IS YOUR AGENCY SENDING POLICIES ELECTRONICALLY?
by Curtis Pearsall
Electronic transmission of policies to clients has become far more common during the last couple of years –probably because of the efficiencies it offers. Usually, issues involving information that agencies send clients put the burden of proving delivery on the agency. This can be especially important because in most states one of the E&O defenses agents can use involves the responsibility of the customer to read their policy – which means that they must have received it.
I always recommend that agents include a cover letter when they mail policies to a client. With electronic delivery, the issue is the same. This cover letter should advise the client to review their policy, and if they have any questions or need any corrections to contact the agency promptly.
Be certain to secure your client’s consent to receiving their policy or endorsements electronically, and make sure that they understand that this is how you will communicate with them.
At times, you might not be sure if the client received your e-mail – their spam filter might have caught it. To ensure delivery, the e-mail should include a request for your client to acknowledge receipt of the policy / endorsement, etc. Diary sending the e-mail, so that if, for some reason, you don’t get this return acknowledgement, you can contact the client personally. Make sure that your agency management system has a record of these activities and responses.
Curtis Pearsall, CPCU, AIAF, ARM, CPIA, is president of Pearsall Associates, Inc. (Whitesboro, NY), a risk management consulting firm that specializes in helping agents protect themselves against E&O claims. To contact him, call (315) 768-1534; e-mail: [email protected]; visit www.pearsallassociates.com; or blog: www.agentseotips.com.