Reciprocity and extraterritoriality are related concepts in workers’ compensation law that determine which state's workers’ compensation system applies when employees work temporarily outside their home state. Extraterritoriality Extraterritoriality refers to a state's ability to extend its workers’ compensation coverage beyond its borders. It allows an employee who...
In the past, auto exposures included collisions, theft, and weather damage. Now, there is a new exposure: cyber risk. Vehicles are now connected, software-driven machines, and individuals and businesses face risks that insurance and risk management approaches weren’t designed to handle. Today’s vehicles are essentially computers...
The recent case of Stephanie Plummer v. Commercial Insurance Agency, Inc. is an important reminder of the professional liability exposures facing insurance agents and brokers when coverage gaps leave clients uninsured. The Georgia Court of Appeals' decision emphasizes that an agent’s failure to obtain appropriate...
One common question we consultants get from our agents is, “What limits do we show on the ACORD 25 Certificate of Liability Insurance?” We always answer with “Show the policy limits on the declarations page.” The purpose of this change to the ACORD 25 Certificate of...
Most of us have used our personal autos for our employer’s business. Some of us do it occasionally and some regularly. There have been cases in which an employee caused an accident and both the employee and employer were sued or had a claim made...
During a recent conversation with an agent, I was asked if CGL and umbrella policies cover sexual abuse, molestation, and sexual misconduct. The agent’s contention was that, absent a specific exclusion, the policies would provide coverage. He spoke to his underwriter, and he agreed with...
One of the most important E&O loss prevention steps is exposure identification. In working with agencies, many do not engage in formal exposure identification in personal lines. While many commercial lines producers and account representatives use exposure checklists and questionnaires, that is not always the...
How do agents get in trouble? Let me count the ways. Agents often get into trouble by agreeing to a responsibility that is not their obligation. Agents will often assume the carrier's obligations. In my course, “Common Procedural Mistakes That Land Agents in Court,” I mention...
Question: What are the reporting requirements of a liability claim to the carrier that doesn't write the underlying coverage? I'm thinking of a client who has a minor car accident and receives a lawsuit two years later, and the excess carrier was never notified of...
Question: A restaurant has a Commercial General Liability Policy with $1 million occurrence limit and $10,000 Medical Payments limit. A customer alleges that while biting into a french fry, he broke a tooth, resulting in a $6,000 dental bill. The insurance carrier quickly writes a...