Risky Business | Small Steps, Big Impact

SMALL STEPS, BIG IMPACT

We spent the last year at home cleaning and remodeling. It is time to clean up and remodel the agency now.

I have not met anyone in the last twelve months who has argued that our lives have not changed during the pandemic. Many experienced financial hardships, sadness over not being able to see family and a general exhaustion from adapting to new circumstances. Others embraced their newfound family time, welcomed saying goodbye to commutes and started a healthier lifestyle. Whatever your experience, you may not have planned for this lifechanging event and had to navigate your way through it. As we start to see the light at the end of the tunnel, it is time to reflect, learn and adjust.

Where do we start?

1. What is the process for reviewing the exposures of new business customers?

If the answer is just looking at their previous policy, you may be inheriting the last agent’s mistakes and missing an opportunity to build the relationship with a new customer. With so many tools available, you have the power to decide how to deliver an exceptional customer experience and provide the correct coverage.

2. Does your agency use waivers to show a client acknowledgment when they opt out of a recommended coverage?

Professionally speaking, start with some small steps at the agency level. We have all been through a lot. Now may not be the time to take on big projects.

Communicate

Over the last year what has been caused the most professional stress for yourself and your employees? I speak to agents around the nation and most of them report to be “figuring it out”. Well, that is a good start! When working arrangements were altered, many agencies quickly recognized operational workflows that were not flexible for employees.

Now is a great time to step back and make a new plan. As our world changed, the exposure for E&O claims did too. Here are some questions to ask of your agency and some solutions if the answers are not as favorable as you would have expected. Not clearly documented a customer’s declination of coverage is the easiest way to find yourself struggling to defend an E&O claim. They would have purchased the coverage if you would have offered! Signed waivers or written follow ups are key for a solid defense. Do not relay on “notes” in the system. Get it in writing from the customer.

3. How do staff communicate changes to a customer’s policy?

Your customer asked you to find better pricing, so you had to shop the policy and move it to a new carrier. Does the customer understand the changes in coverage terms and conditions? Do not assume that individuals who are not insurance professionals understand the terminology of the industry! We love insurance, but not everyone is like us.

Material conversations include discussions on exposures for new and existing customers, changes in coverage needs and any other discussions that may affect their insurance profile. When these conversations take place, is there a consistent way of documenting what was discussed, with whom and what the outcome is? With all of the changing forms of communication, ensuring these conversations are well-documented is essential to seamless customer service and E&O protection.

5. What practices are in place within the agency to help employees avoid making errors?

Creating a culture of E&O awareness and open communication is key to continuous improvement and effective workflows. Would an employee feel comfortable standing up and saying, “I made a mistake. Can you please help?” Or would they risk trying to ‘fix’ it themselves? The concept of an error or mistake stems from human failings – something we are all guilty of. Examining agency workflows to see if there are proper tools and reviews in place to help mitigate human failings will make a big difference in employees feeling empowered to discuss potential errors and in effectively avoiding errors that may lead to E&O claims.

Taking just a few small steps to revive agency practices is important now and on annual basis. Many of us know how precious time is when we are trying to juggle so many aspects of the day but set aside an annual review with the internal team or an external partner. You may find a need for easy updates or you may sleep a little more soundly by knowing you are on the right path.

> Mallory Cornell,

IIAW Vice President and Director of Risk Management