Underwriting Authority for General Liability Insurance Policies

Dealing with an insurance broker that has underwriting authority for binding and executing coverages for general liability insurance policies can be an added benefit when putting together your portfolio of insurance products.

It is very common nowadays for retail insurance brokers to have little if any insurance carrier contracts in their own name. There is quite a network countrywide of systems were brokers can access insurance carriers in an indirect basis. While this is all fine and good, does mean to you, the insured is that the broker that you have to face-to-face dealings with usually cannot bind and execute coverages on your behalf. Clearly, by having two or three brokers in the mix on your insurance program increases the possibility of having an error or omission on your insurance transactions.

Sometimes you do not have a choice if your particular industry, such as contracting, is in a more hazardous class of business. Most standard market insurance carriers will not write these types of policies but in the surplus lines market the insurance coverages for general liability is readily available, albeit for a cost.

So as you are active on the Internet shopping for your general liability insurance coverages and limits it would be a prudent question to ask what relationship your insurance broker has with the carrier that he or she is quoting you. If speed is of the essence for you not having a broker that can bind and execute coverage quickly could be problematic for you in obtaining certificates of insurance when you need them in a hurry. Ask the question of the broker “what is their relationship to the carrier that they are quoting for you”.

Commercial Insurance Quotes