Q: What is the best process for training agency staff on binding authority with each appointed carrier? Should every agent have a copy of the agency agreement, or is there a better method?

Response 1: Create a resource that contains clearly defined guidelines regarding the procedures, market positions and appetite of each carrier. Review this information at meetings with all agency personnel. During their initial months on board, young or newer agency employees must gain the consent of the commercial or personal lines manager to bind anything.

Response 2: Every licensed person in your agency needs to be trained on the binding authority of every carrier. Violation of binding authority is a common claim carriers make against agencies. Add the details of each carrier's binding authority to your agency management system so everyone can access them any time. Make sure you keep it up to date.

Response 3: The easiest method might be summarizing details of binding authority into an Excel spreadsheet everyone can access.

Response 4: I truly believe what many errors & omissions programs preach: that every staff member should read through each agreement, because each job function is associated with specific information. Management should create, monitor and update these items on an ongoing basis, in addition to preparing a quick cheat sheet for all staff members to review when writing, reviewing and updating coverage.

Response 5: In my humble opinion as an E&O instructor, every agency should have a manual or intranet page that spells out the binding authority for every company it represents. In addition, every employee should receive explicit training and a copy of the manual for reference. When changes are made, immediately notify all employees and revise the manual page for that company.

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