Why Is There Errors And Omissions Insurance For Insurance Agents?
Insurance agents are human, too
Insurance agents are human, too. These professional, detailed people sometimes make mistakes no matter how careful they try to be. Insurance agents write orders for insurance policies at the clients home or place of business, in their office in a face-to-face interview, over the telephone and over the Internet. Clients call these professionals asking for information, requesting changes or reporting claims on their policy. Errors and omissions insurance for insurance agents protect these hard working, dedicated people when they make a mistake. These mistakes can happen in four different categories. The insurance agent may forget to write a policy, right the wrong policy, neglect changes or forget to record a claim or potential claim.Errors & omissions insurance for insurance agents protect these people when they accidentally forget to do something. An insurance agent may schedule two or three appointments in an afternoon; the first client may be late and the agent hurries to make notes and handle the new automobile policy before the next client arrives. The next client comes early; the new policy is filled out and correctly handled. The first client's application is put in the second clients file without being processed.
Many times companies provide a copy of their insurance policy to the new agent and request a quote based on the current coverage. There are differences in how insurance providers conduct their business; the agent may miss an important coverage listed or may include it with a reduced limit. Most of these errors are not discovered until there is a claim; errors and omissions insurance for insurance agents protect the insurance agent and their company in these events.
During the course of a business day, a client calls their insurance agent requesting their teenage son who just got his drivers license be added to their insurance policy. The agent scribbles a note on the request and dashes off to a doctor's appointment. It is Friday. Over the weekend, the teenager totals the car and the change was not made.
An advertising firm with an errors and omissions insurance policy sends an e-mail to alert the insurance agent of a potential problem. The advertising firm completed a large advertising campaign for a major client; the campaign is on the wrong product and cannot be corrected in time for the $100,000 advertising blitz. The agent takes information and tells the company to contact them when a claim is filed. Two months later the advertising firm switches insurance companies and six months later, the advertising company is hit with the $500,000 lawsuit. The new company says no coverage and the old company says no notification. Mistakes happen. Having an errors and omissions insurance policy provides protection to an insurance agent and the company.
by: Bob Roberts Revolutionary Inspirations in the Arab Countries How Can Gap Insurance Offer Financial Protection in the event of an Insurance Claim? What Kind of Motorcycle Insurance Do You Need? Funeral Insurance Policy Benefits What Changes The Cost Of Insurance Cover? How Lowering Your Bills Will Make Your Dui Insurance Rates More Manageable Error And Omissions Insurance Policy Protects Insurance Salesman From Lawsuits Map-out The Needs & Act Sensibly To Pick Up The Best Motorcycle Insurance Learning About Identity Theft Coverage The Advantages Of Id Theft Coverage Three Things To Consider When Filing A Personal Injury Claims Online Dating Advice Radiology Coding: Move Your Search For Mra Coverage To The Local Level