When Self-Reliance is not a good thing….

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Although self-reliance is often touted as a critical component of maturity and success, there’s one time it’s definitely out of vogue — when an insured does not report claims to their carrier.

This Thursday’s Knowledge Knugget is an examination of a current situation with one of my prospective insureds and their agent.  The insured likes to have their attorney handle their EPL claims, and they don’t turn them in to the carrier.  Subscribe to Knowledge Knuggets and get the inside scoop on this recipe for disaster!

3 Comments

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  1. An interesting post. I am curious if the insured through its agent approached their carrier to get the EPL attorney on the carrier’s approved counsel list?
    Also, if they want to handle the EPL claims, does their risk-financing plan mirror their claim handling tactic?

  2. Thanks for your comment, Michael.

    The insured did get the attorney approved, but I believe their risk-financing leaves something to be desired.

    I was contemplating that perhaps the attorney charges the insured his “normal” rates, which are no doubt higher than what the carrier will agree to pay, and if that’s where the motivation for this approach derives. I suspect the attorney could garner himself a malpractice claim, too, if this was his idea, or if he’s the one who makes the decision about when to submit to the carrier and he does indeed jeopardize coverage, especially to enrich himself. Interesting situation. Probably not as unusual as I would hope.

  3. Thanks for your comment, Michael.

    The insured did get the attorney approved, but I believe their risk-financing leaves something to be desired.

    I was contemplating that perhaps the attorney charges the insured his “normal” rates, which are no doubt higher than what the carrier will agree to pay, and if that’s where the motivation for this approach derives. I suspect the attorney could garner himself a malpractice claim, too, if this was his idea, or if he’s the one who makes the decision about when to submit to the carrier and he does indeed jeopardize coverage, especially to enrich himself. Interesting situation. Probably not as unusual as I would hope.

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