In The World Trade Center Property Insurance Trial: Lessons Learned?, risk management expert witness Akos Swierkiewicz writes:
It is obvious, that clear agreement did not exist between the parties as to what form applied on 9/11/01, almost two months after binding. The most important lesson, applicable to each of the parties, simply boils down to the need for documentation of all substantive communications to ensure that there is a meeting of minds during the placement and negotiation process and, when coverage is bound, all parties have an explicit agreement regarding the form. Agreement to any subsequent form changes must also be fully documented.
Furthermore, each of the parties, by adhering to the following rather elementary principles or procedures, can substantially reduce the potential for disputes and litigation:
Insurers should:
* not bind coverage without obtaining and reviewing the proposed form * indicate the applicable form in their binders * not waive their right to approve form changes * affirm their agreement in writing to any form changes