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.
