Offer all clients higher liability limits. One of the most common E&O claim examples virtually ever producer and CSR knows is this: What happens if an insured has a large liability claim and they don’t have high enough limits, and the plaintiff’s attorney asks them, “Would you have purchased higher limits, especially if the extra hundreds of thousands of coverage only cost $25, if the agency had offered them to you?”
Everyone knows the insured’s answer to this question. So why not offer higher limits to every insured every time? Many CSRs and producers seem to think they have to quote higher limits every time and this is not necessarily required. I recommend asking the question every time but only quoting higher limits if the insured says they want such a quote.
Also, some producers and CSRs have concluded that $x limits are high enough. Some stop at $300,000, some at $500,000, some at $1,000,000, some at even higher levels. What is the first thing taught in E&O classes? It is not the agent’s responsibility to determine the “right” amount of coverage. Yet by not offering higher limits, the agent is determining the insured has “enough” coverage. It is simple and easy to ask the question, “Would you like a quote for higher liability limits?” and let the insured determine what limit is right for them. And as always, document the conversation.
Topics Professional Liability
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