This should be a reminder to all of us who service claims made policies. Be sure you explain the reporting provisions, present proper written documentation and ask the client to sign off on it in understanding of your explanation. This could easily turn into an E&O claim for the broker who sold this policy. I have no pity for the poor slob – just a reminder that “we” need to watch our backs. Document-document-document.
If I understand this story correctly, I suspect that this guy would have had a denial even if this was an occurrence policy. According to the article “the claim was first made in 2005 and not reported by Gargano until 2007.” I assume that what IJ means is that Gargano was sued in 2005 (since in the same sentence they say he did not make a claim report until 2007).
“Garagano had argued that his failure to notify the insures of a potential claim should not relieve them of their obligation to pay, since the timing of the notification did not affect their ability to defend against it.” Huh? It sounds like they did not get the claim until after there was a judgement.
Liberty International Underwriters (“LIU”) is a unit of Liberty Mutual.
The careless writer probably meant Liberty Insurance Underwriters Inc., which actually is a carrier. Of course, many people who work at LIU don’t know the difference, even after years, so why blame a writer?
O Poor Ambulance Chaser. He got run over by the ambulance driven in reverse.
Too bad he didn’t read his own policy. Probably too busy suing other carriers.
Next the poor slob will probably sue his agent for not explaining the claims-made form properly to him.
Sucks to be him especially if he was part of the team that wrote the claims made language in the first place!
HEADLINE: LITTLE SHARK EATEN BY BIGGER SHARKS – FILM AT 11
Live by the sword, die by the sword.
My one word reaction to this ruling: SWEET!!!!
Karma is a beautiful thing!
This should be a reminder to all of us who service claims made policies. Be sure you explain the reporting provisions, present proper written documentation and ask the client to sign off on it in understanding of your explanation. This could easily turn into an E&O claim for the broker who sold this policy. I have no pity for the poor slob – just a reminder that “we” need to watch our backs. Document-document-document.
If I understand this story correctly, I suspect that this guy would have had a denial even if this was an occurrence policy. According to the article “the claim was first made in 2005 and not reported by Gargano until 2007.” I assume that what IJ means is that Gargano was sued in 2005 (since in the same sentence they say he did not make a claim report until 2007).
“Garagano had argued that his failure to notify the insures of a potential claim should not relieve them of their obligation to pay, since the timing of the notification did not affect their ability to defend against it.” Huh? It sounds like they did not get the claim until after there was a judgement.
Am I missing something?
Liberty International Underwriters (“LIU”) is a unit of Liberty Mutual.
The careless writer probably meant Liberty Insurance Underwriters Inc., which actually is a carrier. Of course, many people who work at LIU don’t know the difference, even after years, so why blame a writer?