Tips to minimize your chances of experiencing an E&O claim

1. Follow all laws, regulations, and industry best practices. Take steps to ensure that your services comply with all applicable laws and regulations. This will greatly minimize your E&O exposure.
2. Do your due diligence. Do rigorous fact-finding and only sell products appropriate for prospect needs, financial resources, and risk tolerance.
3. Know your client and the product offerings you’re recommending, and ensure you educate your clients on these products. Take time to explain the product offerings thoroughly to your clients. Make sure they understand what a product does and does not cover, the product’s terms and conditions, and all of its associated fees and expenses. Avoid expectation gaps at all costs!
4. Complete your agent training. Confirm that you and your team have completed all required WFGIA training and possess the expertise, experience, and accreditation to advise clients.
5. Document client discussions, no matter how seemingly trivial. For major decisions including a client declining recommended product offerings and similar decisions, put it in writing, as close as possible to the conversation. Notes about client conversations can be very helpful later on.
6. Standardize your business processes. Follow WFG policies and procedures outlined in the WFGIA Agent Insurance Guide, and establish a quality assurance process to ensure these processes are routinely followed.
7. Forward complaints promptly. Promptly forward all complaints to WFGIA Compliance for review and handling.
8. Communicate with clients regularly. It sounds obvious, but regular communication can prevent many errors and omissions claims. By checking in with clients at least once a year, you'll be able to quickly identify if a client is unsatisfied or has an unclear understanding of expectations.
9. Purchase Errors & Omissions coverage through Marsh. Claims can be costly. Securing a mandatory E&O policy through Marsh can help cover out-of-pocket legal and settlement expenses.

This information is being provided as general guidance only and is not meant to be exclusive or to constitute insurance advice or legal advice. Check the specific policy language for coverage terms and exclusions.