By: Paul Walters - E&O Claims Manager

Many claims made against agents result from either a lack of communication or a misunderstanding between an agency and its clients. Lack of back-up documentation pertaining to communication between parties makes claims made against agents (sometimes years after discussions have taken place) hard to defend.

Lack of communication or poor documentation is a recurring theme at seminars on loss prevention and in industry articles. In all communications between agents and their clients, comprehension can be enhanced by asking three basic questions: What is the nature of the risk? What coverage is requested? What is the client’s understanding of the coverage provided?

When there is a language barrier, the potential for misunderstanding is compounded. How should an agent deal with clients who do not speak English? The answer is simple: Have a bi-lingual person available to serve as an interpreter. This person can be an employee of the agency, a family member, or a friend of the client.

Remember, effective communication is the goal of both the agent and the client. Even if you have a client who can communicate fairly well in English, but s/he lacks a complete grasp of the language, err on the side of caution and enlist the aid of someone who can interpret the conversation. While many people for whom English is not a first language can function in most situations, insurance terminology can be confusing (the same holds true for many people fluent in English).

When an application is signed, have the interpreter convey the information contained in the application to the client in understandable terms, so there is no misunderstanding about what has been attested to in the application. Never let an interpreter complete the application! Even if the interpreter has full command of the English language, this does not qualify him or her to complete the application.

An interpreter should be used as a liaison between the agent and the client, ensuring the client’s comprehension of questions asked by the agent and, likewise, accurately conveying the client’s responses to the agent. The agent should use the interpreter’s responses in completing the application. Be sure to ask more questions if you sense there may be some lingering confusion.

Carriers deny many claims if false or misleading information is provided on an application. Even if the loss is paid, that will not bar the carrier from making a claim against the producer at a later date. In fact, Utica handled a claim in which the application—completed by an interpreter—contained misleading information. Even though the client had signed the application, he later claimed that the information contained on the application was not the information he gave the interpreter. The carrier holds the agent—not the interpreter—responsible for getting it right.

If a family member or friend acts as an interpreter, it’s advisable to keep that person’s contact information in the client’s file. Issues related to cancellation and billing may arise at a later date, and you will need someone to assist you in follow-up discussions.

The foregoing advice applies to both face-to-face and telephone discussions. Whenever an interpreter is used, that person’s name should be documented, along with the items discussed with the client via the interpreter.

If you cannot locate an interpreter, AT&T’s Language Line Services will provide one for telephone discussions. For a fee, AT&T provides interpreters fluent in 150 languages. When this service is used (AT&T charges by the minute), the bill will include the date, time, duration of call, language spoken, and the ID # of the interpreter.

For more information on AT&T’s Language Line Services, call 1-877-886-3885 or log on to: http://languageline.com/

Don’t underestimate the value of taking these extra steps when dealing with a non-English-speaking client. Establishing a reputation as a multi-culturally friendly agency can be worth its weight in gold.