Is saying you're sorry good risk management for business insurance?

Here is the situation, the business insurance broker/agent just realized they messed up. Unfortunately the error caused an uncovered claim against one of their clients. Now what? The first thing an agent is taught to do is call their errors and omissions insurance carrier and say nothing to the client. But is this the right strategy? Many legal scholars and risk managers are starting to suggest different. How about an apology. Yes the simple and effective apology. Now does this dictate liability? Does the apology make the business insurance agent/broker fully responsible? Many courts are now saying not neccessarily. The simple act of saying to someone you have harmed that your sorry does not mean that your at fault. It simply means that you are being human and are genuinely empathetic to the plight of others. Interestingly it is now showing that there are less law suits following an apology. Caution here, always contact your errors and omissions insurance carrier before any communication with your your client after a mess up. They may still require that apology that you want to give to stay in your brain only.  It is after all still a litigious business insurance environment.  Until next time be careful out ther and know your risks.
Blog by G. Kevin Nemith. Business insurance and small business insurance specialists and risk management consultant serving. De MD NJ PA.


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