The Insurance Soup Blog

“I Thought That Was Covered” Is Not a Client Problem. It’s an Agent Problem.

Written by Taylor Dobbie | Feb 24, 2026 8:46:11 PM

The Uncomfortable Truth About Assumptions, Shortcuts, and Silent E&O Risk

Every agent has heard it.

“I thought that was covered.”

It usually comes after a loss. Sometimes after a denial. Always with frustration attached.

Most agents chalk it up to client misunderstanding.

That’s a mistake.

Because “I thought” doesn’t come from confusion. It comes from assumption. And assumptions are built during onboarding, not claims.

The Myth Agents Tell Themselves

Agents love saying:

  • “I explained it.”
  • “They signed the policy.”
  • “That’s standard coverage.”

None of those statements protect you.

Explaining something once doesn’t equal understanding. Signatures don’t equal clarity. And “standard” means nothing to someone outside the industry.

When clients misunderstand coverage, it’s rarely because they weren’t told. It’s because they weren’t shown, reinforced, or corrected.

Where Assumptions Actually Come From

Assumptions are created when:

  • Conversations are rushed
  • Coverage is emailed instead of discussed
  • Gaps are softened to avoid discomfort
  • Agents assume silence equals understanding

Clients don’t want to look ignorant. So they nod. They agree. They move on.

Until reality shows up.

Every “I Thought” Is a Future Claim Conversation

Claims don’t create misunderstandings. They expose them.

Most E&O problems don’t come from bad intent. They come from undocumented conversations and uncorrected assumptions.

If a client believes something was covered, that belief came from somewhere.

And if you didn’t actively dismantle it, you indirectly reinforced it.

The Hidden Risk Agents Don’t Track

Here’s what rarely gets discussed in agencies:

Your biggest risk isn’t what you said. It’s what the client believed after you stopped talking.

Coverage gaps aren’t just financial problems. They’re reputational ones.

Clients may lose money. But agents lose trust.

And trust is harder to replace than any account.

What Strong Agents Do Differently

The best agents don’t fear uncomfortable conversations. They lean into them.

They:

  • Explain exclusions first
  • Repeat themselves without ego
  • Ask clients to explain coverage back
  • Document expectations clearly
  • Put clarity above speed

They don’t rush onboarding. They reinforce it.

They don’t assume understanding. They confirm it.

The Line Agents Need to Hear

Clients don’t misunderstand policies.

They misunderstand us.

That’s not an insult. It’s a responsibility.

Because when clarity is missing, coverage might as well be too.

Clarity is a form of coverage. Treat it like one.