How to protect yourself while best servicing your clients:

Communicate to your clients that they should review their limits and assess if they are sufficient for their risk. While you can offer guidance, refrain from recommending specific limits or making any statements confirming that the limits provided are adequate to respond to a claim.

Be cautious when using insurance-to-value tools. They may be outdated and not reflect current conditions.

Offer multiple limit options. Have the client acknowledge that additional limits were offered, and they have independently chosen the option that they feel best meets their needs. Be particularly cautious when a client is reducing limits.

Use disclaimers on your coverage proposals.

Document discussions regarding limits in your file. Further reinforce them with a written communication to the client reiterating the conversation.

Looking for more info? We offer a number of risk management articles that expand on insurance to value, disclaimers, and documentation – all available through the Customer Care portal.

This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues.