10 Tips for Avoiding Agent E&O Exposures

Insurance agents need to be proactive to avoid future errors and omissions allegations. E&O coverage provides protection for your insurance business from claims of negligence or failing to perform your professional duties.

The following tips can serve as suggestions to avoid claims across your agency’s operations:

  1. Prepare binders immediately and indicate the time and date that the binder is effective.
  2. Help to educate insureds by providing examples of coverages and their intended protection.
  3. Discuss any coverage limitations that are included in the policy.
  4. Inform clients when using a non-admitted carrier or a carrier with a lower rating.
  5. Be cautious when explaining “comprehensive” coverages. Be sure to detail any of the policies limitations.
  6. Make sure that your clients sign off on unwanted coverages.
  7. Help to educate insureds by providing examples of coverages and their intended protection.
  8. Get written confirmation of the insured’s declination to purchase key coverages or limits.
  9. Never specify that there is or is not coverage unless you are certain.
  10. Select the most current version of your carrier’s application.

To help agents explain some of the optional coverages available in our MiniCo’s specialty self-storage insurance program, we’ve created a “Coverages in Action” flyer.

Contact a MiniCo underwriter for more information.

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