As many of us adapt to protecting ourselves from harm, insurance agencies need to do the same. Primarily by making sure they are cautious moving forward as to not open themselves up to an E&O claim. Yes, you want to help your clients, but there a lot of new questions being asked, which can lead to people making assumptions. Those assumptions can lead to E&O claims. Also, Big "I"'s risk management department strongly advises that agencies NOT make a coverage determination on behalf of any insurance carrier or deny any claims - read, Carrier Directives to Deny Claims, article to learn more about this issue.
If agents make incorrect assumptions about a policy and the insured experiences a loss that is not covered or is denied, then that will leave the agency susceptible to a claim of their own.
The best way to avoid these situtations is to never assume the role of an expert on topics where you are not an expert. Also, developing good practices during these times will help avoid E&O situations.
Please review the documents below and develop a plan that allows you to assist clients while at the same time protecting your business.
Risk Management and the Coronavirus
Sample Letter to Clients
Webinar - Deeper Dive - Coronavirus Coverages & Exclusions - BI, WC, CGL, Event Cancellation, Cyber Risk, Homeowners, Working At Home:
View Webinar Here
Upcoming E&O Webinars:
4/14/20: Commercial Property Coverage Gaps and How To Fill Them
4/15/20: Roadmap To Personal Auto and Umbrella Insurance