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Purchasing E&O Insurance for Insurance Agents

As any insurance agent recognizes, because you offer expert advice and service to your customers to help protect their businesses there is, unfortunately, always room for error. Errors and omissions in the service of performing your job is no laughing matter. The problem is, the costlier the error to the client, the higher the chances that they will seek retribution in a court of law.

When it comes to insuring your own business, of course you should have the proper protection in place. E&O insurance for insurance agents is a vital component of any insurance agency’s risk management plan.

Mistakes are a fact of life

Whether you’re an experienced or a newly licensed agent, you’re still human and vulnerable to making mistakes. If you are accused of losing important documents, providing erroneous statements, or forgetting to get a filing in on time, you could be accused of malpractice, which is why it’s so important for agents to have E&O insurance in the first place. Insurance agents face significant exposure to these types of claims, regardless of whether there is any validity to that claim.

You may be accused of failure to recommend the proper product, or to bind or renew a policy on time, or failing to recommend adequate policy limits, disclose policy exclusions, or simply failing to disclose material information. Whatever the accusation, being an insurance agent entails a high level of risk. Insurance agents are expected to place the right coverage at the right time, and to process the paperwork and payments correctly, as well as satisfy the requirements of both the policyholder and the carrier.

No agent wants to report an errors and omissions claim to their carrier, and the cost to defend such a claim (and to pay damages) can be devastating to an agent or agency. Claims against insurance agents mostly arise from policyholders, but can also come from the carrier with which the agent places business.

Coverage provided to insurance agents by an E&O policy

E&O policies typically provide coverage for defense costs and damages resulting from a negligent act, error or omission committed by the agent in rendering or failing to render professional services. It is important to note that claims made policies provide no coverage for claims resulting from an act, error, or omissions that took place before the retroactive date. It is therefore important when opting for E&O insurance for insurance agents to keep the same retroactive date at each policy renewal.

 

 

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CT Insurers Have a Centuries-Old History of Providing Protection

Known as the Constitution State, Connecticut has a great deal of history dating back to 1788. As the fifth state in the Union, it has an impressive number of “firsts” that it can claim–among them, when, insurance companies in Connecticut got their start in 1810 when The Hartford Group, Inc. opened its doors officially for business. Based in Hartford, the company’s goal was to insure people in the event they lost their life or sustained personal injury while journeying by railway or steamboat, according to archives.

 

Humble beginnings

 

The firm’s history was storied. Originally called the Hartford Fire Insurance Company, it was founded by a collection of merchants who gathered in a local in and pooled $15,000. The company would establish a solid foundation of reliability, paying claims in good times and tough ones as well, even when the company’s coffers were dangerously low. In fact, in 1835, the president of the firm, Eliphalet Terry, resorted to using his own assets to cover all of the company’s claims in the aftermath of a catastrophic fire in the New York financial district. The insurer also weathered payouts on major disasters such as the 1871 Chicago fire, one of the largest catastrophic events of that century with hundreds killed and the much of the Chicago central business district; and the great earthquake in San Francisco (followed by a major fire that was just as devastating if not more) in 1906, with many hundreds of lives lost.

 

The businesses there, intent on protecting consumers and making them whole after an incident, would bring groundbreaking, innovative decisions to the marketplace, such as automobile, accident, and aviation coverage. The industry also created other unique coverage including the creation of the atomic bomb (insured by The Travelers) during World War II, beginning these companies’ continuing role in supporting the peacetime development of atomic energy.

 

Hartford’s nickname is insurance capital of the world

 

Today, the nearly 400-year-old city continues to live up to its nickname, as insurance is still the biggest industry in the area; insurance companies in Connecticut continue to offer consumers a variety of property, casualty, life and health coverage, with other major carriers such as Aetna, Travelers, The Phoenix Companies, United Healthcare and more with major operations there. Interestingly enough, life policies were not offered by an insurer in the area until 1846, in part because religious leaders had considered the practice immoral.

 

You can count on coverage from these fine businesses for yourself, your family, your business, and more. Contact a professional agent who has access to these and other of the nation’s top-rated firms.

 

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3 of the Best Insurance Marketing Tips Available

Why is insurance marketing so relevant? Mainly because there is so much competition and it is easier for people to find insurance solutions via the web. It’s important that your efforts be exemplary of other agencies so that you don’t end up mid-pack chasing the leaders of your industry.

Marketing plans are everywhere and everyone uses ideas and suggestions they believe best fit the mold of their organization. It’s up to you to filter through the different channels, as well as try to come up with new angles that others may not have considered. We’ll list three of the more interesting (and useful) tips we’ve come across that will hopefully enhance your return on investment (ROI) in the direction you are most comfortable with.

Ways to increase your ROI

1. Local networking events

Networking events can be fun, and are often full of salespeople, so it will be important to focus on how you can be different, as well as help those you come into contact with Chambers of commerce and professional organizations host networking events constantly, so you should signup for their email newsletters and pay attention to when these events are taking place. Make as many connections as possible and follow up with those who can assist your insurance marketing strategy with referrals.

2. Facebook advertising

Those sponsored stories in your Facebook newsfeed (or the ads on the right hand side), when done properly, could provide the desired result for your agency. However, it’s also easy to waste a lot of time and money using the wrong messaging or, as in many cases, by targeting the wrong groups of people. For those agents that don’t feel comfortable, or creative enough, to effectively do this on your own, consider hiring a social media-marketing expert who specializes in insurance agencies.

3. Ask clients to add you to their cell phone

Explain to them that, if they don’t already have it in their mobile phone, they should add your agency phone number in case they have a claim or billing question. That way, they’ll be walking around with your contact info everywhere they go, and if someone should ask them about insurance it will be easier for them to refer you, and referrals should be considered one of your most important insurance marketing strategies.

If these three tips aren’t already in your arsenal of insurance marketing tools, then by all means, put them to work for you and see if you garner the type of results you would’ve hoped for.

 

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The Importance of Having Staff Insurance

Lawsuits are becoming an increasingly common occurrence for businesses. If you own a business, then you need to have some form of liability coverage. With a staff insurance policy, you can acquire protection against employee lawsuits and preserve your business’s financial assets.

The Types of Claims Your Policy Covers

Professional liability insurance covers a variety of claims, some of which include:

  • Sexual and gender harassment
  • Breach of employment contract
  • Negligent evaluation
  • Emotional distress
  • Mismanagement of employee benefits plans

Employees sue their employers for a wide range of reasons. You need a comprehensive form of insurance if you want to protect your assets.

The Type of Coverage Provided to Your Business

The cost of your coverage will depend on several factors, including the type and size of your business. Once you have a policy, you will be covered for any defense or settlement costs that arise. You should understand that your policy will most likely not cover punitive damages or criminal fines. Liabilities covered by other policies will not be covered as well.

Secure a High Level of Protection

You secure a broad form of protection when you obtain a professional liability insurance policy. Staff insurance guarantees that your company can cover the costs that accumulate over the course of a lawsuit. Regardless of the size of your business, you should seriously consider acquiring this type of insurance.

 

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Extend Homeowners Insurance to Cover Your Valuables

The things that make a home unique are those things cherished by the people who live there. Some objects have sentimental value only, while others carry both emotional weight and significant monetary value as well. A Princeton home insurance policy may extend to protect the precious jewelry, fine art and one-of-a-kind collections that tell the story of your life.

Special Jewelry

An heirloom cameo passed down through generations, a diamond pendant received to commemorate a milestone and that designer piece brought back from Milan are not only special to you, but valuable as well. Adding a jewelry floater to an existing policy ensures that you are covered in the event of theft or loss due to catastrophe.

Fine Art

An extension to a policy to protect your fine art investments provides for the cost of repair or restoration should something be damaged in a fir or storm. It can compensate for loss if objects disappear or are stolen. The policy may be designed to include a schedule of items individually designated by their declared or appraised values.

Pairs, Sets and Collections

An addition to a Princeton home insurance policy for special assets may provide coverage for a wine collection, stamp or coin collection, musical instruments, silverware, photography collections, firearms, and other unique items. Discuss your particular needs with and agent and find out how to best protect these investments.

 

 

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Should Your Nonprofit’s Directors and Officers Be Insured? Here’s How to Tell

As the director or owner of a nonprofit organization, you automatically assume a degree of responsibility over the entity and put yourself at risk if someone feels you aren’t managing it appropriately. Called “standard of care,” this level of responsibility is what you must uphold, and if you fail to do so, you can be sued or held liable for damages. Most experts agree that these organizations should have directors and officers insurance nonprofit, and here’s why.

Directors and Officers Liability Insurance is Not Covered by General Liability Insurance

Most nonprofits carry general liability insurance, but directors and officers insurance is a separate entity. Professional liability insurance (sometimes called errors and omissions coverage) covers your organization in regards to the products or services it provides. The performance and actions of those on the nonprofit board are not covered.

Lawsuits Against Nonprofit Boards and Directors Are Skyrocketing

When you assume the role of director of a nonprofit, your personal assets are on the line. In some states, nonprofit directors are privy to immunities, limited liability and protection, but this isn’t the case in all states, and these statutes often come with limitations and also don’t apply to federal cases.

If you want to feel confident that you and your nonprofit organization stay protected under a broad range of circumstances, directors and officers insurance nonprofit is your best bet.

 

 

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Finding a Construction Insurance Provider

The construction industry faces a number of unique challenges, from workplace risks to certain financial pressures. Over the past few years the faltering economy has been especially rough on the construction industry, with quite a bit of contraction; even in good times construction businesses are particularly vulnerable to risk. That’s why construction insurance from a good provider is so important.

Corporate Qualities

When seeking a provider for your insurance, you should find a business that is competitive, stable, consistent, and innovative enough to provide for all your needs. They should have good connections with brokers and a firm understanding of market indicators and various regulations, so that they can protect your business and allow you to sustain your growth. A strong background is another must; the provider should add value to your business with several years of experience.

Custom Coverage

There are many different types of construction businesses that need insurance, and capable providers should be able to tailor unique programs for them. Wrap up programs, general contractors, project specific builders, and artisan contractors (such as electrical, HVAC, drywall, or plumbing) should all have specifically tailored insurance.

When it comes to construction insurance, it’s absolutely critical to find the right provider. Be sure to pick an insurance company with experience, competitiveness, and stability—but most of all, it’s important to find one that can design a program specifically for you and your company.

 

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A Healthy IT Relationship

Technology is a highly important resource for nearly every business out there today. It facilitates a more efficient process in many different areas of the workplace. Of course, this is something that everyone is taking advantage of. This makes staying up to date and in the know about IT a key to success in business. At the same time, this is not something everyone in the company can manage. This is why having an IT consultant is a great resource.

Like any important resource, it should be protected. This is where IT consultant liability insurance comes in. A good package can keep everyone involved safe from the inevitable errors that can crop up. After all, everyone makes mistakes. It is possible to customize your insurance package to suit all of your IT needs. The right provider can offer policies specific to IT, such as ones that cover the loss of data. This insurance will protect both the client and the company if damage claims are filed.

As long as your IT consulting department is providing knowledgeable advice on the latest technology, return the favor with comprehensive protection that can keep them in business for years to come. This great resource is a must have for any company that works with IT consulting. A custom package of IT consultant liability insurance will shield you in all different kinds of situations.

 

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