Lesson: The agent could have avoided this claim by immediately forwarding the application and premium to the carrier with a diary entry to follow up until verification of coverage was received. (read claim)

Lesson: After a binder issued, follow for a copy of the policy to ensure one was issued. (read claim)

Lesson: Know the parties you are dealing with when coverage is being procured though those parties, and be sure they are legitimate entities. In addition, always follow for a copy of a policy. (read claim)

Lesson: Report losses to your E&O carrier the moment you realize a client has been sued and the carrier(s) has disclaimed, and never give assurances you will take care of a lawsuit when there is no coverage for your client. (read claim)

Lesson: Do not assume coverage is in place without verifying with the carrier a policy is in place. (read claim)

Lesson: When dealing with either a carrier or an MGA, and the agency is holding premium pending receipt of a policy, a tight diary system should be used to ensure follow-up for the policy. (read claim)

Lesson: When a long-standing client sells the business, ask questions to be sure there are no continuing insurance needs. (read claim)

Lesson: Forward all premium checks and applications to the carrier. (read claim)

Lesson: Relay information received from a carrier to your client. (read claim)

Lesson: Follow up daily with wholesalers until coverage is confirmed. In addition, all fax machines should provide confirmations of faxes sent. (read claim)

Lesson: Know which vessels are automatically covered under a homeowner’s policy and which vessels require an additional premium in order to be covered. (read claim)

Lesson: Carefully document all requests for coverage from an insured that has multiple operations and keep all such requests in a separate folder until coverage is secured. (read claim)

Lesson: Follow up with brokers and MGA’s until coverage is confirmed. (read claim)