Industrial Enclosure Corporation (IEC) decided to leave Chubb in favor of Maryland Insurance Group because of pricing. Glenview Insurance Agency recommended the change because IEC was ready to move to another agency unless the pricing was reduced. Because Chubb was unwilling to do so, Glenview offered the alternative Maryland policy.

The very same year 17 inches of rain inundated the insured’s area and IEC sustained damages exceeding $2 million. Maryland initially denied all coverage but eventually was required to pay about half of the loss. IEC realized that Chubb would have paid the entire claim.

IEC sued Glenview because the Maryland policy provided less coverage than the Chubb policy. IEC contended that Glenview breached its duty by not pointing out this particular difference. The courts ruled that Glenview did its job but that IEC also had a responsibility. Their responsibility was to read the policy they had purchased.

Click here for more details on this court case.

Most policies do not have flood exclusions. Instead they have water exclusions and flood is one of the types of water damage excluded. Water exclusions have been revised many times over the years, including the new one just introduced. You might be surprised by what is now excluded.

Click here to review the PF&M analysis of the January 2009 Insurance Services Office (ISO) Water Exclusion.

Inland marine coverage forms and policies often offer the best way to provide a specific coverage to a customer. They are much more flexible than most other lines of business. One particularly flexible product is the Difference In Conditions (DIC) Coverage Form. While earthquake and flood are the two most common coverages offered, this coverage form does much more.

Click here to learn more about the Difference In Conditions Coverage Form.

Many different insurance companies write Differences In Conditions coverage. If your companies won't provide the coverage needed at an affordable price, consult The Insurance Marketplace, a publication of The Rough Notes Company, Inc. for a list of insurers in your state interested in providing DIC coverage on a stand-alone basis.

Click here for a list of DIC markets in the state of Indiana.

Wedding Insurance Coverage is a unique type of insurance. An analysis of several forms that provide this coverage was recently added to the PF&M Specialty Manual.

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.

11690 Technology Dr.
Carmel, IN 46032
800.428.4384
317.816.1000 (fax)

Producer OnLine
Subscribers
LOG IN HERE

West Bend
Producer OnLine
Subscribers
LOG IN HERE

Rough Notes Website

Subscribe or Renew
for FREE to
Rough Notes Magazine