Create Video Proposals Without Creating an "E&O Headache"

 Risk Management Tips for Insurance Agents 

Video proposals are becoming a popular way for insurance agents to explain coverage options, personalize the sales process, and stand out in a competitive market. Agents are using short, recorded videos to walk prospects through quotes, renewal options, and coverage highlights – often replacing or supplementing traditional in‑person meetings and written proposals. 

While video proposals can improve engagement and efficiency, they also introduce new professional liability considerations. Once recorded, a video proposal is no longer a casual conversation – it becomes a permanent sales communication that may be replayed, shared, and scrutinized later. 

Understand What a Video Proposal Really Is 
From a risk perspective, a video proposal is recorded sales material. Even when personalized, recorded explanations of coverage options function as formal sales communications. This means statements made on video can later be evaluated the same way as written proposals or other marketing materials. 

Apply the Same Standards to Video Proposals as Written Ones 
The conversational nature of video can create a false sense of informality. Agents may unintentionally oversimplify coverage or use language that sounds definitive. To reduce E&O exposure, agents should avoid absolute phrases, guarantees, or promises, and focus on describing options rather than outcomes.

Never Let the Video Replace the Written Proposal – and Standardize the Disclaimer
Video proposals should supplement – not replace – written proposals and policy documents. One of the most common contributors to errors & omissions claims is reliance on verbal explanations that are not clearly tied back to the written record. Disclaimers help reinforce that distinction and manage expectations, particularly when used consistently across all client communications.

Rather than relying on each agent to verbally state a disclaimer at the start of every recording, agencies should consider embedding standardized disclaimer language directly into the video itself. Using a visual disclaimer creates consistency, reduces the risk of omissions or paraphrasing, and demonstrates a systematic agency practice. All disclaimers must be clear, conspicuous, and reasonably noticeable.

Best‑practice guidance includes:

• Use a single, standardized disclaimer approved by compliance and legal.
• Display the disclaimer as a persistent footer throughout the video or, at minimum, during the opening segment for long enough to be read and in legible font size and contrast.
• Do not rely solely on verbal statements by the agent.
• Keep the language broad, neutral, and non‑technical.

Sample Video Disclaimer Language:
“This video is provided for general informational purposes only. Coverage is subject to the terms, conditions, limitations, and exclusions of the written proposal and issued policy. This video does not amend, extend, or guarantee coverage.”

Disclaimers do not prevent E&O claims on their own, but consistent and visible use helps demonstrate reasonable care, reinforces documentation discipline, and reduces ambiguity about what the video is – and is not – intended to do.

Be Cautious When Explaining Coverage Gaps and Exclusions
Video proposals are effective for highlighting value, but they can increase risk when used to interpret exclusions or limitations. Agents should use video to flag that exclusions exist and encourage follow‑up discussions for complex exposures, rather than attempting to resolve nuanced coverage questions on camera.

Assume Every Video Will Be Replayed Out of Context
Unlike live meetings, video proposals can be replayed, shared internally, and viewed long after they are recorded. Agents should record with the assumption that the video may later be reviewed without additional explanation or context.

Store and Retain Video Proposals Like Other Sales Records
Video proposals should be stored alongside written proposals, emails, and client communications. Applying the same retention standards used for other sales documentation helps support consistent recordkeeping and E&O defense.

Train Producers on Risk Awareness –Not Just Technology
Most training on video proposals focuses on delivery and presentation. Agencies should also train producers on risk awareness, emphasizing what not to say on video, how to rely on written documentation, and why consistency matters. 

Agent Checklist: Before You Hit “Record”

☐ Does the video align with the written proposal?

☐ Is a standardized disclaimer visibly displayed?

☐ Have I avoided guarantees or absolute statements?

☐ Does the video clearly reference the written proposal and policy?

☐ Have I avoided oversimplifying exclusions or coverage gaps?

☐ Is the tone professional and clear?

☐ Would I be comfortable if this video were replayed years later?

☐ Is the video stored in a retrievable system and subject to retention guidelines?

Effective risk management doesn’t resist new tools – it puts guardrails around them. Video proposals can improve client understanding and engagement, but only when they are supported by clear documentation, visible disclaimers, and consistent agency practices. Agencies that treat video proposals as structured sales communications – not informal conversations – are better-positioned to defend their process if a dispute arises. 

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E&O TIP: Know What Activities an Unlicensed CSR Can Perform

In general, unlicensed Customer Service Representatives (CSRs) are not able to sell, solicit, bind, or negotiate insurance, nor should they recommend, interpret, or discuss coverages with clients. 

They can act as a go-between for the licensed producer and the client for certain activities – however, matters such as coverage advice or coverage changes must always be reviewed and handled by the licensed producer.

Examples of acceptable unlicensed CSR activities may include*:

• Providing general information about the agency or producer, such as contact information.
• Providing clients with requested forms such as applications, declination forms, etc. These forms can also be received by the CSR, but must be provided to the producer for review and further action. They can also provide things like brochures and buyers guides, if requested.
• Requesting information from clients at the instruction of the producer.
• Providing details to clients about their active policies. For example, supplying a policy number, effective dates, or stated limits, without interpreting coverage or answering “What if?” questions.
• Scheduling appointments for clients to meet with the producer.
• Filing documents that have already been reviewed by the producer, plus general file maintenance.
• Receiving requests for changes to coverage – however, CSRs should be clear to the clients that the request must be reviewed by a producer before any changes are made.
• Accepting notice of claims and forwarding claim information to the carrier or producer, without offering opinions or advice regarding coverage or claim outcome.

*Keep in mind that licensing requirements and permitted activities may vary by state. Agencies are responsible for confirming that their internal procedures and their unlicensed CSRs activities comply with applicable laws, including state insurance laws.

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RISK MANAGEMENT RESOURCES: Sample Notification Letter

Are you currently notifying clients of pending cancellations? Would you like to discontinue this practice? It is vital that you notify clients before ceasing these notifications to avoid E&O claim exposure.

Our risk management resources include sample letter language that you can use. View the letter here.