THE BIG 'I' PUBLISHES MANDA HANDBOOK TO REDUCE AGENCY EANDO CLAIMS
The following information was released by the
Resource provides training and checklists to manage EandO risk during ownership transitions.
"With record deal activity, rapidly evolving work environments since COVID and the incredible diversity of business models across the independent agency channel, mergers and acquisitions have never been more complex," said Nancy Germond,Big "I"executivedirector,riskmanagementandeducation."That complexity makes disciplined attention to EandO risk management essential."
Various EandO issues canarise from MandA activity when acquiring agencies fail to take adequate steps to align employee knowledge and operational standards.In some cases, agencies mayfail toplace vehicles or other property on excess schedules or neglect to list vacant land on policies that provide liability coverage. Other challenges include reviewing legal contracts beyond the scope of insurance requirements and failing to properly document coverage offerings.
"Deals move fast, but they should not overlook the critical work of aligning procedures, training employees and ensuring coverage is properly reviewed, documented and communicated," Germond said."Taking the time to get these fundamentals right can significantly reduceEandOexposure and help agencies build a stronger foundation for success."
Thehandbookoutlines theoperationaladvantages and challenges of MandA, along with clear steps and practical checklists to help agencies evaluate existing operations andidentifypotential gaps early in the process. It also provides tools to assess the skills,knowledgeand competency of eachacquiredemployee, as well as worksheets designed to measureandsupport consistent performance.
To strengthen onboarding and reduce risk, thehandbookincludes a variety of targeted EandO training resources for newlyacquiredemployees, including short, focused training modules for specific workflows and individual training plans tomonitoremployee progress and development.
"This handbook gives agencies a clear, practical roadmap for building consistent processes, reviewing policies and documenting coverage in a way that protects both the agency and its clients," said
"The Handbook for Preventing Errors and Omissions Claims in Insurance Agency Mergers and Acquisitions" is available for purchase from the Big "I"
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For more than 35 years, the Big "I" Professional Liability Program, underwritten by
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