What Happens When Insurance Agencies Don't Have Insurance
When it comes to errors and omissions coverage, insurance agents will be the first ones to tell their clients how necessary it is, the peace of mind it can bring and how it will save you cash in the future. But, they’ll be so busy trying to make sure all of their clients are covered, that they forget to cover themselves.
It’s a classic case of out-of-sight, out-of-mind. They’re so focused on the client’s needs and security that their own just flies out the window. But, insurance policies aren’t the only way to protect yourself and your business from a lawsuit.
Prioritize your time
The most common form of E&O exposure for agencies is a failure to fully understand client policy needs. There’s not a program or policy out there that will help your agency fight that battle. However, there is software to help you manage client needs and give your agents time to fully research all available options.
Find solutions that help your agents better prioritize their time to include in-depth client and policy research. Then give them a place to easily store and access that information, so they aren’t doing the same research over and over again.
Document and archive all customer interactions
Email is still the number one way agents communicate with their clients. This can be good because it provides “written proof” if litigation were to occur. It takes away the “he said, she said” risk. This documentation doesn’t prevent litigation against your agency, but it does provide a great defense should it be necessary.
Email management software is your greatest shield in the event of E&O litigation. It tracks when information was sent, whether or not it was opened, the responses and more. It provides a complete audit log for you to pull in emergencies.
Consistency really is key when it comes to protecting yourself from E&O exposure. Create processes that include steps forcing your clients and employees to fully understand the requirements, policies and consequences of coverage decisions. Not only will it protect you from exposure, but it will also help your agents better understand your clients’ needs.