The approaching new year is a good reminder to refresh agency E&O practices. Even the most experienced of agents can benefit from a refresher, especially as staffing changes, workload shifts, and the business of renewal season affect capacity and can make shortcuts tempting. Check out this 2026 guide to reduce E&O losses and prepare for a productive new year.
2026 Guide to Reduce E&O Losses
Revisit the fundamentals of how to reduce E&O losses and refresh good habits in 2026. Here are five focus areas that can help reduce an agent’s risk while protecting their reputation:
Revisit agency policies and procedures and follow them every time. Having standard operating procedures is critical, but simply having them is not enough. Every employee must follow the procedures every time. A common root cause of E&O claims is inconsistency where different employees handle accounts in different, non-standard ways. Review the written procedures manual with all employees and confirm understanding of processes. Include controls for higher-risk steps that often influence E&O claims, like documentation of coverage declinations. Consistency helps with defensibility in an E&O claim as it demonstrates a standard of care when every employee always follows documented, standardized steps.
Document every conversation, no matter how seemingly small or insignificant. Even the small conversations matter when it comes to an E&O claim. If it is not documented, it cannot be proven and courts rely on the documented record when reviewing evidence to determine what was discussed and when. Many E&O claims arise from misunderstandings about coverage or policy changes that were not documented. Agents can develop a “no exceptions” documentation rule in their agencies where every conversation with a policyholder must be noted in the management system. Automating documentation of voicemails, texts, and chats can be a helpful use of technology that can free time for agents and CSRs and also provide useful documentation to defend an E&O claim.
Prioritize accuracy across marketing materials, websites, and social media. Many agents have rushed to digitize their agencies with customer portals, websites, social media channels, and new marketing materials. And as these digital assets are extensions of the agency, they are potential E&O exposures. Having outdated product information could create liability should a policyholder rely on digital information. Review marketing materials, links, email templates, social media templates, website FAQs and product pages, and landing pages to ensure they are accurate reflections of products and services offered. Make a plan to review digital materials frequently to keep them up to date.
Review E&O policy and incident protocols. An important part of any agent’s E&O plan is having robust coverage in place. Review current E&O coverage and incident procedures, and identify any gaps. Verify if limits still match the agency’s revenue and exposure, ensure producers and entities are all listed correctly, and review the claims-reporting process and what qualifies as an incident that should be reported. Consider obtaining quotes to review E&O policies.
Designate 2026 the Year of Proactive Communication. Communication is often the missing piece in E&O claims, whether it is failing to clarify and document a coverage exclusion, neglecting a follow-up phone call, or forgetting to have a discussion and obtain a signed declination when a policyholder denies coverage. A lack of communication, even an unintentional silence, often allows for misunderstandings. By focusing on proactive communication through annual coverage reviews, educational sessions and webinars, check-ins with affected policyholders after adverse weather events, and personalized communications throughout the year as circumstances change, agents can create opportunities to prevent confusion and close coverage gaps with policyholders.
Request Your Updated E&O Quote From the American Agents Alliance
Producers in California can review their E&O coverage and request a free quote from the American Agents Alliance. Be sure your coverage is up to date and keeping pace with your individual exposures with your E&O quote.
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