INSURANCE EXPERT WITNESS / INSURANCE CONSULTANT
Insurance Agent Error and Omission
We assist both defense and plaintiff attorneys with analysis of case issues. We have assisted attorneys in proving and disproving allegations of insurance agent error and omission, including bad faith. .
Insurance agents have come under increasing scrutiny for their errors and omissions in a professional capacity. In reality almost no insurance agency can operate without making some mistakes (error or omission) when serving client insureds. When an error and omission results in financial detriment to clients, litigation will likely follow.
Most agencies carry Insurance Agent Error and Omission Liability Insurance (aka Insurance Agent Professional Liability Insurance) for this exposure. Allegations of Agent Error and Omission generally originate from two sources:
From Clients:
- Bad faith insurance dealings
- Failure to recommend needed coverage
- Failure to place requested coverage
- Failure to place coverage promptly
- Failure to increase/update coverage
- Failure to explain coverage limitations
- Verbal extension of nonexistent coverage
- Failure to advise of cancellation, non-renewal,
- Failure to material coverage restrictions
- Failure to place coverage with a solvent carrier
From Companies:
- Failure to follow Company underwriting guidelines
- Exceeding agent’s binding authority
- Failure to revise or cancel coverage upon request
- Failure to disclose material underwriting information
- Failure to report claims promptly
Who should have known what, and when? Did the agent ask enough questions? Properly survey the account upon renewal? Why wasn’t my claim covered?
Conversely: Could agent not quote recommended coverage because client would not provide application information? Is the agent being sued for error and omission after client refused coverage offered several times by the agent? Did the client have unrealistic expectations from the start?
Our thirty plus years as an agent can bring focus to your case issues in this area of insurance litigation.