Limit E & O Risks

[ABawinkel]

Does anyone have a sample sign off form for agents to have clients sign saying they did not want any of the extra endorsements/coverages offered?

For example, if the client decided not to go with the water backup coverage and they signed the form saying so, we would have it in writing to prevent any E&O problems.

Are these available online somewhere or does anyone have one they can share?

Any help would be appreciated.

 

[Guest]

Bullwinkle.....

You need to make a professional and personal decision.......if a client does NOT want a specific coverage, you need to send them somewhere else..

For example, you mention the water backup coverage, if they dont want that, tell them to hit the road.
You arent doing them any favors, arent doing your job, and setting yourself for a E&O claim, as they WILL sue you, because you didnt explain the coverages or paperwork properly. No matter what they sign, they will say its YOUR fault for not giving it to them and they didnt understand what they were signing.

Each HO policy has probally 20-30 endorcements, will you explain to the client each and evry one? I have a couple of carriers who have 5 versions of the HO policy, I refuse and will fire anyone who works for me, if they sell any of the 3 crappier ones because they suck that bad.

I have lost business because I refuse to lower my standards. It is OUR JOB to explain this stuff because most people do not know it and if they think they do, they dont.

You cant write everyone.

Remember what YOUR job is, find a different way to lower the premium, like a higher deductible.

 

[djs]

Not sure I 100% agree. There are a lot of optional coverages that you need to talk about that the client may not want at the time, but later wishes he did.

Take for example, a floater for jewelry or art. You NEED to discuss this, but most will say they don't have any to worry about. Then, the $20K diamond ring gets stolen. It will be your fault, no matter what.

I agree with the crappy policy, but then, I had someone where it was either a crappy policy or no policy. He really couldn't afford it. I gave him the crappy policy with a lot of discussion about what is NOT covered and a plan to change it in the future, all documented. Everything is signed accepting that policy.

The problem with having people routinely sign off on not accepting certain coverages is if you miss one, they will come back to you and say you didn't offer it, see right here is what I didn't take, I should have everything else. If it wasn't for this, carriers would require a coverage exclusion form, I'm sure.

Dan

 

[Guest]

there I go typing faster than my brain works....

i ALWAYS include water and sewer back up, wont issue a policy without it.

I always ask about guns and jewerly because of their limits.

If they cant afford the coverage, I have them raise the deductible, worry abou tit when something happens, then they are forced to figure it out, but better than not having the coverage.

 

[ABawinkel]

Bullwinkle, nice one, definitely haven't heard that one a million times. Look, we are a new agency coming over from the individual health insurance field. We just want to protect ourselves in every way possible.

We definitely offer and recommend water backup to every single person and it comes included in the better policies anyways. There are still those people that refuse to take it and/or can't afford it. Like Djs said, when that happens we go over in great detail what they are potentially getting themselves into.

We had heard that some agencies use a sign off/disclosure form as a way of further protecting themselves. Not saying that it fully protects you but it can help.

 

[Guest]

Bullwinkle, I flat out refuse to write a policy if it doesnt include water endorcement.

Sometime you have to tell people to hit the road.

Now in that being said, in my area, the difference in one of the crappy policies to a very good policy is maybe $80 a year. if they cant afford that, they need to get rid of their house! That $80 is $6 a month!

And 90% of the time the insurance is paid thru the mortgage!

My next thought is, maybe you need some more companies with more competitive products.....just a thought.

Like I said, I always ask about jewelry and guns, and SHOW them the limits, if they have anything of value, they will take the coverage.

If they dont, then sure, have them sign a waiver and I would have each waiver seperate, then they cant say i didnt understand

 

[ABawinkel]

Thanks for your help, RBA. Like I said, we are very new and were just wondering if this was something a lot of agencies do.

 

[Guest]

Thanks for your help, RBA. Like I said, we are very new and were just wondering if this was something a lot of agencies do.

Well, best advice.......FIND A MENTOR to teach you things.....My office partner was around for about 2 years longer than me, I learned alot from his mistakes and screw ups, he taught me alot......at his own dollar....

 

[peewee]

Thanks for your help, RBA. Like I said, we are very new and were just wondering if this was something a lot of agencies do.

The more you can cover your _ _ _ the better you are. Sometimes all you have to do is pull out the signed form showing you offered - they declined and everyone goes away. If you turn everyone away that doesn't want "something" you could offer them you'd have slim pickings in our area especially with all the various endorsements that could be added. CYA is the name of the game, it will work as a arguable defense in a court of law just like the PIP waiver, that's why they were created. They might not work 100% of the time, but they do work. I'd say use them and create what doesn't already exist, anything to show what you offered and customer opted not to take it, and get their signature and date. Deal done. Just like client notes, they WILL hold up in court to show that you did what you needed to do, most of the time if you read it back to a client they shut up because they know you're tending to details.

 

[NCAgent]

I know it's different per state but is it unethical to record all discussions you have with the client when starting a new policy? I mean it sounds like it would help you and then it also provides proof later if the client says you lied to them or they told you information and you excluded it from an app during underwriting.

It just sounds like a decent idea to me. They even have the recorders now that convert conversations to mp3s that you can store on the computer...