Certificates of insurance a significant cause of E&O claims

Mistakes in handling certificates of insurance are a significant cause of errors and omissions claims against insurance agents.

Typically this occurs when a certificate of insurance doesn’t accurately reflect the policy coverage.

In workers’ compensation, inaccuracies can come in the form of an alternate employer endorsement, waiver of subrogation endorsement, officer inclusion/exclusion and employer liability limits, which are listed on a certificate, but not on the policy. Remember that a certificate holder cannot be given notice of cancellation that is greater than what is due the insured via statute. These situations can also be problematic if noted on the certificate.

As a reminder, SFM agents and policyholders can instantly download certificates of insurance on sfmic.com and Superior Point customers can download certificates of insurance on superiorpoint.com .

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