Join Date: Jun 2013
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Insurance provisions Hmmmm...
I'm shopping PL and E&O and I've run into something I find somewhat interesting.
Most of these policies are written on a "claims made and reported" basis. That generally means that any claims covered must arise from activities performed after the policy is in force, not before (which makes sense) but also that any claims REPORTED must be filed while the policy is in force. Since claims can be filed years after an incident occurs, that sounds like an insured person would need to pay premiums on a policy for a couple of years after going out of business or selling their company in order to protect themselves from claims that happened back when they were still in business. Also sounds like exposure if you switch insurance companies at some point. Sounds like one-man-shop sole proprietors should think twice too.
Anyone have any experience with this or have suggestions for PL/E&O?