Maximize Insurance Coverage: A Single Carrier Provides 4 Key Advantages
Professional liability (PL) and general liability (GL) — distinct and vitally important lines of coverage for any professional services firm. However, maintaining the two coverages with two separate carriers may not be the best way to protect against claims. Here are four key advantages you have when PL and GL are under the same carrier, providing the best shelter from the storm.
1. Provides Coverage Consistency
There are instances when your PL and GL policies could be triggered by the same claim, yet GL policies carry a rider that excludes professional services — a difficult catch-22 for design and construction professionals. When you place both policies with the same carrier, claims resolution can proceed more quickly because it’s not a question for you or your carrier of, “Is this covered?” but rather a more simple question of where the claim resides.
With that in mind, one carrier for both policies means ease of document transfer — which equals greater digital security for information and data. Two separate carriers for GL and PL, and the information transfer that inevitably goes with it, creates significant leakage points for confidential documents to fall into the wrong hands.
A single point of coverage also allows for consistency in shared defense counsel, indemnity costs, and an easier pro rata determination on which policy covers which percentage of a claim — no wrangling necessary.
2. Fosters Collaboration, Not Conflict
One PL/GL carrier means one common goal. Thus, there’s no infighting or conflict from two carriers over who covers what from the same claim. A single carrier instantly quashes “hands off, not me” debates, or both sides putting a magnifying glass to “other insurance” language in individual PL or GL policies.
3. Streamlines State Guidelines
In each state, admitted carriers are licensed to write policies for specific coverage lines, and regulated as such regarding their business practices, ethics, and consumer protections. Other carriers provide excess and surplus lines — coverage your business may need, but isn’t offered through a state-regulated admitted carrier. Maintaining your PL and GL coverage through the same carrier eliminates any complications that may crop up from separate carriers in multiple states — or even ones operating in the same state but under different state rules. That consistency can create less confusion and greater peace of mind for you and your business in the event of a claim that triggers both PL and GL policies.
4. Creates Stronger Carrier-Client Relationship
Finally, merged PL/GL coverage with a single carrier lessens financial “speed bumps” driven from a single claim. Further, it creates a greater pool of premium for your business that strengthens the value of your carrier-client relationship over time.