Comments on: Missing your Tail? http://www.pltidbits.com/2009/08/missing-your-tail/ For the Insurance Professional in the Know Sun, 14 Mar 2010 21:07:44 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Chris Christian http://www.pltidbits.com/2009/08/missing-your-tail/comment-page-1/#comment-245 Chris Christian Mon, 12 Oct 2009 03:50:39 +0000 http://www.pltidbits.com/?p=266#comment-245 Thanks, Cary. Thanks, Cary.

]]> By: Cary W. White http://www.pltidbits.com/2009/08/missing-your-tail/comment-page-1/#comment-238 Cary W. White Thu, 01 Oct 2009 06:23:01 +0000 http://www.pltidbits.com/?p=266#comment-238 This is a terrific post Chris. Thank you for bringing this issue to light. It is only through the discovery of inequities such as this, communication, education, and the request of a sufficient number of clients and key brokers like you that such things are changed. Keep up the terrific work! This is a terrific post Chris. Thank you for bringing this issue to light. It is only through the discovery of inequities such as this, communication, education, and the request of a sufficient number of clients and key brokers like you that such things are changed.

Keep up the terrific work!

]]> By: Chris Christian http://www.pltidbits.com/2009/08/missing-your-tail/comment-page-1/#comment-231 Chris Christian Tue, 01 Sep 2009 18:34:02 +0000 http://www.pltidbits.com/?p=266#comment-231 Such a patchwork quilt of options, isn't it, Bruce? It would be nice if the standard/preferred underwriters of all classes of business where the professional has personal liability would figure out how to address this challenge. I feel really bad for the retired professional that all of a sudden comes to my agent with no tail and is concerned for his/her security. That's not how anyone anticipates spending their golden years. Such a patchwork quilt of options, isn’t it, Bruce? It would be nice if the standard/preferred underwriters of all classes of business where the professional has personal liability would figure out how to address this challenge. I feel really bad for the retired professional that all of a sudden comes to my agent with no tail and is concerned for his/her security. That’s not how anyone anticipates spending their golden years.

]]> By: Chris Christian http://www.pltidbits.com/2009/08/missing-your-tail/comment-page-1/#comment-230 Chris Christian Tue, 01 Sep 2009 18:31:52 +0000 http://www.pltidbits.com/?p=266#comment-230 Hi, Steve. I know that any given in-force policy does tend to cover former/retired partners, but I've not yet seen a tail provision that would survive the cancellation or lapse of the policy. I've seen it in accountants' forms and med mal, and one of my other readers indicates it is available in some lawyers professional. But it strikes me as a shortcoming in the industry that the *individuals* continue to have personal liability until they're in the grave, and there is not an elegant solution to providing coverage for them that coincides with their exposure. For non-standard risks, I wouldn't think it would be a possibility. But for the preferred risks, you'd think *somebody* would come up with a solution, eh? Hi, Steve. I know that any given in-force policy does tend to cover former/retired partners, but I’ve not yet seen a tail provision that would survive the cancellation or lapse of the policy. I’ve seen it in accountants’ forms and med mal, and one of my other readers indicates it is available in some lawyers professional. But it strikes me as a shortcoming in the industry that the *individuals* continue to have personal liability until they’re in the grave, and there is not an elegant solution to providing coverage for them that coincides with their exposure. For non-standard risks, I wouldn’t think it would be a possibility. But for the preferred risks, you’d think *somebody* would come up with a solution, eh?

]]> By: Bruce R. Swicker http://www.pltidbits.com/2009/08/missing-your-tail/comment-page-1/#comment-219 Bruce R. Swicker Fri, 21 Aug 2009 21:18:46 +0000 http://www.pltidbits.com/?p=266#comment-219 Chris - There are a few LPL markets that provide this. The Hartford does on their small firm policy (NOT to be confused with their really, really, REALLY small firm policy, generally tacked onto a BOP), as does Allied World, Valiant, Chicago, and probably a couple of others. Sometimes the right of an individual insured to purchase tail coverage is subject to named insured's failure to do so, so it might not be a perfect option, but it often can be done. I have also had circumstances where an underwriter has agreed to offer an individual tail, even though it is not expressly provided for within the policy. Chris -
There are a few LPL markets that provide this. The Hartford does on their small firm policy (NOT to be confused with their really, really, REALLY small firm policy, generally tacked onto a BOP), as does Allied World, Valiant, Chicago, and probably a couple of others. Sometimes the right of an individual insured to purchase tail coverage is subject to named insured’s failure to do so, so it might not be a perfect option, but it often can be done. I have also had circumstances where an underwriter has agreed to offer an individual tail, even though it is not expressly provided for within the policy.

]]> By: Stephen http://www.pltidbits.com/2009/08/missing-your-tail/comment-page-1/#comment-218 Stephen Thu, 20 Aug 2009 12:46:02 +0000 http://www.pltidbits.com/?p=266#comment-218 Chris, Most A/E policies do to extend coverage to retired or former employees. Most of the time a named insured includes former officers, directors, employees, etc... You did raise one important issue though and that is what happens if their former firm drops their coverage or goes out of business? Then there is no coverage for these individuals who placed their own personal seal on the drawings. Since there is currently no product that address this coverage gap it something best addressed in some form of contract between the employee and employer. Of course that may not carry much weight if the firm goes bankrupt. Stephen Chris,

Most A/E policies do to extend coverage to retired or former employees. Most of the time a named insured includes former officers, directors, employees, etc… You did raise one important issue though and that is what happens if their former firm drops their coverage or goes out of business? Then there is no coverage for these individuals who placed their own personal seal on the drawings. Since there is currently no product that address this coverage gap it something best addressed in some form of contract between the employee and employer. Of course that may not carry much weight if the firm goes bankrupt.

Stephen

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