Archive

Archive for the ‘Errors and Omissions’ Category

Insurance as a Commodity

Earlier in my blog I theorized that “Risk Bearing”may be a “Commodity”.  Recent events have led me to believe this is not a true statement.   Different insurers, even in Personal Lines, are deviating from standard forms and coverage.  Only an experienced professional is going to know this.   Product differentiation between insurers renders “Risk Bearing” a risky purchase.

Consumers NEED advice as well as insurance.

Conflict = Commerce

If you are negotiating an outcome among different parties, Trust is a paramount factor in the negotiations. Try too choose an independent,fair facilitator,rather than entrenching in a position and fighting it out with attorneys. It is not to their advantage to resolve your issue without considerable conflict. This is a lot of the work I do for people. Find a trustworthy facilitator,air both sides of the issue, and FIX IT! Don’t let a whole tribe of people charge you an arm and a leg to do what is (and was) right in the first place. Remember Conflict = Commerce!

Why they buy (Insurance)

There are only three reasons people buy insurance and only one of those reasons is a choice on the part of the client.

Those reasons are:

Fear

They truly understand they may have a loss that is significantly serious to damage their financial future

Compliance

The law requires the purchase… Workers Compensation or Auto Liability

Compulsion

The financing entity requires it.

The last two reasons create resentment, apathy and make the seal mandatory but less important to the purchaser. You have to work extra hard to make them listen to your advice.

A man convinced against his will, is of the same opinion still.

Ben Franklin.

The Insurance Company “Bluffing Letter”

Have you had a client whose claim was denied but you felt really uncomfortable about the coverage determination?

I have been working on quite a few denied claims in the recent future.   It have become apparent to me  that Insurers are using a strategy to issue a “bluffing letter”.    It looks like a denial and will discourage all but the most resolute Insured or Agent.

The letter basically says, “We don’t this covered and gives a litany of reasons.”   We will not indemnify or defend this claim….!”         The Insured files it and basically goes away without questioning it.    Some of these claims should be covered.  I have gotten several paid recently and in some we have filed suit.   (Of course, there are also many legitimate denials.)

Agents…  Don’t let your Insureds be taken advantage of this way.  ALWAYS follow up and when you need to involve an insurance expert such as myself, call us!.    “My business is knowing your business”. Let us help you protect your Insureds!   We can likely keep you out of an E & O claim!

 

 

Beware the Skunk!

For over ten years I have been discussing the “narrowing” of coverage due to the increased pressure from reinsurers  and rating agencies for increased profits and decreased loss ratios.   One of my key examples has been a broadening definition of “pollution”.

In the past two months I have either been involved in or heard of several claims being denied for “skunk spray”. This is a perfect example of profiteering.   A skunk is neither a vermin nor is skunk spray pollution.      But, beware…   Some have denied altogether and some have denied coverage for contents, EVEN WITH AN HO 15 ENDORSEMENT!