Agency Performance Partners


Reducing Insurance Agency E&O Exposures Through Renewal Reviews

Posted on September 18, 2023 by Kelly Donahue Piro

In today’s rapidly evolving insurance marketplace, ensuring the protection of both our clients and ourselves from potential errors and omissions (E&O) exposures is of the utmost importance. 

As professionals in this industry, we must remember that we are more than just order takers, we are advisors. We must understand the significance of maintaining an impeccable reputation and delivering exceptional service to our valued clients. 

However, we also recognize that human errors can occur, leading to potential liabilities that could impact our businesses negatively.

In this blog post, we will delve into the key aspects that can play a pivotal role in reducing insurance agency E&O exposures through renewal reviews. 

  • Before we dive into solutions, it’s crucial to understand the various E&O exposures that exist in our line of work. Insurance agency errors can range from policy misinterpretations to incomplete client data entry and even unintentional coverage omissions. 
  • The consequences of these errors can be significant, resulting in costly litigation, reputational damage, and a loss of client trust. Thus, having a comprehensive understanding of these exposures is the first step in addressing them effectively.

One of the most powerful tools at an independent insurance agent’s disposal is the proactive renewal review call. By establishing a systematic process of conducting annual coverage reviews with our clients, we can identify potential gaps or deficiencies in their policies and address them before they become costly problems. 

This proactive approach not only enhances client satisfaction but also serves as a crucial risk management strategy for our agencies. (At Agency Performance Partners we like to think of this as a great way to fill the Customer Experience Piggy Bank.) 

To provide you with a clear and concise guide, this blog post is structured as follows:

  • Understanding E&O Exposures: We’ll explore common errors that insurance agents may encounter and the potential ramifications for both clients and agencies.
  • Importance of Proactive Renewal Review Calls: Discover the importance of engaging clients in systematic annual coverage reviews, and how this practice can act as a powerful risk mitigation tool.
  • Steps to Conducting Proactive Renewal Review Calls: Learn practical tips and best practices for establishing a streamlined process for conducting renewal review calls.
  • Best Practices for Proactive Renewal Review Calls: Explore how timing & technology can be harnessed to support your efforts in reducing E&O exposures.
  • Strengthening Client Relationships and Agency Success: Discover how a proactive approach to coverage reviews can bolster client satisfaction, loyalty, and long-term agency success.

By the end of this blog, we hope you will be on the path to reducing insurance agency E&O through renewal reviews. 

By being equipped with the knowledge and tools to implement a systematized annual coverage review process that reduces E&O exposures, enhances client trust, and reinforces your reputation as a reliable, proactive insurance partner.

Let’s jump into this journey of risk management and client experience together so that we can better safeguard your agency and elevate the value you bring to your clients. 

Understanding Insurance Agency Errors & Omissions Exposures

Errors and omissions exposures occur when an insurance agency fails to fulfill its professional duty accurately, leading to financial losses or damages for the client. 

These exposures can arise due to mistakes, oversights, misunderstandings, or incomplete documentation during the insurance process.

Five of the most common E&O exposures are: 

Misrepresentation or Misleading Information

Insurance agents may get sued if they provide inaccurate or misleading information about a policy’s coverage, terms, or benefits. Clients who suffer losses due to misrepresented policies may take legal action against the agent.

Failure to Procure Adequate Coverage

If an insurance agent fails to recommend or provide adequate coverage that matches the client’s needs, and the client faces significant financial losses as a result, they may sue the agent for negligence.

Negligence or Errors in Policy Handling

Agents can be held liable if they make administrative errors, such as failing to process policy changes, renewals, or cancellations on time, leading to adverse consequences for the client.

Breach of Fiduciary Duty

Insurance agents are often considered to have a fiduciary duty to their clients, which means they must act in the client’s best interests. Any breach of this duty, such as prioritizing their commission over the client’s needs, can lead to legal action.

Failure to Disclose Important Information 

If an agent fails to disclose critical information related to the policy, exclusions, or potential risks, and the client suffers a loss as a result of this omission, the agent may face legal repercussions.

Consequences of E&O Claims for Insurance Agencies

The consequences of E&O claims can be severe, impacting both the agency and its clients. Four Potential repercussions are:

  1. Costly Litigation: Defending against E&O claims can be expensive and time-consuming.
  2. Damaged Reputation: E&O claims can tarnish your agency’s reputation, leading to a loss of clients and new business opportunities.
  3. Increased Premiums: Frequent E&O claims may result in higher professional liability insurance premiums.
  4. Time Loss: The agency’s resources and time will need to be focused on the E&O claim. Leaving other areas of the business to suffer, including client relationships, retention, and new business.  

Importance of Proactive Renewal Review Calls

Proactive renewal review calls involve reaching out to clients ahead of policy renewals to discuss their coverage needs, address any changes, and ensure their policies align with their current situation. This is also a great time to highlight any new endorsements a carrier may now offer. 

Four Benefits of Conducting Proactive Renewal Review Calls

  1. Identifying Coverage Gaps or Inconsistencies: Through proactive reviews, you can uncover potential coverage gaps or discrepancies, allowing you to provide comprehensive protection to your clients. By identifying potential gaps or discrepancies before a claim you can substantially reduce insurance agency E&O exposure.
  2. Ensuring Accurate Policy Documentation: By reviewing policy details with clients, you can ensure that all policy documents are accurate and up-to-date, reducing the risk of disputes during claims.  
  3. Building Stronger Client Relationships: Regular communication can foster stronger bonds with clients, promoting loyalty and trust. The more you talk with your clients about the benefits of your agency as well as the value of the coverage with the carrier that you have placed them with, the more likely the client is to trust you. This can make protection the focus of the conversation and not just price. 
  4. Discount Reviews: Another advantage of proactive renewal review calls is that you can review for discounts that the client may qualify for. By asking additional questions geared towards qualifying for various discounts you may also uncover additional needs for coverage.   

Comparison of Proactive vs. Reactive Approaches to Renewals

While reactive approaches involve waiting for clients to contact you with concerns, proactive renewal review calls empower you to be proactive in addressing issues before they escalate. This approach demonstrates your commitment to client satisfaction and risk management, setting your agency apart from competitors. 

There are typically three common ways agencies handle renewal reviews and a few of the pros and cons of each:

Wait and See 

Wait until the client calls and default to answering their questions or shopping for a different rate. Pro, You only work with people who tell you they are upset or have a question. Con, Many clients don’t know you have other options, so they do not call you or if they do it is generally not a positive conversation. 

Agencies that follow this model tend to be more stressed as there is less time in the day to be proactive and they do not have the best plan of what to say or do.  

Shop ‘Til You Drop

Shop everyone proactively when the rate increases more than a specific amount. Pro, you are connecting with the client at a critical time and proactively educating them on options before they shop. Con, you are calling about the rate. 

This makes the relationship about price and can get draining as every client’s rate sensitivity is different. This method of reaching out at a specified increase is a midway solution. 

It shows that you care for the clients whose rates have been affected and it is far better than getting the spicy phone call from an insured about the rate, but it still ignores those clients who did not have a major increase. 


Making proactive renewal review calls to review everything and identify a plan for success. Pro, you connect with clients and can show them your value. 

This also gives you a greater opportunity to cross-sell and improve coverage. Con, you have to work like a team to get the job done and it requires a very specific plan. 

By reaching out to clients proactively regardless of the premium increase we can update contact information, build relationships in good times that help during the bad times, boost retention, gain more referrals, and reduce inbound upset client calls. 

Steps to Conducting Proactive Renewal Review Calls

Preparing for the Call is easy with our Renewal Review Process Planner

Complete your renewal review form

Every agency should have a standardized form that they use that covers the information that needs to be reviewed during the call. Standardized forms ensure that each insurance account is reviewed in a uniform and consistent manner. 

This helps prevent variations in the review process that could lead to errors, oversights, or biased evaluations. A standardized form also prompts the reviewer to gather and document all relevant information consistently. 

This ensures that important details are not overlooked and that the review accurately reflects the current status of the insurance account.

Gathering Relevant Policy Information

Review the client’s existing policies and any previous communications to have a comprehensive understanding of their coverage. Look for reasons that the policy may have changed in price or coverage. 

Familiarizing Yourself with the Client’s History: Be aware of the client’s claims history and any recent life changes that might impact their insurance needs. 

Is there any new activity (young driver, class code change, etc.) or any new claims/tickets?

Conducting the Call

  • Establishing rapport and setting the agenda. Begin the call by expressing appreciation for the client’s business and outlining the purpose of the review.
  • Reviewing Policy Details and Identifying Potential Issues: Go over each policy, explaining its coverage, limitations, and exclusions while identifying any gaps or discrepancies.
  • Recommendations: Talk to the client about options for additional coverages, other lines of business, missing discounts, and ask for referrals.  
  • Addressing Client Questions and Concerns: Encourage clients to ask questions and address their concerns with clarity and empathy. The purpose of this is to build a better relationship with our clients and to let them know that we are here to help. 
  • Confirm Next Steps: If there is any follow-up needed set an appointment or confirm what they should expect the next steps to be and a timeline for these steps. Clarity is kind and appreciated. 
  • Show Gratitude: Thank the client again for spending time with you to review their policies. Let them know that they are more than just a number in the agency and that you appreciate that they chose your agency to do business with. 

Documenting the Renewal Review

After the call, ensure that all changes and updates are accurately documented in the client’s file. Keep track of any changes made during the call and make recommendations for future coverage adjustments.

Best Practices for Proactive Renewal Review Calls

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Timing of the Calls

Schedule renewal review calls well in advance of policy expiration to allow ample time for any necessary adjustments. It is important to remember that the renewal may not be available yet, but you can update and confirm the existing contact and policy information to help ensure that the renewal is issued correctly. 

Communication Techniques to Enhance Client Engagement

Adopt active listening skills, use clear language, and tailor your communication to the client’s understanding level. Do not use a lot of technical jargon. Many clients do not understand this and will agree or disagree with you just to move the call along without stating that they are unclear on the meaning of the advice. 

Make it simple and easy to understand. Share stories that are relatable to the client and the advice you are giving. 

Collaboration with Underwriters and Other Team Members

Leverage the expertise of underwriters and other team members to address complex coverage scenarios and ensure accuracy during the review process. Use your resources to your advantage. 

If you are unsure of an answer or situation that has been presented to you, let the client know you will be researching this and will get back to them. Then reach out to your underwriter or other team members for advice. It takes a team to succeed. 

Using Technology to Your Advantage

Make the most of technology to optimize client interactions by integrating automated touchpoints and personalized human engagement. Implement automated communications to clients, offering to review their accounts together and providing a convenient link to book an appointment. 

Additionally, self-service portals are invaluable for clients seeking to review their current coverages independently. Embracing video conferencing further reduces the necessity for clients to visit the office in person, as they can have face-to-face chats about their policies from the comfort of their location.

In today’s rapidly evolving insurance marketplace, ensuring the protection of both our clients and ourselves from potential E&O exposures is of the utmost importance. 

As professionals in this industry, we must remember that we are more than just order takers; we are advisors. 

We must understand the significance of maintaining an impeccable reputation and delivering exceptional service to our valued clients. However, we also recognize that human errors can occur, leading to potential liabilities that could impact our businesses negatively.

Throughout this blog post, we have explored the key aspects that can play a pivotal role in reducing insurance agency E&O exposures through proactive renewal reviews. 

Understanding the various E&O exposures is essential as it allows us to address potential gaps and deficiencies in our clients’ policies proactively. 

By adopting systematic annual coverage reviews, we can identify and rectify issues before they become costly problems, enhancing client satisfaction and serving as a crucial risk management strategy for our agencies.

The importance of conducting proactive renewal review calls cannot be overstated. These calls not only help identify coverage gaps, inconsistencies, and potential risks but also strengthen client relationships and build trust. 

Embracing proactive communication and risk management sets our agency apart from competitors and demonstrates our commitment to providing comprehensive and reliable insurance solutions to our clients.

We encourage all independent agents to adopt this proactive approach to renewal reviews. By leveraging technology solutions, providing ongoing education and training to our teams, and maintaining open communication with underwriters, we can enhance our agency’s performance and foster long-term client relationships.

In conclusion, we are on a journey of blending risk management and client experience. By implementing a systematized annual coverage review process and reducing E&O exposures, we not only protect our clients but also elevate the value we bring to them. 

Proactive renewal review calls demonstrate our dedication to understanding and meeting our clients’ evolving needs, ultimately solidifying our agency’s reputation and ensuring long-term success in the competitive insurance market. 

Together, we can create a brighter future for the insurance industry and the clients we serve.

September 2023 - Book a Meeting