Debunking the Top Three EUO Myths: Cost, Danger, and Delay
Examinations Under Oath (EUOs) are one of the most valuable tools in the claims professional’s arsenal. They allow insurers to gather critical information, protect against fraud, and ensure claims decisions are made with clarity and precision.
Yet despite their many benefits, EUOs remain underutilized. Over the years, three persistent myths have contributed to this hesitation:
- EUOs are too costly.
- EUOs are too dangerous.
- EUOs take too long.
These beliefs often discourage claims professionals from fully embracing EUOs. However, as we’ll explore, each of these myths is based on misunderstandings—and the truth reveals how powerful and efficient EUOs can truly be.
Myth #1: “EUOs Are Too Costly”
The number one reason professionals cite for avoiding EUOs is cost. The perception is that conducting an EUO—especially when involving outside counsel—can be prohibitively expensive.
The Truth: It’s About Value, Not Cost
While EUOs do have associated expenses, the real issue is a lack of understanding about their value. A properly conducted EUO provides unmatched benefits, including:
- Clarifying Ambiguities: Gathering precise information directly from the insured or claimant.
- Combating Fraud: Identifying red flags and fraudulent behavior early in the claims process.
- Strengthening Defensibility: Creating a clear, documented record to support claims decisions.
When viewed through the lens of value rather than cost, it becomes clear that EUOs are a sound investment. The key is ensuring they are conducted on the right files, at the right time, by the right professionals.
Myth #2: “EUOs Are Too Dangerous”
Another common concern is that EUOs are risky. Professionals fear they may upset customers, create bad faith exposure, or otherwise backfire on the company.
The Truth: EUOs Are a Protective Tool
The idea that EUOs are dangerous stems from a misunderstanding of the process. In reality, any potential risk is not due to the EUO itself but rather how it is conducted.
Here’s what you need to know:
- EUOs Are Designed for Protection: When properly demanded and conducted, EUOs offer legal safeguards that protect the company from accusations of unfair claims handling.
- Training Is Key: Risks arise when those conducting the EUO lack proper training or mishandle the process. By ensuring all parties understand the purpose and structure of the EUO, these risks can be mitigated entirely.
Far from being dangerous, EUOs provide a reliable, structured way to gather information and protect the company’s interests.
Myth #3: “EUOs Take Too Long”
The final myth is that EUOs are inefficient. Many claims professionals express frustration with lengthy timelines, citing cases where EUOs take months to schedule and complete.
The Truth: EUOs Are Built for Efficiency
The EUO process is designed to be fast and straightforward. If your EUOs are taking more than two to three weeks from decision to completion, the issue isn’t with the EUO itself—it’s with how the process is being managed.
Here’s how to ensure efficiency:
- Stick to Fundamentals: The EUO process is universal and doesn’t need to be customized for every jurisdiction. Following a systematic, repeatable approach ensures consistency and speed.
- Use the Right Professionals: Outside counsel unfamiliar with EUOs may unintentionally create delays. Partnering with specialists who understand the process is critical.
- Avoid Litigation Tactics: Treating EUOs like depositions, with 45-day scheduling windows and unnecessary rescheduling, undermines their purpose. EUOs should be conducted within weeks, not months.
The Common Denominator: Lack of Knowledge
At the heart of all three myths—cost, danger, and delay—is a lack of proper knowledge. Many professionals simply haven’t been trained on the fundamentals of EUOs or have inherited inefficient practices that complicate what should be a straightforward process.
The good news is that with the right training and tools, these myths can be dispelled entirely.
Unlocking the Power of EUOs
When you understand the truth about EUOs, their value becomes undeniable. They are:
- Cost-Effective: Delivering far more value than their associated expense.
- Protective: Offering unmatched safeguards when conducted properly.
- Efficient: Designed to gather information quickly and decisively.
If you’re ready to move past the myths and fully harness the potential of EUOs, it starts with education. Through proper training, you can learn how to:
- Identify when an EUO is appropriate.
- Conduct EUOs efficiently and effectively.
- Maximize their protective benefits while minimizing any potential risks.
Conclusion
The myths surrounding EUOs—cost, danger, and delay—are nothing more than misconceptions. By focusing on training, consistency, and the fundamentals, you can turn EUOs into a powerful tool that strengthens your claims process and delivers exceptional value.
Ready to take the next step? Join us for an in-depth training session to learn how to master the art of EUOs and unlock their full potential for your organization.
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Danny Vazquez
Danny Vazquez is the National EUO, LLC CEO.
Danny is a central leader on Claims, Investigations and EUOs in the insurance and legal industries.
As CEO, Danny took the knowledge and insights gained throughout his 25 plus years legal career to establish National EUO as the Nation's leading company on EUO services and EUO training.
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