Binding Authorities

At James Hampden International, one of our principal specialties is delivering innovative Binding Authorities and Facilities for a wide range of classes and with either a limited level of delegation, or with full authority. Our experience embraces but is not limited to the following:

  • Professional Indemnity
  • Directors & Officers Liability
  • Financial Institutions
  • General Liability
  • Medical Malpractice
  • Miscellaneous Classes
  • Property
  • Sabotage & Terrorism
  • Personal Accident & Sickness
  • Medical Expenses (with a particular emphasis on expats)
  • Life
  • Political Evacuation and Repatriation
  • Affinity Products & Programmes

The market for binding authorities and facilities is constantly changing with the process becoming far more difficult than in previous times. Our main aim is to create triangular relationships between us, the underwriter and the client. These relationships are paramount to success and result in long term successful and profitable relationships.

The Coverholder

Acquiring Coverholder status at Lloyd's is a privilege indeed and confers opportunities and responsibilities upon the holder in equal measure. It means you are permitted to write risks for your clients either your own or introduced by a broker – which will be underwritten by the world's foremost insurance market. The class(es) of the insurance you can write is set out in the terms of a Binding Authority Agreement ("Binder"), and it is that agreement which defines the way in which your business with Lloyd's must be transacted.

The commercial advantage that such an arrangement offers is yours to seize. It will be for you to understand the nature of your clients requirements and how they could best be served by providing policies backed by Lloyd's of London. You have the distribution channel to your clients. With Coverholder status in your hands those channels could be opened up to find new markets or merely to serve existing markets better than you have been able to do in the past.

The Role of the Lloyd's Broker

The Broker should be your strategic partner. A good Lloyd's broker should work with you:

  • To understand your business needs,
  • To explain the possibilities clearly to you
  • To develop, with Underwriters, products which have real relevance for you,
  • To help you establish Binders, and
  • To ensure that the ongoing business processes are efficient, cost effective and profitable.

The Broker should, therefore, be able to accompany you from the very beginning; from the moment it is decided that becoming a Coverholder is the right business decision for you, through the sponsorship process and Lloyd's approval and on to the implementation of well-designed business processes.

Working together with the capacity providers on one side and the Coverholder on the other, a good broker will invest its own capital, human and financial, in developing a profitable product line for all parties in the chain – from client to Underwriter.