10 Sep But Why?
As you receive this week’s blog, hopefully, you or some of your colleagues are going to Chicago for the annual E&O Plus Quality Management Seminar. The agenda is packed with many top industry presenters addressing key issues affecting the current marketplace. Built virtually into every presentation is a discussion on the “why” behind various key E&O loss prevention components. A key element of the discussion is explaining what happens when the loss prevention initiative is in place (typically a very positive outcome) and what happens when that initiative is not in place (typically an outcome resulting in a verdict against the agency).
I am not sure if this “explanation of the “why” is a generational thing, but it does seem that today’s employees may need some convincing. Certainly, there is a good chance that the level of compliance will be enhanced when agency staff know the reason (the “why”) behind the loss prevention initiative. It reminds me of when my kids were growing up. When I would tell them to do something, they would typically respond, “But why?” Sound familiar?
An example is the value of disclaimers. Disclaimers provide solid value when inserted into the agency proposal (or the wrap document when using the carrier proposal). They provide the agency with a stronger defense should a problem develop. Disclaimers put responsibility and accountability on the client. If the disclaimers were not in the proposal, the client could have a stronger case alleging that “they were never told” about certain issues addressed in the disclaimers.
Another great example deals with the need to memorialize client discussions back to the client in some written form, most often via email. The days of just documenting the client discussion in your system are over. There is a solid need to ensure no misunderstandings in the discussions. Without the memorialization, the client could allege that your understanding of the discussion differs from theirs. I have seen many E&O claims get resolved (whether the agency won or lost) based on the level of documentation and subsequent memorialization. Once again, you want client accountability, which is enhanced when the discussions are memorialized back to the client.
Explaining the “why” should be part of the dialogue occurring in your agency. When the various E&O Plus key components are introduced and discussed, include the “why” in the explanation. Ask the staff, “So, do you see the value and the reason behind the need to memorialize client discussions?” If you need assistance explaining the “why,” ask your reviewer. This is certainly part of the equation we look to bring to the relationship.