Lloyd’s of London

Hurricane Michael policyholders, public adjusters, contractors and agents must check their policies to make certain that there is not a one-year deadline to start arbitration. The above photo is Lloyds at London. Lloyds is a place where surplus lines insurers do business and it is not an insurance company. Many of the Lloyds Underwriters have placed obscure arbitration provisions into their policies which mandate that New York law with a one-year limitation to start the arbitration.
Continue Reading

Lately I have had several public insurance adjusters call me about a specific problem with Lloyds.1 The public adjuster and the Lloyds (third-party) adjuster agree on the scope and amount of damages on a claim. Then Lloyds never pays. It’s not that Lloyds refuses to pay. They just don’t pay, like for a real long time. Usually there are lots of comments about Lloyds being across the pond and time differences and things like that, but this is not 1492 when Columbus sailed the ocean blue. We are in the age of air travel, FEDEX, the Internet, bank wiring funds, etc. Hell, I went to the much-maligned US Post Office the other day to send something to the UK and even the US Post Office got it there in five days.


Continue Reading

In the late 1600’s, at the height of a lucrative slave trade, a group of ship owners and merchants got together at Lloyd’s Coffee House in London to negotiate the first forms of insurance agreement. The merchants promised to use their private funds to pay the ship owners if the ships were attacked by pirates or damaged and sunk by weather. If the ships completed their voyage without any fires or pirate attacks, the merchants kept the fee paid by the ship owners to insure the voyage. The coffee house meetings seemed to make good business sense and a global insurance market was born. The world has changed a lot since the slave trading days, but the coffee house concepts of insurance had not changed much until recently.


Continue Reading

Contingent Business Income products are necessary, if not vital, in today’s global market. In Understanding Supply Chain Exposures – Business Interruption Claims, Part 76, I wrote:

Businesses develop and thrive on symbiotic relationships, in which the entities rely on the continued operational viability of each other,(or even exclusively beneficial relationships. Few businesses, however, consider the risk and exposure of losing that relationship due to an unexpected calamity.

[t]oday’s risk management professional cannot merely rely on his or her knowledge and understanding of the organization’s varied and unique suppliers and customers. They must understand the bottlenecks and supply chain problems that will likely occur in the midst of catastrophe and have a plan that will keep the chain moving.


Continue Reading

Matt Litsky represents certain underwriters and syndicates from Lloyd’s. I have talked with Matt and written others explaining that many policyholder counsel incorrectly file suit against Lloyd’s. Failing to properly name and serve Lloyd’s can lead to dismissed legal actions and possible malpractice claims against counsel who make these mistakes.


Continue Reading