Avoiding Surety E & O Claims – Part 3

By:         Jack Anderson, President of Goldleaf Surety Common Surety Handling Misstep No. 6: Failure to Adhere to Conditions & Exclusions of Line of Authority.  In instances where a surety has extended a line of authority to an agent and the agent has issued a bond that falls outside the line of authority, the agent will be held accountable for any loss a surety experiences as a result of the agency mishandling its authority. Ways to Avoid Surety E&O Claim:  Train all associates on … [Read more...]

Avoiding Surety E & O Claims – Part 2

By:         Jack Anderson, President of Goldleaf Surety This is a continuation for my June 11th blog. Common Surety Handling Misstep No. 3: Failure to Deliver Bid Bonds in a Timely Manner or to a Proper Address. Bid bonds sent via regular mail run the risk of being delivered late.  Regular mail might be less costly up front, but could end up being very expensive in the long run when a client misses a bid date due to late delivery.  This could also result from someone in your office using an … [Read more...]

Avoiding Surety E&O Claims – Part 1

By:         Jack Anderson, President of Goldleaf Surety Many insurance agents are not aware of special issues in the handling of surety bonds that could cause problems for their agency and their clients.  If an insurance agent accepts the responsibility of placing a bond, the client automatically expects that the agent has adequate and authoritative knowledge.  In addition, professionals are being held to higher standards of conduct and these dynamics combine to create an increased likelihood … [Read more...]