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E&O Prevention Tip: Follow Up Verbal Communication with Documentation

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Our November E&O tip for insurance agents focuses on the importance of following up on all verbal communication with written documentation.

Claim Example:

A customer called his agent requesting that his teenage son, David, be excluded from his automobile insurance policy because the son had received a DUI and he no longer wanted the son to drive his car. Upon hanging up the phone, the agent’s assistant walked by his office and the agent asked his assistant to remove David, the customer’s son, from the family’s automobile policy. When the assistant processed the request, he accidentally removed the customer’s other son, Darren, from the policy, not realizing he had confused the names of the customer’s two sons. Later that year, the customer’s son Darren was involved in a collision and was not covered under the family’s automobile policy. The customer brought a claim against the agent for removing a named driver from his policy without his request or consent.


E&O Prevention Tip:

Always send a written or typed note to employees or coworkers when requesting policy changes or updates. Send a written confirmation to the customer as well. Even if you make a verbal request or mention a work-related item in a meeting or in passing, be sure to follow up with a note that can be documented and tracked. This will ensure that the item does not become forgotten or carried out incorrectly.


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