E&O Tips

E&O TIP: Water & Sewer Back-up Coverage

Utica National Insurance Group E&O Risk Management

To help you avoid a potential errors & omissions claim, discuss and offer the Water and Sewer Back-up Endorsement to all of your Homeowners policyholders. Remember the following tips that can help prevent a “sticky situation”: 

  • Ensure everyone at the agency is aware of the water exclusion on a typical Homeowners policy and that they inform the clients.
  • Recommend adding the Water and Sewer Back-up Endorsement on all Homeowners policies.
  • Provide a copy of the endorsement to read during the application process. Seeing it in black and white drives home the necessity of having it on the policy.
  • Get a rejection in writing. A checklist requiring the client to initial rejected optional coverages is helpful in the event of a future dispute.
  • Provide clients with a clear understanding of a water and sewer back-up claim and what the endorsement covers (as opposed to a flood claim).