A customer calls your agency and asks, “I was looking over my package policy and there is mention of an 80 percent co-insurance clause. What exactly does that mean?” How confident are you that all of your staff could provide a thorough, accurate description of this key clause?
There is a good chance your customer has documented the conversation in his or her files—and the essence of that conversation could play a vital role if your customer has a loss and suffers a co-insurance penalty. If you misled them or did not explain the issue fully, the end result of an errors & omissions claim might not be favorable for you.
Scenarios like this occur many times a day in virtually every insurance agency. The manner in which your staff handles these instances is crucial. When developing an E&O loss prevention program in an agency, often the primary focus is on procedures and ensuring consistency among the staff. While these are important, education must also be a main component of your loss prevention program.
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