diff --git a/agreement/agreement.go b/agreement/agreement.go
index 303c20e58..d44249e77 100644
--- a/agreement/agreement.go
+++ b/agreement/agreement.go
@@ -710,7 +710,14 @@ func (w *AgreementWorker) syncOnInit() error {
 							glog.Errorf(logString(fmt.Sprintf("cannot record agreement %v state %v, error: %v", ag.CurrentAgreementId, state, err)))
 						}
 					}
-				}
+                                } else {
+                                        //Setting this as potentially failed enables governAgreements func in governance/governance.go to use the same mechanism as used in heartbeat restored
+					//to verify the agreement is still valid or else cancels it to keep agent and hub in sync
+                                        _, err := persistence.SetFailedVerAttempts(w.db, ag.CurrentAgreementId, ag.AgreementProtocol, ag.FailedVerAttempts+1)
+                                        if err != nil {
+                                                glog.Errorf(logString(fmt.Sprintf("encountered error updating agreement %v, error %v", ag.CurrentAgreementId, err)))
+                                        }
+                                }
 				glog.V(3).Infof(logString(fmt.Sprintf("added agreement %v to policy agreement counter.", ag.CurrentAgreementId)))
 			}
 		}