LEGAL EASE
potential ramifications of expansive language on
agency websites.
4. I don’t pretend to be a marketing expert. It would be
best if you balanced the marketing advantages of
certain representations against the potential E&O
exposure. Generally, it would be best if you avoided
over-promising or making unrealistic representations.
There is no such thing as “full coverage,” the “perfect
policy,” or even the “right coverage.” It all depends
on what and how much the loss is. All policies have
exclusions and limits. You can’t promise to “protect”
some one’s assets because you don’t know how much
a liability loss will be. In my view, it is best to use
the word “help” as in “help protect” or “help pay the
medical expenses,” “help protect your assets,”
2. Also, it’s not just the expanded duty that is the
problem. When there are statements on the website
that you provide the perfect policy or the right policy,
that you make sure your customers are covered from
top to bottom, that you custom tailor their insurance,
that you make sure their assets are fully protected,
that your staff are experts and specialists and
professionals and so forth, it not only can expand your
duty, it provides the plaintiff’s attorney ammunition to
use in settling or trying a case.
5. Swiss Re discourages using the words “expert” or
“specialist.” First, the field of insurance is so vast
that it’s difficult to call anyone a real expert, even
within insurance lines. Calling yourself or your staff
experts or specialists can increase your duty and your
standard of care.
Will Larson is an attorney who has practiced E&O defense
work in Kansas for 36 years. Over the course of his career,
he has represented insurance companies and agents
throughout the state. He is a consultant for KAIA on legal
and policy issues.
3. Insurance companies don’t understand these issues.
Except for one very limited exception, you can’t bring
an E&O claim against an insurance company. Their
exposure is limited to what the policy says. Most
website designers have probably never heard of an
E&O claim. In short, website designers don’t write
websites with potential E&O issues in mind, even
those recommended by insurance companies. You
likely have to educate your website designer on the
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