Client Consultations and Coverage Review

Clients are the lifeblood of any insurance agency. Developing client loyalty is largely a matter of personal style and relationship building. But that hard-won loyalty can be seriously compromised at the time of an uncovered loss.

Agents who assume an advisory role set the tone for the client relationship by thoroughly reviewing the client’s insurance needs, in writing, with the customer. The process should include a coverage checklist or questionnaire which helps the agent understand the customer’s business and therefore his vulnerability to loss. An agreement of coverage accepted or rejected is best communicated in writing. This is a powerful document in the event of a coverage dispute. And the agent may find that a client would prefer to purchase the additional coverage he needs rather than memorializing his rejection in writing.

This process should be revisited periodically, most likely at renewal of coverage.

Unfortunately, too many agents take short-cuts. Depending on the type of relationship the agent has cultivated with his client, it may be a breach of the agent’s duty to merely include a cover letter with a renewal policy each year, asking the client to suggest any updates. The commission the agent booked for this feeble effort could eventually haunt him in court.