Insurance agency errors and omissions (E&O) situations and solutions from consultant Chris Burand.
When was the last time you checked to make certain your producers and agency staff were using current and up-to-date proposals? Using outdated material is particularly concerning at renewal time for an existing insured.
Producers and staff might be using outdated proposals for a number of reasons, including sales strategy, the ease of obtaining and rendering the report, and less work and effort. But this is a perfect way to introduce errors and omission exposures into the process. Take the time and make the extra effort to use current summaries of coverage and create a current proposal with all the essential disclosures.
Preparing the proposal is a perfect time to discover new risks and exposures that should obviously be clearly documented in an attempt to adequately cover the needs of your client. More coverage and added risk usually translates into more premium dollars and more commission for the agency, while simultaneously decreasing E&O risk by mitigating items being left off, neglected, or not updated when a claim does occur.
Develop a procedure to make certain your producers and staff are all using the latest schedules and the same current proposal format that has been adapted by your agency.