As experienced insurance advisors, we know better than most that preparing for the unexpected really does matter (even still, we can be found shaking our heads in surprise).
We’re sharing some real-life situations and thought-provoking scenarios that illustrate how working with knowledgeable, trustworthy and reliable insurance professionals is not only comforting, but truly essential.
Missing small clauses can lead to big consequences.
Real situation: A college student was hit by a car while walking on campus and needed extensive medical treatment. The driver’s auto policy had minimal liability coverage, which didn’t come close to covering her expenses. Her parents’ auto policy provided some help through their underinsured and uninsured motorist (UM/UIM) coverage, but those limits were still far short of what was needed. Unfortunately, they had declined the option to add UM/UIM coverage to their Umbrella policy, which would have provided an additional $1 million toward her medical bills.
Real lesson: Sometimes the coverage you think may be an unnecessary expense is the one that can save you from serious financial heartache. If you are ever in doubt about how recommended coverage could make a difference, ask. Adding optional endorsements may cost relatively little while offering some much-needed financial peace of mind. For more tips on coverage considerations for college bound kids, read our blog on the topic.
We’ll raise a glass to careful General Liability reviews.
Realistic scenario: If you have a company that occasionally serves free adult libations to event guests, cheers to you! However, check your General Liability policy to make sure there isn’t a “total liquor exclusion” buried deep within the forms. If a guest leaves your event and causes an accident found to be due to the drinks you served, your company may be liable.
Realistic lesson: Critical exclusions aren’t always obvious, so it’s good to have advisors who will comb the details for you. We’d recommend having your insurance rep review your General Liability policy to ensure your coverage truly matches ALL of your risks.
Weird things happen more often than you’d think.
Real situation: A client’s husband lived in a nursing home and accidentally ate another resident’s hearing aid. How, you ask? Well, he thought it was a peanut. Though it seems like a reasonable mistake, we were concerned that the carrier would decline coverage since her husband had moved to a different residence. Lucky for them, the carrier did come through, but not every carrier may have handled it the same. Some insurance companies could have required the couple to have an endorsement now that there are two residences.
Real Lesson: Honestly, these things happen. When life changes happen, like a family member moving to a different residence, be sure to check in with your insurance advisor so they can confirm whether or not you need to add an endorsement to keep everyone protected.
Old McDonald didn’t have a farm…until he kind of did.
Real situation: A client living on a few acres of land decided to buy two cows, but he really didn’t farm, so he wanted to decline our suggestion adding an incidental farm endorsement. We knew that the cows could cause damage to nearby crops, kick a person or cause other damage, and we were able to convince him the risk was real. Thank goodness, because when the cows made an escape off his land and were hit by a car, his policy covered the vehicle damage. Phew!
Real lesson: Even if you don’t “farm”, there can be reasons for adding farm coverage. Purchasing additional acres, bringing in livestock or adding certain types of buildings, like grain bins, change your coverage needs. Again, when your lifestyle, property or equipment changes, check with your advisor.
New technology creates new risks.
Real situation: When a company CFO received an email from the CEO, who was traveling at the time, instructing him to urgently wire $50,000, he did as he was told. The problem was that the email didn’t really come from the CEO. This was a case of social engineering (or deception) fraud, which is not an automatic coverage on most cyber policies.
Real lesson: Cyber policies are not standard, and coverages vary widely between carriers. This is where an advisor with cyber expertise who knows the nuances of the crime, and available coverage options, can help protect from costly gaps.
Unexpected situations may not happen every day, but they CAN happen.
These stories may be unusual, but weird things happen to businesses and people more often than you think (trust us.) When they do, the right insurance coverage (and the right advisor) can save you from minor to major headaches.
Do you have an insurance partner who asks the right questions, digs to find hidden risks and builds the right mix of protection for the risks you don’t even know exist? Let us know if you want to discuss more — we’re ready when you are!
