Do your clients read their insurance policy? Many agents say that while some may, most do not. This is somewhat baffling since technically, an insurance policy is a contract; would someone agree to a contract without reviewing it?
This is an extremely important point in the world of agents' E&O. Most states require clients to read and understand the policy content, provisions, duties and exclusions—and further require clients to contact the agency directly to make any additions, alterations and modifications if the coverage is not what they thought they requested. Some states actually state that the client has a duty to reject the policy if the terms are unacceptable
If a customer takes action against his or her agent, a significant part of the agent's defense could involve whether the client performed this duty to read his policy.
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