E&O Risk Management
and the Coronavirus (COVID-19)
A Message from Swiss Re
Corporate Solutions
You are all very aware of the events of the last several weeks and the
Coronavirus. We are not health experts and there are many others more
qualified to give you that advice. We CAN, however, give advice regarding how
to reduce the likelihood of an errors and omissions exposure as a result of
this event. We have already become aware of some attorneys who are trying to
take advantage of this situation for monetary gain against insurance agents.
Our advice during this event is no different from what we have said in the
past. If your agency has developed good practices, you will be better
positioned to avoid problems. Here are the practices of a good insurance
agency:
· DON'T MAKE CLAIMS
DECISIONS! Let the insurance carriers do that.
· DON'T ADVISE YOUR
CUSTOMERS IF CORONAVIRUS related claims are COVERED OR NOT!
Let the insurance carriers do that. Please see sample letter for your use.
· If a carrier takes the position that losses arising from the Coronavirus
are not, or may not be covered, do not engage in advocacy asserting that
"We thought it was covered..." That will simply be used by your
client to prove that you knew the client wanted coverage for perils like the
Coronavirus, but you failed to procure coverage.
· Report all claims and potential claims to EACH AND EVERY CARRIER that could
potentially have a policy that could apply. This includes CGL, Personal
lines, Umbrella, Excess, Workers Compensation, Specialty and any other policy
in place for your customers.
· USE THE RESOURCES
PROVIDED TO YOU BY THE IIABA. Follow this link to the Big "I" Coronavirus
resource page. It is a valuable resource for you, your staff and your
agency that provides many sources of information.
· Be empathetic, but don't tell anyone that something is covered or not. You
can continue to tell them you feel sympathy for all affected by the
Coronavirus, but customers MUST report a claim to their insurance carrier to
determine if there is any coverage for the event.
· Remember, if you executed an agency agreement with one or more insurance
companies, you MUST report all claims or potential claims as required by that
agreement, even if your customer tells you not to do so.
· Maintain vigilant contact with your insurance carriers to determine what
action THEY want you to take.
· DOCUMENT, DOCUMENT,
DOCUMENT! This continues to be the foundation of sound
E&O risk management. DOCUMENT EACH AND EVERY TELEPHONE CONVERSATION,
EMAIL, TEXT, TWEET, OR ANY OTHER TYPE OF COMMUNICATION WITH YOUR CUSTOMERS!
· Assume that any telephone conversation with your customers or carrier claims
representatives ARE BEING RECORDED. While some states prohibit recording of
telephone conversations without advising that they are doing so, IT DOESN'T
STOP SOME PEOPLE FROM DOING SO.
· If you use social media for your business, make sure it is up to date! Do
not make any promises that something may or may not be covered by insurance
companies and policies.
· DO NOT GIVE ANY
STATEMENTS, RECORDED OR OTHERWISE, WITHOUT FIRST CONTACTING YOUR E&O
PROVIDER. The Swiss Re Corporate Solutions/Westport Insurance
Company/First Specialty Insurance Company claims staff are available if you
have any questions about any communications you receive.
· If you have a conversation with your customer that leads you to believe
they may be fishing to make a claim against you, DO NOT HESITATE to contact
our claims department. Please use this Westport claims form to report a claim or
potential claim to Swiss Re. If any other carrier, please review your
policy form for claim reporting instructions or contact me directly should
you need additional direction.
· DON'T MAKE CLAIMS
DECISIONS! DON'T ADVISE YOUR CUSTOMERS IF SOMETHING IS COVERED OR NOT!
Let the insurance carriers do that. We know this was stated before, but it
must be ingrained in your mind.
· If the Coronavirus ends up being declared a "catastrophe" by the
ISO Property Claims Service, you may be eligible under your Westport policy
for "Cat Extra Expense" benefits:
"CATASTROPHE EXTRA
EXPENSE. We will pay up to $25,000 per catastrophe subject to
a per POLICY PERIOD aggregate limit of $50,000 for the actual extra expenses
incurred by you as a result of a catastrophe during the POLICY PERIOD
beginning on the date of a catastrophe and for thirty (30) days thereafter.
The extra expense incurred must be incurred by you only to assist in the
insurance claims processing needs of your customer(s) who have been affected
by the catastrophe. The catastrophe must be a declared catastrophe by the
Property Claims Services. A $500 deductible for each catastrophe shall apply.
Limits provided by this paragraph are part of and not in addition to the
limits provided by this POLICY."
We hope that this will help you as this event progresses. If you should have
any questions, please let us know.
This article is intended to
be used for general informational purposes only and is not to be relied upon
or used for any particular purpose. Swiss Re shall not be held responsible in
any way for, and specifically disclaims any liability arising out of or in
any way connected to, reliance on or use of any of the information contained
or referenced in this article. The information contained or referenced in
this article is not intended to constitute and should not be considered
legal, accounting or professional advice, nor shall it serve as a substitute
for the recipient obtaining such advice. The views expressed in this article
do not necessarily represent the views of the Swiss Re Group ("Swiss
Re") and/or its subsidiaries and/or management and/or shareholders.
Copyright 2020 Swiss Re
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Big "I"
Announces Free "Coronavirus (COVID-19): Does Business Income
Respond?" Webinar
Does ISO's Business Income
policy respond if a business shuts down because of the coronavirus? What
happens if the authorities require the business to close?
There is a short answer to these questions, but it's not necessarily a simple
answer. The Big "I" is addressing this major insurance concern in a
free 25-minute webinar, "Coronavirus (COVID-19): Does Business Income
Respond?"
The webinar is being offered both on-demand and online each day at 1:30 p.m.
EDT now through Tuesday, March 31st. Click
here to watch the webinar immediately, or click
here to register for a date that fits best with your schedule.
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