Posts Tagged ‘Selling Value’

Are Dog Bites a Homeowners Problem for Insurers?

Check out the following Insurance Journal article if you wonder if dog bites are a problem for insurers:

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!

The practical need to visit a client.

As time goes on, it is clearer and clearer to me that there is a need for an Agent to visit a client at the time of sale and a need for an Adjuster to visit a client at the time of claim (as well as the  Agent). I am fighting my way through a half million dollar liability claim (as an expert witness) attempting to get the Insurer to reverse a denial from three years ago.   The claim was wrongfully denied and the Agent did not step into it until now!   The only reason for a denial was that the Insurance Company Adjuster chose to do no investigation at all.   Even a conversation with the Insured would have uncovered facts rendering some insurance coverage. This is absurd.   It does not even meet the basic obligations of the Insurance Company upon notification!   They simply did not have adequate information to make an informed decision.   We simply cannot handle these complicated transactions totally over the phone or on the internet!    WE NEED TO GET BETTER!

CGL Discontinued Operations

If you discontinue the purchase of General Liability Policies due to retirement or going out of business, among other reasons, be cautious if the insured still has products in the marketplace.    Canceling the General Liability will terminate coverage for occurrences that happen in the future due to your insured’s products.

At termination you need to have your client purchase discontinued operations coverage.   The coverage is no longer even in the ISO manual, and I think I must be one of the few who still remembers how it was rated.   Insurance Agents…  Plug this potential E & O Gap by offering the coverage and documenting the offer in your insurance file!


Have you recommended earthquake coverage to your insureds?

Have you recommended earthquake coverage to your clients?    Today we even felt a slight tremor right here on the dear old Portland Fish Pier!     Earthquakes happen, they happen on fault lines, and WE ARE ON A FAULT LINE!

We need to point out to our clients that they need to at least think about buying earthquake coverage.    When they are trying to hang you out to dry for NOT RECOMMENDING earthquake coverage, they are going to call me and ask me, as an expert witness, “Mr. Candage, do you consider it “state of the art insurance practice” to recommend earthquake insurance?”

Before today I would have had to say “yes, we are on a known fault line.”    After today I am patting myself on the back because I am correct!    Put earthquake on your checklists, on your renewal questionnaires, put earthquake on the big screen for everyone in your agency!  It is important for you NOT to deprive the client of the knowledge they could buy it FROM YOU!