E&O Claims

Discussion in 'E&O - Errors and Omissions for Insurance Agents' started by agentinsouth, Apr 24, 2015.

  1. agentinsouth
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    agentinsouth Well-Known Member

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    I was just wondering, what are the most common E&O claims in:
    1. Personal lines P&C
    2. Commercial
    3. Flood
    4. Life
    5. Health
     
  2. agentinsouth
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    agentinsouth Well-Known Member

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    Well.... Interesting how much spam we get in the E&O section of this forum, however, ask a real question & all I hear are crickets :)
     
  3. kristophmarsh
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    kristophmarsh Member

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    To be honest, it's going to be very difficult to determine the most common types of claims in any particular line of business. But maybe it's worth taking a look at claims against brokers the big picture sense?

    In 2013, The American Bar Association published a white paper called Broker Liability: An Overview of Key Considerations and Emerging Issues. It's quite lengthy and goes into great detail about the potential risks faced by brokers when their clients' claims are not covered by insurers.

    I'll leave you to digest the paper in your own time, however, below is a summary of the main reasons listed for broker E&O claims:
    • Negligence and breach of contract
    • Failure to advise on or secure coverage
    • Application issues resulting in non-coverage
    • Failure to apply for proper coverage and obtain necessary endorsements
    • Failure to properly advise on and handle claims
    • Finally, if permitted by law and supported by relevant facts, claims of fraud, negligent or fraudulent misrepresentation, bad-faith, interference with contract, and unjust enrichment
    I encourage you to download a copy which is available free from their website. In addition to the points mentions above, the authors also identify the responsibilities of brokers, possible defences to liability claims, common issues with brokers' E&O coverage, and describe how a broker's policy can respond in a covered claim.

    Hope this helps.
     
  4. EObroker
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    EObroker Member

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    Kristophmarsh I just read that article in the RPLU Module! Also, failure to procure adequate coverage as well as not advising on a decrease in coverage. Let me know if I can help. All the best! Ant
     
  5. agentinsouth
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    agentinsouth Well-Known Member

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    Thanks for article. I was really wondering what the in e&o claims are against personal lines agents? I know some have been:
    1. Not having a flood waiver when homes flooded
    2. ACV policies and not documenting customers request/understanding that it is not replacement cost
    3. Not filing the UM form

    This is just a couple, any one else?
     

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