Create a Strong E&O Culture Using 6 Key Components
Your agency’s goal should be to creating a strong E&O culture through constant and steady improvement in your E&O loss prevention approach. These tips can help:
- Be consistent. Develop a procedure manual or identify 10 essential procedures to benefit your
agency. Assign a segment of your staff to do this to foster greater buy-in. - Review tasks regularly. A large workload and not handling issues in a timely manner can increase
the potential for E&O matters to develop. Review tasks with each staff member at least monthly and reassign tasks as needed. - Report claims promptly. A common issue relating to claims involves reporting to excess carriers.
Develop a “Best Practices Guide” for the Claims staff. Keep in mind that agencies don’t have the
authority to approve or deny claims, carriers do. - Document communications. Document and retain every communication involving a client’s insurance program in the client file. Memorialize discussions back to the client by written communication. This will benefit your agency if a problem develops and the client’s version of the conversation differs from yours. Remember, “If it’s not in the file, it didn’t happen.”
- Use exposure analysis. Most claims involve a client suffering an uninsured loss. Help them
understand their exposures and offer insurance solutions. This helps reduce your E&O exposure
and can result in growth for your agency. Include a section addressing “other coverages to consider
including, but not limited to, the following” in your proposals. - Check policies. Many agencies assume policies issued by the carrier or from a wholesaler are
correct. Don’t. Develop a policy-checking process for new and renewal business, especially in the
Commercial Lines segment, beyond “the premium is what was quoted.”
Additional Articles
- What and When am I Supposed to Document?
- Failure to Obtain/Maintain Proper Coverage
- Do Your Producers Know the Rules?
- When Using Wholesalers, You Don’t Want to Assume