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Omissions Insurance for Insurance Agents and Risk Management

Omissions Insurance for Insurance Agents

We live in a highly volatile legal environment where steps need to be taken to minimize the likelihood of claims being brought against insurance agents. While many service providers face the threat of lawsuit from clients claiming that they were somehow the victims of some type of wrongdoing, insurance agents remain targeted for the services they provide, requiring them to protect their interests with Omissions Insurance for Insurance Agents.

 

Claims of Omissions or Other Errors Need To Be Taken Seriously

Claims of errors or omissions in the conducting of business affairs are serious allegations. If most agencies would work to promote a better culture and commitment to prevent these types of errors from happening, they would likely see a reduction in these sorts of claims. Doing so could only improve the possibility of increasing sales, making this a win-win situation, creating better loss control, and ultimately enjoying a positive bottom line.

One way to achieve this goal is to initiate loss control seminars, focusing on specific agency concerns, such as risk management and the recognizing of problem areas. The goal should be to conduct a thorough analysis of the agency and provide the company with a comprehensive plan, one that demonstrates what is working well and areas in need of improvement.

 

Ways To Reduce Exposures

Following company policies and procedures aimed at lowering the threat of claims and lawsuits should help with this cause as well. This includes taking notes during all business related conversations with customers and prospects, date stamping all mail indicating the date it was received, and making sure all pertinent faxes and emails show the date they were received as well.

Managers should make sure that employees are familiar with agency procedures, checking all customer policies before sending them out in order to be sure the coverage’s are what were agreed upon. Agents should have customers sign rejection letters for any coverage suggested by their agent that they make the decision to decline.

Also, check all renewals to be sure that coverage has not changed, make sure that all quotes have an expiration date, ensure that customers sign every application for insurance, and see to it that customers confirm any changes to their coverage in writing.

Finally, be sure to explain policy exclusion to customers, keeping them up to date with company procedures, policy forms and special endorsements. These are important steps to take, along with carrying Omissions Insurance for Insurance Agents.