My last column (“When client dissatisfaction moves to E&O Claims,” October 2009) addressed the perils of client complaints and “potential claims,” the importance of carefully evaluating them and the considerations of when to report the complaints to your E&O carrier. Every once in awhile, however, it isn’t just the client who knocks with a complaint. What if you open the door and see a process server or sheriff’s deputy standing before you? That “potential” claim has become real. Now what?

t. Most agents take it personally, while others view it strictly as a matter of business. Whenever I represent a client who has been sued for the first time and is justifiably upset, I tell him there are two kinds of insurance agents: those who have been sued, and those who haven’t been sued–yet. This statement is cold comfort indeed. We live in a litigious society, and it’s why we carry professional liability insurance.

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