AGENCY AUTOMATION: E&O FRIEND OR FOE? — PART 5
by Curt Pearsall
The previous four articles have explored E& O issues related to automation, including upload, download, and transactional filing. This article by Curtis Pearsall will examine topics involving the use of electronic media communications, including the Internet.
CARRIERS TURNING OFF THE PAPER.
Although we still aren't “paper free,” automation has allowed many carriers to make great headway in turning off the paper flow to the agency. As the carrier processes the transaction, the agency copy of the declaration page is stored on your specific secured site. Every day, you receive an electronic notification of the policies that were processed. Whether the transaction is a new or renewal policy, an endorsement or cancellation transaction, review these files to ensure their accuracy. Many agencies print a copy of the declaration page and put in the client paper file. Whether you receive a copy of the declaration page in the mail or on your secured site, take the steps needed to ensure accurate handling of the policy transaction.
24/7 CUSTOMER SERVICE
This issue is becoming increasingly important as more and more agencies seek a competitive advantage by offering clients the opportunity to contact them virtually anytime. Whether your client is contacting you through your Web site or leaving a message on your agency voice-mail, you must make it clear that coverage cannot be bound, altered, or cancelled without talking to an agency employee. Communicate this message clearly to avoid any misunderstanding. You might want to consider sending a letter with each policy that stresses the need for handling coverage changes live and in person. The danger lies with a client advising you that they need coverage on an exposure for which your agency contract does not give you binding authority.
A similar situation involves agencies that are open on Saturdays for improved customer service. Be sure to stay within the binding guidelines of your carriers. If you don't have the authority to bind coverage, make sure that your client knows this, in case a loss occurs before you can discuss it with the company. If you have bound coverage, I'd advise sending some type of communication to the carrier (e-mail, fax, etc.) giving the details of the transaction. This way, there's a date and time-sensitive document to back up any potential problems.
ELECTRONIC COMMUNICATION WITH CLIENTS/CARRIERS
When it comes to adequate documentation, as with most business decisions, use common sense. Whenever an ongoing series of e-mails is going back and forth, your agency file (paper or electronic) should reflect all of these communications, not just the last one.
Remember, as you deal with automation, make sure that you build in the necessary precautions/protection in case of an E&O claim. Your carrier will defend you if there's a claim against you; and it helps the cause for both parties to have as much proper documentation as possible. Discuss these issues with your staff to ensure that they know what's expected and apply these expectations consistently.
Curtis M. Pearsall , CPCU, AIAF can be reached at Utica National Insurance Group, P.O. Box 530, Utica, NY 13503, (800) 274-1914, fax (315) 734-2807, or e-mail [email protected]. This article originally appeared in the Utica National Insurance Co. E&O Bulletin and is reproduced with permission.