After the Storm: Insurance Agents E&O Lessons Learned

By Sally Combs | January 8, 2013
Hurricane Sandy destruction

  • January 8, 2013 at 1:20 pm
    Insurancemommy says:
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    UTILITY SERVICES DIRECT DAMAGE AND TIME ELEMENT COVERGE! It is one of the least understood or acknowledged coverages and it is so important. I am a Commercial Underwriter. A week and a half after Sandy occurred, I asked one of our claims adjusters what he thought the average % of businesses had the Utility Services coverage and were going to be covered for Direct Damage and Time Element? He said that he was very surprised to find that only about 30% or less of businesses had this coverage and would be covered.

    If you are an agent, please do a quick study on this coverage and at least offer it to your clients. If you need additional information or explanation, ask your Commercial Underwriter. It will be worth it!

    • January 8, 2013 at 2:03 pm
      Gus says:
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      The sad part about this is that each company has a different “form” of coverage for this. If you read the language it gives coverage and then takes it away. Even if we are selling the coverage to our insureds, the carriers language can easily void the coverage for this type of loss. An then the question is why did you sell me something that wouldn’t cover me anyway? Kinda like flood insurance eh?


    • January 21, 2013 at 9:17 am
      Charles Russo says:
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      The only issue is that the insurance carrier needs to actually be willing to offer this coverage by endorsement and many are not, even less so now!

  • January 21, 2013 at 9:19 am
    Charles says:
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    The hard part about getting the coverage is having an insurance carrier willing to add the endorsement. Many did not before and many more are not as a result of the storm.

  • June 14, 2013 at 6:03 pm
    Lorenzo Enriquez says:
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    Though not an agent but a policyholder, I wonder if an agent can bind the Carrier for a peril that is not part of the policy. When the agent wrote an HO-3 policy on a property that was not owner occupied he made a statement in writing that I would still be covered for perils on the non-occupied property because my family members lived there. The carrier denied my claim and said the agent alone is vulnerable to any action on my part

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