Aquiring an Agency with a Filing Nightmare!

Emmaus

Expert
32
I am in the process of acquiring a small $200,000 agency with a filing nightmare. (P&C)

I'll have my own LLC but will be acquiring the book of business. What happens if there are missing files etc.? What sort of liability do I have, am I liable?

There simply will be no easy way to sort out the mess :no:


Any help/advice will be appreciated!
 
I am in the process of acquiring a small $200,000 agency with a filing nightmare. (P&C)

I'll have my own LLC but will be acquiring the book of business. What happens if there are missing files etc.? What sort of liability do I have, am I liable?

There simply will be no easy way to sort out the mess :no:


Any help/advice will be appreciated!

You might want to do a policy review for all the clients since they are not that much. Also document and have them sign if they decline to see you for the review. Other wise it the file is missing its missing no big deal :swoon::no:
 
Have you considered just calling all the new clients to inform them of the change and also to sign an updated acord form for your records.

I would review with client and make sure their properly underwritten or maybe even cross sell some policies?
 
Just call one of your P&C carriers and to a BOOK Roll into your carriers.

New paperwork will be sent out and signed that will get it all back into compliance and just set a review with those that do not roll to the new carrier.

A lot less work.
 
I am in the process of acquiring a small $200,000 agency with a filing nightmare. (P&C)

I'll have my own LLC but will be acquiring the book of business. What happens if there are missing files etc.? What sort of liability do I have, am I liable?

There simply will be no easy way to sort out the mess :no:


Any help/advice will be appreciated!

The selling agency should have E&O. As a condition of sale, insist he prepays for a 36-60 month tail and names you as additional insured.
 
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