Dealing with the differing cultures in our
communities provides great opportunities for the insurance agent, but presents
a number of dangers from an E&O perspective. Insurance carrier studies have
confirmed that the vast majority of claims against agents result from either a
lack of communication or misunderstanding between the agent and the client. The
potential liability exposure related to miscommunication is exacerbated if a
language barrier exists.
The primary goal for an agent in such situations is
to find a means to effectively communicate with his customer in order to
understand their insurance exposures, what coverage they are requesting, and
make certain that they understand both the product and the process. Just as in
any other client communication, documentation is extremely important.
It is preferable that all written material be in
English to avoid potential misunderstanding related to differences in dialects
within a language. Many agencies doing business in ethnically diverse areas
maintain multi lingual staff to assist in communicating with members of those
ethnic groups prevalent in the community. In other situations the customer maybe
encouraged to enlist an English speaking adult friend or relative to act as a
translator to aid in ensuring that both agent and customer clearly understand
the issues and answers. Non-English speakers as well as interpreters may have
particular difficulty understanding terminology unique to the insurance
industry and the agent must take the necessary time to explain the process,
application questions and coverages, and look for any signs that either the
customer or the interpreter is confused or does not understand the information
being conveyed or requested.
Using an interpreter can be extremely helpful in
asking those questions necessary to ascertaining the coverages required and
obtaining answers to the application questions. However, the application itself
should always be completed by agency staff. The customer, through the
interpreter, should then be asked to review the application to ensure that the
information supplied has been correctly entered. Contact information for the
interpreter should be maintained in the client file to help in resolving any
issues that come up during the client relationship. Always document the items discussed with the
client through the interpreter.
Taking the time to implement the steps outlined
above will help mitigate the potential E&O exposures and maximizing the
potential benefits of establishing a multi-cultural agency.
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.
