BIG “I” RISK MANAGEMENT

1. BIG “I” RISK MANAGEMENT MODULES Presented By: James C. Keidel, Esq. Christopher B. Weldon, Esq.

2. Who We Are: Keidel, Weldon & Cunningham, LLP James C. Keidel, Esq. jkeidel@kwcllp.com Cell: (203) 470-9921 Christopher B. Weldon, Esq. cweldon@kwcllp.com Cell: (203) 984-5394 URL: www.kwcllp.com

3. Keidel, Weldon & Cunningham, LLP 925 Westchester Avenue. White Plains, NY 10604 (914) 948-7000 Fax (914) 948-7010 167 Broadway Bayonne, NJ 07002 (201) 490-7706 400 Greenwood Avenue Wyncote, PA 19059 (215) 821-1172 303 Jefferson Blvd. Warwick, RI 02888 (401) 773-7730 190 Old Ridgefield Road Wilton, CT 06897 (203) 869-2200 120 West 45th Street New York, NY 10017 (212) 753-1000 4625 Onondaga Blvd. Syracuse, NY 13219 (315) 425-1100 URL: www.kwcllp.com

4. E&O Risk Management: Meeting the Challenge of Change The Role of Agency Procedures

5. INTRODUCTION • Proper policies and procedures insure that your Agency could mount a compelling defense • Good Procedures: • Are critical from an E&O protection standpoint • Improve customer service • Increase the efficiency of the agency operation • May increase sales

6. What are “Invariable Practices”? When procedures are in place that requires certain steps for each customer/carrier touch point, and all agency personnel execute the steps as prescribed, the agency operations are consistent. Just like a drill team, agency personnel must complete procedures in exactly the same manner in order to achieve harmony of operations Consistency is the key to E&O Loss Control

7. What are “Invariable Practices” Important? Invariable and consistent practices provide the agency with a defense in times where follow-through on procedures comes into question “How Can One Prove A Negative?”

8. PROCEDURE MANUAL Helps prevent E&O claims An invaluable employee training tool Assists in reducing operating costs Can be used by management to evaluate employee performance Promotes better customer service Provides guidance for agency operations audits Supportsan agency’s invariable and consistent practices, and May help sell more Insurance The key is they must reflect the actual operations of the agency.

9. PROCEDURE MANUALHelps Prevent E&O Claims Provides consistency in how things are done Helps ensure that all proper steps are taken by employees Helps create the information that may be necessary to defend an E&O Claim

10. PROCEDURE MANUALTraining Tool Provides guidance to new employees on agency operations Assures quality control and customer service performance

11. PROCEDURE MANUALReduction of Operating Costs Written procedures should represent the best and most efficient way to complete tasks Without a procedure, staff members are burdened with finding their own way of doing a task This is both time consuming, costly to an agency, and has a negative effect on employee morale

12. PROCEDURE MANUALEmployee Evaluation Compliance with current procedures should be part of any employee evaluation This requires constant monitoring and periodic customer file reviews

13. PROCEDURE MANUALAgency Operations Audits Audits accomplish two goals of E&O loss control: • It reinforces the commitment to agency-wide compliance with operating procedures • At the time of an E&O claim, indicates that procedures are consistently followed

14. PROCEDURE MANUALMay Help Sell More Insurance Following procedures may help customers identify risks that they may not have thought to insure. An example of this would be the use of insurance coverage check lists

15. PROCEDURE MANUALEvaluation of Invariable and Consistent Practices A strong defense using invariable and consistent practices requires: • The ability to demonstrate that a procedure is followed by all staff members - without exception • Auditing: • Compares operations with procedures so corrections are made for any variances • supports an agency’s assurance of invariable practice • improves procedures to reflect current workflow • fosters employee input on amendments