Bring Your Insurance Policy to the Tailor, So Your Insurance Company Doesn’t Take You to the Cleaners

Insurance Coverage Law Report

PUBLISHED ON: December 4, 2013

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For decades, insurance companies have sold insurance using “manuscripted” policy forms that they claim are specially tailored to their policyholders’ needs. But are your “bespoke” insurance policies truly as well-tailored as they could be?

For example, the business interruption insurance provided under most standard property policies is triggered by direct physical loss or damage – either to the policyholder’s own
property or to another’s property that impacts that policyholder’s business income. But there are many significant risks of business interruption losses that could occur without any clear-cut “direct physical loss or damage,” which is why many savvy policyholders, consultants and insurance brokers seek out manuscripted wording to unambiguously address and cover such risks.