Endorsement Errors Causing Coverage Gaps and Rework

Recurring hidden losses from rework time and coverage disputes: 10–30 minutes of staff re-keying and checking per endorsement at $35–$75/hr fully loaded, easily $3,000–$10,000+ per year per book of business in pure labor; additional $10,000–$100,000+ per year at the agency level in E&O deductibles, goodwill payments, waived commissions, and lost accounts when endorsement errors cause uncovered claims or perceived coverage gaps. • Recurring non-billable labor for endorsement rework (e.g., 15–45 minutes of extra handling on a meaningful share of endorsements across all clients and lines) plus direct financial hits from coverage disputes and E&O risk: writing off agency fees or commissions, premium concessions to appease clients, absorbing uncovered claim portions, and potential E&O deductibles, easily accumulating to tens of thousands of dollars per year per mid-sized brokerage and scaling higher with volume.

Benefits consultants and account staff manually interpret unstructured endorsement requests, key changes into multiple systems, and track follow-ups or suspense items using ad-hoc spreadsheets, email folders, sticky notes, and personal memory to ensure coverage is updated and documentation is consistent. • Benefits Consultants and Marketing Coordinators manually key endorsement details from carrier emails and portals into the agency management system and internal trackers, then double-check against policy documents and suspense tasks using Excel logs, personal checklists, email folders, and memory to catch mismatches and missing follow-ups.