Being in the insurance industry, you know the value of financially protecting your clients from any legal claim that could come their way. However, have you financially protected yourself as much as you can? It’s a fact that insurance agents as just as susceptible to professional liability claims as any other professional who provides services or advice for payment.
One of the most common claims against insurance agent professional liability is claims of misrepresentation. If an insurance agency or company misrepresents their product, their client may certainly sue them. Generally, if the client relied on information that their insurance agent gave to them that resulted in lack of coverage or no coverage at all, they have the right to make a legal claim.
The most important way you may be able to reduce your risk of an insurance agent professional liability claim is by being honest and forthcoming. Clients rely on your knowledge, and for those who need financial protection, want to be ensured that they are in good hands.
But what if you are faced with a lawsuit anyway? First off, you of course want to be protected yourself, with the right professional liability policy. Other steps you should take include gathering information that is under your control; investigate the lawsuits allegations by determining who in your agency may be a reputable witness and what business documents may relate to the allegations.
Perhaps you can work something out to get the individual that’s suing to consider trying to resolve the dispute by alternate means. Arbitration, mediations, a neutral evaluator, and a settlement conference are all various methods of alternative dispute resolutions that could be used instead of or in conjunction with a lawsuit.
PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. Our team of seasoned professionals has the depth and breadth of knowledge to help our agency partners secure the best quality coverage for their clients and themselves. Please contact us today for more information at (855) 403-5982.
