31 Jan Claims Folks – I Need Your Help
When one thinks about the basic concept of insurance, especially from a client’s perspective, doesn’t it boil down to securing coverage that you hope you never need, but when you do need it, you hope it performs to your level of satisfaction? When there is a significant level of dissatisfaction, this can trigger an E&O action against the agency that sold the coverage. While an uninsured loss can generate an E&O claim, so can a claim experienced by the client where the limits were not high enough to cover the loss.
When I discuss with the claim folks at the E&O Plus agencies I am honored to deal with, I typically ask, “what are the trends you’re seeing?” In virtually every discussion, the response is “severity is going through the roof.” In other words, court awards are on the rise.
I would have an even greater appreciation for the agency claims folks if they would be sure to mention that liability judgments are on the rise (and any other key issues they are seeing) to all of the agency staff (producers, account managers, etc.). Ideally, the takeaways for the agency staff are:
1. If clients don’t have an umbrella, they should.
2. If clients have an umbrella, they should be aware of this “severity trend” with serious consideration to securing higher limits.
3. Never tell a client they have enough insurance.
When various divisions of the agency are having a production or staff meeting, invite someone from the claims department to join and comment on what is happening in the insurance industry and the courtroom. Look for them to share some stories on judgments being awarded. It is suggested that all agency clients (with a liability exposure) be provided umbrella/excess options above and beyond what the client already has.
You never know. You may sell more insurance!