In this document, Grace Bauer highlights agency management issues that needed to be checked, and reminds you to make these checks at monthly meetings.
Recently, I was talking to a five-person agency that was considering hiring an office manager. I thought, “Why in the world would an agency this size ever consider spending money for a full-time employee to help manage the agency?” All of the procedures were in place. We had finished the procedural review; now it was just a matter of putting the checks in place and delegating the staff to keep track of these checks. Here’s my checklist:
Accounts Receivable. Although most agencies these days are on direct bill, there might still be a few out there that use agency billing. If that’s the case, make sure to keep those receivables up-to-date. Have semi-monthly meetings.
Account Reviews. Even though you might have a policy of completing a yearly review on all accounts, make sure that this is really being done. You might be surprised. Keep all records in writing.
Applications. Review applications randomly to make sure that original information is entered into the system correctly. Remember, any information that’s entered incorrectly can create an E&O claim for any transaction involving that client. Keeping accurate information is essential.
Backlog. Don’t forget backlog! Whatever system you use to track backlog (scanning, backlog bins, or manual reports), be sure to keep track of how everyone is doing. Many agencies have a serious problem here.
Backups. Make sure that daily backups are going OK. I realize that some of you are using online agency management systems that provide backups automatically. However, don’t forget to back up any other files that aren’t connected to the management system.
Binders. Make sure that all binders are issued for 30 days. Remember that any binder issued for more than 30 days needs to be approved by the company. Also, make sure to conduct a monthly review of all open binders. Use that binder log and check the dates.
Computer Checks. Monitor virus upgrades, system scans, and defrags. Don’t forget to run maintenance utilities. After all, the computer is the agency.
Claim Reports. System information is rarely accurate. Check the system if you can rely on the reports and be sure to review the quarterlies from the companies on loss ratios.
Cancellation Reports. Review cancellation reports monthly. Find out why clients might be leaving. Develop a tracking system, together with reasons to rectify situations within the agency that might be triggering cancellations.
Expiration Reports. Run agency and direct bill expirations monthly. Believe it or not, one agency expiration review found an E&O situation that the company had missed — it wasn’t even listed on the company report.
Electronic Communications/Interface. Check to see that all company communications and downloads are performing well. Keep up-to-date on new systems. Make sure that things are running smoothly.
Marketing Plans. If you have a marketing plan, track its progress and be prepared to make changes if necessary.
Notes/Activities. Run reports per employee randomly to make sure that all activities are entered in the system and that there are no gaps.
Suspense. Review suspense lists per employee weekly and make sure all employees are keeping up with the suspense. Most agencies have a serious problem here.
CONCLUSION
It’s really as easy as that. Delegate employees to keep track of these areas and then have monthly meeting asking for updates in all areas. Get everything in writing and make the staff accountable. I realize that you might hesitate, since your employees might be overwhelmed as it is; however, try it.
Make your employees play a key role in your agency’s success. You might be surprised. This approach could give you the peace of mind in knowing the agency is running well.
Try it! Make your agency run on its own. Start training your employees to manage today.