1. Errors and Omissions A guide for Insurance Agents

2. What is Errors and Omissions and how does it occur? • Errors and omissions occur when agent to deliver the service they promised or made a mistake when writing the policies. • It can also occur when agents fail to calculate the risks and provide the wrong coverage • Sometimes these errors are honest mistakes and can slip under an agent's nose • However, some are deliberate actions of negligence that end up in legal lawsuit

3. What are the consequences? • While mistake can be made by anyone, one on a professional level is going to have severe consequences • Such lawsuits can lead to penalties, suspensions, or even loss of their license altogether • Furthermore, it can leave a hefty dent on an agent's wallet and sometimes cause them to go bankrupt • Such lawsuits can also impact an agent's career and reputation in the eyes of the public

4. How can agents avoid such claims? • Things to keep in mind • Documentation – Keep record of everything from the very start • Avoiding the practice of exaggerating or oversellingjust to meet daily objectives • Failure to provide accurate informationis a major reason agents fall victims to E&O lawsuits • Provide the required coverageby assessing the client'sneeds and financial status

5. Why do agents fall victim to Errors and omissions claims?

6. Here are a few reason agents fall victim to such lawsuits • As trained professionals, agents find it hard to believe that a mistake can occur from their part • Some agents tend to oversell exaggerate benefits not mentioned in the contract to meet their daily objectives • Agents are busy people with a hectic schedule; hence, they fail to spend quality time with the clients and assess the client's needs and risks.