Things to Think about in Your Brokerage

Whether or not you recommend the Aviva Overland Flood Endorsement to your clients, you should inform them of it or face a potential E&O claim.

  • Many brokers have default coverages and endorsements set up every time they quote a policy whether electronic or not.

oHave you spoken with your electronic quoting provider to ensure that this coverage option is available on their platform?

  • Some staff may have less industry experience than others and, so, may increase the chance for E&O exposure in your brokerage. As an endorsement, Aviva’s offering may be missed during a client interaction.

oHas your brokerage scheduled a staff meeting or an education session so that all staff are informed about the product?

oHave you provided information to your staff about this product?

oHave you provided a procedure that includes advising clients of the Aviva Overland Flood Endorsement and directed all staff to follow it during client interactions?

  • Your clients may not understand the definitions outlined in the insurance wordings and be looking to you for explanation.

oAn E&O exposure may arise due to the consumer’s interpretation of “flood” vs. Aviva’s “Overland Water” terminology. Do your staff know the difference between the terms “flood” and “overland water” as outlined in Aviva’s Overland Water Endorsement?

oFlood and flood mitigation are still certainly top of mind for the public due to recent events. Have you developed a clear, written explanation of flood and flood mitigation that brokers can use when communicating with the consumer?

  • As brokers, you have a professional and moral obligation to protect consumers with the best offering available. If that coverage is not available through your offices, then you still should inform them that it is available elsewhere in the marketplace. Such advice will help to alleviate an E&O exposure. Further, if you lose clients due to product coverage, rather than due to professional misconduct, you will have a greater opportunity getting them back when you have similar products to offer them.

oDo you have a plan in place to advise your clients and your staff about this offering even if you do not have a contract with Aviva?

  • If you do have a contract with Aviva, you need to tell all your customers about the offer. We have provided a few suggestions for you to build on:

oAre you developing a renewal/new-business process for every call? How are you tracking this?

oHow well trained are your people on the products you offer and on the Overland Water Endorsement?

oHave you developed a coverage declination waiver required for E&O protection if your client declines the Overland Water Endorsement and experiences overland water damage?

oAre you calling every client or mailing a document advising the clients of this product offering?

oDoes your website include information about the Aviva Overland Water Endorsement?

oDoes your E&O carrier expect you to reach out to your clients before the contract is up for renewal, and what is the carrier’s preferred method of contact and number of attempts?

oHow can you reach every Personal Lines client cost effectively?

  • Will a similar response be required every time a new coverage or endorsement comes to market? If so, do you have a plan in place for updating your clients on future offerings?