Risk Tip: Review insurance policies for consistency

Insurance policy provisions should be uniform as to named insured, notice and cancellation clauses, territory, etc.

Comment: All too often when reviewing policies we find that named insured’s do not match up from one policy to the next, notice and cancellation clauses are not uniform and on and on. We have reviewed thousands of policies and see this all the time. Unfortunately these may go unnoticed until a claim occurs. That’s when the heartache begins. You receive a letter denying or disclaiming coverage – now what?

Bottom Line: The insurance company will go by exactly what is contained in the insurance contract. Arguing intentions with an insurance carrier never really works out too well and can be very costly. If there is more than one entity, make sure they are listed or your contract contains omnibus wording. All notice and territory clauses should be uniform throughout each policy. If any of these clauses do not match up then severe coverage issues may result. Take the time to address it.

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