Given the important role that commercial insurance plays in protecting, and sometimes saving, businesses of every size, smart companies pay attention to their insurance applications, insurance policies and other communications from their insurer. The cost of having a competent law firm conduct an audit of a company’s risks and insurance coverage pales in comparison to an expensive lawsuit against an insurance company when a claim is rejected.
An recent case in Alabama provides a good example of the harm that can be caused when policyholders are not careful to make sure they get their insurance coverage right. Late last month, the Alabama Supreme Court issued a verdict that made one thing clear: those who don’t read their insurance-policy applications – and instead rely solely on verbal advice from their insurance agents — run the risk of having their claims denied and their insurance policies cancelled. Continue Reading