Tips for Navigating Mid-Term Endorsement Requests

Whether your client is adding a new vehicle, updating property details, or modifying coverage limits, mid-term policy adjustments are an essential part of maintaining accurate and effective insurance coverage. For insurance agents, handling endorsements efficiently and accurately is critical. 

Here are some recommended best practices to help reduce E&O exposure related to handling mid-term endorsement requests:

• Endeavor to obtain a written request from your client for policy changes. If you must take a request over the phone, memorialize the conversation back to the client – noting the change requested, any pertinent details, and next steps. This gives the client the opportunity to clear up any misunderstandings and ask questions. A written request can help prevent a “he said, she said” scenario which is unlikely to err in favor of the agent in the event of an E&O claim. 
• Keep endorsement requests on a short diary and follow up continuously until completed. Make the diary accessible to all employees to ensure that the request will not fall through the cracks if the original employee is out unexpectedly. A reminder on an Outlook calendar can easily be missed.
• Communicate to your client that your receipt of an endorsement request does not mean coverage is in place. Advise the client in writing that the request has been received, but coverage is not in effect until it is reviewed and approved by the carrier. If this is discussed over the phone, memorialize the conversation back to the client.
• Do not issue any certificates of insurance (COIs) prior to the carrier confirming coverage.
  
• Do not make promises to backdate coverage. Even if a carrier will traditionally allow backdating within a specific timeframe, do not indicate this to the client. You can advise that you will ask about backdating, but emphasize that it is the carrier’s decision.
• Review the endorsement carefully when it is received. This helps to ensure all information is correct and that it provides the coverage as intended.
• Note to your client that they should read the endorsement when you release it to them. Indicate, too, that they should contact you with any questions or concerns. 

By handling endorsements with diligence and clear communication, you can help your clients protect themselves while helping to protect your agency.

Top

E&O Tip: Claim Reporting 

How quickly are you reporting claims for your clients to their carriers? Are you reporting the claim to all carriers that could respond? These are important questions to ask yourself.

• Report claims immediately – ideally, no later than 48 hours after receipt by your agency. Any delay can negatively impact your client, particularly when the coverage involved is claims-made.
•  Report claims to all policies that could potentially provide coverage. It is best to err on the side of caution, even if you think there is unlikely to be coverage. Let the carrier make the coverage determination. Don’t forget about any umbrella or excess policies in place. Failure to report to these policies is a common reason for E&O claims. 

Top

Ready to Help

Are you looking for risk management guidance on a particular topic? Reach out to Tabitha DeGirolano of our E&O team for help at tabitha.degirolano@uticanational.com.

This information and any attachments or links are provided solely as an insurance risk management tool. They are derived from information believed to be accurate. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues.