While the insurance industry gets a bad rap—and sadly all too often with good reason—you probably usually feel good about knowing you have coverage in place in case something goes wrong, resulting not only in injury but sometimes opening you up to enormous liability too. There is also the possibility that expenses for such a loss could be catastrophic to your finances. Because of that, most of us are relieved to have insurance and the accompanying peace of mind, despite high premiums and the long list of complexities that accompany many policies.
Getting educated about what you need is critical. Although your insurance agent may be able to explain all the details to you, researching different types of coverage and features included in varying policies will benefit you greatly; for example, you may not understand the differences between the occurrence policy and the claims-made policy. The occurrence policy protects you with coverage even if a claim is made later after your policy has been terminated—as long as the claim is regarding an incident that occurred while your policy was in force.
And although you may be tempted to cancel your claims-made policy due to issues such as the need for broader coverage or better service from your insurance company, keep in mind that there are benefits to the claims-made policy that you may miss out on later; for instance, although the claims-made policy usually states that any claim must have happened during the time the policy was in effect only, there is exception to this with the extended reporting period.
Commonly referred to in the insurance industry as a ‘tail,’ you can purchase an ERP as an endorsement with your policy that may last anywhere from one to five years, or sometimes even as long as ten—and although it may be more expensive than the basic policy, it can be extremely effective for professionals like doctors in the case that a malpractice suit or other claims are brought forth after the policy expires. The ERP may also be referred to as optional or supplemental or be listed as a ‘discovery period.’ They may also be included in your original policy, but only for the very short term such as 30 to 60 days.
If you need help reviewing your insurance policy, or if you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm. If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!