Lloyd’s Coverholder & Binding Authorities
Binding Authorities allow our broker-clients and MGAs to maintain control over the distribution and delivery of service to their valued insured clients.
We help brokers, MGAs and wholesalers to maximise efficiency in product design, distribution and delivery of service to ensure we are able to create a competitive advantage in an ultra-competitive environment.
What is a Lloyd’s Coverholder?
This is an organisation authorised by a Lloyd’s syndicate (Managing Agent) to underwrite contracts of insurance on behalf of the members of a syndicate in accordance with the terms of the Binding Authority Agreement. This includes the underwriting rates, policy wordings, exclusions and endorsements.
What is a Binding Authority?
This is an agreement between a Lloyd’s syndicate (Managing Agent) or London Market insurer (non-Lloyd’s) under which the managing agent or insurer delegates its authority to an organisation for contracts of insurance to be underwritten. The Binding Authority Agreement is a detailed document, which also outlines the roles and responsibility of the organisation to whom the delegated authority is given to.
To be a Coverholder at Lloyd’s, the organisation must have a supporting Lloyd’s Broker such as Servca, be sponsored by a Lloyd’s syndicate (Managing Agent) and then go through an application process to be approved by the Lloyd’s committee.
Our Lloyd’s Coverholder and Binding Authority business is based on transparency and trust, by writing business on behalf of Lloyd’s syndicates (Managing Agencies) whereby we invite you to Lloyd’s of London to understand the dynamics of the binding authority referral points, policy wordings/endorsements and underwriting rates – all of which is designed to empower our broker-clients.
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