If you could make E & O (Errors and Omission) exposure a thing of the past, wouldn’t you? After all, increasing compliance considerably slices the risk of E&O exposure.
In working with both commercial and personal lines of insurance, compliance is absolutely vital. While light on the volume of transactions compared with personal lines, commercial insurance is rife with situations where document errors unleash substantial liability.
Accurate completion of a “Coverage Election Form” serves as an ideal example of a critical compliance document for the commercial lines agency. Not only is a signature required, but the accuracy of what is accepted and, more importantly, what is declined is critical in limiting E&O exposure. This is a prime opportunity for commercial insurance agents to sharpen your competitive advantage from Digital Transaction Management (DTM) tools that are already integrated with industry-innovating technologies, like Vertafore.
Built-In Accuracy – No Questions Asked
Let’s take a typical scenario where a business owner elects to purchase only some of the total policies suggested by their commercial agent. They now must fill out a Coverage Election form. However, if this form is not fully executed, that commercial agent is immediately vulnerable.
If an accident or catastrophe mars the business and the claim is not covered, the commercial agent faces a headache in court if they cannot prove that the insured opted-out of the otherwise necessary policy.
What agents need is a paperless and digital platform that requires business owners to cleanly verify that they’re either rejecting or accepting policies. Paper forms only add to the chaos, and no one should have to sort through unimaginably long packets of paper for a missing signature or rouge form. In truth, an agent has no business securing coverage for a risk if the Coverage Election form isn’t completed diligently.
Throw CYA out the window
If you can run a buttoned-up operation through a digital platform, you’ll simply sleep better at night.
With a clean and stress-free platform, commercial agents obliterate E&O exposure. Moreover, if they transition endorsement paperwork to DTM, they can quickly gather appropriate signatures so they’re always at hand. Of course, it’s legal to approve endorsements over the phone, but DTM works in your favor with an eSigned copy on file.
NIGO No More
Digital platforms cut away the hassle and make it easy to reach 100% compliance.
In fact, there is an acronym you may have heard of recently: NIGO… Not In Good Order. It’s my business creed to obliterate instances of NIGO, especially as auditors often toil for hours to ensure data accuracy. But, with DTM, they needn’t worry because of systematic conditional accuracy.
Not only do carriers and agents achieve full compliance, they also enjoy the speed of digital platforms. Policies are sent easily to all stakeholders and provide built-in reminders to keep all workflow on track. With accuracy coded into DTM’s functionality, all documents are correct the first time. While the return of a paper document averaged seven days, agencies waited even longer if there was an error. Why juggle back and forth with risk of having things slip through the cracks to get a simple policy activated or amended?
It’s time to usher in an era where our business tools respect our busy and fast-paced lives. Businesses, especially commercial enterprises, cannot afford paper-based workflow; likewise, commercial agents must be armed with the right tools to set them up for success.
I think we can agree that the digital alternative is an advantage we all should consider.
As a Sales Manager for Insurance Busy Cummings specializes in connecting agents, brokers, TPAs, and carriers with Digital Solutions for maximum success.
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