E&O Report |  January 2024 |  Volume 39, Number 1

As we start 2024, it is the perfect time for every insurance agency and brokerage to examine its business practices.  Over the years, we have suggested that the new year is not only the perfect time for individuals to make resolutions to try and improve things in their lives, but it is also the perfect time for insurance agencies and brokerages to make resolutions related to their businesses.  While most agencies and brokerages know the specific areas of their business that would be best improved, over the years we have occasionally suggested resolutions for agencies and brokerages to consider.  Below are our suggested errors and omissions related resolutions for agencies and brokerages to consider for this new year: 

1. Resolve to develop agency practices and procedures for employees to follow on a consistent basis.
   
2. Resolve to have all applications for insurance signed by insureds even when insurers do not require a signed application.
3. Resolve to document all discussions with insureds and insurers that concern in any manner insurance coverage or claims.
4. Resolve to promptly provide notice to all appropriate insurers of any incident, claim or lawsuit that is reported to the agency or brokerage.
5. Resolve to do business with insurers who have a strong financial rating.
6. Resolve to do business with insurers who have a reputation for prompt claim resolution.
7. Resolve that if you place insurance with a non-admitted insurer you will follow all of the regulations concerning excess line placements.
8. Resolve to promptly report to your professional liability insurer, any potential claim, incident, or lawsuit concerning your agency or brokerage.
9. Resolve not to alter, amend or add language to certificates of insurance in any way that is not authorized by the insurer.
10. Resolve to respond to customer requests and inquiries in a timely and accurate manner.
11. Resolve to seriously consider your need to continue business relationships with chronically difficult customers.

 

All of us at Keidel & Cunningham, LLP would like to wish all Big I NY members and IAAC insureds a very happy, healthy and prosperous new year.  We also thank each of you for all your support, and we are looking forward to working with you in the New Year and the years to come.