One day you’re successfully selling insurance policies, and the next you could be faced with a court summons for a claimed omission. No matter the outcome of the suit, you will still be left with a potentially hefty cost unless you are covered by omissions insurance for insurance agents. Here are the two top omissions claims filed against insurance agents.
1. Failure to Explain Policy Provisions
For most people, miscommunication is an annoying part of everyday life. For an insurance agent, miscommunication could lead to a lawsuit. When a client does not think they have been given enough information about policy provisions, they are more likely to sue. In addition to ensuring that your marketing materials are constantly updated to represent all policy provisions, you can also do much to protect yourself by purchasing omissions insurance for insurance agents.
2. Failure to Obtain Coverage
One of the most common reason insurance agents are summoned to appear in court is because they failed to obtain coverage for their client. This is a serious error that should be avoided at all costs. However, mistakes do happen, and if this one happens to you, omissions insurance coverage can help by absorbing some of your legal costs.
No one wants to consider the possibility that they will one day be sued, but if you are an insurance agent the possibility is real and should be protected against. Safeguard your business and yourself by purchasing omissions insurance for insurance agents.