Liability Policy Terms
From The Original Insurance Wiki
Policy terms can often be changed with no impact on the premium charged. A professional agent may consider each of these changes.
This means all policies for the insured have the same effective and expiration dates.
Note, non-concurrent policy terms can cause an unexpected gap in coverage should the underlying aggregate limits be deleted during the policy year.
Policy Terms - Broad Named Insured
Named Insured wording could be extended to include...
The Insured and any and all affiliates, divisions, or subsidiary corporations; and any legal entities for which the Insured exercises management or financial control; any trust, foundation or any employee benefit plan sponsored, operated, maintained or administered by the Named Insured.
Policy Terms - Revised Notice of Claim Requirement (occurrence form only)
Revised notice of claim wording should be extended to include...
An agreement that knowledge of an act, occurrence, claim or loss by an agent, servant, or employee of the insured shall not constitute knowledge by the insured unless notice of such act, occurrence, claim or loss has been received by executive management, the risk manager or other appropriate designee.
Policy Terms- Inadvertent E&O in Application
Inadvertent Errors & Omissions wording should be extended to include...
Agreement that failure of the insured to disclose all hazards existing as of the inception or renewal dates of this policy or to comply with any provisions of this policy, or errors or omissions in applications, declarations, schedules, endorsements or other documents shall not prejudice the insured with respect to the coverage afforded by the policy, as long as such failure, error or omission is unintentional and is corrected or complied with as soon as practical after it has been brought to the attention of executive management, the risk manager or other appropriate designee.
Policy Terms - Waiver of Subrogation
When a broad named insured clause is not available, policies should be endorsed to eliminate the insurer's rights of subrogation against all subsidiary or affiliated organizations of the named insured.
Typically, after the insurer pays a loss, the insurer may pursue recovery from parties that caused or contributed to the loss. This may not be desirable from the client's standpoint if the "other parties" involved are customers, landlords, etc.
Most policies will, however, allow an insured to waive rights of subrogation prior to loss. Review various business relationships to determine where this may be appropriate.
Policy Terms - Cross Suits Exclusion
All policies should indicate if the policy excludes insured v. insured or named insured v. named insured suits.
Note, when inter-company products claims are excluded, such receipts should be excluded from the exposure base. This would typically have no effect on the Premises operations premiums.
Policy Terms - Extended Notice of Cancellation or Non Renewal Requirement
This can be particularly important with non-admitted carriers as state mandated notice requirements may not apply.
Claims Made - General Liability - Retroactive Date
In changing an insured from and occurence to a claims made contract, you need to indicate in the contract the date the claims made coverage was initially effective. Does this date coincide with the Retro date?
Is the retro date consistent with the previous policy?
Be sure the retro dates for primary and any excess coverages are concurrent.
Claims Made - General Liability - Automatic (Basic) Extended reporting period
Note if cancellation or non-renewal restricts or amends the Automatic (Basic) Extended reporting period.
Claims Made - General Liability - Supplemental Extended Reporting Period
Note if cancellation or non-renewal restricts or amends the Supplemental Extended reporting period terms.
Claims Made - General Liability - Aggregate Reinstatement Option
Note the pricing and what % of limit will be re-instated.
Policy Terms - Policy Coverage Territory
The typical policy territory applies to claims anywhere in the world, however the suit must be brought in the United States, its territories or possessions, Puerto Rico and Canada.
An International Package Policy should be considered to extend coverage to any international business activities by US entities.
