How Do You Avoid E&O Claim?

[YouGotMyMoney]

dont pay for E and O, if u dont have a policy u will never have an E&O claim! LOL

 

[Crabcake Johnny]

VERY interesting theory and hinges on lawsuit 101 - never sue anyone without money.

 

[YouGotMyMoney]

yeah well the ins carriers are in on the E&O scam too, I aint never had a ticket in my life, my auto ins premiums should of paid up like a single pay life ins policy.

 

[BladeRunner]

I've read many post on here on the importance of documentation when dealing with anyone over the issue of insurance especially clients to avoid confusion, come time for a claim, but my question to you is how do you document all your conversations. is there a software you use? are they're recordings for phones? if so, what program do you use?

Basically, if you could describe your process of documentation and the tools needed to ensure there is no misunderstanding with your clients, carriers, wholesalers, etc. how would you? and what do you use to help you?

Thanks in advance, as this is not an immediate issue, but something that I need to look into going independent and definitely a topic and much needed information for insurance agents/agencies all over the nation.

I write everything down, scan in my handwritten notes and upload it into my agency management system. (AMS). Our AMS time stamps and dates each upload so their can't be any question as to the authenticity of time & date notes were made, as opposed to being accused of making notes after the fact. It's important to get them uploaded as soon as business is done, sold or not.

Additionally, I write detailed AMS account notes regarding everything that occurred, client said, etc., etc. Also time and date stamped.

If I'm rewriting a policy I'll type out a list in MS word of the features that are not included in the the new policy that were included in the old policy, and include that form it as part of the application paperwork that the client signs.

Property insurance for example can have many levels. I usually quote the highest level available to them, so they get the most comprehensive coverage. This way my defense would be that the insurance company didn't offer anything higher. If it comes down to beating a rate, by issuing a lower level policy, I tell my clients about the features of the higher level policy and ask if they need or want any of those features and make note of it. So if they come back after an uncovered loss and say "why didn't you issue the gold package?" I can go back to my notes and prove the client declined those features.

If you write P&C and also life, you could be called into question if an insured proclaims they were not aware you sold life insurance and accuses you of not offering it to them if a spouse dies. So I make them sign a form indicating I offered life insurance but they declined, and upload to AMS. This also helps me to remember to offer my P&C clients life.

C.Y.A. whenever and however you can. A client can seem like your best friend at point of sale, but when it comes down to claims they can turn into your worst nightmare.

 

[AverageJoe]

I write everything down, scan in my handwritten notes and upload it into my agency management system. (AMS). Our AMS time stamps and dates each upload so their can't be any question as to the authenticity of time & date notes were made, as opposed to being accused of making notes after the fact. It's important to get them uploaded as soon as business is done, sold or not.

Additionally, I write detailed AMS account notes regarding everything that occurred, client said, etc., etc. Also time and date stamped.

If I'm rewriting a policy I'll type out a list in MS word of the features that are not included in the the new policy that were included in the old policy, and include that form it as part of the application paperwork that the client signs.

Property insurance for example can have many levels. I usually quote the highest level available to them, so they get the most comprehensive coverage. This way my defense would be that the insurance company didn't offer anything higher. If it comes down to beating a rate, by issuing a lower level policy, I tell my clients about the features of the higher level policy and ask if they need or want any of those features and make note of it. So if they come back after an uncovered loss and say "why didn't you issue the gold package?" I can go back to my notes and prove the client declined those features.

If you write P&C and also life, you could be called into question if an insured proclaims they were not aware you sold life insurance and accuses you of not offering it to them if a spouse dies. So I make them sign a form indicating I offered life insurance but they declined, and upload to AMS. This also helps me to remember to offer my P&C clients life.

C.Y.A. whenever and however you can. A client can seem like your best friend at point of sale, but when it comes down to claims they can turn into your worst nightmare.

Thank you that was really descriptive. what agency management system do you use?

 

[Mark]

Have any of you ever had an E and O claim?