WHAT IS IN MY PROFESSIONAL LIABILITY INSURANCE POLICY?

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The other day I was speaking with an attorney who had an interest in our Professional Liability Insurance programs.  So to start the process, I asked him questions regarding his current coverage.  Keep in mind, they were not tough questions:  Who is his carrier? Who is his agent? What are his limits and deductible? When is his renewal date?  All of these questions solicited the same response, “I’m not really sure”.  As crazy as that may sound, his next answer really took me by surprise.  When asked if I could review his current policy, he had no idea where his policy was or how to get a copy.  He actually asked me if I could get him a copy of his policy!

I realize that professionals are very busy people and insurance (for some) is considered BORING, but you spend a lot of money for this coverage.  You should at least take the time to know some of the basic details (at the very least, where your policy is kept).  If you do nothing else, take the time to read your policy once a year.  It shouldn’t take that long to read it and will be time well spent.  Some things to pay attention to are the obvious: carrier name, policy period, limits of liability and deductible.  Be sure to take note of any retroactive dates that apply as well as the definition of claim, the definition of insured and any and all exclusions.  You may find out that things you thought were covered aren’t and vice versa.  Bottom line is take the time to read your policy.  Know what you are paying for.

And, remember, you can always ask your agent to explain things that you don’t understand.  

Value of Broker Services for Professional Liability Insurance

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As an insurance professional for more than 25 years, It never ceases to amaze me how commoditized the professional liability insurance marketplace has become.  The coverage is not that simple but yet many professionals purchase the policy on line directly from the carrier without the assistance of a broker.  No consideration is given to policy form, prior acts coverage, limits, deductible or the many ancillary coverages available.  No value is given to the broker services.  I don’t understand this as brokers provide valuable services: policy comparisons, concise explanations, proposal/carrier options and risk management services.

As an insurance agent and the owner of a small business, I understand and can relate to cost cutting measures and getting the best “deal” possible.  I have seen clients change carriers/programs/brokers for a  $50 savings of annual premium and little or no regard to the coverage or broker services lost!  Does that make sense to you?

I don’t believe that the purchase of insurance, especially one that protects a professional’s reputation can be all about the money.  Don’t get me wrong, the money issue is very important however neglecting the coverage issue and broker services can be devastating at claim time.