WIN Magazine - Summer 2012 - (Page 21)
ON SUPPLEMENTARY COVERAGES
MPL & Excess/Umbrella Policies
BY RICHARD P. SHEMITIS, CPCU, ASLI
HROUGH THE PAST few years in a tough economy, agents and underwriters have been struggling to increase or maintain premium dollars. The natural inclination is to acquire new accounts in hopes to prosper through increased volume. However, the most successful agents and underwriters look at ways to enhance their current polices with supplementary coverages. This is a good way to not only increase premium but also provide the insured protection for exposures they may not realize. Two lines of coverage that lend themselves to this way of increasing premium are Miscellaneous Professional Liability and Excess and Umbrella. First, let’s discuss the importance of Miscellaneous Professional Liability. This coverage is indispensable for consultants, entrepreneurs and small business owners. Why? One reason is because there are many times these individuals are unaware they are blindly self-insuring some of their exposures by not having proper coverage. This is why it is very important for wholesalers to work with underwriters to provide broad, customizable coverage to meet the unique needs of the customer. Since one size does not fit all, molding Miscellaneous Professional Liability coverage becomes an integral part of policy construction. Options such as claims expenses in addition to limit, first dollar defense, punitive damages, discrimination coverage and copyright/infringement coverage are increasingly becoming the most desired and sought-after provisions in the modern Miscellaneous Professional policy. So how does this tie into achieving increased premium? Easy! As people and businesses become more aware and educated about their various liability exposures, more first-time buyers of Miscellaneous Professional Liability start to enter the marketplace. Additionally, more contracts between the consultant and client are mandating consultants carry Miscellaneous Professional Liability. This means new insurance premium dollars being spent by insureds, resulting in growth for the industry. As added benefits, Miscellaneous Professional Liability coverage reduces an agent’s E&O
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Table of Contents for the Digital Edition of WIN Magazine - Summer 2012
Another Liability Catastrophe in the Making?
The Economy and the Insurance Pricing Cycle 2012: When Good News is Bad News
Capitalizing on Supplementary Coverages: MPL & Excess/Umbrella Policies
Are Your Technology Solutions Enabling Your Business?
NRRA Implementation: What Lies Ahead for Wholesalers and Producers
State Taxation of Non-U.S. Risk Premium
Rick Transfer Techniques for the American Wheat Farmer
Cyber & Reputational Risk Insurance: Past, Present, & Future
In the WIN-ner’s Circle
INDEX TO ADVERTISERS/ ADVERTISERS.COM
WIN Magazine - Summer 2012
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