Does your agency’s web site present a potential Errors & Omissions headache? The answer could be “yes.” However, with proper planning and execution, there’s a good chance the headache will never develop.
Most businesses, the current estimate is 84% -- have a web site. A web presence will be essential, as the Internet continues to grow and replaces other forms of business searches. However, a web site alone isn’t the be-all and end-all anymore. In the past, a web presence would enable potential customers to find you. Although this has great value in your marketing efforts, today social media tools allow you to find and target prospects and educate them on your services and expertise. Among the businesses with a web presence, less than half (47%) say they use social media to promote themselves. This is a huge “missed opportunity” for those businesses.
A web presence obviously offers an agency tremendous marketing potential and power. For this reason, whether you have a site or want to develop one, it’s essential to know what you want to accomplish with it. The myriad opportunities are significant and many can play a significant role in achieving your business goals. Start with a plan that defines what you want to accomplish. Updating your web approach and philosophy annually is time well spent, even for agencies that already have a web site. Let’s look at some of the options and the potential E&O issues.
Protect Your Agency’s Reputation
Your web presence must indicate who you are and your expertise. Your site is an extension of your agency that will give visitors to it a strong indication of your agency’s professionalism and the type of clients you want to attract. Because visitors to your site can literally be anywhere, it’s important to provide details on where your agency does business and what products are available in which states. For all agencies, efficiency is critical to help limit inquiries from prospects who aren’t real customer opportunities. The last thing you want is to solicit a prospect only to find out you’re not licensed in their state.
There are also issues for agencies that allow prospects to submit online applications or secure quotes via the web. If the site prompts prospects to provide information for getting for coverages, your site must provide this information in a secure setting to avoid any identify theft/breach of privacy issues. This is critical when the information includes driver’s license, Social Security, credit card numbers, etc. However, even if you don’t secure this type of confidential information, it’s still advisable to take security precautions.
For example, say a potential customer sends you online information about a valuable jewelry or art collection through an unsecured environment. If their home were robbed and the thieves stole the background about their collection from information entered through your web site, you and your agency could face litigation.
Bottom line: there are many state and federal laws which agencies must follow protect personally identifiable information. Identity theft is the fastest-growing crime in the nation, with one victim every three seconds. Violations of these laws carry sizeable financial penalties and can severely damage your agency’s reputation. Many states are implementing encryption requirements for information transmitted across public networks. Check with your state agents association for the latest requirements and ask for any necessary assistance.
Consider This
- Certificates of Insurance. Among the services that agencies allow customers to handle online, completion of Certificates of Insurance poses a significant concern. Review your system settings to ensure that the customer can’t modify or add any information to the certificate, such as listing an additional insured or modifying the “description of operations” field. Improper execution of certificates of insurance has resulted in significant Errors & Omissions claim activity. If your agency allows customers to print their own certificates, make sure the necessary procedures are in place. Although your system might provide the agency with a final copy of the certificate for your records, it might be too late if one was modified in error.
- Articles and Questions. It’s also common for agencies to use their Web sites for educational purposes. Allowing customers and prospects to learn more about specific products. For example, many agencies post articles of interest or develop a “Frequently Asked Questions” section. These are tremendous tools that should grow sales while, at the same time, reducing the agency’s E&O exposure. However, the accuracy of the information is critical. To ensure accuracy, review this material periodically.
- Advertisements. If you allow advertisements on your site, they are subject to applicable existing statutory and regulatory guidelines and restrictions, as with ads in any other medium. Your agency would have an advertising liability exposure based on the use or misuse of a trademark, or from using the copyrighted material of others. In addition, statements regarding services available through the agency might be subject to regulatory requirements. To help reduce this potential exposure, a good general rule is to use the same degree of care you would for printed advertising.
- Referrals to Service Vendors. If your agency receives customer requests for referrals to service vendors (windshield repair, body shops, etc.), linking on the agency Web site to vendors presents essentially the same exposure as if you made the referral verbally or in writing. The best practice is to get written permission from the vendor to allow the link and to provide a minimum of two referrals for each type of work. This can help you avoid any problems in case your customer has a poor experience with the vendor. Links to a vendor can also expose the agency to allegations of trademark infringement. To avoid any unknown pitfalls, consult with legal counsel.
Make sure that your site displays the appropriate privacy statement and disclaimers prominently. Your web developer or legal counsel should be able to assist with this.
Remember, too, that the presence of a web site is rarely enough, even if it’s well designed. Visitors to the site need a reason to come back to it. Keep the content fresh, accurate and useful.
Strategic Thinking, Ongoing Effort
To reach and communicate with current and potential customers more effectively, many agencies use one or more social media tools (blogs, LinkedIn, Twitter, Facebook, etc.). Social media allows your agency to focus specifically on the audience you want to target. Because these capabilities aren’t available by solely having a web site, it’s best to have an integrated marketing communications program which ensures that you market to people the way they want to be marketed to.
However, using social media involves potential liability. For example, although using blogs is a great means of giving the public information to show your capabilities and expertise, you need to take the necessary steps to ensure the accuracy of the content (just as with your web site). If your agency provides inaccurate information or advice, you run the risk of an E&O claim. If you’re looking to post information from another source, verify the expertise of the source and investigate any copyright issues, because you might be held responsible. It’s also advisable to secure written permission from the owner of the material before you post it.
When you interact with a customer by social media and the conversation moves to a degree of specificity, take it to a more secure environment.
Julie Ferguson, a Massachusetts-based insurance communications consultant and developer of web sites (including mine), warns that agencies considering marketing via e-mail should proceed carefully.
“E-mail marketers must comply with spam laws,” she explains. “You need an opt-out mechanism on any marketing e-mails. Get familiar with the law. Not only could you be fined, you could also be profiled as a spammer and blackballed from many Internet service providers” She also recommends being careful when buying e-mail lists, working only through reputable mail houses and publications. “There are a lot of junk lists.”
“For effective marketing of your agency,” she continues, “be careful of the some of the ‘search engine optimization’ services, because there are no quick fixes. It takes strategic thinking and ongoing effort.”
Conclusion
Where is agency technology heading? Some agencies are already offering mobile applications that customers can access. What will they look like? What will the functionality be? Will they point the customer strictly to the agency Web site? Stay tuned. Until then, focus on a well-constructed web site with a strong social media extension. This should serve you well.