Insurance Agents Need the Protection of E&O Insurance
Insurance agents are constantly looking to expand their customer base. One objective is to get clients to purchase several policies for everything from their business insurance to health, auto, and other necessary coverages. But a problem may arise when these same clients find that certain exposures still exist and they may place blame on the agent for not making them aware of certain exposures. It only takes one error to have the whole relationship start to unravel.
Since the industry is constantly changing, it helps to keep up with new laws and regulations as they present themselves. As an agent, you have to have accountability for the services you provide. This is why an Errors and Omission policy (E&O) is such vital coverage for any successful agency. Errors are likely to occur sooner or later, so having insurance that addresses these concerns makes plenty of sense.
Many challenges facing insurance agents
Changing healthcare laws are at or near the top of the list of concerns for many agents. There has been a lot of confusion as to how new healthcare laws will affect insureds. There is a need to sort out all the nuances of coverage options, which includes knowing how to go about securing coverage, with many still hoping to keep their existing coverage and avoid any penalties.
Technology has made it easier to avoid making mistakes, but it hasn’t eliminated the problem completely. Clients often believe they have coverage for risks faced only to find exclusions exist in their contract that they were unaware of. A lot can also go wrong between the time invoices go out and payments are received. Any issues that arise could potentially cause customers to either request revisions to their policy or cancel altogether.
The trick is to be thorough and not have costly errors that could end up ruining a solid relationship, not to mention the likelihood of litigious consequences that could result from mistakes, which should be a primary concern. Your Errors and omission policy can really help when customer satisfaction becomes a serious issue.