(216) 609-3940
SandRun Risk
  • Home
  • What We Do
    • Risk Management
    • Insurance Claims
    • Insurance Archaeology
  • Blog
  • About
    • Team
    • Our Company
    • Articles
  • Contact

 Top 10 Reasons Insurance Companies Claim They Don’t Have to Pay            Environmental Claims Under Historic Insurance Policies and the    Policyholder’s Response (with a little humor thrown in)

1/2/2018

0 Comments

 
Picture
​For the past 30 years, policyholders and insurers have been fighting over insurance for environmental contamination. This list of helpful tips is a good review of lessons learned.
  1. Insurance Company Claim: “That was a one year policy issued in 1955.  It expired over 50 years ago.”
    Policyholder Response: “Comprehensive General Liability policies written on an occurrence form are ALWAYS IN EFFECT to cover costs of cleaning up environmental releases that occurred during the policy year.”
  2. Insurance Company Claim: “You’ve got the wrong carrier. We’re just the American division of a Bahamas subsidiary of a Swiss holding company wholly owned by a Bermuda “partnership” managed out of Hong Kong."
    Policyholder Response: “In periods of consolidation, the merged carrier succeeds to the liabilities of the predecessor.  For example, Travelers Insurance Company responds to Aetna Casualty and Surety Company claims. Even insolvent carriers may pay something through the state guaranty fund.”
  3. Insurance Company Claim:  “Do we know you?  We don’t see your name on any of our policies.”
    Policyholder Response: “Companies that have grown by acquisition succeed to the insurance rights of the predecessor company.”  
  4. Insurance Company Claim:  “We’re too busy investing your premiums to pay your claims.”
    Policyholder Response: “Carriers have lots of money and have shown record profits. They like to play the “delay game” to avoid paying claims. They cannot act in bad faith."
  5. Insurance Company Claim:  “That’s not an insurance policy.  That’s my first grader’s art project.”
    Policyholder Response: “Policyholders can reconstruct lost policies using secondary evidence.”
  6. Insurance Company Claim:  “Our mission statement states that all claims must be denied for one reason or another. If the first reason doesn’t work, we’ll find another.”
    Policyholder Response:  “Policy language is subject to interpretation. State-by-state law differs on key policy provisions including the pollution exclusion, number of occurrences, trigger of coverage, etc.”
  7. Insurance Company Claim: “Our counselors at the Psychic Friends Network advised us not to pay.”
    Policyholder Response:  “Insurance companies hire coverage lawyers so be prepared to retain your own coverage counsel to match analysis with analysis. Don’t be impressed with technical defenses. Late notice of the claim is often raised with little merit.”
  8. Insurance Company Claim: “Make me!” 
    Policyholder Response:  “Almost always, a negotiated settlement gives a better overall result than litigation. It’s faster, less stressful, money goes to the policyholder, not lawyers, and long-term relationships are fostered. Sometimes litigation is necessary, so choose favorable jurisdictions when at all possible.”         
  9. Insurance Company Claim:  “The policy limits were in pesos.  Our printers do not print checks with that many zeros after a dollar sign.”
    Policyholder Response:  “Claims are larger than you think.  Be sure to include all past costs, known future costs and the value of contingent liability assumed by a policyholder.”
  10. Insurance Company Claim:  “You didn’t say PLEASE.”
    Policyholder Response:  “Present the claim in a manner that reflects the policy language and the law in the state. Know the insurance carrier’s propensity to settle, and their decision-making structure internally.”
0 Comments



Leave a Reply.

    Authors

    Lori Siwik and Mark Siwik are the founders of SandRun Risk.  They apply the principles of vertical leadership and lean six sigma to the discipline of risk management.  From time to time they share their blog with guest authors who write about important risk management principles.

    Categories

    All
    Insurance Claims
    Mergers And Acquisitions
    Risk Management

    Archives

    March 2023
    February 2023
    May 2022
    December 2021
    September 2021
    August 2021
    July 2021
    June 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    June 2017
    May 2017
    March 2017
    December 2016
    November 2016
    October 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    June 2015
    May 2015
    April 2015
    March 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    May 2014
    April 2014
    March 2014

    Categories

    All
    Insurance Claims
    Mergers And Acquisitions
    Risk Management

    RSS Feed

What We Do.

Risk Management
Insurance Claims
Insurance Archaeology

Blog.

About.

Team
Our Company
Articles

Contact.

Legal.

Privacy
Terms of Use
 
Copyright ©2014 | 4199 Kinross Lakes Parkway, Ste. 275 Richfield, Ohio 44286 | 216-609-3940 | [email protected]