Take a look at the below claim scenario to see how you may prevent errors & omissions while conducting business:
Claim scenario: A restaurant and bar owner asked his agent to replace his liability insurance coverage which was being non-renewed by its current carrier. The agent located a market and replaced the coverage for the insured. Unbeknownst to the agent, the policy that he placed contained an assault and battery exclusion. The insured’s prior policy did not contain such an exclusion but the agent never requested a copy of the policy. The insured requested that the agent get the same or better coverage than the expiring coverage provided. The agent represented that the replacement coverage matched the prior coverage but he never reviewed the policy and never pointed out this exclusion. Later that year, the insured’s bartender was involved in a physical altercation with a patron. The patron was injured by the bartender and, as a result, the insured was sued over the incident. When the insured reported the claim, it was denied based on the assault and battery exclusion on the policy. As a result, the insured was surprised to learn there was no coverage for this claim and thus brought a claim against his agent for failing to provide adequate coverage.
Loss prevention tip: When a client requests the “same” coverage as his or her current policy, be sure to thoroughly review the current policy and ensure that the replacement coverage adequately matches the coverage being asked for by the client.
All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CalSurance Associates, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.
Written by Joshua Wels Published September 2022