How to Get an E&O insurance policy and how to avoid common Errors and Omissions
An E&O insurance policy provides professional liability and helps you cover for unwanted lawsuits. Since you are an insurance agent in the insurance service sector, you are prone to such lawsuits. Getting an e & o insurance policy helps you avoid such lawsuits. The AAI program is ideal for all agency staff, including insurance agent, CSRs, account managers, and support staff. Being an insurance producer can help find the right policies for customers to fit their insurance requirements. Insurance Institute of America and IIABA collaborated to introduce this program.
Insurance professionals who shows a prominent of insurance knowledge and a focus on serving customer gets AAI Designated. Also, the knowledge gained through AAI designation in North Carolina help insurance professionals give the best service and recommendations to clients. Hence, this designation is highly beneficial for individuals wanting to open an insurance agency.
Benefits from the AAI Designation and E & O insurance policy:
By completing the program, insurance professionals acquire practical information to use right away. They are:
- Increase commissions for an insurance brokerage
- Enhance knowledge of policies and coverages
- Develop more effective sales techniques
- Understand underwriters’ language better
- Improve agency workflows
- Serve customers better
- Avoid e & o claims
Qualifications for AAI Designation and getting e & o insurance policy:
The Institutes Risk & Insurance Knowledge Group determines that the AAI program takes around 9-12 months to complete. Furthermore, students should complete 3 basic courses to get AAI Designated. Also, this designation opens doors for you if you are working for top 100 p&c insurance companies 2019. The topics covered are principles of insurance, personal insurance, commercial property insurance, commercial liability and many more.
In addition, an insurance broker or agent must complete an ethics requirement by passing the 50-question Ethical Guidelines for Insurance Professionals or Ethics and the CPCU Code of Professional Conduct exam. A further education is an Accredited Advisor in Insurance – Management (AAI-M). Therefore, insurance producers can complete this extra course.
Courses to take for AAI Designation:
There are two main categories of course to complete and get AAI designated.
Course One: Core Courses
Core courses are
The three courses under this category are as follows:
- AAI 81: Foundations of Insurance Production- Builds a foundation to understand the exposures faced by clients. Also, it helps to gain knowledge of a wide range of insurance products and services.
- AAI 82: Multiple- Lines Insurance Production- Helps to learn how to accurately write large, complex commercial lines. Also, it provides a good understanding of general liability, auto, and workers compensation insurance and bonds.
- AAI 83: Agency Operations and Sales Management- Helps to effectively manage agency operations. In addition to providing techniques on confidently communicating with customers. Also, it helps in utilizing proven sales and negotiation tips.
Course Two: Ethics (1)
Ethical decision making in risk and insurance:
Ethical behavior is important in risk management and insurance. It provides a framework for making decisions and learning to recognize ethical dilemmas. Also, it enhances the skills needed to reach informed decisions when faced. Furthermore, ethical dilemmas and decision making is important for cyber insurance as well.
The knowledge gained from the AAI course can aid insurance agents selling sophisticated products or dealing with unusually complex insurance situations. Also, the knowledge obtained from the course shows insurance professionals demonstrating professional competency when customers want to find an agent. Therefore, AAI designation is a huge credibility for insurance producers.