When Should an Agency Notify Past Carriers of a Potential Claim?

• By: The Big "I" Virtual University
• September 18, 2026

A commercial insured in the chemical industry has been served with lawsuits involving benzene exposure. General counsel is requesting that the agency put all excess carriers on notice when first notice of loss is filed. The insured has policies going back to the 1980s, and its exposure goes back to that decade as well.

Q: Should the agency put the general liability carrier and excess general liability carrier on notice at the time of first notice of loss? The insured has switched carriers over the decades.

Response 1: With this specific case, I think you should notify the excess carriers right away. Benzene exposure can turn into a long-tail, tort litigation nightmare. This alleged exposure spans several decades and it sounds like there are multiple plaintiffs.

When it comes to agency procedures in general, that’s a more difficult question. There is no strict rule or formula for determining when to notify an excess carrier. The decision depends heavily on the facts of the claim and the notice requirements in the policy. A good guideline is to report a claim when the facts indicate a reasonable possibility that the excess coverage could be implicated.

When in doubt, err on the side of caution. The real danger is usually not overreporting. It’s underreporting. Overreporting may occasionally create additional work or result in questions from a client. Underreporting, however, can lead to coverage disputes, allegations of late notice, and potential errors & omissions exposure for the agency.

When making the decision, consider factors such as potential claim severity, the nature of the allegations, damages sought, number of claimants, vulnerability of claimants, carrier recommendations, recommendations from counsel and chances the claim could reasonably approach underlying limits.

Anything that suggests the loss may impact the excess layer should be carefully evaluated. And again, if you’re going to make a mistake, make it on the side of timely reporting rather than late reporting or non-reporting.

Response 2: Put everyone on notice as far back as exposure may have existed. Coverage triggers on older policies may differ significantly. It’s not your job to sort it all out. These claims are nothing to mess with.

Expect lots of reservation of rights letters, denial letters and complaints from carriers asking why you put them on notice. That is OK. No harm done.

Response 3: Whose general counsel is asking? If it is your agency’s, then follow their instructions.  

The agent must promptly report claims they receive. However, responsibility for identifying and notifying historical carriers typically falls on the insured. When a long-ago loss surfaces, the insured—often with legal counsel—investigates which carriers were on the risk and makes notifications. The current agent may assist, but isn’t typically responsible for the detective work unless it’s part of their explicit duties.

Given that this situation could be complicated, consider providing a list of all the policies and their term, policy number, type and claims reporting contact address for the client’s general counsel to comply. Typically, policies require that the named insured notify the insurer and provide specific details, with provisions for timing of notice. The policies are legal contracts between the insurer and the named insured, so the named insured must comply with the reporting provisions.

That being said, your agency contracts with insurers or wholesalers that might have provisions requiring you to inform them of potential losses and claims, so that could be another legal matter that you cannot neglect. You may also want to consult your E&O policy or an insurance attorney for specifics in your situation.

This question was originally submitted by an agent through the Big “I” Virtual University’s (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

This article is intended for general informational purposes only, and any opinions expressed are solely those of the author(s). The article is provided “as is” with no warranties or representations of any kind, and any liability is disclaimed that is in any way connected to reliance on or use of the information contained therein. The article is not intended to constitute and should not be considered legal or other professional advice, nor shall it serve as a substitute for obtaining such advice. If specific expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.