Documenting Conversations Can Help
Reduce Your E&O Exposure  

Solid, consistent documentation can significantly reduce your E&O exposure while also better servicing your clients – especially with over-the-phone or in-person conversations. It’s not unusual for a client to disclaim what was discussed verbally. In “he said, she said” situations, the client is likely to prevail over the agent. When a dispute arises, good documentation is your best defense. 

WHAT SHOULD YOU DO?

• Document conversations immediately. Details become less clear when there’s a delay.
  
  
• Provide details when documenting. Details should be clear enough for another agency member to easily understand what was discussed and any next steps. Use abbreviations sparingly, and note the name of the person you spoke with, not just that you “spoke with the insured.”
  
  
• Memorialize conversations back to the client in writing. While notes in your agency management system are helpful, they may not be sufficient to eliminate your claim exposure. Memorializing conversations helps protect your agency and gives the client an opportunity to address any miscommunications or lack of clarity on the coverage. Summarize the conversation, note any next steps, and be clear they should contact you with questions or concerns. 
  
  
• Memorialize discussions with wholesalers, MGAs, carriers, etc. You may believe the carrier will back you if there’s a problem, but that’s not always the case. This will also help if the person you spoke to is no longer with the company. 
  
• Management should stress the importance of documenting these communications. Audit files periodically, too, to ensure standards are being met.