Do You Ever Sign Up a Commercial Lines Client and Give them a Certificate and They Do Not Pay Their

[greatfish]

My personal rule of thumb is to collect the down payment on new clients and 100% of the time if it is an E&S policy with a 25% minimum earned.
My partner has been burned with a bad down payment check and now will sometimes ask for a cashiers check for the down if there is a concern.

 

[nyc2phi]

Set an appointment ? I realize this can be a waste of time but if you feel like this is the type of person that won't pay, exchange the cert for payment in person.

 

[J2Summit]

I work with myCOI. I can't tell you how many times our quarterly tracking service has revealed that a third-party/insured has their broker issue a COI and then the insured cancels the policy or modifies it so that it is no longer compliant with their contract, and the broker does not make cert holders aware of this. Huge E&O exposure.

 

[nbarnes]

I hold the policy until payment has been made. As for the COI's, I make sure I have an address for the holder. If the policy is cancelled, I notify the holders that the policy is no longer in force.

I won't issue a certificate without an address. I also tell the clients that if payment isn't made, the certificate holder will be notified. That normally ensures payment.

Niccole

 

[AZDave]

I am more than happy to do this. Does everyone agree I am not taking an E and O risk if I do?

It is the agency's responsibility to send revised certificate reflecting new exp date, failure to do so is where possible E&O would exist. You should be "more than happy" to notify the lowlifenonpayingiamnotgoingtomakeapennyonthis venders of this.

 

[Nanci]

It is the agency's responsibility to send revised certificate reflecting new exp date, failure to do so is where possible E&O would exist. You should be "more than happy" to notify the lowlifenonpayingiamnotgoingtomakeapennyonthis venders of this.

I am more than happy to notify the additional insured, but the reason I started this thread was because I read an article that said that the huge E and O exposure was the Broker sending the notice. The article said that the Broker should always leave it for the Insurance Co. to send. It actually appears to me from these responses that maybe I should disregard the article.

 

[nbarnes]

The insurance company is not responsible for the certificates. The agent who created and signed the certificate is on the hook. Where did you read that article? That seems really odd someone would put that into print.

 

[Soundadvisor]

I would suggest this kind of a problem is encountered only when an agent tries to make a single policy sale. Every business owner has car insurance, homeowners or tenants insurance, a personal umbrella, business property and liability coverage, workers compensation, etc., etc. If all you are trying to write is one policy, it would seem to me the wrong approach and an invitation for trouble.Worthwhile clients with a minimal amount of integrity don't pull these kinds of stunts.

Sounds to me like a lead you get from one of these lead producing outfits.More often than not, simply a dead end.

 

[Nanci]

The insurance company is not responsible for the certificates. The agent who created and signed the certificate is on the hook. Where did you read that article? That seems really odd someone would put that into print.

I found the article on the Internet and have tried looking for it again and cannot find it. I will disregard the article as it seems to be unanimous from this Forum that the Broker is responsible for notifying certificate holders of cancellation. There is one insurance company, though, that I am sure notifies the certificate holder of cancellation and that is The Hartford. I've had a couple of Hartford policies cancel and non-renew lately and they have sent me a letter asking for a list of certificate holders in the event their policy offered blanket coverage. They say the list is to facilitate the notification process.