David and Joseph were really bored and decided to see just how far a flicked lit match could travel. Unfortunately, this little game caused Largay’s grocery to burn down. Largay’s insurance carrier paid the loss and then sought recovery from David’s mother’s homeowners policy.

The home owner's carrier denied coverage, not because the fire was set intentionally, but because David and Joseph were employed as stock clerks at Largay’s when they caused the loss.

The homeowners policy excludes losses involving business pursuits and, even though David wasn’t pursuing business very hard (or at all), the accident occurred during his work shift.

Largay's insurance carrier sought recovery from David’s mother’s homeowners policy because it includes David as an insured. The liability coverage section of the policy is very clear as to who is and who is not covered. Small differences can and do make a big difference.

Happy and sad events can change the status of an insured on a homeowners policy. When you receive a wedding or graduation announcement, do you tell your customer that his or her coverage should be reviewed? Have you pointed out that children no longer qualify as insureds once they are out of college and no longer living at home? How about the implications of having an adult child move back into the house and once again being an insured under the policy?

The Homeowners ACORD form does not ask any questions about your client’s potential insureds but the Producer's Personal Lines Risk Evaluation System does. It could be your key to discovering your client’s uninsured exposures.

ACORD revised a number of their forms in January of this year. Have you taken the time to review the changes made in the following forms?

Property Loss Notice
General Liability Notice of Loss/Claim
Auto Loss Notice
Workers Compensation - First Report of Injury

Have you found what you need in the Producer OnLine? Is there a classification
to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

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