Energy On The Offensive #039 - Policy Limit Settlements On BS Cases

Insurance is worthless paper until you have a claim.

This insurance carrier, which will remain unnamed (email me if you want to know who), writes the primary coverages and umbrella. In all three examples I have, this insurance company is covering these companies for $6M. All three cases get settled for $6M. Then, the company is non-renewed, leaving them to scramble for affordable coverage, facing down the barrel of this large, unpreventable claim on their loss history. In two out of the three cases, the payout should be $0 or close to it. One case has some negligence but is not worth anywhere near $6M.

Great at taking money but terrible at handling liability claims.

A lot of insurance companies are great at taking your money, but when the rubber hits the road, and a severe claim happens (at fault or not), they suck at proactively managing the case. There is a short list of insurance companies that handle liability cases well from my experience. I know getting the best price for insurance is important but pick your insurance partner wisely because they have the ability to severely disrupt your business.

An insurance partner who sits back, waiting on the plaintiff’s attorney to make every move, who won’t proactively spend money to prepare a strong defense, and who has a losing, no-win culture is dangerous to your business.

We use an accident checklist to hold insurance companies accountable in the management of our client’s liability claims. Reach out to receive a copy and discuss who your insurance partner is.