2020 will begin another decade for new emerging risks. You may not think that an emerging risk for E & O exposures are at your fingertips, but the biggest risk your agency may face is typing an online application.
By answering questions on a binding platform, you are asserting you are the authority on the risk and you know the answers with 100% certainty.
Have you had a question on the online platform that is not on the printed application for the customer to sign? Did you mirror the application to the online questions?
The customer must sign and date the application. The customer is making the representations. What do you think the proper procedure is when placing an application online with a customer not in your office? Should you:
- Go ahead and bind – which means the customer signs the application after coverage is in force, or
- Log out of the online quoting system after delivering the quote documents and bind after the customer signs the application and bind request?
Be careful to not short change procedures due to time constraints. Contractual Liability issues will occur. Subrogation from your carrier is no laughing matter and it will be easy to see if an application was signed prior to binding coverage online. Your customer may be your friend, but they become less friendly when they do not have their claim paid.
PRESS THE EASY BUTTON
but make sure you do not short cut coverage and short cut procedures.