Volume 25, Number 1

New Year's Resolutions for Insurance Agencies and Brokerages

2012 has certainly been a trying year for New York insurance agencies and brokerages. As 2012 comes to a close and 2013 fast approaches, it is the perfect time for every agency and brokerage to examine its business practices. Over the years, we have suggested that the New Year is not only the perfect time for individuals to make resolutions to try and improve their lives, but it is also the perfect time for agencies and brokerages to make resolutions related to their businesses.

While most know the specific areas of their business that would be best improved, we have occasionally suggested over the years resolutions for agencies and brokerages to consider. Below are our suggested errors and omissions related resolutions for agencies and brokerages to consider for 2013:

1. Resolve to develop agency practices and procedures for employees to follow on a consistent basis.
2. Resolve to have all applications for insurance signed by insureds even when insurers do not require a signed application.
3. Resolve to document all discussions with insureds and insurers that concern in any manner insurance coverage or claims.
4. Resolve to promptly provide notice to all appropriate insurers of any incident, claim or lawsuit that is reported to the agency or brokerage.
5. Resolve to do business with insurers who have a strong financial rating.
6. Resolve to do business with insurers who have a reputation for prompt claim resolution.
7. Resolve that if you place insurance with a non-admitted insurer you will follow all of the regulations concerning excess line placements.
8. Resolve that if you place insurance through an excess line broker you will only deal with a resident New York excess line broker who can provide you with evidence that it has its own errors and omissions insurance coverage in effect.
9. Resolve to promptly report to your professional liability insurer, any potential claim, incident or lawsuit concerning your agency or brokerage.
10. Resolve not to alter, amend or add language to certificates of insurance in any way that is not authorized by the insurer.
11. Resolve to respond to customer requests and inquiries in a timely and accurate manner.
12. Resolve to seriously consider your need to continue business relationships with chronically difficult customers.!

All of us at Keidel, Weldon & Cunningham, LLP, wish all IIABNY members and IAAC insureds a very happy and safe holiday season. We also thank each of you for your support, and we are looking forward to working with you in the New Year and the years to come.

Submitted by:
James C Keidel, Esq.
of Keidel, Weldon & Cunningham, LLP

Keidel, Weldon & Cunningham, LLP concentrates its practice in the defense of insurance agents and broker’s errors and omissions claims and litigation, errors and omissions loss control counsel and education, insurance coverage analysis and litigation and insurance regulatory matters. Please direct any comments or questions to James C. Keidel, Esq. by mail to the main office of Keidel, Weldon & Cunningham, LLP, at 925 Westchester Avenue, Suite 400, White Plains, NY 10604, telephone at (914) 948-7000 or e-mail at jkeidel@kwcllp.com. The law firm also maintains offices in Syracuse, New York; New York City, New York; Wilton, Connecticut; Bayonne, New Jersey; Warwick, Rhode Island and Philadelphia, Pennsylvania.

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