Protecting one’s office and personal license can be complicated when one is in the insurance business oneself. While it seems like insurance agents and others who are familiar with risks and quotes for business policies would be able to accurately estimate their own needs. In truth, it’s better to work with a professional who focuses on providing policies to other agents. Insurance agent risk management goes beyond policy purchases. Like managing risks in any other business, it also involves implementing the right professional practices when working with clients.
Communication Strategies for Risk Management
One of the best ways to avoid lawsuits that rack up claims on your professional liability insurance is to pre-empt the customer’s need for that recourse. Communicating with empathy, answering all questions clearly to help the customer understand, and taking responsibility for the cost and effort involved in the correction of any errors or oversights are all ways to resolve the situation before there’s a need to bring in attorneys or insurance companies.
Sometimes that is not an option because of the agreements made with the carrier your client selected from among those you work with. In that case, demonstrating to the client that you are their advocate is the best insurance agent risk management strategy. If there is an issue with the policy at another level and you do your best to resolve it to the client’s satisfaction it is less likely there will be a conflict at all.