Multiple Insurance Policies Covering a Single Claim
In this post, Brian Friel wraps up his series The Ten Biggest Mistakes Made By Corporate Insurance Policyholders, discussing how multiple types of insurance policies can cover a single claim.
When a claim comes in, it is important for corporate policyholders to look at all potentially applicable insurance policies, which include not just the most obvious kinds of coverage. Multiple insurance policies typically cover a single claim. The reason for this is that lawsuits often allege more than one thing. Within a single claim, certain allegations may trigger D&O (Director and Officer) coverage, others may fall under E&O (Errors and Omissions) coverage, while others may trigger EPLI (Employment Practices) coverage. More often than not, a claim will extend into multiple lines of coverage, effectively multiplying the potential coverage. Insurance policies are complex, and the law controlling coverage even more so. What corporate policyholders do early in the claims process is critical.
Watch the video to learn more.