Checklists – How They Can Help You

This blog was suggested  by a call I received on the Free Legal Service program that I operate for the Big I.  The caller was concerned that he may have exposure for an E&O claim  because he had not asked his customer whether it wanted D&O insurance coverage in addition to professional malpractice coverage.  There  had been a claim that was not covered by the malpractice policy, but may have been covered by a D&O policy.  The caller had not asked the customer if it wanted such a policy because the agent who had previously handled the account had been told it was not wanted.  That had been three years ago and the previous agent had not documented this fact.

Even if the customer’s previous rejection of the D&O coverage had been documented, three years had passed and the customer’s situation may well have changed in a way that made such coverage a good idea.  If the caller had created a checklist of the coverages that his customer may need to use at renewal and then documented the customer’s response to each coverage, he would not now have to worry about an E&O claim.  The use of checklists for this purpose is not limited to commercial lines customers.  The same type of situation could occur with a homeowner’s or automobile policy.   There are many different types of coverages that can be included in such policies.

A side benefit of creating such a checklist for each customer is the potential to sell the customer additional insurance coverages at renewal and if you include it on the checklist, to cross sell personal lines coverages to your commercial lines customers and vice versa.