“Many insurers authorize their agents to issue binders, which are documents that evidence the existence of insurance during the application process and before a policy is issued and delivered,” writes Matthew S. Marrone, Co-Chair of Goldberg Segalla’s professional liability practice focused on insurance agents and brokers. “Binders can be valuable tools, but they also present areas of E&O exposure for agents, brokers, and producers.”

In this article, Matt explores the importance of the distinction between an insurance agent and a broker when binders come into play, a number of potential ways in which binders can expose insurance professionals to serious errors and omissions claims, and the impact of state statutes recognizing temporary insurance binders.

Read the article here:

• Matthew S. Marrone, “Caught in a Bind,” National Underwriter Property & Casualty, August 2014