Customer Service Nightmare

In the continuing quest for great customer service, I offer the following excerpt from a newsletter published by Jack Fries of Fries & Fries Consulting.

Recently I received a renewal billing on my BOP which included four surprising things: 1) I had a new agent; 2) The policy period had been changed from 3 years to 1 year; 3) The deductible had doubled; 4) Annual premium had risen 25 percent.

The billing included the name of the new agent but no phone number. I had to call the previous agent for that. I called and asked, “Why wasn’t I notified of the sale?” The response, “Ask the new agent.”

I called the new agent and asked CSR #1 about the notice of transfer, policy changes, etc. Her reply, “Sorry ’bout that.”

Since I hadn’t received a copy of the renewal policy, I asked her about any new extensions, limitations or exclusions. “We write a lot of different types of coverage and I can’t be expected to know them all,” CSR #1 said.

“Then tell me if accidental computer equipment breakage is covered.” She told me that she would have to call the company.

Three days later I called the new agency and asked for the supervisor. I asked her the same questions. I also asked why her agency didn’t notify me that they had purchased my account. “The selling agency was supposed to do that.”

The supervisor sent me an e-mail. “The underwriter is checking on accidental computer breakage. The form doesn’t say it does provide cover, but it doesn’t say it doesn’t either (all risk policy). I will let you know.”

Later that day I received an e-mail from CSR #2. “We called our insurance company underwriter and asked about accidental computer breakage. Our underwriter suggested that you call the claims department directly for specialized claim situations. We sincerely apologize for the vagueness of this answer, but we do not want to assume coverage, that is their job.”

I grudgingly called the phone number on the following Friday, only to find that it was a fax number. The following Monday, I received a copy of my new policy. The cover letter was addressed to someone other than myself.

I called the agency again and asked to speak to the owner. After I explained all that had happened, he basically told me that if I was unhappy, I could place my coverage elsewhere. No “I’m sorry.”

I said that I would still like an interpretation of coverage regarding breakage. He said that the company always denies those losses. I asked him where in the policy it says that it’s excluded (it is a “Special Form” policy). He said that he didn’t know, but he would get it in writing from the insurance company. That was 19 days ago.

What can be learned from this: 1) If you buy an agency, notify your new customers; 2) If you don’t know the coverages, don’t sell the policy; 3) Notify your customers of material policy changes prior to renewal.

Finally, never tell a customer to go somewhere else if they don’t like the service. You never know who might hear it.

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