Key Automation Practices Lead To E&O Protection

Nearly all agency systems and procedures revolve around the use of Agency Management Systems and other third-party software. Proper training and usage of these systems will result in reducing Errors and Omissions losses. There are nine steps that an agency should take.

1. Assign Responsibility to a single individual. Make a single person responsible for the training and maintenance of the agency’s software. This person should be familiar with not only the agency management software, but also be a knowledgeable insurance person. You might give them the title “computer coordinator” or “IT person.”
2. Provide ongoing training. Regular training in the use of the agency’s software will not only reduce exposure to E&O losses, but also improve the productivity of the users. Hiring an outside trainer and attending your user group meetings can accomplish this.
3. Get senior management commitment. Agency owners and officers must commit to using the agency’s systems. It is also necessary for them to mandate the proper use of the system by all employees. 
4. Encourage networking. Attending user group meetings and Association meetings are invaluable in gaining useful knowledge about effective use of the agency’s software and provide opportunities for meeting other users, who will usually share their knowledge with you.
5. Make the database fully loaded A partially complete database is not only a huge E & O exposure, but also reduces agency productivity. Periodic audits of the database are essential to ensure its completeness and accuracy.
6. Understand the system’s capabilities and limitations.  Agency owners and managers must have a full knowledge of what the system will and will not do. Without this knowledge, the agency will not receive a full return on their technology investment.
7. Set up an automation committee. This committee should hold meetings to discuss system problems and answer individual questions on the proper use of the system
8. Standardize use of the system. The only thing worse than not having an automated system, is having one in which each employee does their own thing. All agencies must have mandatory written standard procedures. (See the article “The Process” at http://www.jackfries.com/article74.htm).
9. Test employees periodically to help limit E & O losses, an agency should test its employees regularly on their technical, as well as technological knowledge. Once you’ve detected a problem, set up a training program to address it.