Burand’s Agency E&O Blog: Tip #3

Insurance agency errors and omissions (E&O) situations and solutions from consultant Chris Burand.

Tip #3

Do you follow-up in writing when your insurance proposal is rejected? The failure to take this step can result in some insureds going without insurance coverage and when they incur a loss, they often look for a deep pocket — like your agency’s pocket! Take a moment to thank your customer for the opportunity and to let them know you did not place coverage for them.

Thanking your prospect for the opportunity and asking for a future chance to look at their coverage again is a really simple and cheap way to build future goodwill. Send a letter stating, “Per your recent instructions, we have not placed any insurance coverage for you. Please be sure you have placed your coverage elsewhere with adequate limits and coverages. If you have questions, please feel free to contact me.” Do this in a timely manner after you realize you will not be binding coverage for your prospect. Obviously, attach a copy of your letter in your activities file for that prospect or customer.

Don’t leave your pocket open for someone to try to take advantage. Close the file!