Knowing the Difference is Key to Minimizing Your E&O Risks
Written by: Charmain Calancia, former brokerage Account Executive and now DAS Business Development Specialist
It’s another busy day of returning client correspondences, underwriter emails and phone calls, and dealing with the never-ending administrative tasks that so many brokers deal with on a daily basis.
When it comes to finding the right coverage, for the right price, and in the best timelines, it can be a challenging task. Add on the hundreds of clients that brokers do this for – day after day, month after month – topped off with today’s hard market. One can quickly see how busy brokers are.
At the forefront of every brokers’ mind is how to get the best coverage with the best value, in order to fulfil their clients’ insurance needs.
Although brokers have good intentions, they do not have a lot of extra time to compare wordings and the differences in policies for every single risk. There are many downsides to this: the client having a loss that is not covered, the risk for the insurance brokerage having to pay a claim out-of-pocket, the risk of the broker potentially losing their insurance licence due to negligence, and of course, consequences to their reputation and being classified as a “bad broker.” When you add all of this up, it’s possible that the insurers no longer want to deal with the broker or brokerage, on top of lost market capacity.
Ultimately, it is up to the client to choose the coverage they want, at the price they can afford.
However, as brokers, we need to deliver the full range of products available to clients. We need to know the differences between policies and wordings, and clearly communicate these differences to our valued clients. It is our job to be the trusted advisor our clients deserve. Our responsibility is to ensure the clients’ transfer of risk to insurance products, is not a transfer to financial jeopardy for themselves and their business.
To help you better understand the differences in legal expense insurance coverage and brokerage support services, watch our videos and download the Know The Difference info-sheet. Our Business Development Specialists are always available to answer your questions and support you in addressing the legal risk needs of your clients.