Indemnification and Austin Insurance Agents Liability Insurance
May 2, 2016
Insurance agents provide an invaluable service by looking after the needs of others. After all, you’re in the business of protecting clients against exposures and risks, many of which they may not have even considered themselves. They may have concerns about property damage, bodily injury, and even financial loss. But while providing insurance solutions that address your clients exposures you may miss something that creates an issue for them. It can be something as innocent as an oversight or some minor mistake.
On the other hand, if the client doesn’t accept your recommendation and after a loss occurs claims they weren’t made aware that such a policy even existed this can pose a real problem – for you! In any case, if your client makes an allegation and a claim is filed, there are defense costs and the possibility of indemnification if, in the end, you are found liable. An Austin insurance Agents Liability Insurance policy will help alleviate a lot of stress in matters of this sort.
Don’t make promises you can’t keep
When an agent is provided a copy of the customers prior policy, and they agree to match the coverages, they then have a duty to match the coverages and limits. Rather that setting yourself up to fail, it’s probably best to advise any new customer that insists on this arrangement that an exposure analysis will be done and the appropriate coverages will then be suggested.
The old saying is that the customer is always right. Well, that may be the case, but sometimes it’s merely a matter of a misunderstanding, or simply misinterpreting what was told to them. One frequent scenario involves customers that have had to file a claim only to find out their coverage is not going to respond as they thought it would. The agent will likely be held to blame for this not being the case, and now needs to know what they should do to rectify the situation.
It’s common that the agency does not feel that they are guilty of any wrongdoing but still will want to offer some degree of restitution. This is an area where agents need to be very careful and where they would definitely benefit by contacting their E&O carrier. These are solid examples of why Austin Insurance Agents Liability Insurance coverage is essential to avoid having to pay costly claims out-of-pocket.