Berkshire Hathaway’s New ‘THREE’ Policy Seeks to Simplify Small Business Insurance
February 12, 2019

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Beware of insurance companies bearing gifts. A contractual liability exclusion missing the typical exceptions for things like liability that would attach in the absence of the contract has the potential to reduce coverage vis a vis the long and boring policy form with all the definitions and complicated language. Those policies may not be “fun” but they’re tested. And anyway, this is insurance, not a trip to Aruba, for crying out loud!
Berkshire is one of my largest holdings, but Warren should stick to picking companies and leave the insurance product analysis to qualified agents (which are getting harder to find). Let me see the coverage forms and judge if this is such a great product.
Warren Buffett is a pretty smart guy who has owned insurance companies since 1967, so it’s fair to say he knows his way around a coverage form. His statements regarding the product are the typical marketing fluff YOU should expect (as an industry veteran). Saying he should “stick to picking companies” (for you to make money off of, no less). Seems pretty immature. Maybe you should stick to being retired?
Sometimes “smart guys” try to get too smart. Try reading up on Buffett’s Applied Underwriting work comp company and it’s many lawsuits over “bait and switch” tactics.
Policy forms are clearly not Mr. Buffett’s forte.
https://insurancecommentary.com/from-2-0-to-3/
I would say that Retired Agent’s comments were well within reason. If you think Warren Buffett is digging into policy forms on a daily basis by virtue of his association with insurance companies, then you might as well surmise that he also makes furniture in his spare time…
… or manufacturing Gillette razors?
Good luck, Warren! If you can keep the California bar association from “finding” all kinds of misrepresentations in your simplified form, good for you. But I’m betting on the sharks.
Of course, if your policy covers very little with a blunt “Everything not mentioned is excluded” provision, maybe you can make a go of it. But most agents in competition will point out the fact that your burger has no lettuce, tomato, cheese or bun on it.
Will this policy cover intellectual property or typical Part B type claims like defamation, etc? Anyone know. The sample policy doesn’t say.
No incidental contracts. No hired & nonowned autos. No physdam for rented autos. No employers liability. That’s for starters. This is scary.
And like any direct writer, if there’s no coverage for a claim, good luck. Can’t ask the agent for help or recovery.