Insurance agents are under a lot of pressure to deliver their clients quality coverage at affordable rates. There have been many changes to the property and casualty sector of the industry, considering the decline in profits that occurred over the past two years. With the changes has come a more favorable view of the future of P& C insurance, but the emerging markets creating growth could lead to greater P&C E&O risks.
The Changes To P&C Insurance
To create a more stable future for the P&C industry, more efforts are being made to tightening underwriting. Auto insurers have seen improved profits as reduced travel over the past year and a half has led to fewer accidents. However, coverage for homeowners has gone through unexpected pressure and is trending toward rating by perils and usage-based insurance. Some homes are considered ineligible for coverage based on the geographic location as an indication of potential risk. Agents are facing scrutiny for these decisions, with clients wondering where the coverage is going to come from and if it will address their primary liabilities.
The Liabilities of Agents
Carrying E&O insurance is a way to reduce the impact that dissatisfied clients can have on your business. Making a mistake in a contract, failing to disclose important information or not providing the right insurance to P&C clients could lead to claims and litigation that can destroy your reputation.