Meeting the insurance needs of clients who own commercial properties requiring umbrella liability coverage can at times be challenging particularly when they need a new policy or a location added to an existing policy “right away.” It can be even more demanding if clients request a broker backdate coverage because they neglected to advise the broker of a new location or let a renewal lapse in error. Renewals can be also be demanding for agents and brokers, especially when managing so many policies at peak times during the year. This can also result in backdating requests if a binder wasn’t issued because a broker assumed coverage would automatically be renewed. Or, perhaps the renewal was issued but without coverage for additional locations that were acquired prior to the policy’s effective date. Agents and brokers may ask that coverage for these locations be added to reflect when they were actually acquired.
In each of these cases and others, it’s important to note that backdating coverage is not an option. Clients should be advised of the critical importance of adding new locations to an umbrella policy when they acquire them and that any locations not included will be added but coverage will go into effect on the date that it is added.
Also, binder issuance on a timely basis is critical to facilitate policy processing and securing insurance on the date requested. Sending complete and accurate submissions along with any other pertinent information (loss runs/letter with a new account) before the effective date of coverage to Distinguished’s underwriters for quoting or premium indications is essential in order to bind coverage – whether it’s for a new policy, a renewal or adding a location to an existing policy.
If you have any questions about Distinguished’s submission and policy processing, please feel free to contact us. We want to ensure that clients are properly insured at all times.