How do validating producers offer an umbrella?
    “It’s always best to buy an umbrella.”
    “We recommend a $1 million umbrella.”
    “You need another $1 million.”

All of these might be correct, but none of them are a best practice. Insurance professionals should always offer higher liability limits in writing, whether it is for an Umbrella, Cyber, D&O, Product Liability, the list goes on. The offered limit should be higher than expiring. If the prospect does not yet have insurance, an Umbrella should be offered.

This practice has three benefits.

• It protects the client from an uninsured loss.
• It protects the agency from a potential E&O claim.
• It provides potential for increased commission.
  
  

Let the client choose the limit. It is possible and even likely that the insured will seek agent’s advice on the limit, but it must ultimately be the client’s decision. An informed decision can only be made if options are offered.

What happens if there is a loss which is greater than the limit? And the insured alleges that the agent determined the limit, and provided poor advice? Time to call the E&O carrier.

An insured can make the allegation, even when higher limits were offered and insured chose a lower limit. But handling the claim is much easier, less expensive, and less time-consuming if the agent has the offer and declination in writing.