Carriers require a firm to utilize Engagement Letters once you have accepted a case from a client.  If on your application you do not list that you utilize Engagement letters 100% of the time, you probably will be asked in what situation you do not utilize these letters and how you avoid miscommunication with your client on the scope of your services. Does this sound familiar?

Most carriers have specific underwriting guidelines that they follow in their rating of a firm. By not utilizing engagement letters 100% of the time, you may not be receiving a credit on your premium which is available to you.

When using an engagement letter, clearly outline the scope of your engagement to avoid any misunderstandings with your client. Sometimes a handshake and verbal commitments do not mean much in court. If a client has a dispute with you, it best to have the paper trail rather than relying on a “he said she said “situation.

Some firms may not use a separate engagement letter but includes the scope of their services within the retainer letter. That too is fine as long as your services is clearly outlined and I would urge you to include this information on your application so there are no credits left on the table

If you do not utilize Engagements letters and would like to obtain a sample, please contact Kaestner & Berry and we will be glad to forward a sample to you.