The agency agreement is the source of authority
Agents often fail to read, and periodically review, their agency agreements with the companies they represent. These agreements can be convoluted, but they define the agent’s authority to place coverage on the company’s behalf. When an agent violates the agreement and a claim results, the agent is often left to deal with the uncovered claim through its own errors and omissions insurance.
Best practices
A quality agency:
- Posts a summary of its binding authority for each company so all staff can follow it
- Documents discussions with underwriters about approvals for coverage
- Knows its products, including insuring agreements, extensions and exclusions
- Stays current on each company’s financial condition and its underwriting and binding guidelines
Mr. Sapourn has testified on procurement failures ranging from coverage that did not match the client’s request to a construction and payment bond placed with an unauthorized offshore insurer.
Mr. Sapourn is retained by both plaintiff and defense counsel for case analysis, opinion reports, affidavits, depositions and trial testimony. Request his CV and Rule 26 disclosure through the contact form.