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... lease the new location, put in the phones, bring in new inventory, and notify the insured's customers of the change. Getting back in action rapidly was crucial for the insured's business of selling upscale formal gowns to high-school seniors who were graduating within the next few weeks. Result: Finding for the plaintiff (the insured) . Case 4: The insured asked the agent to obtain coverage that would pay first-dollar claims to his clients in the event that their property was damaged through theft or vandalism. He was willing to pay for the additional coverage since he was in the business of servicing Mercedes-Benzes, Rolls Royces, Jaguars, BMWs, and other expensive cars. Vandalism occurred one weekend, and the insured was forced to spend thousands of dollars repairing 11 vehicles left in his care. Primary Garagekeepers Liability insurance was not in place to respond to the claim, but you can guess what was: the agent's E&O policy, of course! Result: Finding for the plaintiff (the insured) . These four cases demonstrate the need for continuing education. All of these E&O losses could have been prevented if agency personnel had been trained to recognize the sources of clients' potential claims and know the products available to cover them. The final two causes of E&O claims addressed in this report are failure to bind coverage and failure to obtain renewal coverage. While these represent only 10% of claims reported, they demonstrate the need for establishing standard operating procedures within an agency. A System Is the Solution When errors or omissions occur in an agency, it's often ...

...cles left in his care. Primary Garagekeepers Liability insurance was not in p...