Benchmark Business Group

Avoid E&O claims

July 16, 2019

According to the National Ethics Association, one of the top five reasons E&O is paid is because of inadequate business practices. Errors were found because of the lack of knowledge, action that wasn’t taken, poor communication, and inconsistent business practices.

When you look at how fast an agency moves and how many clients are being serviced at once, it’s easy to see that if you’re not careful, important tasks can slip through the cracks. For instance, a busy service associate is in a rush and fails to ask your client all the right questions. Another person calls in while that same service associate is finishing with the client and an important committed action doesn't get written down.

Consistency and accuracy can become difficult when you’re moving fast, IF you haven’t designed your business with three important elements: Strategy, Structure, and Engagement of People. These three elements design an ethical approach to ensuring consistency and accuracy for your clients. Not to mention, provide protection against having an E&O claim. In some ways, these three elements are a safety net for your business.

Take a moment and evaluate your agency on these three elements. Are they alive and well in your business?

  • Strategy - The strategic design, growth plan, and company policies that drive all areas of the business.
     
  • Structure - Documented systems and processes for employees to understand how to carry out the duties of their position.
     
  • Engagement of People - A culture where your team buys into the vision of your business and takes an active part in improving the systems and processes.

Putting together the right strategy (plans and policies), structure (systems and processes) and culture (buy-in) is a smart step in ensuring that your business is protected against E&O claims. There’s too much at stake for your employees, yourself, and your clients not to design a business that creates consistency and accuracy EVERY time.

Everyone is human. Everyone makes mistakes. But don’t let mistakes happen because you didn’t put a safety net in place. You can have the best team, the best intentions in the world and still need the safety net that systems and processes can provide.

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