15 Oct Does Your Documentation Read Like a Text Message?
I would guess that anyone who has been in the insurance industry for more than 30 seconds knows how important documentation is. From an E&O perspective, it is probably close to the most critical issue in determining the direction an E&O claim will go. Is documentation quality fairly consistent in your agency from one person to another? If you feel that it is, I challenge you to read some of your colleagues’ file documentation and then let me know if your answer is the same.
Generally, the guidelines for documentation include 1) promptly handled, 2) professional, and 3) accurate. Take the example: The file notes state, “I spoke with the insured regarding their HO insurance.” What does that mean? Who did you talk with, what did you talk about, and what was the extent of the discussion? It was promptly handled, professional, and accurate, but it really doesn’t tell you or anyone in the agency the key info.
Ask some of your colleagues what the documentation expectations are, and many would probably state, “You do it,” but if you were to dig deeper, you might very well uncover some significant inconsistencies, possibly due to the expectations verbalized but with nothing in writing. To resolve that, how about providing all staff with a document that details the documentation expectations? This is potentially a significant concern with new staff joining your agency. Just because they have insurance experience does not mean their thoughts on documentation are the same as your agency’s. The bottom line is that agencies should take the position that high-level quality documentation is not an option; it is mandatory.
Key issues that should be included:
- How are coverage deletions handled? When the customer declines a specific coverage or limit, how and when should this be memorialized in an email to the customer, and what information should be included?
- What is the expected time period for a telephone conversation to be documented in the agency system? Probably best to avoid statements such as “as soon as practical” as the meaning of this phrase could vary by staff member.
- What is the expected level of documentation for a phone conversation? It is strongly suggested that the actual name of the customer be included (as opposed to “insured”) and that there be sufficient detail of the exact essence of the conversation. Ideally, the documentation should be such that another staff member could read the documentation and know exactly what was discussed and any next steps or open items.
A good rule of thumb:
Don’t put anything in the system that you wouldn’t want
a jury (or the plaintiff’s attorney) to read!
Let’s go back to December 1992, when the first text message was sent. What does that have to do with documentation? I wonder if documentation was clearer before that date in 1992, and it was easier to understand what was being sent. The use of abbreviations was minimal. Another good reason to have a document detailing the documentation expectations is to include acceptable abbreviations. For efficiency’s sake, abbreviations are key, but which ones are acceptable? Probably “HO” for homeowners or “Umb” for umbrella. Does “Ins” mean your insured or the insurer? My concern is that without the agency clearly stating the expectations in writing, your file documentation may read like a text message, with many abbreviations that may have multiple meanings.
Since file documentation is a key element in an E&O matter, do you want your abbreviation-heavy file documentation to be presented as evidence?
I suggest developing an official list of abbreviations. The general rule should be that the word is spelled out if the abbreviation is not on the list. If your agency develops a list, keep a history of the acceptable abbreviations and their meanings. There is the possibility that down the road, you will need to produce this list of abbreviations to assist in the understanding of the specific piece of documentation.