Tips for Avoiding E&O Claims Relating to Handling Customer Claims

E&O exposure can be created by anyone in the agency, including owners and managers, producers and CSRs. Each month, I will share some easy-to-use tips targeted at different positions to help reduce E&O exposure in your agencies. Sharing these with all agency staff can raise everyone's awareness of how to prevent claims, and open a dialog throughout the agency about improving business processes. I hope that you find these helpful and welcome your suggestions on any specific E&O topic you would like us to address.

• Monitor claims activity for the agency to ensure the necessary follow up with carriers is taking place and that insureds are appropriately contacted as well.
• Monitor claims activity by carrier to spot deteriorating loss ratios, assess patterns or common claims, and determine if the agency can assist customers by referring them to resources to help them reduce claims.
• Provide increased education for lines of business with loss ratios trending upward, since the increase in claims means that loss control measures should be enacted.
• Prepare a disaster plan for your agency so that in the event of a widespread claim situation, such as occurs after a flood, hurricane, or tornado, other natural or even a man-made disaster, you can be back up and running and serving your customers.
• Establish a written procedure for claim handling and train your staff on it, as appropriate.
  

Linda S. Loving, CIC, AISM, AIAO (lloving@iiav.com), VFSC Executive Vice President

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Independent Insurance Agents of Virginia