CertainCert Insurance Certificate Management & Tracking Blog

Certificate of Liabilty Insurance Request Letters and Cert Tracking

Posted by Cary White on Fri, Feb 18, 2011 @ 15:02 PM

Fire Hose - Certificate of Liability Insurance Request LettersReceive Blog eBook FREE

Are you sending out letter after letter requesting insurance certificates, re-requesting certificates and re-re-requesting insurance certificates? Are you frustrated with your results? If you are serious about insurance certificate tracking and insurance certificate management, certificate of liability insurance request letters are essential. Any casual review of the web will surface any number of sample letters from well intentioned businesses addressing their specific industry, business style and goals. Most are well intentioned letters politely requesting an insurance certificate and include a highlight of one or more essential provisions. These are a recipe for disaster. You will continue sending out letter after letter like blasts from a hose. Some will hit their mark. Most will not.

Insurance certificate tracking success necessitates a moment of reflection and a well thought out strategy when it comes to effective certificate of liability insurance request letters.

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Professional Liability Insurance Tracking - Claims Made Concerns

Posted by Cary White on Thu, Feb 17, 2011 @ 16:02 PM

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Professional Liability Insurance Tracking - Claims Made ConcernsOccurrence coverage is the norm for general liability insurance policies today. Subject to the terms and conditions of the insurance policy, coverage will respond to any incidents that occurred during the policy period regardless of when the claim is reported. In general, coverage specifically for prior acts is not needed because it is already covered as the date of the occurrence is the trigger for the coverage not the date of the work or act. Likewise, with some exceptions, tail coverage is not necessary because coverage exists for occurrences during the policy period regardless of the date the claim is reported. While these are generally true, care must still be taken because select insurers endeavor to limit their risk by adding prior loss exclusions and sunset clauses to select general liability policies.

Unlike general liability insurance, claims made coverage is the norm for professional liability policies. Claims made coverage is subject to two essential coverage triggers: (1) the date of the occurrence, and (2) the date the claim was made. Claims made policies will only respond to claims first made during the policy period provided the loss or damage first occurred after the retroactive date. Unsophisticated or budget conscious professional may purchase professional liability coverage with a retroactive date equal to the inception date of the policy. Unless they purchased tail coverage on their prior policies, these professionals have purchased coverage that does not cover their past work. The only coverage they have is for incidents which first occurred and were reported during the policy period.

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Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, cancellation, insurance requirements, liability insurance, insurance limits, professional liability insurance, errors and omissions insurance, e&o insurance

Professional Liability Insurance Tracking - Consent to Settle & Hammer Clause

Posted by Cary White on Wed, Feb 16, 2011 @ 15:02 PM

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Professional Liability Insurance Tracking   Consent to Settle and Hammer ClauseUnlike general liability policies where insurers control defense and settlement without the consent of the insured, nearly all professional liability policies do not allow the insurance carrier to settle any claim without the agreement of the insured. This provision has evolved to protect the reputational harm of the insured. The hammer clause is a policy provision intended to encourage the consent of the insured to reasonable settlement offers suggested by the professional liability insurer. Hammer clauses are common on professional liability policies. They can vary in scope and severity. Every hammer clause addresses the indemnity and defense responsibilities of the professional liability insurer if the insured does not consent to a settlement suggested by the insurer. In most cases the insurance company will not pay for any indemnity amount greater than the amount of the proposed settlement. Likewise, the insurance company is not responsible for paying any further defense expenses. While variations do exist in some policies, the insured should expect to be responsible for 100% of any indemnity amount and defense expenses after rejecting the settlement offer suggested by their professional liability insurance carrier. Some insurance policies may not contain a hammer clause, but beware, these same policies may not contain a consent to settle provision either.

Insurance Certificate Tracking

Regrettably, these provisions are common to professional liability insurance policies but not typically referenced anywhere on insurance certificates or other proof of insurance reasonable for insurance certificate tracking and monitoring. Requesting a copy of the entire insurance policy is possible, but problematic and cumbersome. Furthermore, what should you do if you find that the consent to settle and hammer clause are not satisfactory to you? Alternative clauses or insurers more palatable to you may not exist. Choosing not to contract with someone based on these provisions may also be excessive.

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Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, insurance requirements, liability insurance, insurance limits, professional liability insurance, errors and omissions insurance, e&o insurance

Professional Liability Insurance Tracking - Additional Insureds

Posted by Cary White on Tue, Feb 15, 2011 @ 15:02 PM

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Professional Liability Insurance Tracking - Concerns of Additional InsuredsDo you request an additional insured endorsement from professionals that work for or with you? Have you experienced trouble obtaining additional insured endorsements from professionals?

It is common practice to request an additional insured endorsement from General Liability insurers and there is a great body of law and experience surrounding those requests. Professional Liability insurance is different. In most cases, underwriters do not allow Additional Insured endorsements on professional liability policies. Getting an Additional Insured endorsement can be vexing particularly for construction projects or other circumstances involving municipalities other government agencies, lenders and others accustomed to being named as an Additional Insured on all liability policies. Why is it so hard to get an Additional Insured endorsement from a professional liability policy?

Essential Reason

Professional Liability coverage is triggered by an allegation of negligence regarding the rendering or failure to render professional services. Parties seeking to be added as an Additional Insured to a Professional Liability policy are generally not a professional firm or providing professional services. Instead, such parties are looking for defense and coverage for suits brought against them. If allowed, such parties would be expected to tender claims for defense to professional liability insurers whether or not an allegation of professional negligence surfaces. Such defense claims would likely be denied by the professional liability insurer as these exposures are contrary to the underwriter's expectations and the policy wording.

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Topics: insurance management software, insurance tracking, liability certificate, insurance certificates, insurance certificate tracking, additional insured, insurance requirements, liability insurance, insurance limits, professional liability insurance, errors and omissions insurance, e&o insurance, wasting limit policy, insured v. insured

Another Additional Insured Coverage Gap Uncovered

Posted by Cary White on Mon, Jan 24, 2011 @ 15:01 PM

Receive Blog eBook FREEAnother Additional Insured Coverage Gap

Insurance certificate management is more than a quick review of a certicate or checking a box.  Whether we like it or not, it is essential that a knowledgeable person read every certificate and attachment carefully to be certain that the required insurance coverage is being provided. This is especially true of additional insured endorsement you receive with your insurance certificates. 

Most insurance and legal professionals recommend that your written construction agreement clearly requires an additional insured endorsement (AI) in the name of the project owner.  

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Topics: insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, waiver of subrogation, insurance requirements, liability insurance

Avoid Urge To Modify Standard Insurance Certificate Forms

Posted by Cary White on Mon, Nov 29, 2010 @ 15:11 PM

Receive Blog eBook FREEPaint By Numbers – Avoid Urge To Modify Standard Insurance Certificate Forms

Preparing insurance certificates is not like painting by numbers.  Standard insurance certificates are not a blank canvas for you to adjust the colors and contents as you see fit.  Far too often, we have witnessed businesses, public authorities and others atempt to fashion something from standard insurance certificates that was not intended.  Dissatisfied with the information only nature of insurance certificates, some have demanded specific modifications to the standard Acord 25 form to create legal obligations for the insurers.  These atempts to circumvent the evidence-only nature of the certificate are not likely to create an actual obligation for the insurer, but are more likely to lead to unnecessary and avoidable problems and even litigation with the insured and their insurance broker.  Few insurance companies want to see 

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Topics: liability certificate, certificate of liability insurance, additional insured, waiver of subrogation, primary wording, cancellation, insurance requirements, liability insurance, insurance limits

2009 ACORD 25 - Are Your Insurance Requirements Obsolete?

Posted by Cary White on Sat, Nov 27, 2010 @ 19:11 PM

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Are Your Insurance Requirements Obsolete?Reviewing a number of issues on the web, I came across a post from David Sullivan, Risk Managers, LLC, in LinkedIn Answers. The changes in the 2009 ACORD 25 have happened. ACORD has discontinued use of previous versions of the ACORD 25 form. Use of previous versions of the ACORD 25 may lead to violation of user licenses with ACORD. While past form changes encouraged by ISO about additional insured endorsements and other issues were slow to be adopted or were ignored, the radical changes in the 2009 ACORD 25 should encourage everyone to review their insurance requirements again from the ground up.  Everyone should carefully review 

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Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, waiver of subrogation, primary wording, insurance requirements, liability insurance, insurance limits

Franchisee Essential Insurance Certificate Compliance Considerations

Posted by Cary White on Thu, Nov 18, 2010 @ 15:11 PM

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Franchises have special risk transfer needs and care should be taken to ensure that everyone is protected as they intend to be.  The essential questions are:

  1. Who is protecting whom?
  2. What protection is desired?
  3. How is that protection evaluated?
  4. What are your procedures to follow up when deficiencies arise?
  5. Who is verifying compliance? (in-house or out-sourced)

Open For Business – Insurance Certificate Compliance Issues For FranchisesCost and ease of use are factors, but scope and quality are also essential.  Ignoring or avoiding the problem is no solution. Whether you choose to go it alone, use insurance certificate compliance software, use an internet based insurance certificate compliance tool, or outsource insurance certificate compliance to your insurance broker or a third party, find a comprehensive solution that will work best for you.

Depending on the franchise business, there are many risks including:  

 

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Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, primary wording, cancellation, insurance requirements, liability insurance, insurance limits, Insurance Certificate Request Letter

Insurance Certificate Compliance Letters & CertainCert

Posted by Cary White on Wed, Nov 17, 2010 @ 15:11 PM

Receive Blog eBook FREEInsurance Certificate Compliance Letters   CertainCertClear and frequent communication is essential for successful insurance certificate management.  Insurance certificate management software simplifies insurance certificate compliance letters and compliance.  CertainCert has automated the creation of custom insurance certificate compliance letters for your use.  Use of these simple letters speeds communication of your insurance requirements, deficiencies when they occur, requests for renewal certificates when required.  CertainCert insurance certificate compliance letters include:

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Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, waiver of subrogation, primary wording, cancellation, insurance requirements, liability insurance, insurance limits, Insurance Certificate Request Letter

All Additional Insured Endorsements Are Not The Same

Posted by Cary White on Tue, Nov 16, 2010 @ 15:11 PM

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Are All Additional Insured Endorsements The Same?Time and again we witness efforts to find a simple excel spreadsheet or other software to manage insurance certificates for one type of business or another. Sadly, most of these discussions focus on who the insured is and the expiration dates of that insured's coverage. Insurance certificate management is much more. There are many pitfalls ad hoc solutions generally do not address, including but not limited to:

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Topics: insurance management software, insurance tracking, liability certificate, insurance certificates, insurance certificate tracking, additional insured, primary wording, insurance requirements, liability insurance, Insurance Certificate Request Letter