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As a business owner, you need several kinds of insurance to keep your business secure. From health insurance for your employees to automobile insurance for your fleet, you rely on insurance agents’ expertise and advice when you purchase new coverage and file claims. Because you provide insurance providers with your trust and money, their agents have a responsibility to protect your interests.
When an insurance agent makes a mistake that results in financial damage to your business, you have the right to file an errors and omissions claim. If your agent has E&O insurance, the process is relatively straightforward, but the best policy is for agents to prevent these claims in the first place. Here are four of the most common precautions for insurance agents who want to know how to avoid E&O claims.
1. Explain Plans Carefully
Insurance agents must thoroughly explain every plan’s details before they let clients sign their contracts. This involves going through all the terms and conditions, particularly the ways that clients could lose their coverage. They also need to note the expected premium payment schedule. If it seems like your insurance agents’ new contract meetings take forever, it is probably because they take this precaution seriously.
2. Offer the Right Coverage
Insurance agents must offer the right plans to the right clients to avoid E&O claims. For example, if you do not meet an insurance company’s credit score requirements or if you are outside their service area, the agents have a responsibility to deny your application. If you already have coverage, your insurance agents must maintain your plan and only offer upgrades that you qualify for.
3. Keep the Paperwork in Order
If your insurance company wrongly denies your claim because of an administrative error, you can make a claim with their E&O insurance provider. To avoid these mistakes, most insurance companies have stringent communication policies in place. Each client gets a specific agent, and there is a clear chain of command among the different supervisors and agents. When agents receive contracts and other paperwork for new clients, they must file it securely and report it to the correct supervisors.
4. Watch Claims Carefully
When you report claims to your insurance company, your agents must efficiently send this information to their companies so that you can get coverage. Your insurer probably has a timeframe for reporting each claim, and your agents follow this schedule strictly so that they don’t disqualify you from receiving coverage. They also need to communicate with you and the insurer to make sure that everyone has the right information and that your claim does not get lost. If your agents fail to track your case, you may be eligible for a claim against their E&O insurance.
About Transparity Insurance Services
Transparity Insurance Services was founded for the purpose of helping clients to ensure their property and assets with no hassle. We are committed to providing a simple, easy, efficient, and positive experience to all of our clients, and prioritize open and transparent communication with our clients. Through our excellent customer service and technology, we can help you to find the right insurance program at a competitive price. Contact us today at (855) 889-2037 to learn more about what we can do for you.