Efficient documenting procedures are integral to a successful E&O loss prevention strategy.
|What are the three most important things in real estate? Location, location, location!
What are the three most important things in E&O loss prevention? Document, document, document!
How many times have you heard this before? At least 50 if you’ve been to even one E&O loss control seminar in the last 20 years. One might consider proper documentation to be second nature for agents by now, but apparently that’s not the case.
E&O claims resolved in favor of the agent tend to succeed because of the agency’s good documentation procedures. By contrast, most E&O claims with unfavorable outcomes involve poor documentation, or even no documentation at all.
Many agents continue to believe—or have been told by outsiders to the E&O business—that they should err on the side of less documentation rather than more. These agents operate under the inaccurate assumption that if they don’t have any documentation, it can’t be used against them. Some attorneys not specializing in E&O have even given this advice to their clients.
Nothing could be further from the truth. If you are trying to prove that something happened in a particular way, but you don’t have the documents to back up your claim, then as far as a jury is concerned, it didn’t happen.
You’ve probably heard all of that before. But here’s a twist: Having a consistent method of documentation can also help convince a jury that it didn’t happen the way the plaintiff said it did because a document doesn’t exist.
Learn more by reading the full version of this article.
Andrew McElhannon is the Member Services Coordinator for the Independent Insurance Agents of Georgia www.iiag.org, and can be contacted at: email@example.com or b y phone at 770-458-0093, x.110, or 800-878-6487.