Which of the following situations would an insurance agent need to guard against liability for professional errors and omissions?

In the context of insurance, an agent has a professional responsibility to provide accurate information and act in the best interest of their clients. When an agent makes a recommendation to replace existing coverage, it carries significant implications for the client, including potential gaps in coverage, changes in premiums, and varying terms and conditions of new policies.

If the recommendation leads to a negative outcome for the client, such as inadequate coverage or increased costs, the agent could be held liable for professional errors or omissions. This type of liability arises from failing to meet the professional standards expected in the insurance industry, especially when the agent advises a client on significant decisions regarding their insurance needs.

In contrast, remitting premiums to an insurer primarily involves administrative functions and does not involve the same level of professional judgment or risk of liability. Conducting a sales meeting with other agents focuses on peer-to-peer communication and does not directly impact clients. Similarly, setting up a sales appointment is an essential part of the sales process but lacks the critical decision-making component that could expose the agent to liability. Therefore, the recommendation to replace existing coverage represents the scenario with the highest risk for professional liability.