06 Aug What’s Your Job?
I was reading a 1990s article the other day, and I wasn’t 25 words into the article before a statement caught my attention in a very negative way. The first words in print were:
“As insurance practitioners, we make sure our clients have proper liability coverage for their personal and business needs.”
Let me ask you – do you agree that this is your job? Thus, when one of your clients suffers a loss, the loss is covered because you made sure they had the proper coverage. I have a couple of issues with the statement in the article. First, what is “proper,” and how is that liability limit determined? It is prudent for the agent to perform an exposure analysis checklist to understand and uncover the client or prospect’s exposures. However, determining the “proper liability coverage” is not an exact science.
From time to time, Angie, Mishell, and I will be asked to review various promotional materials and websites (if the website is extensive, while there is typically a fee, it is something the agency should consider). We have seen the following statement on many agency marketing materials: “We will make sure you’re covered.” One website noted, “By visiting your business, we will be able to ensure all of your risks are covered.” Another said, “We will guarantee you have the coverage you need.”
So you may be wondering, “What’s the problem?” Actually, I would contend that you shouldn’t use any of the statements noted in bold. You can suggest coverages, but at the end of the day, isn’t it up to the client to buy them? You can discuss limits, but who’s to say what the right limit is? This is one reason we always look for agents to include a statement that higher limits may be available.
Client accountability should be a significant focus of your agency. You can suggest coverages for the client to consider (use the words “included but not limited to”) but they should be the one who decides what their insurance program looks like.
Regarding one of the above statements, “We will be able to ensure all of your risks are covered,” I wonder if that agent identified the exposure the business would face if it were shut down due to the pandemic. I doubt it, but I trust you would agree that by making these types of “overpromising statements,” that agency was at a greater risk of being hit with an E&O claim and losing that claim.
So, is your agency “overpromising,” stating you will do things you can’t do? My own agent’s slogan is “performance, not promises.” Don’t promise what you can’t deliver.