Most errors and omissions (E&O) claims stem from poor documentation, unclear client communication or inconsistent internal procedures.
Many of these claims are preventable. Here’s how to protect your agency through stronger documentation, better client interactions and clearer agent responsibilities:
1. Documentation — Your Best Defense
- Document all key conversations: Follow up with written summaries, especially for coverage gaps or refusals
- Keep all correspondence: Store emails, faxes, texts and call notes in your system
- Confirm binding in writing: Don’t rely on verbal confirmations — always send a follow-up
- Save all submissions: Print and file online applications and quote requests
- Get written proof of coverage: Never assume — request binders or confirmations
- Log claims with time-stamped proof: Retain confirmation of how and when claims were reported
- Review issued policies: Ensure accuracy and match to what was quoted
2. Client Interactions — Build Transparency and Trust
- Explain coverage clearly: Use plain language and document all discussions
- Confirm declined coverages: Get written acknowledgment or signed waivers
- Summarize all changes in writing: Send confirmation of endorsements or updates
- Be responsive: Timely communication builds trust and reduces risk
3. Agent Duties — Create Consistency with Procedures
- Follow written procedures: Use documented workflows for quoting, binding and claims
- Train consistently: Provide regular E&O training with real examples
- Use checklists: Standardize processes to prevent errors
- Audit files: Spot-check for documentation and accuracy
- Avoid guesswork: Document all advice — verify before responding
Preventing errors isn’t overthinking — it’s best practice. For more resources and information, please visit www.bizresourcecenter.com.
