Key questions for Agents to consider:
How are processes documented and tracked for prospect and client interactions?
Do they include the proper time and date stamp and audit trail? How exposed is your agency?
E&O is estimated to be a $500 million dollar annual expense for agents and is considered a cost of doing business with approximately 90% of all agencies carrying E&O protection. However, the coverage and limits are sometimes not adequate, presenting significant financial risks.
Today, agencies are interacting with customers and carriers through a complex set of delivery and distribution channels such as phone, fax, paper, e-mail and the web. Creating an audit trail of all correspondence, conversations and communications with time and date stamps can be expensive and challenging.
In a litigious world where people make mistakes, a complex paper-driven process has a higher chance of error. Automation can reduce human error while also providing a fast and easy way to provide audit trails for claims processing and in this way actually help close out cases.
There is alot to know about E&O Insurance before you select the best policy for you. There is alot of information that is sponsored by the National Ethics Bureau (www.ethicscheck.com) available on the website www.EOforLess.com and you can research the different types of coverage that are available for Preferred Risk Financial Advisors and Insurance Agents. If you have any further questions we would be happy to answer them for you!!
Ian
Errors and Omissions insurance is a critical component of the operations of an insurance agency. Often we find insurance agencies don't do the same due dillegence for their own policies that they do for their clients. Good Post.
Mike Smith
Axis Insurance Services LLC
www.axisins.com