In many (probably most) states, there is a standard/expectation imposed on the client requiring them to read their policy. If an E&O claim were to develop, based on the facts, this could actually be part of the agencyaEUR(TM)s defense. As a result, when sending a policy or policies to your customer, the best approach is to advise them that they should review the policy to ensure that it meets with their approval.
It is highly recommended to keep this cover letter fairly general, something like the following:
Enclosed please find the renewal of your Homeowners policy written with XYZ Insurance Co. You will be receiving your premium invoice shortly.
It is important that you take the time to read this policy to ensure your understanding of the limits and the coverages. Certainly, if there are any questions or you wish to make any changes to this policy, please contact the agency promptly. The limits of insurance have been selected by you and we canaEUR(TM)t guarantee that the limit selected will be sufficient in the event of a major loss. We can add or increase coverage at any time.
If the cover letter restated all of the coverages, there is a very good chance that the insured would rely on the cover letter and not read the policy. Also, if you happened to misstate the coverages or limits, the insured would contend that they didnaEUR(TM)t need to read the policy since you essentially told them what was in it. Thus the best approach is to be general and request that the insured review their policy and then advise your agency if it does not appear correct or if there are any questions.
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