Important Claims Information: Factors to consider when moving coverage from an incumbent insurer
The purpose of this document is to highlight important policy provisions to consider when moving coverage from an incumbent insurer. Given that the majority of professional and executive liability policies are written on a “claims made” basis – meaning that the policy must be in effect when the claim is made – strong consideration is given to maintaining the coverage with the incumbent insurer(s) on renewal. But there are times when it is prudent or necessary to move coverage to new insurers. While we cannot discuss every potential situation in this document, irrespective of the situation, there are four foundational policy provisions which
must be evaluated when moving coverage from one carrier to another: (1) Continuity of Coverage, (2) Prior Notice Exclusion, (3) Notice Provision, and (4) Discovery / Extended Reporting Period.