Burand’s Agency E&O Blog: Tip #42

Policies Subject to Audit. Audits are one of the few E&O exposures agencies have that do not involve a claim. A good method for protecting the agency from audit related E&O claims is to disclose what policies are subject to audit in all proposals. Advise to the basis for the audit, an explanation of how audits work, and consider going so far as having the insured initial the proposal indicating they have been advised their policies are subject to audit.