There are certain types of insurance coverages that have to be administered by a competent professional. This is because there are subtle differences in wording and coverage that can dramatically alter the coverage.
I want to use this phrase as an example. “Duty to Defend”. A policy will either state that there is a duty to defend or there is not. That can have huge ramifications for the business purchasing the insurance coverage.
What this means is that an insurance company has no obligation or “duty” to defend against a claim made against the business. The business will be responsible for finding an attorney, to front the legal defense costs, and entitled to reimbursement only if it is established that the Insurance Company has liability per the policy.
Whereas a policy with a duty to defend clause in it will obligate the insurance company to defend the business even if there is only a possibility of coverage applying.
Seemingly small provisions in policies like these can be overlooked, but can seriously affect the way a claim is handled.
Policies to which a provision like this often apply are to Cyber Liability Policies, Professional Liability and Errors & Omissions Policies, Employment Practices Liability Policies, Directors & Officers Liability Policies.
The best way to counter having this be an issue is to choose a competent insurance professional who can help advise you.
Questions? Feel free to Contact Us for more information.