When discussing insurance exposures that might exist, the use of coverage checklists helps provide consistency among the available options. The regular use of an insurance coverage checklist is a recommended E&O loss control practice which, if used consistently and uniformly throughout the agency or brokerage, will help provide better service to customers. In addition to providing better customer service, a checklist can also prove to be invaluable if an agency or brokerage is forced to defend itself against a claim that it failed to obtain the proper type of insurance coverage. We have won many an E&O case by using coverage checklists to defend against the claim. In addition, many E&O insurers’ applications commonly ask whether agencies and brokerages are regularly using insurance coverage checklists. This question is asked by E&O insurers because they know the checklists are often helpful to defend against E&O claims and lawsuits. Accordingly, every agency and brokerage should consider the use of coverage checklists whenever discussing coverage options with both potential customers and existing clients.

Whenever we discuss the topic of insurance coverage checklists, agencies and brokerages ask us if we know where they can obtain sample forms. Any agency or brokerage contemplating the use of a coverage checklist should remember sample forms should be used as a template for the agency or brokerage to compose a checklist that matches the types of customers that it handles.

Sample coverage checklists are available from many sources. Many checklists can be found online. In fact, insurance coverage checklists and other risk assessment tools are available for purchase from such companies as IRMI, FC&S, Rough Notes and SilverPlume Sage. Additionally, independent agents can purchase the Big “I” Advantage Virtual Risk Consultant powered by Rough Notes through IIABA. VRC features a series of checklists tailored to specific types of commercial and personal lines risks. Agencies and brokerages should remember insurance coverage checklists should be used for both commercial insurance and personal lines coverage. The IIABNY website also has sample coverage checklists for both commercial and personal lines coverage.

The best practice for agencies and brokerages to follow with regard to using the checklists is to implement a procedure pursuant to which the checklists are used whenever anyone at the agency is discussing coverage options with insureds and potential clients. The checklists should be used whether the conversation results from a face-to-face meeting or telephone discussion. When the coverage checklists are used for in-person meetings, many agencies and brokerages follow the practice of having the customer or potential client sign and date the form under discussion. Once completed, dated and signed, the agency or brokerage should be sure to maintain the checklist in a customer’s file. By doing so, the checklist will be available if an issue arises regarding coverage options that were reviewed and offered.

An agency or brokerage that uses insurance coverage checklists should stress to all employees the constant theme that runs through all E&O practices – "consistency." In other words, the checklists should be used uniformly throughout the agency or brokerage by all employees on a regular basis. The practice ensures insurance coverage options are reviewed and discussed with customers and potential clients on a consistent and regular basis.

In our experience, the prudent insurance agency that regularly uses insurance coverage checklists will reap a multitude of benefits. First, the agency or brokerage will provide better service to customers. Second, the agency or brokerage will have the checklist available to use as documentation if an E&O claim or lawsuit arises that concerns coverage for a particular type of exposure. And, finally, by using coverage checklists, the agency or brokerage will invariably sell more insurance, which in turn will help it increase its bottom line. The regular use of insurance coverage checklists is certainly a win-win situation for everyone involved.