Montgomery v. Caribe: What Brokers and Captives Need to Know

• Continuous monitoring matters: negligent-retention exposure rises when status, insurance, or safety changes after onboarding and nobody refreshes the file.

• Industry reporting since the decision describes pressure on contingent auto / broker liability and E&O pricing, due-diligence warranties, and retentions—account-specific, not a single national rate.

A defensible next 30–45 days

1. Inventory loads and carrier segments that still use light or informal vetting (especially conditional, new-entrant, and unrated carriers).

2. Codify a written, risk-tiered carrier-qualification policy with checklist, sign-off, and managed exceptions.

3. Close documentation gaps: timestamped SAFER/L&I pulls, safety rating, OOS, SMS BASICs, crash/inspection review, COI, and broker attestation.

4. Stand up continuous monitoring and a Do-Not-Use list with clear reinstatement rules.

5. Align contingent auto / E&O / umbrella warranties with what operations actually do.

6. Train ops and claims leadership; run a sample tender-file audit.

How Zorro Risk helps

Zorro Risk Management designs and validates broker safety and carrier-qualification programs built for post-Montgomery scrutiny—policy design, scorecards, monitoring linkage, underwriting/captive documentation packs, and program audits. Company contact only: INFO@zorrorisk.com (subject line Scorecard for readiness scorecard inquiries).

Read the opinion: Supreme Court PDF https://www.supremecourt.gov/opinions/25pdf/24-1238_1b7d.pdf

Zorro Risk Management · zorrorisk.com · INFO@zorrorisk.com

This article is for general information and is not legal advice.