PUBLISHED ON: April 9, 2020
Get ready to give notice to your insurance in April. If you are an insurance broker, you’re going to be busy. Here is a brief explanation and five reasons why policyholders should put their insurance on notice now.
April is the big month because most COVID-19 losses commenced in March. After taking necessary precautions and other immediate actions following the coronavirus outbreak, then following orders to shut down nonessential businesses, policyholders are now assessing their business options and making insurance claims. Many will feel obligated to make claims now because of policy provisions that demand notice be given within an abbreviated timeframe following a loss. But everyone should do so and here are five reasons why:
1. Disclaimer of pre-notice losses. Some insurance companies may seek to disclaim losses that arose before notice was given. This position is commonly taken by insurance companies, even when they agree to cover a claim. Pre-notice losses are easy discounts that insurance companies readily take....