There is much talk in every industry about Best Practices. So what are Best Practices? One definition says:
Best practice is a management idea that asserts there is a technique, method, process, activity, incentive or reward that is more effective at delivering a particular outcome than any other technique, method, process, etc. The idea is that with proper processes, checks and testing, a project and/or process can be rolled out and completed with fewer problems and unforeseen complications.
The next question is who defines Best Practices? Some best practices are defined by your insurance carriers. Normally insurance carriers specify in your contract when and how you bind coverage with them. Other best practices, such as your renewal process, may be defined by the marketplace. If your competition is seeing your clients at 120 days to gather marketing information, doesn’t it make sense that you should be working with your client prior to that date to protect your client relationship and avoid the need for them even speaking to your competition? Your E&O insurance carrier often has information that can guide you in defining and putting best practices in place. However, it is ultimately the responsibility of each agency to define, implement and audit the best practices that fit their operation.
Best practices are made up of three sections. These sections are:
I will be discussing each of these items separately in the following posts. What are your specific issues with defining best practices? What has been successful for you in defining best practices?
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