Owner Let Insurance Laps

[TDAA]

I have just found out that the owner of our small firm let the our liability insurance laps. It is currently being reinstated, with no loss of coverage.

My question is how or could this have impacted me, as a PE working for the company and signing documents? If a claim had been made, would I have experienced more potential liability since there was no insurance at the time?

 

[Ron]

I'm assuming you are referring to your Professional Liability insurance coverage. If reinstated with no gap or loss of coverage, then it shouldn't be an issue. It has happened to me before.

I'm not sure where you are located, but in most states in the US, unless you have a written indemnification from your employer, you can be sued without regard to your firms liability position. Well, actually you can still be sued even if you have an indemnity agreement...they just have to provide defense and coverage for it.

 

[IRstuff]

Of course, Lawsuits101 probably states that you ALWAYS include the biggest pockets you can possibly link to the defendant.

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[msquared48]

What are pockets?

Mike McCann
MMC Engineering

 

[zdas04]

I would make certain that it actually was reinstated (not replaced) with no lapse in service. If they "reinstate" it with another carrier, then unless they bought a bridge policy (expensive) then the new company covers you from the date they bound the policy and the old company no longer has a relationship with you (and won't cover you for the time that they did have that relationship). If it is with the same company, but has a new policy number then you are probably screwed.

There is a way to have the insurance company notify you personnaly of a pending lapse in service. When it gets straightened out I would talk to the insurance agent about implementing that feature.

David

 

[DRWeig]

msquared48:

Pockets = assets, particularly cash. When it's said that some company has deep pockets, it means they can pay a large sum if successfully sued...

Good on ya,

Goober Dave

 

[IRstuff]

I think he was just being...

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[DRWeig]

I think you're right, irstuff.

I didn't pay attention to the handle, my bad...

Goober Dave