Every insurance agency relies on its customers. They are necessary for you to turn a profit, gain new clients, and establish a good reputation. Therefore, customer satisfaction lies high on most agencies’ to-do lists.
Customers, likewise, rely on agencies to keep their insurance portfolios secure. In other words, customer service is key to an agency’s success. Should the agency make mistakes, it could cause a problem for both the consumer and business. However, with insurance, you might be able to assist your clients following mistakes.
The Risk of Insurance Agency Mistakes
Every day, agents offer insurance quotes, make changes and deliver other services. They must do so with professionalism and accuracy. If they provide incorrect services, the client might find themselves without appropriate insurance.
Let’s say your agency issues a standard car insurance policy to a client who uses their car for business. Should an accident occur, the standard policy might not provide coverage. Instead, the person should have gotten a commercial auto policy in the first place. Therefore, the agency’s mistake might be the reason the client now faces problems. As a result, the client might have grounds to sue the business. They might allege the agency failed to provide them with adequate services.
If someone calls your business services into question, you’ll need to spring into action. With the help of insurance, you might be able to cut the impact of these mistakes.
The Benefits of E&O Insurance
Every business can make mistakes. If they happen, errors & omissions (E&O) coverage might come in handy. This is a specific type of coverage that covers professional mistakes. So, if your agency’s mistakes cause someone else harm, coverage might assist you in cleaning up the damage.
Policies can cover a variety of different scenarios. They will often pay for damage the client sustains as a result of your negligence. In other words, the policy can pay the client for losses that come from your mistakes. Furthermore, the might help the agency cover court settlements and legal fees. Keep in mind that these policies won’t likely cover injuries or property damage you cause to others. Those are jobs for other liability policies.
It’s important that every insurance agency realize how important it is to carry coverage. Could your business financially survive following allegations of improper services? Many couldn’t. E&O coverage might help you afford the necessary costs to rebuild your reputation.
Also Read: Protecting Your Agency with E & O Insurance