E&O Monthly Loss Prevention Tip: Documenting Conversations

E&O Monthly Loss Prevention Tip: Documenting Conversations

Always Document Conversations with Clients

Even when documentation seems redundant or unnecessary, it’s important to make it a habit when conducting business. Details, no matter how large or small, are noteworthy when it comes to protecting your clients and your business. The claim example below illustrates how a lack of documentation contributed to an E&O insurance claim being filed against an insurance agent. Review this claim and the following E&O Prevention Tip to help reduce your E&O exposures.

Description of Claim: An insurance agent in a small town handles the insurance needs for many acquaintances, friends, and neighbors. One of the insurance agent’s friends calls the agent at home to confirm their golf date on the following afternoon. In the middle of the conversation, he tells the insurance agent that he finally bought a new car for his daughter and needs to add it to his policy. The agent and his friend proceed to talk about their upcoming golf game and other personal matters. By the time the insurance agent hangs up the phone, he is only thinking about his game the next day and completely forgets about the new car. An accident occurs and, there is no physical damage coverage on the new auto.

Damages: $4,200

E&O Prevention Tip: Always document every conversation. Whether at home or in the office, be sure you have message pads beside each phone or the ability to take notes on a mobile device.

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