident. The client claims that he had requested full coverage on the car. Estimated Cost: $8,500.
E&O Prevention Tip: A follow-up letter confirming the insured’s desire to have minimal coverage since “the car would just be parked” would have provided a defense of the claim. Or, if the quote had been presented in person, the agent could have had the insured initial and date the refusal of the collision coverage.
E&O Insurance for Insurance Agents: At the American Agents Alliance, we want to make getting the quality E&O insurance coverage you deserve as affordable and as easy as possible. Learn more about our high-quality E&O program right here.