Key Takeaways
- An unprocessed email requesting coverage change created a $280,000 E&O claim—process failures, not lack of knowledge, cause most E&O claims.
- Immediate E&O carrier notification and record preservation are the two most critical crisis response actions.
- Root cause analysis identified four systemic failures, each requiring specific remediation to prevent recurrence.
- Systemic improvement costs ($8,000) are a fraction of the E&O claim cost ($280,000 paid, plus deductible and premium increase).
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Test Your Knowledge
1.What is the first priority in an E&O crisis involving a coverage gap discovered at claim time?
2.How should an agency communicate with the affected client during an E&O crisis?
3.What systemic improvement typically follows an E&O crisis?