Accepting Payment After Hours. Many agencies continue to accept premium payments even when closed. Customers put their payments through mail slots, under the door, wedged between the door and the door frame, or by some other means. This is perceived as important customer service, which it may be. But the E&O exposure is significant because:
- No receipt is given.
- If the payment is a check and the check is stolen or lost or blown away in the wind, who is to say the insured did not pay on time?
- If the payment is cash, and not enough cash is present when the agency opens the door, who is to say the insured did not pay the proper amount?
- What happens on payments due Friday but the agency does not record until Monday?
To improve an agency’s E&O defense, consider notifying your clients that after hours payments will no longer be accepted. Then post a notice near your door and seal your door and mail slots.
Chris Burand and Burand & Associates, LLC, neither guarantees nor suggests that the recommendations in this Blog will eliminate the possibility of an E&O claim or incident and should not be relied upon as such. The material contained herein is for informational purposes only and is not intended as legal advice. Seek legal counsel regarding the applicable laws.
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