Protect Yourself Against Insurance Agent Liability in Texas
Insurance agents and brokers may take play different roles in the industry; but there is one common factor that they share:
They are vulnerable to lawsuits by policyholders over claims because of their visibility as “middlemen,” not because they have done anything wrong under Texas Department of Insurance regulations. The threat of litigation alleging insurance agent liability is always looming. Even when you strive to always comply with your legal duties. Therefore, it is important to understand why policyholders may pursue you for wrongdoing and discuss your situation with an experienced insurance agent liability attorney if they do.
Understand Why Claimants Pursue You
To a policyholder, you are the face of the insurance company. You deal directly with the insured individual, and often the only person they know before they procure a policy; while they are covered, and after the business relationship terminates. Your customer-facing position makes you the obvious choice when a policyholder decides to take legal action. Even if you are in full compliance with your role as an agent, broker, or adjuster. Even when you have strictly adhered to the contract provisions.
Once you understand why claimants come after you when facing challenges with their policy; you can see the importance of documenting every interaction you have with them. To protect yourself:
- Save your emails, letters, and other written correspondence;
- Jot down notes of every conversation; and,
- Document voicemail messages.
Note that you should not keep these types of records only when you are faced with the threat of litigation. Make it a practice to track your tasks and communications at all times, and ensure that you are securely storing any electronic records.
Know the Discovery Rules
Even as you are taking care to document everything, you should familiarize yourself with basic discovery rules that apply to lawsuits in Texas. That note you jotted down – “this guy is a moron” – may be discoverable in the event of a claim. Maintain a high level of professionalism, so that any records you must turn over in discovery do not come back to haunt you.
A Knowledgeable Insurance Agent Liability Attorney Can Help
If you are concerned about your role and potential claims as an insurance agent, it is important to talk to a lawyer that has specific experience in insurance agent and broker liability matters. Please contact the Campbell & Associates Law Firm, P.C. in Dallas, TX with questions or to schedule a consultation regarding your circumstances.