Merritt Personal Lines Manual: Words of Wisdom from the Front Lines
Most of us want to trust other people. But a lot of otherwise smart people have gotten burned by being too trusting when it comes to insurance. Never sign a blank insurance application -- or a blank insurance form. This is like signing a blank check. And it's a more common problem than most people...including most insurance people...realize.
Also, encourage your clients to read their policies.
Most people would rather sit in a dentist's chair than read an insurance policy. But it is very important to read a policy thoroughly, to be sure that you got the amount of coverage you want, without any surprise exclusions or limitations.
Remember to check your coverage regularly -- once a year is usually sufficient -- to be sure it still meets your needs. If the cost of building a home in your neighborhood has gone up, you probably need to increase your homeowners coverage. If you've bought a new car, you will need to update your auto policy. And if your children are grown and your house is paid off, you probably don't need to carry as much life insurance as you did before.
Example: You sell a used car to someone, who sells it to someone else. The current owner sues you, years later, claiming that you illegally disconnected an air bag. You'll need to have your liability insurance policy handy, so that you can get back in touch with the insurance company.
