ALS1964
New Member
- 4
Has anyone heard that E&O Carriers are going to or already exclude coverage for text messages communications? Has this now become a risk to agency communications that will not be covered?
E&O Coverage Questions
- Thread starter ALS1964
- Start date
BADTROUT
Guru
Have not heard that one but it would not surprise me one bit! Probably greater liability than an email, which is greater liability than a conversation IMO.
- 15,041
Never heard of it not being covered. But you do need to document them. EZLynx has the ability to text from their system and thus record all incoming and outgoing texts. I'm sure others have the ability or soon will.
Back when I was a registered rep some years ago, texting was not allowed as they had no way to capture and review them for compliance.
I have heard of agents taking screen shots of their phone to capture the texts and uploading it to their AMS to document the conversations. Personally I do not want to use my cell phone for texting clients nor would I want an employee doing it either.
Back when I was a registered rep some years ago, texting was not allowed as they had no way to capture and review them for compliance.
I have heard of agents taking screen shots of their phone to capture the texts and uploading it to their AMS to document the conversations. Personally I do not want to use my cell phone for texting clients nor would I want an employee doing it either.
You are wise. Documentation is the cornerstone of an E&O defense. Without it, the agent loses over 90% of the time and it rarely goes to court. Convenience has its price.
- 15,041
Credit goes to the E&O carrier. As part of it, I was required to complete their online training. Also to EZLynx, as they mentioned having the texting and I decided it was worth adding. Both for contactability and for compliance and documentation.
Reading Glen's article on E&O, I found out some are offering digital communications and identity (hippa) theft to the base policy. Definitely something to ask your prospective E&O company...
- 2,621
I suggest you obtain a policy sample from your prospective E&O carrier and read it to see what's covered and what's not covered.
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