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...
I recently received two questions from agents regarding Agent/Broker of Record (AOR/BOR) issues. I thought I would combine them into one blog post. Question 1: It has always been best practice to have the AOR/BOR letters executed on the client’s letterhead. We send them blank letters,...
Over the past few years, employers have been leasing workers from employee leasing companies. I recently received this question from one of my agent friends: “One of my clients has a small law firm and is considering leasing employees from an employee leasing company. From a...
During a recent agency visit, the surety folks requested a blog addressing bond E&O exposures. I think they were feeling neglected because we rarely have any blogs just for them. So, here is my gift to my bonding friends. Bonds, whether surety or fidelity, are complex...