E&O Claims

[RookieMistakes]

Hi! I work for Farmers Insurance. I have been working in insurance for over a year. I am an insurance producer. Recently there have been a lot of changes in our company & I have made a huge mistake. So prior to these changes, I could close a home policy & offer replacement cost sometimes I would ask about the year of the roof sometimes not. I was still able to issue a replacement cost home insurance. But, in October of 2022, they rolled out with a new flex program. This program no longer offered Replacement cost, apparently it's to roofs older than 9 years. Well at the beginning the error message I would get was "not available per zip." So I would always quote replacement cost but it would say not available. Okay, so I sold ACV to many people!! I would sometimes update the roof sometimes not, because it was just not a routine I had. Since before I didn't ask, but was still able to sel RCV. Whatever, now with the recent storms we have been having customers have been complaining & my agent had 3 E&Os now!! Because the roof year wasn't updated nor was the ACV explained. So they are reforming my policies, adding RCV for roofs or adding endorsements that were never talked about before. I am in huge trouble it's embarrassing. Now, we are going back to all of our policies recently sold & trying to update the roof, but I just feel so ugly so embarrassed. I am looking for another job just because I feel like I have failed everyone. How do I deal with this. I have customers who are still going through claims, some who haven't filed so I have to call to update roof & 3 E&Os filed already. I feel such an urge to quit because I feel like I have messed up sooo much

 

[fed up]

Why did you become an agent? So you could sell items that people need and make a commission? Or did you become an agent so that you could protect people and sleep well doing your job? You made a few mistakes and you have E&O coverage for mistakes. Own your mistake, you might get to keep your job. You have been with Farmers for over a year. How many policies did you actually bind in 12 months? Your statement about sometimes I did, sometimes I didn't tells a lot about you as an agent but I worked as a Farmers agent and Farmers tends to hide changes to their policies. I sold water backup endorsements that had been changed but coverage was never updated and my customers got screwed. When I showed upper management the issue they covered the losses.
You might get canned for the E&O , you might loss the ability to bind without an inspection but running away doesn't help you or your client or your future career

 

[Al3x Lee]

@marindependent @Markthebroker So it begins... the ACV wave of ACV Alex.

Not to fear @RookieMistakes ! It's only the worst insurance market in known history. This is not entirely your fault. Soon, under my leadership, the entire country will be ACV. If you quit now, you'll never get to see the glory of actual trash value. We all face struggles in insurance. The general public hates you, your agency owners ride your ass, but if you stick through it and allow your skin to thicken, eventually these things will be like water off a duck's back. I assure you these things seem bigger and worse than they are because you're in the hot seat, but it will pass and your agency owner will eventually forgive you. Also, look at it this way, you're not going to forget to tell a customer going forward!

And remember, ACV Alex for California Insurance Commissioner:

"actual trash value, you get the value that your trash is worth. And let me tell you, no one understands the value of trash property better than me, Al3x J Lee.

When it comes to property, we need to ensure that our insurance valuations reflect the true worth of what we own. And I'm not talking about some garbage appraisal. We're talking about actual trash value. Let's be honest, we know that some people out there think our properties are worth significantly MORE than they truly are.

Under my leadership, we will fight for accurate and fair property insurance valuations. No more overvaluing our trashssets."

 

[whatyouwantfinally]

This sounds like it's your boss's fault. The aspects of the job weren't explained to you (identifying risk) and policies weren't in place to keep you from messing up.

That you genuinely feel bad and aren't trying to point the finger speaks very well to your character. That alone is probably enough to not lose your job.

Dust yourself off and learn all you can from it. Ask about other risk factors you may not know to check for when you're quoting.

 

[adjusterjack]

actual trash value.

I love it. But with all my years as a property claims adjuster I kick myself for not having thought of it back then.

Though I did apply the concept without naming it.

I worked for a surplus lines company. We wrote a lot of actual trash value policies on non-standard properties. Roof claims were a lot of fun. People let their roofs deteriorate for decades until a convenient wind storm blew the shingles off and we were expected to buy a new roof. Nope, lots of depreciation and a very small check.

Under my leadership, we will fight for accurate and fair property insurance valuations. No more overvaluing our trashssets."

If I lived in California you would have my vote.

 

[RookieMistakes]

@whatyouwantfinally @Al3x Lee

I appreciate your replies. I am really struggling with this emotionally. So it's helpful to get a different perspective. Since I starting in this company my only training has trial & error. If I have a question my answer is "chat." I was with an agent before my new agent who was my main trainer & my new boss has been in the insurance industry the same amount of time as me. I know that I could have don't better been more thorough, explained coverages better, etc. but this was also when the first State revision affected the premiums a ridiculous amount & the error message I got was Zip code issue. At that same time lots of things were no longer available especially the extended warranty. I didn't know it was because of the roof. I'm struggling ti call customers & update their roof now because on top of that updating the roof increases premium regardless of adding RCV & endorsements

 

[Al3x Lee]

@whatyouwantfinally @Al3x Lee

I appreciate your replies. I am really struggling with this emotionally. So it's helpful to get a different perspective. Since I starting in this company my only training has trial & error. If I have a question my answer is "chat." I was with an agent before my new agent who was my main trainer & my new boss has been in the insurance industry the same amount of time as me. I know that I could have don't better been more thorough, explained coverages better, etc. but this was also when the first State revision affected the premiums a ridiculous amount & the error message I got was Zip code issue. At that same time lots of things were no longer available especially the extended warranty. I didn't know it was because of the roof. I'm struggling ti call customers & update their roof now because on top of that updating the roof increases premium regardless of adding RCV & endorsements

You're taking it personally because you made a mistake, so you're letting it eat you up inside, we've all been there. You said it yourself though, your agency is making you learn by trial and ERROR. They can't expect you to learn that way without making some errors and mistakes. It doesn't make you a bad agent or a bad person.

Go back and do the best you can with the knowledge you have now.

I just had to call and tell a bunch of customers the last two weeks that a carrier I placed them with had become financially unstable. Even though it's not my fault, my customers sure made me feel like it was, especially when I had to ask them for more premium to switch a few of them.

If you want to stay in insurance, tough it out and keep moving forward. No shame if you decide the career isn't for you, it isn't for most people.

I love it. But with all my years as a property claims adjuster I kick myself for not having thought of it back then.

Though I did apply the concept without naming it.

Claims adjusters get it! They've seen plenty of actual trash value be sold as RC

 

[marindependent]

And remember, ACV Alex for California Insurance Commissioner:

"actual trash value, you get the value that your trash is worth. And let me tell you, no one understands the value of trash property better than me, Al3x J Lee.

When it comes to property, we need to ensure that our insurance valuations reflect the true worth of what we own. And I'm not talking about some garbage appraisal. We're talking about actual trash value. Let's be honest, we know that some people out there think our properties are worth significantly MORE than they truly are.

Under my leadership, we will fight for accurate and fair property insurance valuations. No more overvaluing our trashssets."

Wow - I am sure your Campaign Maanger would be proud. ACV Al3X for Ins Commish.

 

[Al3x Lee]

Wow - I am sure your Campaign Maanger would be proud. ACV Al3X for Ins Commish.

Aren't you going to be my campaign manager?

 

[marindependent]

Aren't you going to be my campaign manager?

so sorry - Ricardo already asked me :-)