17 Jan Celebrate The Wins
Without question, the E&O culture of the E&O Plus agencies is very strong. For the most part, “they are drinking the Kool-Aid.” Sometimes, some staff (more often the newer staff) need a little convincing, a little reassurance of the importance of E&O loss prevention. As one of the reviewers (in addition to Angie and Mishell), we call this the “why.” They want to know, “why do we need to ask each year if there have been any changes” or “why can’t I just document the information in the system.” As a reviewer, we like to hear these questions because it allows us to explain the “why.” Bottom line, by following the various Key Components we preach, agencies stand a much better chance of winning an E&O matter if one should develop. A “win” results in a better bottom line from a financial perspective.
As you are aware, when we visit your agencies, we look to dedicate time to discussing any E&O matters that show up on the E&O loss runs. There is one thing that always seems to stand out; many of the E&O claims are closed for no loss payment, sometimes not even much in the way of a defense payment. Why? Often, it is because the agency file contains a tremendous amount of documentation and detail on various discussions with the client. Or possibly, the client was sent a renewal questionnaire but never returned it and then had a loss where they look to blame your agency – “why wasn’t this covered.” These scenarios typically add up to a solid defense for the agency and, thus, “a win.”
It is always good to dissect an E&O matter if the agency lost to determine what happened and what can be done to minimize the chance of that same type of issue reoccurring. This “lessons learned” is a valuable exercise and one every agency should undertake. It is also very valuable to dissect a claim where the agency won to determine what the agency did that helped tip the scales of justice in the agency’s favor. Not only should the agency do this analysis, but it is also highly suggested to communicate this information to the staff. Tell them the story of what happened and why the agency prevailed in the matter. This is also a valuable “lessons learned” exercise and can play a significant role in helping staff understand the “why.”
Without a doubt, no agency wants to face an E&O lawsuit, but it does happen, and just because it happened does not mean the agency did anything wrong. When the agency wins, celebrate the wins. This will help the staff (new and veterans) better understand the “why.” Praise the staff that “did the right thing” and tell them they made a difference.
The bottom line on “Why” – because it often makes a difference as to whether you win or not. That is as good a reason as any.