Downstream Data Coverage is the next big market differentiator
Many NAID members originally participated in the NAID AAA Certification Program to set themselves apart from their competitors. Now that the program is nearing 1,000 participants, it serves a more important role by verifying the customer’s vendor selection requirements. However, while its role has become more important, it no longer serves as the market distinguisher to the degree it once did.
NAID launched Downstream Data Coverage for two basic reasons.
- The E&O policies currently available in the marketplace did not effectively address service provider liability, leaving both the service provider and their customers inadequately protected.
- To create a member-owned insurance product that would reduce costs, put members in charge of loss control, and have the ability to respond quickly to an ever changing insurance environment.
Eventually, Downstream will set an accepted standard for professional liability, just as NAID Certification does now for operations security. But, for the time being, it is proving to be a reliable market distinguisher that offers a unique opportunity, just like NAID Certification did for the first five years of its life.
The most telling evidence of this comes from those who have obtained Downstream. Not only are they reporting great results, they often actually ask that NAID not be so aggressive in marketing Downstream. It turns out they would rather have as long of a run as possible before their competitors have the same marketing tool.
Imagine the effect of having a policy that actually includes training and collaterals to use it as a sales tool. Imagine being able to really speak intelligently with clients about the difference in your coverage and how it backed by the industry trade group. And imagine what happens to the competitor called on to address those same issues without any answers.
Professional liability is in your future. That is a fact. The only way you can make any money on this inevitable trend, is to get ahead of it. There is no money to be made by waiting until the market forces you to act.
April 2, 2013