In a perfect world, yes, a checklist would always be used. For all practical purposes, however, it is unrealistic to expect a checklist be used for every customer. Agencies should establish a procedure that defines when checklists should be used, what checklist should be used, and how the documentation is to be completed and maintained. Criteria may include, for example, all new business accounts, complexity of a customer’s insurance needs, or the uniqueness or severity of a type of exposure, or perhaps all accounts every third renewal. The criteria for accounts should not be one based on premium size or account commission.
For those accounts where the agency is not using a checklist the LCWG felt that providing a letter to those customers documenting that the agency procured the coverage requested by the customer and if the customer is interested in completing a risk analysis checklist to please contact them to do so. The letter can stress the importance and benefit of the customer having a risk analysis checklist completed. Maintain this letter in the customers file as documentation that use of a checklist was offered, at the customer’s request.
! Following checklist procedures must be mandatory with no exceptions. Compliance with the procedure should be a key ingredient of reviews. Being able to establish and show a pattern of practice is beneficial in defense of E&O claims.
! Agencies should have criteria other than premium and commission to determine where checklists are used. The procedures should dictate when the checklist should be completed and by whom in the agency. Be sure the checklist lists identifies who at the client meeting was interviewed and is dated.