Agents Errors and Omissions

The actions of Insurance agents and brokers are under constant scrutiny, including questions regarding Agents Errors and Omissions. What standard of care can an agent or broker realistically provide to a policyholder? What insurance customs and practices apply to a given set of circumstances?

Our Experience with Agents Error & Omissions

Diligent agents and agencies providing competent advice and service reduce their risk of Agent Errors & Omissions claims. However, providing first-rate professional service does not provide immunity from allegations or claims. (e.g.–Though a client rejected coverage recommended by the agent they may file suit after a claim denial.) We are engaged by defense counsel representing agents who meet or exceed reasonable standards of care, but still face allegations of Agent Errors & Omissions.

Sources of Agents Error & Omissions

While most litigation in this area is associated with commercial lines, allegations involving Personal Auto, Homeowners and Umbrella account for perhaps 1 in 5 claims. Allegations of Insurance Agent Errors & Omissions generally originate from policyholders or carriers, but on occasion arise from third parties.

• Failure to place insurance with a solvent carrier.
• Failure to disclose/explain coverage limitations.
• Bad faith insurance dealings.
• Failure to place coverage promptly.
• Failure to place requested coverage.
• Verbal extension of nonexistent coverage.
• Failure to recommend needed coverage.
• Failure to notify of cancellation or non-renewal.

• Failure to report claims promptly
• Bad faith insurance dealings.
• Exceeding agent’s binding authority.
• Failure to disclose material underwriting information.
• Failure to revise or cancel coverage upon request.
• Failure to follow underwriting guidelines.

• Holders of Certificates of Insurance.
• Failure to provide notice of cancellation.
• Failure to procure.
• Mortgagees / Loss payees / Lien holders
• Third party beneficiaries.
• Failure to provide notice of non-renewal.
• Disgruntled stockholders or partners.