Good to know that you have taken the initiative to insure the assets arising from certain named perils.
Whilst we like to believe that procuring an insurance policy provides the protection sought, the reality may not be so. It could turn out to be an illusory coverage for the following reasons:
- Insurance policies provide for many exclusions in their policies. You have not highlighted any of those exclusions.
- It is important to ensure that the insurance company has a superior credit rating to ensure that they have the money to pay for the losses and would not resort to delay techniques or worst still outright rejection of a valid claim on spurious grounds. You have not named the insurance company or its credit rating.
- There have been many cases where due to the negligence of the broker in not arranging a proper insurance coverage, the insured incurs losses due to an uninsured loss which should have been covered if not for the negligence of the broker. An insurance broker is a professional (just like a lawyer, accountant, engineer etc) in the eyes of the law. The broker has a legal duty to ensure that his client gets an insurance policy that meets his client’s requirements. An insured party could recover from the broker losses he incurred which he could have claimed from the insurance if not for the negligence of the broker. In case you are denied an insurance claim due to the professional negligence of your broker, have you ensured that your broker has sufficient Professional Insurance Coverage (including the Limit of Liability) himself to pay for the losses you would be incurring?