Did you know there are "restrictive clauses" and "warranties" in your insurance policy that require you to call and notify the insurance company. Insurance policies are complicated and difficult to read and understand.  Unfortunately the "restrictive clauses" and "warranties" are still in effect and can cause coverage gaps if you don't abide by them. Policyholders need to know when to pick up the phone and call your agent so we can notify the insurance company. Here are some suggestions:

 

When you have a claim- It's imperative to call our office if you have any knowledge of a claim.  

 

Liability claims where someone is injured are the most serious. Here's why. General Liability policies and Directors and Officers Liability policies all require written notice of any claim in the policy you purchased. A claim that is not reported could result in the insurance company either denying the claim entirely or reserve their right to defend. We always warn policyholders to never negotiate any settlement with the claimant. You can jeopardize your coverage.

 

Property claims should also prompt you to make a phone call to our claims department. Sometimes small claims become bigger claims. It is always a good idea to report the incident especially if it involves water damage and potential mold. Never repair the damage before the insurance company does their inspection. If emergency repairs are necessary it is always a good idea to document everything and take photos. The adjuster will want to see what caused the claim to determine coverage.

 

Fire Protection Systems don't operate- If you have a sprinkler system in your building or a fire detection system that does not operate or is under renovation you should call our office. The insurance company gave you a credit for fire protection but they also may have added a warranty to your policy that says if your sprinkler system or fire detection equipment does not operate and there is a claim the loss will be denied.

 

Construction Repair Work- When your building is being repaired you should call our office. Typically we will want to see if there is a construction agreement protecting the building and also verify that the contractor has correct insurance. Is is also important that we notify your insurance company. They may want to send their loss control representative to visit the site. The renovation could mean the sprinkler and fire protection is temporarily shut off which also requires a call to the insurance company.

 

Vacancy- In these tough economic times there are more and more associations are discovering they have vacant units either due to bank foreclosures or the owners having left the premises without notice.  Don't assume that you are covered if the insurance company is unaware of the situation. All insurance policies have vacancy clauses that either restrict or eliminate coverage. As a rule of thumb if one third of the building is empty call our office.