reveals the difficulties in offering a defense when procedures are not followed . The litigation arose from damage sustained by a commercial enterprise where the carrier argued that the agency had not provided the necessary information for the carrier to quote coverage , despite several requests . Counsel stated the agency “ has no documentation that it sent the proper information and the agent who worked on the account left the agency several years ago on unfavorable terms . The agent ’ s CSR says the agent was not detail oriented , was not good about providing information , and often made mistakes .” Defense counsel opined that it was highly likely the judge will rule that the agency failed to provide the necessary information . The agency itself had a strong culture of compliance but suffered from one agent who had not followed the standard office procedures established and who , thus , created a significant problem for the agency .
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In addition to implementing uniform procedures around the process of file documentation , the agency should also implement uniform procedures for diary and suspense systems . There should be a centralized agency management system and computers in each location should be compatible with one another . In fact , it is likely that computer systems will become a backbone for your organization as offices are spread out geographically . Additionally , it is essential that you ensure adequate security of personal information acquired from your insureds , and that you provide proper privacy training to all employees . The use of encryption and other measures to protect personal data when transmitted is important . If employees use smart phones , verify the phones are password protected .
As part of the establishment of standardized procedures , make sure the staff in each location knows the method to report an errors and omissions situation . Establish and discuss the procedure with all agents and employees . Do so regularly to prevent hesitation in reporting at the time of occurrence . Don ’ t let problems linger . Delays could create coverage issues with your professional liability carrier .
Communication is a key to successfully running multiple locations . Free and open communication with all staff is very important when you have multiple locations . Neither the culture nor the compliance can happen if you neglect to focus on communication . Have weekly staff meetings by phone or webinar . Have your office personnel get together at least once or twice a year to enhance communication between people on all levels .
Communicate your vision to all managers in all locations and they in turn must commit to clearly communicating your vision to others in the off-site agencies . Regular audits and evaluations of the manager and the office are critical to making sure your vision is being carried out according to your expectations . While striving for positive energy in your organization , do not avoid discussing problem situations .
Consider learning opportunities which may present themselves from potential claims situations . Educate your employees about the situations which have created problems in one office so other office sites can avoid the same mistake .
Growth is positive when controlled but be sure that the “ right hand knows what the left hand is doing ”. Consistent culture , compliance and communication throughout the agency at all locations , can be essential to preventing confusion and potential claims which may otherwise arise from acquisitions and dispersed locations .
Annette Hollingsworth has spent over 30 years in the insurance industry . While with ERC / GE Insurance Solutions / Swiss Re , Annette Hollingsworth has served in a variety of capacities ranging from claims to underwriting , legal to regulatory services and global compliance . Annette now serves in the Products unit where she supports the Insurance Agents Professional Liability underwriters in both the US and Canada . She attended Washburn University undergraduate and KU Law School . She has her JD ., CPCU , CLU , and ARC designations . This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose . Swiss Re shall not be held responsible in any way for , and specifically disclaims any liability arising out of or in any way connected to , reliance on or use of any of the information contained or referenced in this article . The information contained or referenced in this article is not intended to constitute and should not be considered legal , accounting or professional advice , nor shall it serve as a substitute for the recipient obtaining such advice . The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“ Swiss Re ”) and / or its subsidiaries and / or management and / or shareholders .
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