LEGAL EASE
THE PROBLEM WITH WEBSITES
BY: WILL LARSON
Many agents believe that websites can be a valuable
marketing tool. Others think of websites as merely a place
to provide contact information. However, there is one thing
most agents have in common; they don’t know what’s on
their websites. From an E&O standpoint, the information
on your website can be a problem, and sometimes a big
problem. In some instances, it can significantly increase
your E&O exposure. A few months ago, Swiss Re reported
defending 45 E&O claims nationwide, where website
content was a significant factor in setting reserves. It is a
major area of concern for Swiss Re. In Kansas, we have
had three substantial claims over the last several years in
which the agency’s website was a major concern.
The guidelines below explain the problems and suggest
ways to address it.
1. Under Kansas case law, an Agent has to obtain
the insurance the customer wants or to tell the
customer if he can’t. It is a limited duty. The duty can
be expanded by a specific agreement or an implied
agreement based on representations to a customer
that an agent is an insurance advisor. Acting as an
insurance advisor significantly increases an agent’s
E&O exposure. About ten years ago, I had my first
case where the plaintiff alleged an expanded duty
because of the Agency website’s representations.
We’ve had three notable cases in Kansas within the
last five or six years where representations on the
agency’s website were a significant issue.
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