For many professions, not meeting client expectations is not just bad service, it can translate to a lawsuit and trigger professional liability insurance. Insurance agents are no different. An article in American Agent & Broker talks about client dissatisfaction and insurance agents E&O claims (see here).
The author suggests instituting a process with agents and CSRs for surfacing client issues to management. In addition to making sure the client service issues are adequately addressed, this proactive approach provides a forum for considering whether a service issue might become a claim and therefore should be reported to the insurance agent’s E&O insurer.
Often it is not clear when a difficult situation should be reported to your professional liability (E&O) insurer. Each professional liability policy has a definition of what constitutes a claim, usually a written demand, and if this trigger has been reached the situation should be reported. In addition, if the trigger in the policy has not been reached, but you know that there is a chance that a situation may result in a claim, the situation should typically be reported to preserve coverage. With respect to a subpoena, the reporting of a potential E&O claim was addressed in a prior post.
The most important advice:
If there is any question if a potential claim should be reported, the best practice is to report the matter to the carrier
Brought to you by Tennant Risk Services.
Very helpful tips! Thanks a lot!
Posted by: removal services London | October 10, 2011 at 03:38 PM
Claims are really hard to prove, and most of the people I know with insurance are having a difficult time with it. There should be a law or a rule to separate the thin line of its different aspects.
Posted by: Health Insurance | July 11, 2011 at 04:16 AM
I am also a licensed agent and i know how important is E&O Claims.
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Posted by: www.CheapCarInsurance.org.uk | May 05, 2011 at 01:48 AM
Excessive caution is a term we would use only if we were on the receiving end of it. Each business has to develop a culture in which it can serve it customers in the most efficient manner. Better to thought a cautious fool than a reckless idiot.
Posted by: Grant of Probate | January 26, 2011 at 05:10 AM
If customer satisfaction is not one of your objectives as a service provider, one must ask why they are in the field in the first place. I love this post.
Posted by: francis | January 17, 2011 at 12:04 AM
I must agree you that there is no such thing as excessive caution when it comes to claims. All precautions must be taken.
Posted by: business insurance | November 14, 2010 at 06:42 AM
I totally agree that having a liability insurance gives both party the security. Kudos for explaining more info about this.
Posted by: Security Guard Insurance | November 09, 2010 at 01:16 AM
A fear of risk and making a mistake is a good thing, provided it's in prospective.
Posted by: Underpinned Buildings Insurance | October 03, 2010 at 12:44 PM
Thanks for the post. I was brought up with the maxim 'if in doubt, report it'. Better to appear at best foolish or at worst unduly catious than to be held to blame.
Posted by: Inheritance Advice | September 11, 2010 at 04:25 PM
As a licensed agent I do understand the importance of E&O coverage. Although definitely shop it around because the rates can be vastly different. Our agency's rate was north of $300/month and we got it down to $200/month.
Posted by: Pavel | September 04, 2010 at 06:53 PM
great article. i've been visiting your site for a while and I find it very useful. keep up the wonderful work.
Posted by: Robert Tyler | September 01, 2010 at 05:48 PM
Professional liability is very important to agents and brokers in insurance or any professional occupation like, lawyer ect.
Posted by: jason #insurance | August 23, 2010 at 05:31 PM
really cool and impressive stuff, thanks.
Posted by: Insurance blog | July 16, 2010 at 06:32 PM
Great read!
Posted by: Bob | July 06, 2010 at 09:28 AM
Such a nice blog you have.
Posted by: Natasha | July 03, 2010 at 03:22 AM
It's always best to err on the side of caution. A lot of agents should think about these ideas to help them stay out of trouble. Thx!
Posted by: Admin | June 29, 2010 at 07:05 PM
Professional Liability insurance is most critical for anyone who has direct contact with the client. Realtors, attorneys, doctors, marketers and even bloggers. The very slightest mishap could land you a lawsuit or a bad reputation. Be covered for all potential hazards you could face in your business.
Posted by: Business Insurance PA | June 04, 2010 at 04:41 PM
It is crucial to meet client expectations and then exceed them. We can do this by working together not against each other.
Posted by: C.A. Weber Insurance, PA | May 28, 2010 at 04:01 PM
"If there is any question if a potential claim should be reported, the best practice is to report the matter to the carrier." Great advice! It is better to call and report the claim than have problems later. Great post here, thanks for this!
Posted by: Cheap Car Insurance California | May 24, 2010 at 08:09 PM
customer satisfaction must be on first priority...
Posted by: life insurance | April 29, 2010 at 06:48 AM