21 Jan Key Rules for Producers
When one looks at E&O claims, the agency producer often has a role in the allegations by the plaintiff. Obviously, producers play a significant role in every agency in their dealings with the client. For agencies looking to go from good to great, a strong E&O buy-in from the production staff is an important element.
Some key rules for producers:
Documentation – As has been often stated, “if it is not in the file, it didn’t happen.” For this reason, a strong adherence to solid documentation is a key issue. The quality of documentation can make a significant difference in the direction of an E&O claim. Some key areas involve having detailed notes of:
- Meetings with prospects/clients and to ensure a common understanding, memorializing those discussions back to the client
- Discussions with carriers/wholesalers especially on underwriting, rating, or binding issues
Texting – Since texting is becoming a more common mode of communication between the agency (likely the producers) and the client, it is important that the text messages dealing with coverage issues/binding, etc. find their way into the agency document system. Text messages have been found to be a key piece of documentation on numerous E&O claims. It is suggested that agencies look to determine to what degree texting is occurring and to establish and implement a procedure detailing the expectations.
Watch what you say – This issue cannot be overstated enough. Agency staff (not just producers) can be held responsible for what they say (and what they put in writing). While we all understand that producers want to sell the account, producers need to be very sensitive to the words and phrases they use.
Avoid statements such as:
- “Don’t worry, you are covered”
- “This coverage is much better than what you have”
- “I am the expert on (blank) type of business”
These statements can be viewed as over-promising and marketing puffery.
Claims – Bottom line, producers should have a minimal, if any, role in client claims. For effective and efficient handling of a client claim, the claim needs to get in the proper hands ASAP. If a client calls their producer, the producer should avoid any degree of discussion especially on whether the claim should be reported and whether the loss is covered. Any discussions the producer has with the client should be documented and provided to the agency claims staff.
Know what you sell, and sell what you know – If any producer is selling a product or coverage they are not truly knowledgeable on, they should admit their shortcoming and ask for further training. For example, there have been numerous E&O claims involving claims-made coverage primarily due to the lack of knowledge on key issues such as retro dates, claims made coverage triggers, etc. A better understanding probably would have eliminated these claims from occurring.
Policy delivery – Not only should this important task be handled promptly, it should also involve more than just, “Here are your policies, any questions?” The policies should be reviewed, and any key issues should be brought to the client’s attention. One of the goals should be to help the client better understand the coverage they purchased and to possibly remind them of the coverages they didn’t purchase.
With producers having a better understanding of these rules, your agency’s E&O culture will increase significantly.