Agent’s Errors and Omissions Audits and Consultations
Every Insurance Agency falls into one of two categories: One that is growing or one whose revenue is in decline. Both types require ongoing assessments of their exposure to Errors and Omissions litigation. And while most insurance companies will not appoint an agent without E&O coverage, the existence of coverage alone is not sufficient for the agency to feel complacent about its need to improve its E&O policies and procedures.
Agency growth through effective marketing or acquisition generally results in a rapid growth in personnel and perhaps the inclusion of people in your organization who learned their business practices elsewhere. Growth means energy focused on revenue enhancement and marketing programs. Growth leaves little time to re-evaluate whether E&O policies and procedures established at an earlier time in the agency’s development have become antiquated.
Agencies experiencing revenue decline generally find themselves adapting by offering new product lines and services. The potential for E&O situations evolving from new ventures cannot be ignored. And some of those new products or services may not be covered by their E&O policies.
If your agency hasn’t put sufficient time into updating its E&O practices we can help. Mr. Sapourn spent 23 years running a dynamic and growing agency. During his tenure, E&O policies and procedures were annually reviewed and updated, resulting in a stellar track record of no E&O litigation. The audit program he administers focuses on the agency's operations, identification of potential E&O exposure, and recommendations for specific changes to be performed within an established timetable.
By submitting to the audit process, the agent should experience many advantages. Good practices leads to better retention of agency personnel. They generally result in less exposure to E&O lawsuits. And you should receive a significant credit against your E&O policy premium.