An Agency Guide to E&O Loss Control & Workflow

Why Worry About E&O?

Discusses reasons you should worry about errors and omissions in your agency and why you should develop a plan to prevent them.

Presents the “Best Practices” approach to E&O loss control and discusses in more detail the tools provided by this guide to help you.

What to do if You Have an E&O Claim

Provides specific instructions to get you through the reporting and handling an E&O claim.

Management and Operations – A Two-Pronged Approach

Discusses the role of management in setting the tone for E&O loss control activities, and the importance of the agency support staff in actually controlling the success of those activities.

Implementing an E&O Loss Control Program

Provides step-by-step instructions on implementing an E&O loss control program in your agency by conducting a self-audit and developing an Agency Procedures Manual.

How to Conduct a Self-Audit

Provides step-by-step instructions on conducting a self-audit of your agency’s operations to determine any weak spots. By doing this, you can focus on areas that need the most attention.

How to Develop a Procedures Manual

Provides step-by-step instructions for developing your own Agency Procedures Manual, the primary goal of this guide.

Insurance Agents – Targets for E&O Claims

Introduces the history of E&O loss exposures and the legal climate that increases the chances for experiencing an E&O claim. Discusses an agency’s common law and statutory duties to insureds, companies, and other beneficiaries of the insurance transaction.

  • A Short History of E&O Exposure Development
  • What Drives E&O Losses?
  • What Constitutes an Error or Omission?
  • Common Causes of Errors
  • Sources of an Insurance Agent's Legal Responsibilities 
  • Common Law Duties of an Agency to its Insured 
  • Common Law Duties of an Agency to its Company 
  • Common Law Duties of an Agency to Others
  • The Laws of Agency
  • Statutory Duties of Insurance Agents
  • Conclusion

The Client Life Cycle – Agency Workflow Sections​

  • The following sections of the guide follow a client from “cradle to grave,” representing transactions and workflows in the typical independent agency.
  • Regardless of the nature of the transaction, proper documentation is essential and the establishment of consistent procedures is key to being able to defend an E&O claim.
  • Each section contains the tools you need to develop Best Practices procedures for the particular workflow.

Marketing and Selling

  • Best Practices Ideas for:
    • Advertising and Marketing
    • Account Reviews
    • Surveys and Checklists
    • Agent/Broker of Record Letters
    • Proposals and Quotes
  • Self Audit
  • Sample Letters / Documents / Wording
  • Sample Procedures

Claims

  • Best Practices Ideas for Handling Claims
  • Case Studies
  • Self-Audit
  • Sample Letters / Documents / Wording
  • Sample Procedures

Certificates of Insurance

  • Best Practices Ideas for Certificates of Insurance
  • Case Studies
  • Self-Audit
  • Sample Letters / Documents / Wording
  • Sample Procedures

Technology Issues and E&O

  • Admissibility of Electronic Records
  • Automated Agency Management Systems
  • Cellular Telephones and Voice Mail
  • Fax Machines
  • E-Mail and The Internet
  • Interactive Web Sites
  • Transactional Filing and E-Filing
  • Self-Audit

New Business

  • Best Practices Ideas for:
    • New Business in General
    • Applications
    • Binders
    • Policy Delivery
  • Self Audit
  • Sample Letters / Documents / Wording
  • Case Studies
  • Sample Procedures

Renewals

  • Best Practices Ideas for Renewals
  • Case Studies
  • Self-Audit
  • Sample Letters / Documents / Wording
  • Sample Procedures

Policy Audits

  • Best Practices Ideas for Policy Audits
  • Case Studies
  • Self-Audit
  • Sample Letters / Documents / Wording
  • Sample Procedures

Other Issues

  • Company Service Centers
  • Employee Absence
  • Insurer Insolvency
  • Life, Health and Financial Services
  • Merger and Acquisition
  • Premium Finance Agreements
  • Privacy and Fair Credit Reporting
  • Records Retention
  • Suspense and Diary Systems
  • Claims Made Policies

Policy Changes

  • Best Practices Ideas for Policy Changes
  • Case Studies
  • Self-Audit
  • Sample Letters / Documents / Wording
  • Sample Procedures

Cancellations and Nonrenewals

  • Best Practices Ideas for Cancellations and Nonrenewals
  • Case Studies
  • Self-Audit
  • Sample Letters / Documents / Wording
  • Sample Procedures

Using Wholesalers

  • Best Practices Ideas for Using Wholesalers
  • Case Studies
  • Self-Audit
  • Sample Letters / Documents / Wording
  • Sample Checklist
  • Sample Procedures