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... Resources & Links Categories Popular Recent All Back E&O Insights: Let Me Think About It … 4/7 /2014 12:00:00 AM by CompleteMarkets Editor , Curtis Pearsall This content has not been rated yet. A client who utters these words might well be laying the groundwork for a nasty E&O claim. Consider this case: The insured had a niche market for tow truck operators. The claim involved a client from another state whose tow truck rear-ended a car, causing an occupant of the vehicle to become a wheelchair-bound paraplegic. The underlying case was worth $5 million to $10 million. The client, a new customer, had provided a copy of his previous policy to the agent and asked for coverage. The agent stated that he saw the previous ... had $1 million primary and $4 million umbrella. According to the agent, he told the client he was only going to obtain a primary policy for $1 million and that the client was going to think about whether he wanted the umbrella coverage. Again, according to the agent, the client never got back to him on the umbrella. The client testified that he told the agent to duplicate his prior policy, and assumed that he had umbrella coverage. Unfortunately, there was no documentation of the alleged conversations between the agent and the client. The E&O carrier settled the claim for the limit of the agency's policy, $1 million. Could this happen in your agency? There's probably not much question whether clients need or want primary coverages. After all, the ...

...Midwest Insurance through the Middletown Agency, whose principal is Joe's life...rangements are made. Services include towing, door-to-door pickup and deliver...

... with standard and exceptional performance standards of agency operations and measure your standards and performance against your peers. Whether you use a professional to identify your problems or use industry data to do so, don't be tempted to attack a system, personnel, or motivational management problem that you're probably unqualified to solve. Many home mechanics have set out to make their own repairs, only to have to call a tow truck driver or plumber later. Most agents are insurance experts and professionals — not agency management experts. Regardless of their specialty, most doctors seek diagnosis and treatment from other highly qualified physicians. LOCATE A QUALIFIED CONSULTANT The American Association of Insurance Management Consultants (AAIMCO) is comprised of highly regarded, long-term, professional consultants specializing in the insurance industry. They are not www.aaimco.com or call (800 ... 779-2430 for more information. associated with any carrier or vendor. Visit their Web site Many state or national professional organizations maintain lists of consultants that their members have used successfully. HOW NOT TO LOCATE A QUALIFIED CONSULTANT My buddy, another agent, had a similar problem and he's offered to help me with mine. This is akin to sharing prescription medication with a friend because you have similar symptoms. Every agency is different. A treatment used to solve the ills of one could fail dismally in another. Joe owned an agency for years. He's retired now, so he's consulting for me. This is as ridiculous as permitting an out of work pharmaceuticals vendor to attend you as a consulting physician. Familiarity with the agency business is not equivalent to understanding how to solve an agency's problems. Most of these ...

...own repairs, only to have to call a tow truck driver or plumber later. Most agent...

...e? Are owned vehicles used for towing special equipment (air compressors,...coverage – and go a long way toward ensuring that you do the proper ...