Report all losses (including your own!)

How do you meet your customer’s needs while steering clear of a potential E&O minefield? FAIA’s E&O partner Swiss Re Corporate Solutios/Westport offer the following dos and don’ts:

• Promptly report all losses to all companies where coverage is possible.
• Never assume a policy will exclude coverage.
• Do not assure a customer that coverage does apply.
• Do not tell a customer that the policy does not provide coverage and then fail to report the claim to all companies where coverage is possible.
• Never admit liability; for example, never say, “I am sorry, we did not add the coverage that you requested.”

If there is any possibility that there was an agency mistake that could lead to a claim denial, immediately report this “potential claim” (the Westport E&O policy defines this term) to your E&O carrier at once.