Nice to see that a government entity is the latest one victimized by a likely non-admitted excess/surplus lines carrier. These \”insurers\” have been allowed to take over a large segment of commercial lines business in the USA and peddle their unregulated garbage. Maybe the States should start to look out for the consumer and the poor agents/brokers forced to sell this crap \’cause nothing good is out there!
It appears that the inept people that were supposed to be watching the store were the ones to drop the ball. The word \”Expired\” looms large here, since it expired in October! How about looking out for yourself?
I have to agree that the issue of admitted vs. non-admitted doesn\’t appear to be the issue here. Assuming that the appropriate notice of non-renewal/cancellation went out, it appears as if the City administrators were willing to assume the risk in exchange for not paying the premium on another three-month extension. In a small town where $14,000 is a lot of money, its tempting to forego coverage that is seen as \”not getting the bang for the buck\”.
Assuming they kept up their Public Officials E & O with sufficient limits it could be said to be a brilliant risk management strategy on the part of this insured as they will surely have to contribute.
Yo, Flashman…how would the City\’s Public Officials E&O policy respond to this loss? Would failure to maintain fist-party coverage for the City\’s own property be covered? The PO E&O policies that I deal with exclude this peril.
First off Chris and Jack\’s comments are on different issues, Jack was talking E&O and Chris says I\’m smoldering over non-admitted market issues. (He\’s probably right – that E & S market truly sucks!) For Jack I\’d say that E & O excludes the failure of the municipal officials to secure insurance, and rightfully so, though no doubt the Town employees were negligent, inept, lazy and incompetant. As for Ken\’s remark that I\’m ignorant – what the hell does he know – I\’ve forgotten more than he\’ll ever know!
How often have I heard this \”never received an expiration notice\” BS? Just as often as \”I never received a bill, so I don\’t know why I just received this cancellation notice\”.
In response to insurance agent/broker, you seem to feel that the admitted market is such a great thing. Well if it is, then why would the town have such an issue with availability? As I am sure you are well aware, the only reason that there even is an E&S market is to fill the void that exists due to the fact that regulators will not allow the standard market the flexability in form and pricing to offer coverage for risks such as this and make a profit.
The insurance consumer has many decisions to make and I would hope that they, in cooperation with a professional agent would evaluate the terms, conditions and pricing of the contract that they are entering into prior to making a decision to purchase coverage. All things in this world a negotiable and if the insured wants to pay for standard market terms and conditions I am quite certain that there are E&S underwriters who would gladly offer them, just remember that there is no such thing as a free lunch and the E&S carrier will certainly get an adequate rate to provide them a profit on writing the risk.
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Nice to see that a government entity is the latest one victimized by a likely non-admitted excess/surplus lines carrier. These \”insurers\” have been allowed to take over a large segment of commercial lines business in the USA and peddle their unregulated garbage. Maybe the States should start to look out for the consumer and the poor agents/brokers forced to sell this crap \’cause nothing good is out there!
It appears that the inept people that were supposed to be watching the store were the ones to drop the ball. The word \”Expired\” looms large here, since it expired in October! How about looking out for yourself?
I have to agree that the issue of admitted vs. non-admitted doesn\’t appear to be the issue here. Assuming that the appropriate notice of non-renewal/cancellation went out, it appears as if the City administrators were willing to assume the risk in exchange for not paying the premium on another three-month extension. In a small town where $14,000 is a lot of money, its tempting to forego coverage that is seen as \”not getting the bang for the buck\”.
Assuming they kept up their Public Officials E & O with sufficient limits it could be said to be a brilliant risk management strategy on the part of this insured as they will surely have to contribute.
What did I miss in this article? Where was the discussion of admitted vs. non-admitted?
Sounds like quite a stretch to vent a personal frustration. Seems like the structure is not the only thing smoldring!!!
Yo, Flashman…how would the City\’s Public Officials E&O policy respond to this loss? Would failure to maintain fist-party coverage for the City\’s own property be covered? The PO E&O policies that I deal with exclude this peril.
Well put Chris & Jack… Insurance Agent/broker is showing his ignorance….
First off Chris and Jack\’s comments are on different issues, Jack was talking E&O and Chris says I\’m smoldering over non-admitted market issues. (He\’s probably right – that E & S market truly sucks!) For Jack I\’d say that E & O excludes the failure of the municipal officials to secure insurance, and rightfully so, though no doubt the Town employees were negligent, inept, lazy and incompetant. As for Ken\’s remark that I\’m ignorant – what the hell does he know – I\’ve forgotten more than he\’ll ever know!
How often have I heard this \”never received an expiration notice\” BS? Just as often as \”I never received a bill, so I don\’t know why I just received this cancellation notice\”.
In response to insurance agent/broker, you seem to feel that the admitted market is such a great thing. Well if it is, then why would the town have such an issue with availability? As I am sure you are well aware, the only reason that there even is an E&S market is to fill the void that exists due to the fact that regulators will not allow the standard market the flexability in form and pricing to offer coverage for risks such as this and make a profit.
The insurance consumer has many decisions to make and I would hope that they, in cooperation with a professional agent would evaluate the terms, conditions and pricing of the contract that they are entering into prior to making a decision to purchase coverage. All things in this world a negotiable and if the insured wants to pay for standard market terms and conditions I am quite certain that there are E&S underwriters who would gladly offer them, just remember that there is no such thing as a free lunch and the E&S carrier will certainly get an adequate rate to provide them a profit on writing the risk.