07 Mar Is It Time for a Procedure Review?
One of the many things I love and admire about the E&O Plus agencies is that they are constantly evolving and looking for new approaches to doing business. While this could (and often does) involve new divisions, one “trend” I have noted is that it could also involve a simple revisiting of the existing operation to determine whether the existing procedures are “the right ones” and whether an update is in order. Honestly, the review does not necessarily always result in modifying the procedures. Still, the review does make the staff (doing the review) confident that “the current way” is the best. However, many agencies acknowledge it has been a while since they reviewed procedures and that it was time for a fresh set of eyes to take a look. Have some procedures changed? Without a doubt. So when was the last time your agency reviewed your procedures?
With the number of new staff agencies are bringing on, ensuring that your procedures are up-to-date is critical. When one factors in that many new staff are not “insurance savvy” or lack real in-depth knowledge of the insurance business, one can see how having written documentation of standards, procedures, and workflows is essential to efficient agency operations. It is also a proven Best Practice for minimizing your agency’s E&O claims potential. While virtually all insurance staff have heard the expression “document, document, document,” I feel that “consistency, consistency, consistency” also ranks right up there.
The goal is for your written documentation to include the “how-to” steps for processing work (workflows) and the operating standards and practices (procedures) by which the agency conducts business. It is highly suggested that your procedures include expectations for the handling of various key issues such as:
– Written memorialization of client conversations and client purchase decisions.
– What good documentation looks like.
– How to handle responses from the client on exposure questionnaires.
– The proper utilization of wrap documents when using a carrier proposal.
– The need for a coverage comparison when proposing coverage with a different carrier at renewal time.
With the growth many agencies are experiencing, they should ensure written procedures are in place for all positions, departments, and locations, including insurance and non-insurance products and services. This includes loss control, claims, surety, certificate handling, etc. As I noted in a recent blog, one agency realized through this procedure review that they needed to tighten up a procedure involving who should sign a certificate.
Look at the procedures as if you were a new person joining the agency. Could you understand the procedure and execute it accordingly? Is it clear what the agency standard is? It should be.
Does your agency utilize independent contractors to produce business? There should be written procedures and expectations that these 1099’s are expected to adhere to. This requirement also applies to vendors processing work on your agency’s behalf. Having these procedures in place and documented should result in greater consistency.
Is it time for your agency to do a review of your procedures? This is probably a good objective to accomplish by year-end.