File Documentation & Records Retention Good Documentation:
The Best Way to Proctect Your Agency
W
hether your agency operates in a totally automated environment, is still paper-based, or exists anywhere in between, file documentation is rule number one when it comes to protecting against errors and omissions losses. Claims adjusters and defense attorneys who handle agency E&O claims all agree—there is no such thing as an overdocumented file. Many E&O claims result in a version of “he said, she said” when it comes to reconstructing the conversations that took place, often many years before. No one can perfectly recall exactly what took place when handling a customer transaction, and unfortunately, in a court of law the buyer is much more likely to be believed than the seller. It goes without saying that each and every step in the process must be documented in the customer’s file, whether electronic or paper. The file needs to tell the story of what transpired, with sufficient detail provided that anyone in the agency can read it and clearly see what took place. As is often the case, when an agency is involved in an E&O situation, not every person who was involved is still with the agency. Record-keeping is vital to defending oneself from a claim that something was done improperly or not at all.
What Constitutes Proper Documentation?
Every conversation with a prospect, customer, underwriter or other insurance company staff member, or third party (such as a person who requests a certificate of insurance or a vendor with
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