1. Presented by: Joni R. Fairbrother, CIC, RPLU Independent Ins. Agents & Brokers of Arizona THE E&O DEPARTMENT

2.  One hour we are going to talk about some issues regarding E&O  I am not here to give you more work  I am not here to make your life miserable  FIRST RULE – sell more insurance, BUT do it safely so that you can avoid an E&O claim

3.  You have the 5 th amendment to remain silent.  The burden of proof is on the prosecution to prove the case “beyond a reasonable doubt”.

4.  The plaintiff (person bringing the lawsuit) must only prove a “preponderance of evidence”  The plaintiff’s story must be more believable than the defense story  The defense does NOT have a right to remain silent. The defense must prove their case.

5.  Documentation is not just important – it is critical.  Without documentation, most likely the outcome will be a “liars contest”

6.  Many, many times – a well documented file will stop an E&O claim before it begins  If a claim proceeds, the E&O insurance company will be able to defend you much better.

7.  You don’t have to have failed in your professional obligations to your client to be a victim of an E&O claim.  Can you prove you didn’t do anything wrong?  Documentation can help you prove it.

8.  I work alone – I know what I did and didn’t do on a file……  I am really busy – I don’t have time…..  I don't need to document this file... This is a friend of mine… I play golf with him every week

9.  I shouldn’t have to document this file... they are family!  I don't need to document with him - after all I saved him from losing his business.  I don't need to document with them - THEY GO TO MY CHURCH

10.  I don't need to document with them - they are family / close friends   I don't need to document with them - they are as honest as the day is long.   I don't need to document with them - they are not the type of people who would sue 

11.  I don't need to document with them - after all they KNOW what they have and don't have.  I don't need to document with them - he was my college roommate  I don't need to document with him - his memory is excellent.

12.  I don't need to document the file - I remember everything - and I mean EVERYTHING so I will be able to describe what happened.

13.  My number one rule when teaching E&O Loss Control is SELL MORE INSURANCE.  Documentation should be: ◦ Simple to do (don’t make it complicated and long) ◦ Consistent ( not some of the time – all of the time) ◦ Enough information to tell the story

14.  If you use a coverage checklist when talking to customers (especially new customers), you can systematically ask questions and document at the same time.  Sample in hand-out  Another method that is REALLY good for commercial risks:

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16. 16  The VRC is a web-based resource exclusively available to Big “I” members that will improve the knowledge and professionalism of agency staff by providing tools that will allow them to better understand the coverage needs of clients, assist them in meeting those needs, while offering valuable file documentation should an E&O claim arise

17. 17  Understand the Risk: Narrative overviews of operations, exposures, coverage recommendations for than 650 business classes, including SIC, GL and WC codes

18. 18  Exposure Identification Survey: Custom risk specific questionnaires designed to gather information to ACORD applications, identifying coverage gaps and exposures.

19. 19  Proposal Assistant: Access to ACORD forms, PF&M (detailed commercial, personal, & specialty coverage analysis of ISO & AAIS forms and endorsements), and a glossary of insurance definitions. and glossary of insurance definitions.

20. 20  E&O Coverage Checklist / File Documentation: Printable E&O coverage checklist with client signature to document coverage offered and rejected by the customer.

21. 21  Business Building Letters: Over 330 professionally written correspondence pieces to customize and save in your own letter library for on-going prospecting, account development, service/claims, relationship building, and service surveys.

22. 22  E-marketing for Agencies: Inform and educate customers with professionally written articles for your website and newsletter, along with easy to understand answers to consumer questions. (Just this makes VRS worth its weight in gold)

23. 23 Agency Size:Annual Subscription Cost: Four-year Subscription Cost: 1 to 15 Agency Users $250**$750** More than 15 Agency Users $500**$1500**

24. 24  IIABA members can visit www.iiaba.net/VRC to access and purchase VRC using your Big “I” login and password.www.iiaba.net/VRC  Brochures on table

25.  Let your file speak VERY loud in YOUR defense.  Document to allow your file tell the story of what happened.  With documentation it may not be a slam dunk in getting rid of the E&O claim but it gives the E&O carrier something to fight about

26.  Without documentation – we have a liars contest that are difficult to impossible to defend.  Be consistent within the agency about the documentation. If one person documents everything and the next staff person documents little, it will look like you are hiding information.

27.  Date (most agency management systems will automatically do this for you)  Who you spoke with  Be sure you are identifying yourself  High-lights of what was said – don’t transcribe the conversation (both caller & you)

28.  Text message some details to your e-mail  Call someone in your office to document file  Note to yourself

29.  Notes you take at the meeting – scan and show in activities. No need to make it pretty as long as you can understand it.

30.  Don’t just leave e-mails in the “in-box” / “sent file”. Must be put with the file (paper or electronic) so that all correspondence are in the “file”.  Text messages need to be attached as well.

31.  If you use a coverage checklist you will have the documentation that you talked about options. (AND hopefully you will be able to better cross sell / expand coverages sold)  Keep quotes of coverage options

32.  E-mail a short confirmation of conversation.  You will have written documentation of what you just did  You will put your customer at ease that you are “on top of it”  Good habit to develop

33.  Many times stop an E&O claim before it starts  Help you to get up to speed on a client quickly  Allows multiple people on your staff to handle customers and STILL have consistency

34.  Come from a lack of one of two things.. ◦ Failure to document files ◦ Failure to communicate effectively

35. If you find yourself…….

36.  An attorney calls your office staff to ask about information from the customer file.  ASK TO HAVE QUESTIONS IN WRITING  An attorney asks for copies of correspondence, copy of the application, etc.  Polite, professional “no” – questions/requests in writing

37.  Someone asks you for a recorded statement  Polite, professional “no” – questions/requests in writing  In a court room for a civil case – you don’t have a right to remain silent – BUT DO SO until someone can help you

38.  Get your E&O carrier to help you answer.  DO NOT carry on conversations and freely supply third parties with information from your file.

39.  DON’T admit liability – to the insured or the insured’s insurance company  Be empathetic, but watch what you say  Don’t discuss your E&O coverage with anyone, and don’t provide copies  Don’t offer to pay the claim yourself.  NOTIFY your E&O carrier

40.  Stress  Time lost ◦ Preparing loss notice ◦ Producing documents ◦ Completing interrogatories ◦ Meeting with attorneys ◦ Practice deposition ◦ Giving depositions ◦ Sitting in on witness depositions ◦ Going to trial or participating in settlement conferences

41. The Big I stands ready to help you with your E&O needs. Call us

42.  Benefits of membership in the Independent Insurance Agents & Brokers of Arizona

43.  I appreciate the opportunity to talk about a passion of mine in preventing E&O claims and helping insurance agents to be more successful.