How we require Lloyd's Agents to perform
Service levels and standard terms of engagement
Lloyd’s Agents shall use reasonable care, skill and due diligence to perform ALL services in a professional and efficient manner in accordance with good surveying practice. Lloyd’s Agents are also expected to meet and perform to approved service levels (unless otherwise specifically agreed with the party that appoints them).
The standard terms of engagement when nominating and/or appointing a Lloyd’s Agent for both the Lloyd’s Agent and/or Insurer and/or Instructing Party are as follows:
- The Lloyd’s Agent will immediately obtain basic information concerning the subject matter, the value and the nature and extent of the potential loss.
- The Lloyd’s Agent will immediately take all reasonable steps to contact the Insurer (and/or nominated party shown on the certificate of insurance) to confirm:
- whether they are free to accept the appointment without conflict.
- the terms and conditions of the appointment.
- whether there are any relevant clauses within the policy that need to be considered e.g. restricted conditions, policy deductible, No Survey clause etc.
- In cases of evident physical loss or damage, where immediate intervention is required, should for any reason contact with the Insurer (and/or nominated party) not be possible, the Insurer agrees to cover any reasonable costs incurred by the Lloyd’s Agent for any action undertaken and considered necessary to protect Insurers’ interests.
- If the Lloyd’s Agent is unable to contact the Insurer (and/or nominated party) within 48 hours, regardless of whether immediate intervention has been deemed necessary, they should automatically seek support from Lloyd’s Agency Department (LAD) in London.
- The expectation from Lloyd’s and the Lloyd’s Agent is that all fair and reasonable fees and expenses incurred by the Lloyd’s Agent will be payable by the Insurer.
- Lloyd’s Agent and Insurer and/or Instructing Party (the party responsible for paying for the services provided by the Lloyd’s Agent) to agree the terms and conditions under which the instruction is accepted.
- Lloyd’s Agent to advise the Insurer and/or Instructing Party the name and contact details of the surveyor who will manage the instruction.
- Where possible/appropriate the Lloyd’s Agent to provide an estimated budget for survey (and any expert costs) which should reflect the proposed work plan and strategy for handling the potential claim.
- Within 24 hours of acceptance of appointment, the Lloyd’s Agent is to contact appropriate parties to agree the time and place of survey and inform the Claimant and/or Instructing Party in writing of the information and documentation that will be required to undertake survey.
- Within 48 hours undertake survey unless otherwise agreed and/or unless an actual survey is not considered appropriate.
- Within 24 hours of (initial) survey, the Lloyd’s Agent shall provide the Insurer and/or Instructing Party with an initial summary advice.
- Within 48 hours of survey, the Lloyd’s Agent shall submit a written request for any further documents or information needed to complete the survey report.
- Within 72 hours of survey, the Lloyd’s Agent shall provide the Insurer and/or Instructing Party a preliminary advice / status report which should include (where possible) the facts surrounding the loss, actions taken/to be taken and the potential extent of loss / claim amount.
- Where the matter is complex and/or is expected to take a considerable amount of time to resolve the Lloyd’s Agent is to provide the Insurer and/or Instructing Party with periodic interim reports (at agreed or reasonable intervals) with updates on the claim status. The interim report(s) are to include comments on the quantification of the claim / progress of repairs, confirmation of the reserve and information on when the next substantive development is likely to occur. Each interim report should also confirm any changes in the estimated budget for survey.
- The final report should be issued as soon as possible when investigations are completed and no later than 7 days after completion of quantification of the claim and/or on receipt of all supporting documents.
- The Lloyd’s Agent is to acknowledge receipt of any communication within 24 hours and respond, where possible, to any query/update request within 3 days. If this is not possible, the Insurer and/or Instructing Party and/or Claimant should be notified as to why this is not possible and be provided with an estimated time for response.
Any need to vary the above reporting requirements should be notified to and agreed with the Insurer and/or Instructing Party.
Contents of preliminary advice / survey report:
All reports and advices should, as a minimum, endeavour to include the following:
- a full account of the circumstances of the loss and the facts giving rise to the potential claim under the Policy.
- the date and place of loss.
- an estimate of the estimated claim / cost of repairs to establish a loss reserve.
- final claim calculation.
- details of the proposed repairs.
- an outline of any subrogation opportunities.
These are general guidelines. Each case will have its own specific requirements; however, the Lloyd’s Agent is expected to always act with due consideration and professionalism and keep the instructing Insurer and/or Instructing Party appropriately informed at all times.
- Sub-Agent: If the Lloyd’s Agent appoints a Sub-Agent to undertake or support a survey, the Lloyd’s Agent must continue to maintain responsibility for and be the main point of contact during the instruction. All correspondence and communications are to be directed through the main Lloyd’s Agent or at least with the Agent in copy.
- Third party: If a third party is used, the Lloyd’s Agent is to continue to maintain responsibility for the instruction; to ensure that the third party has the appropriate skills to undertake the instruction; and that all correspondence and communications are directed through the Agent themselves.
NOTE: Some principals prefer to receive all advices, report and documents in email rather than hard copies / post. An Agent should clarify the type of reporting that will be required.