PAJ received a cease-and-desist order plus notice of a lawsuit from Yurman Design because of an advertisement for jewelry. During an insurance coverage discussion with its agent 15 months after it received the notice, PAJ realized its insurance policy might cover the lawsuit. It immediately filed a claim with its insurance company and requested coverage.

The insurance company denied coverage because of the late notice.

Click here to see how the courts reacted to the denial.

Every Insurance Services Office (ISO) Commercial Lines policy has two different types of conditions. The first group is in mandatory endorsement IL 00 17-Common Policy Conditions. The second group is in the policy coverage form. These conditions explain the actions the named insured is required to take in order for coverage to apply. If those actions aren't taken, coverage may be , and often is, denied.

Click here to review the PF&M analysis of IL 00 17-Common Policy Conditions.

Click here to review the PF&M analysis of CG 00 01-Commercial General Liability Conditions Section

Reporting claims early is vital if an insured wants coverage for a loss. However, some insureds are not sure exactly what to report and when to report it. The Rough Notes magazine archive is an important part of your subscription.

It provides an excellent article that may help you guide your clients in their responsibilities.

Many of your clients may never read their insurance policies! Because of this, they may not know about the conditions section and that could lead to coverage being void. Consider posting the following e-marketing article to alert them of not only the need to notify but also how to notify the insurance company.