|
AOA News, Views, Tips & More E&O Tip By Curtis Pearsall of Pearsall Associates Inc. Contact Curt at curtis@pearsallassociates.com. Also see his article, "Providing coverage for an Additional Insured - why this is a hotspot that is not going away"
Broker of Record letters - a potential E&O issue
While acquiring accounts via a BOR certainly occurs frequently in this business, it is important to realize they have the potential to result in an E&O headache if not managed properly. If the plan is to simply renew the account as is, you could be simply duplicating a mistake of the prior agent. This is now your file and it is now your responsibility. In fact, in certain situations, the agency that lost the account may have no liability at all because its duty to the customer may be found to have terminated upon the ending of the relationship.
When you acquire an account via a BOR, how confident are you that the current insurance program reflects their current exposures? When were the limits / values last updated? It is best to treat these "new accounts" as if you were targeting them as a prospect by performing a comprehensive review of the file through effective use of an exposure analysis checklist. These checklists, best handled on a personal visit, are a great tool to analyze, determine and update the customer's exposures. Then on the proposal, provide options for them to consider and for those coverages that they do not desire, get the appropriate sign off. This will certainly help to build a stronger E&O wall.
On personal lines accounts, since a face-to-face meeting is probably not as practical, provide these accounts with a pre-renewal questionnaire to complete and return. This is a tool contained in the Exposure Analysis checklists that, as with commercial accounts, helps to identify exposures that have developed in the last year, and those the customer was not aware of or thought were already insured. When you meet with the customer to discuss "what they had" and what you are proposing, be sure to bring to their attention any differences in the insurance programs. While there will no doubt be enhancements that you are making to the program, the possibility exists that there may be areas where the coverage is less. It is critical to bring these to the customer's attention, document the discussions and get their sign off that they are agreeing to the switch. Is it clear exactly when your agency technically becomes the agent of record? Is it effective midterm or at the next renewal? Is the account switching over all of its business or just a part of it? How does the carrier handle these matters? These are issues that need to be discussed and resolved to ensure any coverage modifications or claims issues are handled properly. There have been a number of E&O claims where this area of confusion has resulted in the mishandling of certain issues. Bottom line - Do not simply renew "as is." Perform the necessary updates on coverage's and limits and keep your agency from a potential E&O headache. For additional information contact curtis@pearsallassociates.com or visit Pearsall Associates.
Insurance Coverage Tip by Kristie Resnick of Martin & Company Auto Insurers use Telematics to track driver's habits Auto insurers have found a new way to implement usage-based insurance with the integration of Telematics Systems. Carriers offering this feature allow insured's to place a small device in their car to track their driving habits and mileage. The data is assessed to determine if the insured is eligible for a premium discount. The benefits of these programs are seen by both the Carriers and the Insureds. The implementation of Telematics encourages insureds to develop safer driving practices, leading to fewer accidents. Commercial insureds, including fleet managers, are able to more effectively track their driver's habits and enforce safety standards. Hartford's TrueLane and Progressive's SnapShot are among the programs offering Telematics to Personal Auto customers while Liberty offers the commercial counterpart through their OnBoard Advisor Program. To view more "hot trends" in the Property & Casualty Insurance Marketplace, visit: Martin & Company's Market Trends & Updates
E&O Loss Prevention Tip Description of Claim: Common Mistakes in Replacing Coverage Allegations against the Agent: Agent bound a Multi-State Commercial General Liability policy for his client, a contractor, on 2/27/2002. The contractor performed work in a variety of states, including California. Prior to placing this coverage, the contractor had coverage that did not have any exclusions for work performed in California. However, the insured agent in this matter placed coverage with a surplus lines carrier that had an endorsement attached to the policy that excluded any operations performed in California. When the insured reported a claim to the carrier, it was denied due the exclusion for work performed in California. The underlying loss: The insured was sued for work defects and damage resulting from these defects. Damages: $32,500 for the defense costs and $4,500 for resulting damages flowing from work performed by the insured. Brought to you by: CalSurance Associates - A Division of Brown & Brown Program Insurance Services, Inc. Email: info@calsurance.com
Sale Hunting Tips By Mark Hunter, "The Sales Hunter". Also see his article, "Your Network is Your Insurance Policy" Show your client respect by taking notes on what they're saying. - When you're in a meeting with a client one of the best ways to show respect and get them to share with you even more information is by taking notes on what they're saying. When they see you taking notes you're visibly showing them how much you care about what it is they're saying. For more Information visit www.thesaleshunter.com or contact Mark@TheSalesHunter.com. How to Make and Save Money in this Market By Bruce Hughes of 321Swipe.com Also check out his article, "Understanding PCI Data Security Standard" Expand your product line. Today an entirely new industry is forming. Get in front of the wave you don't want to miss this opportunity. Identity theft is rising and the insurance industry and the credit card acquirer world are forming an alliance to provide solutions and mitigation products to combat this ever growing threat. For additional information contact Bruce Hughes at 941 552 0725 x 103, or visit www.321Swipe.com
Social Media Tip By Cynthia Cavoto of Fire Brand Social Media, LLC This month's EBook is entitled, "Press Release Traffic Secrets" we know you'll find this information valuable for your business. Also see her article. "When Should you Hire a Social Media Marketing Consulting Firm?" Each month, we will feature a brand new Social Media EBook that contains valuable information on how you can harness the power of social media. Each featured EBook will contain a wealth of information that will include such topics as Facebook, LinkedIn, Twitter, Email and Blogging to name a few. Contact Cynthia at cynthia@agentsofamerica.org. Result From Last Month's poll question |
How often does your agency review and update their internal procedure manual?
| |
We don't have an internal procedure manual 4%
| |
It is reviewed every year. 68%
| |
It is reviewed every 2-3 years. 21%
| |
We have a procedure manual but it has never been updated 7%
This month's poll question:
|
How often does your agency participate in E&O Risk Management training?
|
~ As required by my E&O carrier to obtain a discount
~ Yearly
~ Every 3-5 Years
~ Never |
|
|
How to Use Insurance Leads By ParsaolLeads Keep yourself updated on the market trends related to the insurance product that you are selling. This is the kind of information that you can use in your sales pitch or presentation. Market knowledge is also the kind of thing that helps you establish your expertise on insurance with your customers. For more information visit ParasolLeads | 
