value-added services
A term describing services provided in conjunction with the sale of insurance
that go beyond the mere provision of insurance. These may entail risk control
services or claims management services. Value-added services provided by employment
practices liability insurers, for example, seek to prevent and control the kinds
of claims covered by EPLI policies, and include items such as human resource
audits, training and reference manuals, sample employee handbooks, loss prevention
software, and "hot lines" (which are manned by human resource professionals
who provide advice on handling employment-related issues and incidents). The
nature and quality of value-added services provided by an agent/broker or insurer
is an important factor for an insured in selecting between competing organizations.
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