Employers are relying on insurance advisors more than ever. They have become a resource for wellness programs, provider networks, and the Affordable Care Act. Brokers relying on the errors & omissions (E&O) insurance to protect them and the advice they give should carefully read their policy and any risk management materials sent by their E&O provider. Depending on the E&O policy, it could have explicit language prohibiting an insurance advisors from giving advice on certain topics. If an insurance advisor does not read the policy, they could be liable for any errors in that advice.
Additionally, an insurance advisor voluntarily positioning itself as an expert on a certain topic will affect the standard of care a court will apply if the advisor was ever sued for providing bad advice. Depending on a state’s laws, being an expert for one customer may create the duty to be an expert for all clients.
In summary, insurance advisors should read their E&O policies and information provided by E&O carriers very carefully. Positioning yourself as an expert seems almost too good a marketing opportunity to pass up, but it could have consequences for you and your client.