The short answer
No tool prevents an errors and omissions claim. What reduces the exposure is getting the property right and being able to prove it. A PropDiagram report gives the agency a dated diagram and schedule of every building on the property, each with its dimensions, square footage and a mark for how it was to be insured: ACV, RCV or not covered. It takes about a minute and costs little, which makes it practical for every property account.
Why do building details matter in an E&O claim?
The allegations made most often against insurance agencies are about coverage that was not placed or was not enough. A 2025 article from the Big "I" lists failure to procure proper coverage first among the most frequent causes of E&O claims, and notes that a coverage amount set too low can leave insufficient limits and prompt a claim against the agency.1 Utica National's list of common causes likewise includes failure to obtain or maintain proper coverage and failure to give accurate information or advice.2
On a property account, those allegations usually come down to plain facts about the buildings:
- A building was on the property and never made it onto the policy.
- The square footage behind the limit was too low, so the limit was too low.
- An addition or a new building went up and the policy was not changed.
- The insured believed a building was covered at replacement cost and it was written at actual cash value, or not at all.
Both sources make the same point about defence: the file decides it. Claims are far easier to defend when the agency has consistent procedures and thorough documentation.1, 2
What does a PropDiagram report document?
| Question asked after a loss | What the report in the file shows |
|---|---|
| What buildings were on the property? | Every building outlined and numbered on a scaled diagram, with an aerial view |
| How big was each one? | Length, width and footprint square footage, plus upper floors you entered |
| Which buildings were to be insured, and how? | ACV, RCV or N/C (not covered) beside each building on the schedule |
| Was that outbuilding discussed? | It is on the schedule by number and name, marked N/C if coverage was declined |
| When was this recorded? | The report carries the date it was produced |
| Were hazards noted? | Fuel tanks and outdoor wood boilers placed on the diagram, each with its distance to the nearest building |
How should an agency use it?
- Run the report at new business. Enter the address before you quote. The building footprints are drawn and measured automatically in about a minute.
- Check it against the application. Compare the number of buildings and the square footage with what the insured told you. Correct an outline or add a new building if the photo is out of date.
- Name and classify every building. Use the insured's own names, and mark each ACV, RCV or N/C. A building the insured does not want covered stays on the schedule as N/C.
- Review it with the insured. Send the PDF and ask them to confirm that the buildings, sizes and coverage choices are right. Keep their reply.
- Save the PDF in the file. Reports stay on PropDiagram for 7 days (6 months with the monthly subscription), so the copy that matters is the one in your agency management system.
- Repeat when the property changes. A new building, an addition or a demolition is the moment to run it again, and renewal is a natural time to ask.
Why the N/C mark matters
An uncovered building causes trouble when nobody can show it was ever discussed. On a PropDiagram schedule a building is never silently absent: it is numbered and named, and if it is not to be insured it reads N/C. That turns "the agent never asked about the pole barn" into a record that the pole barn was identified, measured and left off at the insured's choice.
What it does not do
- It does not estimate replacement cost or recommend a limit. It checks the inputs: the buildings and their size.
- It is not legal advice and does not replace your E&O carrier's or agency's procedures for offering coverage, documenting declinations and getting sign-off.
- Measurements are estimates from aerial imagery, typically within a few feet. Verify anything a coverage decision depends on.
Common questions
Can PropDiagram prevent an E&O claim?
No tool can prevent an errors and omissions claim. PropDiagram helps reduce the exposure by giving the agency a dated, building-by-building record of what was on the property, how big each building was and how each was to be valued or left uncovered, which supports both accurate placement and a documented file.
What should go in the file for E&O purposes?
The PDF report (building schedule, aerial view and diagram), the date it was reviewed with the insured, and the insured's confirmation of the buildings, values and any building they chose not to cover.
How does marking a building N/C help?
N/C means not covered. Marking a building N/C on the schedule records that the building was identified and that coverage for it was declined, instead of it simply being absent from the policy.
How often should the diagram be updated?
At new business and whenever the property changes: a new building, an addition or a demolition. Many agencies review it at each renewal.
Is the report legal advice or an E&O procedure?
No. It is documentation. Follow your E&O carrier's and agency's procedures for coverage offers, declinations and client sign-off.
Sources
- Independent Insurance Agents & Brokers of America (Big "I"), Five Top Tips to Prevent the Most Frequent Errors & Omissions Claims Against Insurance Agencies, June 13, 2025.
- Utica National Insurance Group, 6 Common Causes of Agents' E&O Claims.
Sources checked October 2026. PropDiagram is not affiliated with or endorsed by either organization.
A PropDiagram report is a diagram and reference record. Measurements are approximate ground-footprint estimates from aerial-imagery-derived building outlines. A report is not an appraisal, survey, replacement cost estimate or insurance valuation; verify anything a decision depends on.