Montclair Risk Advisors | Free Tools | Reconstructing Your Insurance History

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Reconstructing Your Insurance History

By Wayne R. Wentz

This Free Tool presents a Claim Response Checklist for manufacturers, hospitals and other organizations to follow. Problem-solving suggestions are provided as a guide to reconstructing one’s insurance history. Mr. Wayne Wentz is the owner of WRW Insurance Consulting Services, an alliance partner of Montclair Risk Advisors. He is an expert in claims archaeology. We welcome Mr. Wentz to RiskConsult.com.

Archive Expired Insurance Policies

Most business owners understand the importance of archiving their expired insurance policies. However, there are a lot of excuses why this may not get done - employee turnover, changes in ownership and bankruptcy, to name a few. One can’t always count on their insurance broker or their insurance companies because they have the same problems.

Bodily Injury Claim Discovery Life Cycle

Insurance policies define a claim as a written demand for money. As illustrated, it can take years between the date the accident or first exposure to an allegedly harmful product or act occurred and the receipt of suit papers.

Number of Years it Takes

Insurance Coverage Block

This span of years will establish how far back you must dig for insurance coverage documents. From the perspective of the insurance companies, this will define the Insurance Coverage Block.

Making Timely Notice of Claims

Aside from paying the premium, just about the only contractual obligation an insured has is to report claims in a timely manner and cooperate with the insurance company. Most insurance policies say that you must report written demands or suits to them immediately. Some policies say that you should report to them events that you think might result in a claim. For example, medical professional liability insurance policies often list death, brain damage, etc. the “Seven Deadly Sins” as events that a reasonable person would assume will become a claim.

Let us now consider some of the problems you are likely to encounter and what measures you can take to overcome them.

Examine the demand letter(s), summons and complaints and other claim documents to determine the dates of exposure and manifestation of the alleged bodily injury.
Assemble the available insurance policy records, including schedules of insurance dating as far back as possible.
Organize a response team comprised of your chief legal counsel, outside counsel, insurance manager or executives responsible for insurance and claims.
Create a list of people or parties who may be of assistance, including:

Your current and previous insurance agents/brokers
Outside legal defense counsel who may have represented you in other claims and suits.
The insurance manager or executives of the former owner of the organization whose product or services you now manufacture distribute or provide.
Former employees and executives who may have retired or gone to work for other organizations.

Compile a preliminary list of insurance policies noting the name of the insurance company, the insurance agency or broker who arranged the policy, the inception and expiration dates of the policy, the limits of insurance provided and, if an excess insurance policy, whether that policy lists the policy below it as an underlying policy.
Consider engaging an insurance archaeologist.
Prepare a claim notification and response strategy.
Obtain the addresses and preferably names of insurance company claim executives and send out claim notice letters which say the following:

Name of the claimant(s)
Date(s) of the alleged exposure, accidental bodily injury
Brief description of illness and its alleged etiology or a description of the alleged accident(s) and product/service involved.
Insurance policy number(s) under which you will seek defense and indemnification.