Professional Documents
Culture Documents
Agency E&O Considerations When Social Networking
Agency E&O Considerations When Social Networking
Linkedin.rickmorganconsulting
Facebook/rickmorganconsulting
Twitter.com/rickjmiv
rick@rickmorganconsulting.com
Colleen M. Murphy
Colleen M. Murphy, Esq. is a partner with the firm Goldberg
Segalla LLP, which has 10 offices throughout New York, New
Jersey, Pennsylvania and Connecticut. Ms. Murphy chairs the
firm’s Insurance Agents and Brokers Errors and Omissions
Practice Sub-Group within the firm’s Professional Liability
Practice Group. Since 1992, she has nearly exclusively
confined her practice to the defense of insurance agencies and
brokerages in errors and omissions claims and lawsuits as well
as in consumer complaints and hearings before the New York
State Insurance Department.
http://www.linkedin.com/in/colleenmmurphy1
Sabrena Sally
Sabrena_Sally@swissre.com
Jeff.yates@iiaba.net
linkedin.com/jeffyatesACT
E&O & Social Media
Social media networking is expanding the
ways that insurance agents and brokers do
business
This merits an examination of the likely E&O
risks flowing from use of social media
E&O loss control techniques to neutralize the
exposures
Predictive – E&O claims and/or
regulatory claims have not yet been
made to our knowledge
Major E&O Risks from Use of Social
Media
General E&O risk management tips from
use of social media; Risks that result from
taking advice/transactions out of normal
agency processes
Incorrect advice; misrepresentation of
policy terms
Negligent referrals
Business defamation; trade libel
Posting private consumer information on
the social web
Advertising liability
General E&O Risk Management
Tips
Step one is have a social media policy guide
that all employees understand and adhere to.
Employees should know when to move from
social web and into the agency’s normal
business workflows and how to communicate
this to customers.
Social contact to prospect
General insurance topics to specific topics of
individual or business
General E&O Risk Management
Tips
Use standard disclaimers where possible such as:
“The ABC Agency cannot bind or alter coverages or
accept reported claims via social networking. Further,
the information provided is intended for general
situations and questions relating to specific coverage
should be discussed using the agency’s regular
workflows. Please contact a licensed agent directly.”
Establish with the customer upfront how your agency does
business including who and how the customer should contact
you for their specific needs.
If customer activity does occur through a social media
platform it should be documented in the agency management
system.
Potential Errors Without a Good
Social Media Policy:
Example: Social networking account used
to communicate answers on customer
applications.
Example: Customer notifies agency of a
claim via a social networking account.
Example: Customer requests via social
networking account -
a change in coverage or limit;
an additional insured be added;
a certificate of insurance be issued.
Misrepresentation/ Incorrect Advice
Example: Agent offers advice on co-insurance during blog
exchange – someone sues alleging incorrect advice
Email
Chat Room
Blog Same Best Practice
Twitter
Phone Call
Misrepresentation/ Incorrect Advice
Risk Management Key:
Exposure is high:
Third Party Liability (may or may not be insured)
First Party Liability fines/penalties (not insured)
Release of Personally Identifiable
Information
Risk Management Key
Best Practice: Agency’s written Social Media policy
& security plan should clearly state that no PII is to
be posted or transmitted via social networking
Post appropriate disclaimer and Privacy statements
where the technology permits
Anywhere PII is collected: