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FAIA takes helping agents avoid E&O exposure very seriously! After all, FAIA Member Services' E&O program covers many member agencies. This section of the library is dedicated to expanding members' E&O prevention knowledge.

Resource TitleDescriptionRating
“How High Should My E&O Limits Be?” It’s very common that a customer asks his or her insurance agent a question like, “How high should the liability limits be on my CGL and auto policies?” 1 2 3 4 5
Agent of Record (AOR) Letters: Highway to the Danger Zone!

Use the AOR to get the business, but start from scratch and make sure the product that the insured has is correct and still the appropriate product.

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Agent Standing Firm With Lenders

Too many insurance professionals spend too much time in their day dealing with lenders who make requests or demands relating to insurance for a loan closing. Some of these demands, if complied with by insurance agency staff, violate Florida Statutes.

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Applications: “Please Sign Here”

Should an agency mark forms with an asterisk where a signature is required, use a “please sign here” sticker, or something else?

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Better Safe than Sorry: Submit E&O Claims Whether an E&O claim is potential or actual, the Swiss Re claims team urges agents to submit all claims that may result from the volume of customer claims activity following a natural disaster such as a hurricane. 1 2 3 4 5
Carrier E&O Claims Against Agents Continue Trend E&O data from Swiss Re reveals an increase in once rare claims involving carriers. This article from the E&O Claims Advisor newsletter (log in with IIABA credentials) lays out the types of claims involving carriers along with example scenarios. 1 2 3 4 5
Certificates of Insurance The use and abuse of the two-page document referred to as a "Certificate of Insurance." In reality there are two varieties of this document, the Certificate of Liability Insurance and the Certificate of Property Insurance.  This FAQ outlines some typical questions. 1 2 3 4 5
Deleting a Car and Cancelling a Homeowners Policy

“I have to educate people (staff and customers) that if you sell a car or house you don’t delete the car that day or cancel the homeowners policy that day; you do it the next day. I’ve never heard you talk about that in a class.” My reply was, “You need to attend even more of my classes because I routinely discuss this!” 

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Do Insurance Agents Have a Duty to Advise? This article (PDF) reviews agents'-duty-to-advise standards in all 50 states and provides a general summary of agents' obligations. 1 2 3 4 5
Duty of Care Owed: E&O Implications When a customer contacts an insurance agency to obtain coverage, what duty of care does the agency owe the customer? 1 2 3 4 5
E&O tips for reacting to a carrier downgrade

The following information was developed by Big "I" Professional Liability and Swiss Re Corporate solutions.   Make sure you have a procedure in place to monitor the ratings and activities of your carriers. Review the facts concerning the ratings downgrade using

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Getting Sued By Being Too Helpful: “Stick to Your Expertise”

A fellow “insurance nerd” of mine did a class a few years back titled, “Getting Sued by Being Too Helpful.” He presented the class alongside an attorney who specialized in E&O defense. The thrust of the class was that insurance agents should stick to their expertise (insurance), and not venture outside of insurance when giving advice to customers.

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Innocent E&O Claims

No one walks into work at the insurance agency saying, “I think I’ll create an E&O claim today.”

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Late Paying Clients: To Call or Not To Call “If a direct billed customer is late in making their premium payment, should the agency contact them?” 1 2 3 4 5
Lender-Supplied Private Flood Insurance Form Beware lenders who request you sign a “Certification of Adequacy of Private Flood Insurance by Agent" form. 
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