Review and compare. Carefully review all applications and updates at renewal and compare them to quotes before binding. Ensure any changes in forms do not leave gaps based on the insured’s current operations.

Include confirmations. In your bind orders, include confirmations with respect to what additional insured endorsements are acceptable, when they can be attached to certificates, and what other forms can be attached. In addition, address your authority to issue certificates for policies placed through wholesale brokers or other non-direct relationships. Also, include who is responsible for notifying holders with 30-day cancellation notices.

Have a discussion. Communicate with your insured about the types of coverage they have available and the terms and conditions under which additional insured, waiver of subrogation, notice of cancellation, and other extensions are available. Encourage them to review contractual requirements with you before the contract is signed.

Set expectations. Your insured must understand the limits of your responsibility for reviewing their contracts and agreements. Make it clear that you will only be looking at the insurance requirements and that any other provision should be reviewed by an attorney. Also, set expectations around how you will handle certificate requests that are not in compliance with their insurance program.

Source: Avoiding Certificate of Insurance E&O: Part 1 by Brenda Grow | January 12, 2022