Words of the day: the importance of an accurate insurance policy

It's all about the words, the thousands and thousands of words that all have meaning in an accurate insurance policy. They are all significant and cannot be underestimated, because are the language forming a contract between insurer and policyholder. If an assumed-to-be accurate insurance policy is instead missing key information or includes unintended errors leading to gaps in coverage, there can be consequences for the policyholder and the carrier. At the very least, it could lead to a delay in a claim being paid. (And there can be quite a few areas where coverage gaps occur, as the International Risk Management Institute notes.)

The bottom line? Taking the steps to ensure an accurate insurance policy is essential. Your insurance broker should be your advocate in this process. Little things — even addresses — can be big things. And it’s a process that helps all parties – the broker, the insured and the insurance carrier. No one wants to have to untangle policy issues down the road that could have been fixed right off the bat. Diligence toward ensuring an accurate insurance policy builds trust on all sides.

Ultimately, it’s a matter of fairness.

With these points in mind, here are some of the things to look for when judging policy accuracy:

-- Are all of the locations covered under a policy listed on the policy? -- Are the policy term dates correct? -- Are the policy cancellation terms correct? -- Are all of the forms needed with the policy present? -- How does this policy compare to the prior policy?

Because of the unintentional consequences that can occur when lacking an accurate insurance policy, it’s important to have qualified professional advocates on your side. For more information on The Plexus Groupe’s strategic insurance solutions and client-focused approach, contact us at 847.307.6100 (Chicago), 972-770-5010 (Dallas) or 405-241-9462 (Dallas). You can also contact us on the Web.

Reference International Risk Management Institute. “101 Common Commercial Lines Coverage Gaps To Avoid.” IRMI Insights, March 2014.