29 Oct Is This One of Your 2025 Goals?
I trust that you would agree that E&O loss prevention is a significant element of your agency’s operation. After all, when E&O claims happen, they will virtually always cost money since E&O policies have a deductible that needs to be met before the E&O carrier will pay any defense costs or judgment. So, the bottom line is that E&O loss prevention is a serious business.
From an overall agency standpoint, I hope that preventing E&O claims is one of the firm’s top goals, at least one of the top 5. From time to time (but not often), I have had to work much harder to convince management about the importance of implementing and ensuring solid compliance with the various key best practices.
Solid E&O loss prevention doesn’t just happen, it takes a strong commitment on everyone’s part.
Since a solid E&O commitment is needed by every staff member throughout the agency, shouldn’t your corporate and individual goals include strengthening your E&O culture? Since “agencies don’t make mistakes, people do,” achieving a heightened corporate E&O culture realistically involves each person doing their part and improving their focus. Here are some issues to consider from both an overall agency and individual standpoint:
- Training. This issue is very important, and thus, a great starting point should involve assessing the education level of each of the current staff to determine what areas need improvement. This training could involve technical needs as well as a wide assortment of soft skills and technology issues. A heightened focus on employee training is one of the biggest issues determining an agency’s future success. In light of the new people joining your firm, it is more important than ever.
- Documentation. Many staff members believe they are good at this key issue, but it involves more than documenting. Is the documentation in the right place in the system? Are client discussions memorialized back to the client? Is the documentation of high quality and done promptly? Setting a goal to strengthen this area will provide solid benefits for everyone. It would be prudent for the agency to examine this area and establish the expectations in writing.
- Strong Focus on Audit Results. Auditing has long been considered one of the key areas (definitely in the top 3) where assessments can be made to indicate how well staff are meeting the agency’s expectations. Without a formal auditing program, it is largely just a guess. A major key is strengthening the process regarding what is done with the results. It is not enough to only do auditing. It is learning from the audit results and determining what action plans are necessary to improve future audit scores. For key details on the ingredients of a strong auditing program, see that section in the “latest and greatest” E&O Plus Operations Guide.
- New Hires. Ensure new staff members get a good taste of your E&O culture. They must know your firm has high standards and expectations and takes E&O loss prevention seriously. Utilize the various E&O Plus resources to assist in this area.
- Establish a stronger corporate focus. A number of the E&O Plus agencies have established an E&O Quality Management Program Committee to demonstrate the firm’s commitment. This committee is made up of representatives from various divisions. They typically meet quarterly throughout the year and make a report at the agency’s Board of Directors meetings. This type of effort and oversight is extremely impressive and has resulted in substantial growth in their E&O culture.
2025 is right around the corner. What are your plans to strengthen your E&O culture?