Don's Discussion

IA&B Legal & Corporate Affairs Director Don Bankus

Are you a member with a question? Contact Don at 800-998-9644, ext. 603 or DonB@IABforME.com.

QUESTION:

How can we mitigate our website-related E&O exposures?

ANSWER:

Great question! What information you include or don’t include on your website – as well as what steps you do or don’t take to protect customer data – can be used to support or strengthen an E&O claim against the agency. Statements or information you might consider innocent or benign can unintentionally increase the agency’s duty of care to its customers and prospects, which can be harmful to and weaken your E&O defense in a claim situation.

With that in mind, following are some do’s and don’ts to consider when creating, updating, or reviewing your agency’s website:

DO’S

▲ Accurately specify states in which the agency is licensed.

▲ Clearly state that misstatements or omissions of relevant information provided by current and prospective customers can result in price variations, or declinations or rescissions of coverage.

▲ Clearly state that requesting coverage does not guarantee that coverage can or will be provided. Coverage can only be initiated/ confirmed via a specific statement from a licensed member of the agency’s staff.

▲ Clearly state that information requested in order to provide a quote or policy revision will not be shared without the applicant’s permission.

▲ Clearly state via a disclaimer that information provided on the website is not a guarantee that insurance can or will be provided, or that the agency is obligated to procure insurance for website visitors.

▲ Include a Privacy Statement, and encrypt any and all pages which collect personally identifiable information provided by a customer or prospect, including online quote forms.

▲ Request and obtain written consent from carriers if you use their name and/or logo on your website.

DON’TS

▲ State that the agency does things or provides services it doesn’t do or provide.

▲ Include language that expressly states, or can be interpreted to suggest, that any claim will be fully covered.

▲ Include language such as “exceptionally skilled,” “expert,” “specialist,” or “partner” to describe the agency and/or its staff, or language such as “fully covered” or “guarantee” to describe the product.

▲ Include language promising absolutes, such as “addressing all your coverage needs,” “constantly reviewing,” or “immediate response time.”

▲ Utilize a quote mechanism, and then fail to respond in a timely manner.

▲ Utilize open text boxes for customers and prospects to type messages, unless the information is adequately encrypted.

▲ Launch a website without carefully reviewing its content. Many template agency websites or web designers likely won’t consider or be aware of E&O ramifications specific to an insurance agency. It might not hurt to also contact your E&O carrier and request their input as well.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.