CITA Insurance Services | Professional Liability Insurance Broker https://www.citainsurance.com Specializing in Professional Liability Insurance Fri, 11 Jan 2019 18:43:01 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.9 102180131 Reviewing Your E&O Coverage Needs https://www.citainsurance.com/reviewing-eo-coverage-needs/ Mon, 04 Dec 2017 23:30:53 +0000 http://www.citainsurance.com/?p=2020 Do you Review your E&O Insurance Policy before you Renew? Errors and Omissions insurance is also known as Professional Liability insurance. It protects you against Read More ...

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Do you Review your E&O Insurance Policy before you Renew?

Errors and Omissions insurance is also known as Professional Liability insurance. It protects you against lawsuits that challenge the quality or professional delivery of your work. E & O insurance policies are often issued in increments of one million, and they give businesses just the safety net they need to thrive.

Do your Need Errors and Omissions Insurance?

Most companies rely on General Liability Insurance to safeguard themselves from business liability risks. While this particular type of insurance covers your organization for losses stemming from property damage, medical expenses, and bodily injury to a third party, it doesn’t cover claims associated with negligence, under delivery, mismanagement, documentation errors, and mistakes. Sometimes, clients may even file a lawsuit against you if they’re not satisfied with the outcome of your work or if the entire project fails. This doesn’t in any way mean you’ve underperformed. It only means that their perception of your work matters, and if your clients feel you were professionally negligent, they’ll likely turn to the courts to recover their financial losses. Errors and Omissions insurance covers the cost of these claims, even if they’re meritless.

What Does E & O Insurance Cover?

E & O insurance typically covers the cost of hiring an attorney, settlement or judgment expenses, bond premiums, and miscellaneous court costs, up to the limit of the policy. The coverage ensures you don’t have to pay any out of pocket costs for the claims filed against you. While you ought to have E & O insurance to protect your business from huge financial losses, you also need to review your policy periodically to make sure you’re well protected throughout the life of your business. Find out whether your business has grown or operations have changed before you renew and ensure the policy covers you for any new risks that might arise.

How to Review your E & O Insurance Policy

Price

Many business owners wrongly assume that all E & O policies are created alike and therefore settle for the cheapest policy. The truth is that you generally get what you pay for. The most affordable E & O policy may not offer you adequate coverage for your operations. Look at your current policy, find out if it’s specifically tailored to your company, determine the level of risk for your organization and get the added protection if you have to. A programmer designing software for educational institutions runs a different level of risk than a business designing software for airports. So be aware of the unique risks your business carries and review your policy before you renew to make sure you’re fully protected.

Claims-made Coverage

You have to ensure your E & O policy is active when an alleged incident occurs. The policy also has to remain active when a lawsuit is filed. So if you’re planning to switch to a new insurance provider, you might end up exposing your business to gaps in coverage. Review your current policy instead of switching or sign up for ‘tail coverage’ so you can make claims during times of transition.

Bear your Client’s Needs in Mind

Many client contracts may legally require you to carry E & O insurance. This coverage proves that you will be able to the cost of financial losses suffered by the client because of your mistakes. So if you’re working with new clients, you will have to adjust your level of coverage to suit their specific requirements. Double check the customer’s contract, think about the most dangerous threats and risks you might encounter, and make sure the policy covers you for those specific risks.

Remember when it comes to your business, you don’t ever want to be underinsured. Review your policy annually or when you work with a client that has their own E & O policy requirements. It the best way to shore up your defenses against unexpected lawsuits.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

 

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Do you Know What Impact a Data Breach can Have on your Insurance Agency? https://www.citainsurance.com/know-impact-data-breach-can-insurance-agency/ Wed, 01 Nov 2017 23:15:55 +0000 http://www.citainsurance.com/?p=2003 According to a 2016 research study performed by the Ponemon Institute, the average total organizational cost of a data breach in America was a whopping Read More ...

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According to a 2016 research study performed by the Ponemon Institute, the average total organizational cost of a data breach in America was a whopping $7.01 million. The same study also reveals that the cost of data breaches is the highest in the US as well as Germany. This cost includes the cost of hiring forensic experts to investigate the incident, identity theft and credit monitoring, customer loss resulting from turnover, poor client acquisition rates and more. Data breaches disrupt regular business operations. Their financial consequences are so severe that they can take any business to the cleaners. Interestingly, the cost of a data breach varies from industry to industry. Healthcare organizations, financial firms, and manufacturers pay the highest for each lost or stolen record.  Although companies are making an effort to shore up their defenses, cyber criminals are employing highly sophisticated techniques for their own gain, and they’re increasingly targeting companies that store vast amounts of client data.

Impact of Data Breaches on Insurance Agencies

Back in 2015, Anthem, one of the industry’s largest health insurance companies, became the victim of a high-profile cyber attack that put the records of over 80 million customers at risk. The financial losses that resulted from this attack were enormous. Once hackers gain access to a company’s system, they steal personal information like customer names, addresses, employment information, and Social Security Numbers. The stolen information is either sold on the black market or used as a tool for other malicious activity. The fact is that cybercrime is a real threat to businesses of all sizes and insurance agencies are equally vulnerable.

In the aftermath of an attack, companies are thrown into a state of chaos. They have to scramble to put up new firewalls, identify vulnerabilities that caused the data breach, and work hard to remediate the issue. They also have to involve law-enforcement officers, legal advisors, and a crisis management team to address regulatory concerns. It’s not easy to recover from a data breach. Most companies report a drop in sales and a high customer loss following a highly sophisticated incident.

Mitigating Risks

All agencies are vulnerable to cyber security breaches, regardless of their size, location, and specialties. They can, however, take a few measures to protect themselves and their clients from malicious attacks. Firstly, insurance agency staff at all levels need to understand and recognize the risks they face. They need to use an added layer of security to protect their most sensitive material. Secondly, they need to mitigate risks by purchasing cyber liability insurance.

An Overview of Cyber Liability Insurance

Cyber liability insurance helps you better manage the risks associated with a data breach and significantly reduces the cost that can result from a breach. While cyber liability insurance doesn’t protect you from any cyber-attack, it does make sure your business has the necessary revenue to cover the cost of an attack. With the necessary funds in place, you’ll be able to recover from a data breach faster, without running into huge losses.

What Cyber Liability Insurance Typically Covers:

  • Notification costs
  • Credit Monitoring Costs
  • Cost of defending claims by state regulators
  • The cost of losses resulting from identity theft
  • Fines and penalties
  • Liabilities arising from business interruption
  • Extortion related expenses
  • Costs associated with data loss of third-party suppliers
  • Remedial system engineering

General liability insurance doesn’t cover you for losses associated with cybercrime, but a comprehensive cyber liability insurance policy does. The policies can also be tailored to suit each business. If you’re an insurance agency that stores private and confidential client information, you need cyber liability insurance to ensure your future financial security. Talk to the cyber liability insurance experts to find out how you can protect your online environment from data security issues that cripple thousands of organizations every year.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

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Is Your Hotel or Resort Properly Insured? https://www.citainsurance.com/hotel-resort-properly-insured/ Sun, 01 Oct 2017 16:00:05 +0000 http://www.citainsurance.com/?p=1995 Getting the right insurance to cover your hotel or resort business is critical. Read on to learn more about the different types of cover and Read More ...

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Getting the right insurance to cover your hotel or resort business is critical. Read on to learn more about the different types of cover and to make sure that you make the right choice.

Limitations of a Basic Package

A hotel or holiday resort is a business, and, as such, it is governed by all the forces which usually affect a business, in particular, profit and loss. With this in mind, it might be tempting to plump for a basic package with relatively low cost premiums.

Unfortunately, while this can save you money in the short term, the long term ramifications are less optimistic. If you find yourself without the insurance you need, the cost to you and your business could be great.

Basic hotel and resort insurance packages will be spread across two tiers; liability insurance and property insurance.

Property insurance will deal with damage or loss related to the property of the hotel or resort and its guests. This includes damage to indoor and outdoor features of the resort, computers and electronic devices on site, data loss for accounts receivable, clean-up following extinguishing of fires, losses following power surges or failures, among other areas.

Liability insurance will, instead, deal with damages suffered by a staff member, guest or third party. This generally includes;

  • Damages or bodily injury to a third party
  • Liability relating to slanderous or libelous messaging, via advertising or other channels
  • Loss or damage of guest property
  • Hotel or resort professional liability
  • Personal injury insurance
  • Medical liability (cost of treatment)
  • Liabilities on both written and oral contracts

While this might seem to be comprehensive, it may not provide everything that the particulars of your hotel or resort business require. It is certainly worth taking the time to examine the cover and protection you are entitled to and weighing that up against what you need. No one likes nasty surprises, after all.

Additional Coverage

Additional coverage can take many forms. What you need really depends on the type of hotel or resort business you operate. For example;

  • If you serve alcoholic drinks, either in a bar, via room service or within a restaurant, you may need additional liquor liability attached to your insurance coverage.
  • If you own or operate any sort of fleet of commercial vehicles – for example, taxi or airport shuttle services, or delivery fleet – this may require additional liability coverage.
  • Unforeseen circumstances which prevent you from running your business and making money may not be covered in your standard insurance package.
  • While losses related to acts of crime against property or person should be covered to an extent, you may want to consider additional criminal components for comprehensive coverage.

There are additional coverage options that are not listed above. Your package can cover any aspect of your business and its profits which are not covered in your basic hotel or resort policy.

Tips to Avoid Being Underinsured

Finding that your hotel or resort insurance policy does not quite cover what you need it to cover is not a good feeling, and can be potentially disastrous as far as your business is concerned. By following these tips, you can make sure you receive the full coverage you need.

Audit what you have – It is important to understand the coverage that you already have. Examine your policy carefully and make sure that what you are paying for is suitable for your needs. It is also important to check that you are not overpaying; for example, if you are paying for commercial vehicle insurance when you do not operate any vehicles relating to your business.

Be realistic about what you need – What could potentially cost you a lot of money? Doing a thorough risk assessment is the only way to answer this question. This will give you a framework which you can apply when weighing up a potential policy.

Speak to a broker or agent – Gaining professional assistance which you can trust is a failsafe way for you to acquire the coverage you need.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

 

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5 Tips to Prevent Errors and Omissions in your Property and Casualty Insurance Agency https://www.citainsurance.com/5-tips-prevent-errors-omissions-property-casualty-insurance-agency/ Fri, 01 Sep 2017 17:54:42 +0000 http://www.citainsurance.com/?p=1991 Your property and casualty insurance agency relies upon its fine reputation. Unfortunately, when the errors and omissions in your professional practice begin to stack up, Read More ...

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Your property and casualty insurance agency relies upon its fine reputation. Unfortunately, when the errors and omissions in your professional practice begin to stack up, this reputation begins to erode.

Read on for five tips on how to prevent these errors and omissions, and build a reputation for your agency which will stand the test of time.

Focus on Clear and Precise Communication

One of the primary factors that leads to errors and omissions when dealing with property and casualty insurance is a breakdown in communications between yourself and the client. This need not be a total breakdown in the relationship; even just a failure to share a small but pertinent bit of information can result in a dangerous omission.

If your agency fails to report a claim in time, does not explain the provisions of a certain policy to the client, or is unsuccessful in achieving suitable coverage, the client is well within their rights to complain. Maintain clear communication and avoid this pitfall.

Build Robust Protocols

A skilled insurance agent will be able to think on his or her feet and will be able to apply their skill and experience on a case by case basis. However, this does not mean that they should be hung out to dry in the event of a mistake.

Robust protocols give a sturdy framework that your agents can fall back on if required. This structure represents a safety net, taking the pressure off your team and making it far easier for them to perform at their best.

Stay on top of Developments in the Market

A common complaint about errors and omissions is that the agent has failed to offer the right coverage type. Often this is simply because of a recent change in the rules, regulations or offerings that the agent was unaware of.

The only way to combat this is to foster a culture of diligence and responsibility when it comes to examining changes in the industry. Only agents and agencies who form these kinds of habits will be able to protect themselves against this error, so aim to introduce this on a systematic level across the board.

This requires significant hard work and discipline, but the potential rewards make it worth it in the long run.

Maintain Your Records and Embrace Digital

The modern property and casualty insurance agency has a wealth of different tools and digital platforms at their disposal when it comes to record keeping. As the industry has evolved way beyond the confines of manual querying via stacks of paper and ink documents, there is no reason why an insurance agency cannot develop a solid system of recording and monitoring.

Assess your current record keeping system; is it up to scratch? If not, why not? Once you understand what is going wrong with your current system, you can take steps to put it right. Do not fall into the trap of letting your records grow cumbersome, unwieldy and untidy; such a system is a relative breeding ground for errors and omissions. Instead, embrace the digital revolution and keep on top of your records.

Appraise and Reappraise

For an insurance agent, regular appraisals are part and parcel of an effective process of development, and should not be shied away from. The fact of the matter is simple; a client comes to you and your agency because they need to be connected with the right insurance coverage. It is only through the skill and expertise of your agents that this can be achieved.

So, appraise this skill and analyze this expertise. Coach your team, nurture them, help them to grow and develop along the career path. This will not only help them to make the right calls in the short term, but will also set them on the right track towards a bright professional future.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

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The Best Defense against Cyber Risks https://www.citainsurance.com/best-defense-cyber-risks/ Tue, 01 Aug 2017 16:46:34 +0000 http://www.citainsurance.com/?p=1974 Although news headlines highlight data breaches involving large corporations industry studies show that the majority of data breaches, including ransomware incidents, involve much smaller firms. Read More ...

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Although news headlines highlight data breaches involving large corporations industry studies show that the majority of data breaches, including ransomware incidents, involve much smaller firms. Large corporations have extensive resources to devote to cyber defense and security, smaller firms, such as insurance agencies generally do not, making them easier targets for cyber criminals.

The average agency handles relatively large amounts of confidential client and employee data, making them attractive targets for cyber criminals. At least 47 states have breach notification laws mandating actions which much be taken by firms that  sustain a loss of personally identifiable employee / client  information. Even if a cyber attack does not physically disrupt an agency’s operations the costs associated with forensic investigation and breach notification can have a catastrophic impact on the firm’s balance sheet. Other less tangible impacts include loss of clients and damage to a firm’s reputation.

As agencies rely more and more heavily on electronic communication and the use of mobile data devices, the potential for cyber attack grows exponentially. If an employee with access to the agency’s system clicks on a malicious website, one that’s been hacked or downloads software containing malicious code the system can be compromised. A study of 1200 data breaches within the US Government determined that 95% were related to employee human error. Accordingly properly managing the human element is any firm’s first line of defense to cyber threats.

Employee awareness and education are key to preventing attacks. Security industry studies indicate that most breaches involve some level of employee involvement, whether through clicking on a phishing e-mail, downloading a questionable document or app, or simply failing to employ effective passwords. Firms should educate staff on risks related to use of personal devices on the job, what to do if one is lost or stolen, and risks associated with traveling and/or accessing sensitive data through unsecured connections such as coffee shop free Wi-Fi and hotel business centers. Cyber awareness education should be mandatory for all employees, with periodic testing. Additional mandatory training should be required for staff that fail such tests. Special emphasis should be placed on staff training in key departments that are particularly vulnerable to cyber attack such as finance and human resources. Mandatory mobile and employee owned device policies should be established to ensure that employees don’t create unguarded network access points. Password protect and use encryption software on all devices used to access the firm network, including employee owned devices.

Properly assessing your firm’s cyber risk, developing effective cyber security measures, employee education and proactive planning can all help your firm manage cyber security risks while protecting its reputation and profitability.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

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Always Get It In Writing https://www.citainsurance.com/always-get-writing/ Sat, 01 Jul 2017 17:00:34 +0000 http://www.citainsurance.com/?p=1943 Claim Scenario: An insurance agent wrote a large life insurance policy for a 40 year old client who also requested a premium waiver in case Read More ...

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Claim Scenario:

An insurance agent wrote a large life insurance policy for a 40 year old client who also requested a premium waiver in case of future disability. Although the agent advised the client that the rider containing the waiver would be issued with the policy, the policy was issued without the rider and neither the agent nor the client reviewed it when received. Years later, the client was injured in an industrial accident and became totally disabled. The client notified the life carrier that he was unable to pay his premium due to inability to work and requested a premium waiver. The carrier responded that the policy had no such rider and the policy ultimately lapsed due to non-payment of premium. Shortly thereafter the client died and his heirs filed a death claim with the life insurer, which was denied. The heirs thereupon filed suit against the agent and carrier claiming breach of contract, bad faith, misrepresentation, and negligence. The agent defended on the basis that the client never requested a premium waiver, and the heirs claimed that the decedent not only requested the waiver but always acted in accord with his belief that he had one. Due to the lack of documentation in the client file, the agent’s E&O carrier settled the claim.

Loss Prevention Tips:

Failure to maintain proper documentation always puts agents at risk in the event of a claim. Good documentation is your first and best line of defense to any client claim. Use care in explaining the terms of any coverages purchased to your clients, especially coverage exclusions. At the end of the meeting, confirm with the client exactly what he bought, and always document in writing any coverage requests and / or declinations of important coverages or limits by clients with copies delivered to the client and filed in the client file. All binders should be issued in triplicate with the original copy sent to the insured, a copy to the company and a copy to the client file. At delivery, review the policy terms and confirm in writing with the client that they reflect the coverage sought by him. Proper documentation allows client disputes to be addressed quickly, calmly and effectively with minimal negative impact on time, costs, reputations and relationships.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

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Risk Management Tips https://www.citainsurance.com/risk-management-tips/ Thu, 01 Jun 2017 17:22:15 +0000 http://www.citainsurance.com/?p=1931 Take a look at the below claim scenario to learn how you may better protect yourself as a producer: Claim Scenario: A top producer in Read More ...

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Take a look at the below claim scenario to learn how you may better protect yourself as a producer:

Claim Scenario:

A top producer in a large insurance agency depends upon his agency issued laptop and smart phone to remotely access the agency’s computer network while servicing his large group of far flung clients. While checking his e-mails from a remote location he opens an e-mail which purports to be from a major client, stating that the client is attempting to send important documents and providing a link to facilitate delivery. The agent clicks on the link and is prompted to provide his user name and password for the agency e-mail system, which he does. His personal device and the entire agency network is then immediately infected with malware. The agency network quickly becomes inoperable, and a demand for $5000 to unlock the system is shortly received.

Risk Management Tips:

Many businesses, including insurance agencies, tend to downplay the risk that their computer systems and data may be at risk. Cyber attacks can and do impact firms of any size and any level of technological sophistication. They can involve simple data theft, denial of service attacks, or introduction of malware or ransomware into the firm’s network, servers, and mobile devices. The methods and sophistication of cyber attackers continue to evolve as technology advances. Accordingly, firms are obliged to proactively develop and continuously update cyber security programs to mitigate both existing and emerging cyber risks.

Employee education is key to attack prevention. Security industry studies indicate that most breaches involve some level of employee involvement, whether through clicking on a phishing e-mail, downloading a questionable document or app, or simply failing to employ effective passwords. Firms should educate staff on risks related to use of personal and corporate devices on the job, what to do if one is lost or stolen, traveling and accessing sensitive data through unsecured connections such as coffee shop free Wi-Fi and hotel business centers. Pubic Wi-Fi hotspots are especially prone to malware. Employee cyber awareness education should be mandatory with periodic testing.

Creating and testing a breach response plan will help lessen the impact the impact of and time lost to a cyber attack. The plan should designate who will be contacted when to respond to an attack. The plan should include instructions on how and when to communicate with anyone outside the firm including the media. The plan must be communicated to all employees with mandatory compliance required, and periodically tested, re-evaluated and modified as necessary to meet evolving threats.

Software updates, including any security patches, from software providers should be installed promptly on all devices used to access the firms network, including employee owned devices. Establish mandatory corporate mobile and employee owned device policies to ensure that employees don’t create unguarded network access points. Password protect and use  encryption software on all devices used to access the firm network.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

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Who is Insuring the Insurance Agents? https://www.citainsurance.com/insuring-insurance-agents/ Mon, 01 May 2017 21:46:29 +0000 http://www.citainsurance.com/?p=1926 Insurance agents do a great job making sure that their clients are insured against all the risks they might face, including auto accidents, hurricanes, fires, Read More ...

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Insurance agents do a great job making sure that their clients are insured against all the risks they might face, including auto accidents, hurricanes, fires, even a guest who slips and falls at their home. But are the agents themselves properly insured?

Insurance agents can make mistakes, just like anybody else. Most are aware of the risks and know how important it is that they have errors and omissions, or E&O, insurance coverage. But not all agents carry this important coverage.

What is E&O?

E&O coverage is insurance protection against something you do that you shouldn’t (an error) or something you should have done, but you didn’t (an omission). In some professions, like healthcare, it’s referred to as malpractice insurance. It protects you if a client sues you.

Why Do You Need It?

Why would an insurance agent need E&O insurance? Here are a couple of examples of when it would come in handy.

A Dissatisfied Client

An elderly client comes to you and says they are worried because they don’t have any life insurance. You know they have several medical conditions, so you suggest a guaranteed issue policy. The client says that’s fine; he just wants something that will pay for his funeral, so his wife doesn’t have to worry about it.

You explain the limitation of the guaranteed issues policy, such as the low face amount and the fact that if he dies within two years, his beneficiary gets a return of premium, not the policy’s face value. He says he understands this.

Five months later, the client’s wife calls you to report that the client died. She wants to know what she needs to do to get the $25,000 death benefit from the guaranteed issue policy he purchased from you. You explain that she will only get a return of the premiums paid because he died within two years of purchasing the policy. The wife gets upset and sues you.

You didn’t do anything wrong, and it’s highly unlikely that she would prevail in court. But you need to hire an attorney and may have to take time away from the office to defend yourself. These costs could be covered by and E&O policy.

An Employee Error

You hire a new administrative person in your office. They are getting to the point where they can do most things on their own, but you ask one of your senior people to check everything just to be sure.

A longtime client calls in to add their teenaged child to their auto insurance. The young man has just gotten his driver’s license. The new admin takes the call and tells the client that he will make the change, but he’s never done this before. He goes to ask the senior admin for help, but she’s at lunch. He puts the request aside, and it gets buried under a stack of papers and doesn’t get processed.

A week later, the client calls and says his son has had a car accident, and their nearly new car is totaled. You look up the policy and see that the new driver was never added. Your E&O policy should cover the costs that the client’s policy won’t.

What if You Already Have It?

Just as you recommend that your clients review their insurance protection every few years, you should review your E&O coverage. If your book of business has grown, you may need more coverage. If you’ve hired more employees or acquired another agent’s book of business, you definitely need to review your policy, and will probably need to increase your limits.

People make mistakes. The more people who work for you, the more likely a mistake will be made. By purchasing adequate E&O insurance, you’re protecting your business – and setting a good example for your clients.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

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Don’t Cut Corners https://www.citainsurance.com/dont-cut-corners/ Mon, 03 Apr 2017 21:47:08 +0000 http://www.citainsurance.com/?p=1899 Claim Scenario: A landlord asked his longtime agent for a landlord’s insurance policy for a number of residential rental properties he owned located near an Read More ...

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Claim Scenario:

A landlord asked his longtime agent for a landlord’s insurance policy for a number of residential rental properties he owned located near an elementary school. The agent had a busy day filled with appointments so he was only able to squeeze in time to stop by his client’s property between appointments. The agent looked at the exterior and took a number of cell phone photos. Because the exterior appeared to be well kept and in good repair, the agent felt that strict compliance with the carrier’s underwriting guidelines requiring detailed exterior and interior inspections was unnecessary. Sometime later the client called to report that a parent rushing to pick up her child had inadvertently struck the corner of the house with her vehicle causing significant structural damage. When he visited the property again the agent learned that it was being used as a child day care facility, which would have been apparent had he done an interior inspection during his initial visit. Although the type of business was excluded under the carrier’s policy, the carrier elected to settle the damage claim and pursue an E&O claim against the agent to recover its loss.

Risk Management Tip:

Binding a carrier to an ineligible risk happens all too frequently, and is perhaps the easiest risk to avoid. Always comply with the underwriting guidelines of the carrier you represent, and never give in to the temptation to cut corners no matter how busy your schedule is. Strict compliance to agency underwriting guidelines should be an integral part of every agencies risk management program, together with regular auditing to monitor compliance.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

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How to Handle the Lying Client https://www.citainsurance.com/handle-lying-client/ Thu, 02 Mar 2017 18:55:36 +0000 http://www.citainsurance.com/?p=1893 Have you ever completed a telephone conversation or meeting with a prospect or client and had the suspicion that he hadn’t been completely truthful? As Read More ...

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Have you ever completed a telephone conversation or meeting with a prospect or client and had the suspicion that he hadn’t been completely truthful? As an agent, you have probably become accustomed to hearing bogus excuses from prospective clients who simply don’t want to meet with you. Such simple “white lies” are an unfortunate fact of business life. However, clients who actively misrepresent material facts can pose a serious threat to your business. If they are willing to do so, lying clients may be willing to fabricate or falsify a claim against you for their own benefit.

How you respond to such a situation depends in large measure upon how serious you believe the lie to be. A “white lie” is relatively easy to deal with, but a serious and material falsehood is a clear sign of a potentially more sinister character flaw. You will need to consider whether continuing to deal with that client is worth the risk to your business and your E&O coverage.

When a client lies to you:

  • Don’t automatically assume the client is intentionally lying.
  •  Advise your client that it is in the best interests of both you and he to be completely truthful, and request a clarification.
  • If the client admits the lie, allow him to tell the truth. If he persists in the lie you will need to seriously consider whether he should continue to be a customer.
  • Never go along with a lying client – your acceptance and use of materially information which you know or suspect to be false is very likely to result in serious negative legal repercussions.

As a businessman your good reputation for honesty and integrity is a primary selling tool and should never be risked.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CITA Insurance Services, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

The post How to Handle the Lying Client appeared first on CITA Insurance Services | Professional Liability Insurance Broker.

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