Insurance Agents E&O
When a client says the insurance should have been different.
Insurance professionals face claims involving procurement, advice, documentation, renewals, certificates and policy changes.
Who may need an insurance-professionals form?
Retail agents, independent agencies, brokers, wholesalers, managing general agents, program administrators, consultants, third-party administrators and other insurance services can create different professional exposures. The application must describe authority, carrier relationships, revenue, business mix and services accurately.
Frequent allegations
- Failure to procure requested coverage or limits
- Failure to explain an exclusion, deductible or claims-made requirement
- Missing a renewal, cancellation, endorsement or reporting deadline
- Incorrect vehicle, location, entity or additional insured information
- Misrepresenting what a certificate or binder provides
- Placing coverage with an unauthorized or financially impaired insurer
Documentation is part of risk control
Use written applications, proposals, declinations, renewal checklists, exposure questionnaires and confirmation of requested changes. Document the client’s decisions and promptly report circumstances that may reasonably become claims.
Policy details to compare
Review the definition of professional services, coverage for the entity and individual licensees, use of independent contractors, insolvency wording, regulatory proceedings, defense costs, deductible structure, retroactive date and extended reporting options. Cyber events and theft of client funds may require separate coverage.
Ready for the next conversation?