Just like everyone else, brokers are at risk of getting sued for malpractice. But, as we all know, Errors and Omissions (E&O) is a subject far too important to be left to chance.

Here at Pathway, reducing and minimizing this risk is among our top priorities.

Many readers and prospective clients asked us to lead them through the process on the blog. That’s why we decided to publish this helpful guide through E&O, compiled from the most common questions and dilemmas shared by our insurance brokerage customers (summarized as “Brock”). 

Brock: What can you tell me about Errors and Omissions policies? Are they included in the Pathway automation process?

Pat: They most definitely are. Let’s start with the basics. Errors and omissions (E&O) is a term used to describe potential malpractice that an insurance broker can find themselves in. We can differentiate it further to E&O exposure, Risk of E&O exposure, E&O risk.

Brock: And E&O Coverage, right?

Pat: That’s a common mistake that we always like to clarify at the very beginning.  E&O Coverage is an insurance product that brokers sell to businesses to make sure they’re protected when E&O happens. This also illustrates the utmost importance of having your business insured fully and on time.

Brock: But, how does it actually help avoid bad outcomes? Please be precise.

Pat: Well, Pathway provides the tools to help mitigate this risk.

Our clients already know this, but we make sure they don’t miss out on stuff like Confirmed delivery and Identifying missing coverage, which automatically offers missing coverage to clients in need, automated renewal checklists, regular and systematised communication.

Brock: Sounds great. So, how do you simplify the process for the clients? For example, imagine I’m just signing up to Pathway. What would be your advice?

Pat: Sure. Let me give you a step-by-step summary.

• Fully vet every client to determine their insurance needs, so your recommendations are correct.

• Document all interactions and save correspondences. If a client refuses a policy, you should have that in writing. Send a follow-up email after a conversation that reviews what was agreed to or declined, so there is no confusion. Keep those records even after the client relationship has terminated.

• When a policy is up for renewal, communicate any premium due or changes in policy terms.

• Regularly review and update marketing materials to accurately represent the insurance policies you offer.

• Double-check administrative errors.

• Make sure you haven’t failed to share policy changes.

Brock: So, you’re there to ensure all that is taken care of? And the whole thing is automated?

Pat: Exactly. It takes a lot of time to do this manually, and most brokers just can’t keep up. Imagine manually pulling up a client, reviewing their coverage and missing coverage, then drafting an email and sending it.

Brock: Right. But can’t they just make updates later on if something is left out in a hurry?

Pat: Not a thing. Don’t forget that phone calls don’t work here! Offering coverage verbally is one thing. However, the only way out of the red zone is to have it in writing. Many of our clients get back for our automated services as soon as they discover, for example, the need of sending the renewal checklist automatically.

Also, some carriers offer discounts for having the E&O procedures carried out by an approved agency. The E&O Risk Management “trinity” called Communication, Documentation and Consistency is already included in Pathway’s automation process.

Brock: Long story short, you’ve got us fully covered?

Pat: Yes, the entire procedure.

Brock: Great. Then, let’s wrap it up for now. Thanks!

Pat:  You’re welcome. Please make sure to get back anytime you have questions. Also, you’ll probably like to check up on the E&O webinar we’re doing on February 17!