Agent Held Responsible for Underinsurance

0 12 February 2015

By Denise Sze | August 21, 2014 | originally published on propertyinsurancecoveragelaw.com I have made it a point to blog about an insured’s responsibility when it comes to obtaining insurance policies and the right kind of coverage. In California, having the sole allegation that a broker or agent didn’t provide the right policy when an insured didn’t read the policy is usually a losing argument for liability upon the broker or agent. A California ruling from August 2013, finding broker liability shows that hope still springs for the underinsured who truly should have been informed of underinsurance and coverage issues by their agent. In Early v Smith-Kandal Insurance Agency, a historic hotel was destroyed by fire in March of 2007. The existing Chubb insurance policy of $3.1M didn’t cover the damages and the cost of rebuild. In the insured’s pursuit of a lawsuit for the underinsurance, the insured was able to show that before the last renewal of insurance that Chubb sent out a representative to inspect the property. That inspection resulted in recommendations by the insurer for additional coverage because the insured was heavily underinsured. Chubb offered that it would increase the policy limits to an amount much closer to what the inspection sh

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0 12 February 2015

By Marc Schmittlein | April 16, 2012 | originally published on insurancejournal.com In recent years, the United States has been impacted by devastating weather events, many unprecedented and unexpected. According to the Environment America Research and Policy Center, more than 15 million Americans live in counties that have averaged one or more weather-related disasters per year since the beginning of 2006. While small business clients who have faced weather-related issues may be aware of the risks, there are thousands who ignore the impact a disaster can have on their business. But it’s not only significant weather events that can constitute a disaster. Underinsurance can be an even greater issue for many business owners. In fact, 75 percent of businesses in the United States are underinsured by 40 percent or more, according to Marshall & Swift/Boeckh. Insurance professionals know all too well that if a business is underinsured and a loss occurs, it may be impossible to keep the doors open. SCORE, a nonprofit association dedicated to helping small businesses, even suggests that a full 40 percent of businesses never reopen after a disaster. Insurance agents have an opportunity to solidify their client relationships by taking time now to reach out and to

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