Policy checking is the agency’s line-by-line review of a policy the carrier issued. The checker compares the policy against what was requested and quoted: named insureds, locations, limits, deductibles, forms and endorsements, premium, and the mailing and billing details. Any differences go back to the carrier for correction.
The point is errors and omissions (E&O) prevention. An Insurance Journal piece on agency E&O procedures recommends that the CSR and producer review each new policy against the proposal, flag unusual exclusions or limitations, and confirm them with the client in writing. A missing endorsement or a wrong address is cheap to fix today and very expensive to discover after a loss.
How it shows up in an agency
A contractor’s renewal arrives. The checker opens last year’s policy, this year’s quote and the contract requirements file. They find the carrier dropped the blanket waiver of subrogation endorsement and changed the products-completed operations aggregate from $2 million to $1 million. Both go back to the underwriter before the agency issues any certificates.
Commercial policies can run hundreds of pages, so many agencies outsource checking or use software. Some AMS vendors and AI tools now offer automated policy comparison; see AI agency assistants. Treat their output as a first pass that a person signs off on.
Common confusion
- It isn’t a premium audit. A premium audit is the carrier checking the insured’s payroll or sales. Policy checking is the agency checking the carrier’s work.
- Renewals need it too. Carriers change forms at renewal. Comparing only to the quote misses changes from the prior term.
- Document it. A dated note of what was checked and what was corrected is evidence of reasonable care if an E&O claim follows.