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...ely, the agent did not pursue the Bailee insurance resource that accompanies t.... 3. Coordinates risk to products (coverage system). 4. Approaches the marke...

... making an important decision: to sell his agency. It doesn't have to result in that dramatic a solution, if we followed the pulse of legal actions filed recently. Here are some actual cases from our files. Case No. 1: Failure to Obtain the Proper Coverage The insured had requested the agent to find appropriate coverage for his fur-cleaning firm. Unfortunately, the agent did not pursue the Bailee insurance resource that accompanies the cleaning and storage of valuable fur items. Award for the plaintiff (insured) . If that sounds like a simple mistake, take a look at this error in obtaining the proper coverage: Case No.2: Failure to Obtain Proper Coverage To maintain his business relationships with clients, the insured required general liability and other coverages. A certificate of insurance was issued indicating that ... ACTIONS: THE AGENCY NEMESIS by Roy L. Phillips, CIC, CPIA and Dan R. King, CPIA This article addresses an insurance agency's the most common practices that lead to Errors and Omission actions filed in court. Our information comes from our experience as principals in an agency and as consultants retained to review actions filed against fellow agents. As principals, we are familiar with early-morning anxieties about coverage questions. Without that history of nausea, we'd have no credence in our consulting efforts in the face of E&O allegations. As consultants retained by E&O carriers, we are charged with the discovery of What actually happened? ' Attorneys for plaintiff and defendant attempt to describe the outrageous conduct that led to the damages. Our client is usually the agent (defendant), although we ...

... the policy? Did the agent engage in any unconscionable conduct? Here are a few cases from our files that demonstrate common breaches of agents' duties. One of the most prevalent is failure to obtain proper coverage, as these two cases show. Case 1: The insured had asked the agent to find appropriate coverage for his fur-cleaning firm. Unfortunately, the agent did not obtain insurance covering the bailee exposure that comes with cleaning and storing valuable fur items. Result: Finding for the plaintiff (the insured) . Case 2: The insured, a swimming pool subcontractor, required General Liability and other coverages to maintain his business relationships with his clients (general contractors) . A Certificate of Insurance was issued to a general contractor indicating that the insured had all the coverages required by the general ... duty was owed to the plaintiff-insured. The defendant-agent breached that duty. The breach was the proximate cause of damages. What duties do agents owe their customers? One court defined them this way: "An agent owes his clients the greatest possible duty. He is the one the insured looks to and relies upon. . . . The insured looks to the agent he deals with to get the coverage he seeks, with a sound company that can and will promptly pay claims when they are due. It is his duty to keep his clients fully informed so that they can remain . . . insured at all times." This definition calls on agents to probe for and identify their insureds' needs and concerns. After examining many E&O actions, we've found that many agents have ...

...ot obtain insurance covering the bailee exposure that comes with cleaning and... Coordinates risks with products (coverage component) Approaches the ...