Recording phone conversations with insureds can provide critical documentation in the event of an errors and omissions (E&O) claim. However, it is essential to implement best practices for recording, storing, and documenting these calls in an agency management system (AMS). Here’s what you need to know to protect your agency and maintain compliance.
The Importance of Documenting Phone Calls
A consistent approach to documentation is crucial in E&O defense. Legal experts emphasize that the more documentation you have, the stronger your position in a dispute. One common defense strategy is the “invariable practice” doctrine, which means documenting every call, every time.
In one E&O case, an insured claimed they had called to add specific coverage, while the agency denied receiving the request. Because multiple agency staff members testified that they document all calls without exception, the jury ruled in their favor. Consistency in documentation can significantly impact legal outcomes, making it a best practice for agencies.
How to Store and Retrieve Recorded Calls
If your phone system allows for selective call recording, it is best to attach relevant calls directly to the customer record within your AMS. If your system records all calls, ensure that there is an efficient retrieval process in place, typically allowing searches by phone number. If the phone system you use is integrated with EZLynx, the recorded call will automatically be added to the client profile. While not all AMS platforms are identical, the ability to quickly access past recordings can be invaluable in resolving disputes.
It’s also important to comply with legal requirements. Some states require all parties in a conversation to consent to recording. Independent insurance agencies should research their state laws and consider playing an automated message informing customers that calls are recorded. Employees making outbound calls should verbally inform clients of recording policies as well.
Effective Documentation Strategies
Even when calls are recorded, proper documentation remains critical. As a rule of thumb, if it’s not in the file, it didn’t happen. Recorded messages should be documented on the day they are received. Delayed documentation, particularly after a claim has been filed, can weaken credibility.
When possible, attach the actual audio file or a transcript of the call to the customer record. If that isn’t an option, use detailed file notes or send a follow-up email summarizing the conversation. This approach allows the insured to confirm or correct any details, reinforcing accuracy and transparency.
By adopting these best practices, independent insurance agencies can enhance customer communication, improve compliance, and strengthen their defense in potential E&O claims.
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