Fox Point’s E&O policy is written in language that’s clear and easy to understand. Why is that important?
It is to the benefit of the insured business owner, so that they know exactly what is being covered in language that doesn’t confuse them. Plain language makes the insured more comfortable in reading it.
I have handled many claims where there have been misunderstandings because of the lack of clarity of the policies. It is helpful to everybody concerned to make sure that the policies are easily understandable. It is known to both the insured and the insurer what is covered and what is not covered.
Why are the risk mitigation tools and the hotline Fox Point provides important to the insured?
The risk management tools and the hotline are given to the insureds to help avoid exposure resulting in claims. For example, an insured may have a question about a contract with a client about the scope of work, or they may be concerned about an indemnity clause that shifts a potential risk to their business.
If they consult with us as to risk management and risk mitigation, we may be able to give them insight into how to avoid getting entangled in a possible claim.
What is an “advocacy defense” and how does that benefit insured businesses?
An advocacy defense is defending the insured with respect to a claim or claim situation. We have over 50 years of experience representing insureds in various different professions and situations.
Many insurance carriers do not utilize a legal counsel to initially handle claims. They are handled by claims adjusters, who in many cases are not attorneys. The claims adjusters often have to then go to other outside counsel to deal with situations, which often leads to delays.
As legal counsel we are able to give a much quicker evaluation. In addition, we have a long term relationship with Fox Point. We understand how closely they want to work with and protect their customers.
If there is a claims issue, whether it comes up locally, statewide, or a national basis, we’re able to deal with that rather than having a local attorney with limited experience handling these issues.
We often can resolve matters early without the need for litigation or early in the litigation process, without exposing the insured. Oftentimes many of these resolutions are confidential, so that the insureds don’t have to have long-term impact on their reputation.
Small businesses often don’t have E&O coverage. They may mistakenly think their general liability insurance protects them. Why is E&O coverage important for professionals?
I have heard insureds say thousands of times, “I don’t know anything about this because this is my first claim. I never expected to have a claim. I hope we can resolve this, or I’m afraid I may have to go out of business.”
The threat of a claim against your business can result in significant defense costs, financial losses, and damage the reputation of your business. Having E&O insurance at a reasonable cost not only puts your mind at rest, but protects your business, finances, and reputation from being damaged.
