One of the most overlooked but critical aspects of handling large commercial insurance claims, particularly those involving Lloyd’s and surplus lines carriers, is making sure every insurer on every layer is properly notified of the loss and that all policy forms are obtained and reviewed early in the process. This point came through loud and clear during one of the most insightful sessions at the Florida Association of Public Insurance Adjusters’ (FAPIA) sold-out Fall “Alive 2025” Conference, presented by a panel of attorneys: Gina Clausen, Christopher Choquette, and FAPIA’s newly elected President, Francis Altieri.
In complex, layered insurance programs, many policyholders and even some public adjusters start their claims process by dealing only with the first layer of coverage. Months or even years later, once that layer is exhausted, they finally provide notice to the excess or following layers. By then, critical deadlines may have long since passed. Most Lloyd’s and surplus lines insurers are not forgiving about late notice. Their forms often have strict, specific notice provisions requiring not just timing but also the method and recipient of the notice. Failing to follow those provisions can jeopardize coverage for an otherwise valid claim.
Equally important is the need to obtain every single policy form from each participating insurer. Too often, commercial policyholders assume that the other insurers are bound to follow the same form as the lead insurer. In theory, most brokers are supposed to require “follow form” provisions when building layered coverage. In practice, it often doesn’t happen. We have repeatedly seen situations where a policyholder-or worse, their adjuster—discovers only after the loss that one or more of the following layers contains exclusions, conditions, or arbitration provisions that materially differ from the lead layer. By that point, it’s too late to fix the problem, and the policyholder faces an uphill battle.
This failure to verify forms and provide notice is not a minor administrative slip. It’s a serious professional hazard. In fact, it is one of the most common forms of malpractice I see involving public adjusters handling large commercial losses. Some policyholders rely entirely on their insurance agents for this process, but agents themselves often haven’t read all the policy forms until after the loss occurs. When that happens, everyone is working backward from a position of weakness.
Best practice after a significant loss with layered coverage is simple but exacting: immediately demand that all insurers on all layers be placed on notice, obtain copies of every policy form, and read them closely. Determine which forms control notice and claim procedures and who has investigative authority on behalf of each insurer. In the Lloyd’s and surplus lines markets, the “Follow the Leader” concept can be very useful, but only when all insurers are actually following the same form. When they’re not, assuming they are can become a seven-figure mistake.
This FAPIA session highlighted how easily communication gaps, incomplete documentation, and missed notices can compound into catastrophic results for commercial policyholders. It was an excellent reminder that professionalism in claims handling begins with thoroughness, especially in the early days of a loss when the groundwork for coverage is set.
I also want to commend FAPIA for another extraordinary event. Over 430 attendees filled the venue to capacity, and Executive Director Nancy Dominguez once again managed to create an environment that was both educational and lively. The depth and breadth of the programming made it one of the best conferences of the year. It’s no surprise that FAPIA events routinely sell out, sometimes with Nancy literally having to turn people away due to Fire Marshal limits. The enthusiasm and professionalism in that room are a testament to how far the organization has come.
As a side note, I also want to recognize the outstanding work of Gina Clausen as President of the Windstorm Insurance Network. As a past WIND president myself, it’s heartening to see how she’s leading with collaboration and vision by bringing greater participation from insurance companies and independent adjusting firms with policyholder representatives at the upcoming Windstorm Conference this winter. Gina is moving the needle in exactly the right direction.
Thought for the Day
“An ounce of prevention is worth a pound of cure.”
— Benjamin Franklin
