Agents selling
life insurance coverage must always focus on risk management and pay attention
to details to avoid simple errors which could have catastrophic results. One of
the most common errors involves client communication, or the lack thereof.
Unrealistic and unrealized client expectations are contributing factors in the
majority of professional liability claims in any discipline, and particularly
so in those involving insurance agents and brokers. Unrealistic expectations
are most often caused by simple communication failures between the agent and
his client. Those failures need not happen, and can be avoided by consistently
employing a few basic strategies.
Never
overestimate the client's knowledge of the services you intend to provide,
regardless of the client's level of sophistication. It is your responsibility from
the outset of the client relationship to clearly explain exactly what services
you will perform and - equally important - those you won't. Carefully explain
all coverages to your clients as well as any exclusions to those coverages.
Never indicate to a client that you will place a policy until you have
confirmed that it can be placed - if you don't know, say so. In advising
clients always remain within your own area of expertise - do not attempt to
render legal, accounting or any other type of advice. Make sure that
communication is two way - have your client clearly explain has or her desires,
needs and expectations Never volunteer information regarding your errors and
omissions coverage. Clear communication can help ensure that you clients have
the information and expectations they need to understand your responsibilities
and liabilities regarding your scope of services.
Even when
verbal communication is frequent, memory failure and misunderstandings often
can result in disputes and litigation. For most of us, memory does not improve
with the passage of time, and memory lapse tends to be aggravated when large
sums of money may be at stake. Few of us remember all the details of telephone
calls, group teleconferences, or face to face conversations shortly after they
take place. Accordingly, agents should confirm verbal communications in
writing, especially if they involve an agreement or commitment, notification,
or a request for action or follow-up. Remember that voicemails pose a great
risk for miscommunication and should be followed up in writing as to any points
of significance (i.e. agreements, notification, request for action), correction
or clarification.
Agents should
also be aware that e-mail in the context of client communication is never
actually casual of informal. From a legal standpoint e-mails are given the same
standing as any other formal written document, are never totally deleted, and
always form a key component of the client record for litigation purposes. For
these reasons every agency should have a formal, mandatory e-mail communication
policy in place requiring appropriate content, transmittal to all interested
parties, and filing of hard copies of e-mails in client files. Use the
"return receipt' e-mail function to confirm that your message has been
received and opened. Follow up promptly if it appears that your message has
been ignored, misdirected or lost. Texts to clients should be only used for the
limited purpose of scheduling and requests for communication, and never for the
purpose of transmitting substantive content.
Clear
communication is a vital key to a successful and profitable client relationship
void of disputes and claims. Effective communication should be a core competency
of any agency that strives to understand and meet the needs of its clients.
With expectations properly communicated, documented and verified any issues can
be addressed quickly, calmly and effectively with minimal negative impact on
time, costs and relationships.
All information provided in this blog is for informational
purposes only. The sources used are presumed accurate. CalSurance Associates,
Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc.
will not be liable for any errors, omissions, losses, injuries or damages
arising from its display or use and will not assume responsibility for any
misguided information. No guarantees are implied.
