How Do You Write Better SOPs for Insurance Agencies?

Do you worry your team wastes too much time retraining new hires?

Have you ever handed a task to a virtual assistant only to find it completed differently than expected?

In insurance, inconsistency is frustrating and risky. It can lead to compliance errors, lost revenue, and damaged client trust. Many agencies discover too late that their processes live in people’s heads instead of in documented systems. When staff leave or new hires join, the cycle of retraining, wasted payroll, and preventable mistakes starts over.

At Lava Automation, we have placed and trained hundreds of virtual assistants for insurance agencies across the nation. In every case, the agencies that scaled with confidence had one thing in common: strong Standard Operating Procedures (SOPs). Clear documentation turns complex workflows into step-by-step instructions that anyone can follow. 

In this article, you will learn what separates bad SOPs from good ones, the framework to create effective SOPs, the tools that make documentation faster, and how to keep SOPs up to date as your agency grows.

What Is the Difference Between a Bad SOP and a Good SOP?

Not all SOPs are useful. Many agencies technically have them, but they are so vague or outdated that staff stop using them. A bad SOP creates confusion instead of clarity.

Bad SOP example: “Process renewals in Epic.”

This instruction leaves too many questions. Which report should be pulled? Who approves changes? How are notices sent to clients? Without answers, every team member will approach it differently, which creates inconsistent results that lead to extra work, missed renewals, and unnecessary client frustration. Over time, these small breakdowns cause real headaches for producers and service staff who spend hours fixing avoidable mistakes.

Good SOP example: “Run renewal report in Epic each Monday at 9 a.m. Filter by expiration dates within 30 days. Export results to Excel. Send to assigned CSR for review before client outreach.”

This version removes guesswork. The what, when, and how are clear. Anyone following it can produce the same outcome.

Another common mistake is writing SOPs in long, dense paragraphs. If team members cannot scan and apply the instructions quickly, they will ignore them. A good SOP breaks steps into numbered actions, uses plain language, and lives where staff actually work.

The difference comes down to: bad SOPs add noise, while good SOPs remove uncertainty.

What Are the Steps to Writing SOPs That Work?

Creating SOPs may sound like a heavy lift, but when broken into steps, it becomes manageable. A simple framework looks like this:

1. Capture the current workflow. Use a screen-recording tool like Loom or a workflow capture tool such as Tango. Walk through the process as it actually happens, not as you think it should happen.

2. Break it into steps. Each action should be short and specific. Think of it like writing instructions that a brand-new hire could follow without context.

3. Add screenshots or visuals. A picture eliminates uncertainty faster than a sentence. Even a quick screenshot clarifies what button to click or what screen to expect.

4. Assign ownership. Each SOP should have an owner who ensures it is accurate and updated. Without ownership, SOPs quickly fall out of date.

5. Test with a virtual assistant. Have a new team member or virtual assistant run through the SOP without extra coaching. Gaps will reveal themselves immediately.

How Do You Keep SOPs Updated Over Time?

An SOP that is never revisited becomes as risky as having no SOP at all. Insurance agencies evolve, management systems update, and carriers change requirements. Documentation must keep pace. 

If your agency is evaluating new technology or wants to centralize workflows, start by reviewing what CRMs work best for insurance agencies to make sure your documentation aligns with the tools your team actually uses.

Practical ways to keep SOPs current include:

Quarterly reviews. Assign each department to check its SOPs once per quarter. Outdated steps are marked for revision.

Change triggers. If your agency adds a new management system or modifies a workflow, updating the SOP should be part of the rollout plan.

Feedback loop. Encourage staff and virtual assistants to suggest edits when steps feel unclear. Those closest to the process often see where instructions break down.

A living SOP library becomes an asset. When turnover happens, the impact is smaller because the knowledge remains inside your systems.

What Myths Stop Agencies from Writing SOPs?

Some agency leaders avoid SOPs because they believe documentation creates rigidity. The truth is the opposite. SOPs remove repetitive decision-making so your team can focus on higher-level work. Research from Harvard Business Review shows that organizations built on structured, documented workflows maintain stronger performance and adapt more effectively during periods of change.

Others assume SOPs are only necessary for large agencies. In reality, smaller agencies often feel the impact of missing documentation more acutely. When only a few people know how tasks are done, any turnover or absence creates bottlenecks.

Some leaders think their processes change too frequently to document. That is precisely why SOPs help. A documented process is easier to update than an undocumented one. Change becomes systematic instead of chaotic.

How Can SOPs Help Your Insurance Agency Scale with Confidence?

Strong SOPs are about providing your staff and virtual assistants with the clarity they need to perform consistently. When everyone follows the same playbook, compliance improves, onboarding accelerates, and client experience becomes more predictable.

If your team is constantly retraining or fixing avoidable errors, the real problem may not be your people. The problem may be that processes reside in people’s minds instead of in a system that everyone can follow. With SOPs in place, training time shortens, risk decreases, and your team gains the freedom to focus on growth.

At Lava Automation, we have trained hundreds of virtual assistants and guided agencies in building Standard Operating Procedures that actually get used because they solve real headaches. These SOPs eliminate confusion, reduce retraining, and bring order to daily workflows. The agencies that make this shift delegate with confidence and scale without fear of losing control.

Your next step is to see how SOPs plug directly into onboarding and training. Read How Lava Automation Handles Virtual Assistant Training to learn how documented processes and structured coaching help assistants ramp up faster and perform with consistency.

Frequently Asked Questions About SOPs in Insurance Agencies

Do I need SOPs before hiring a virtual assistant?
No. Many agencies build SOPs as they onboard their first assistant. A good provider will help create documentation during the training period.

How detailed should an SOP be?
Detailed enough that a new hire can complete the task without extra coaching. If steps require interpretation, add more clarity.

What tools are best for writing SOPs?
Tango, Loom, and Scribe are excellent for capturing workflows. For storing SOPs, many agencies use Google Drive, SharePoint, or ClickUp.

Who should write SOPs in an agency?
Start with the person who owns the process today. Then assign a manager to review for accuracy. This prevents bad habits from becoming official instructions.

How often should SOPs be reviewed?
Quarterly reviews are a good rhythm. Updates should also happen anytime workflows or systems change.