The Tender Trap: Tips and Strategies for Dealing with Tenders of Defense and Risk Transfer

One of the constants in the life of an insurance profession is dealing with tenders of defense and indemnity. These letters can seem overwhelming. They cite policy language, legal authority and have attachments that can be the size of a telephone book. Reviewing, analyzing and responding to a tender uses a different skill set than is generally employed when addressing claims. The goal of this seminar is to take the mystery out of the tender process and help the insurance professional to avoid the common traps and pitfalls. We will examine the concept of the tender, what is it intended to accomplish and how the tender arises. We will then delve into the basis of the tender (contractual and insurance) and how to understand those elements. We will then turn to how to appropriately respond to the tender. This analysis will involve a look at company policies and procedures as well as relevant legal authority. Finally, we will look at how to analyze a new claim to determine whether or not your insured has a basis to tender to another party.

Learning Objectives:

1. Understanding the contractual, insurance and legal basis of tenders of defense and indemnity.

2. Understanding how to read a tender letter to determine what next steps need to be taken.

3. How to respond to the tender appropriately.

4. How to analyze a new claim to determine whether or not you can tender to another party.