Every once in a while, insurance companies come up with new products or coverage extensions. To announce these, they will typically send out marketing brochures or put on seminars to explain the new product to brokers. When that happens, it is best practice for brokers to read them and notify your clients if appropriate.
This is for 2 reasons:
- If/when your client has a claim denied, they may say that if they had known about this new product or coverage extension, they would have bought it and been covered. This is a source of potential E&O liability exposure.
- As brokers, we always want our clients to have the coverage that is the best fit for them. If this new product is a better fit, why not tell them about it? This also provides you the opportunity to increase revenues via upsells and cross-sells.
In summary, when a new product comes across your desk, spend a few minutes reading it. It could save you from potential liability AND help you make more money.