Preventing reputational damage a PI claim can cause for a FSP.
I just dealt with a claim on behalf of one of my clients and it again just highlighted that short term advisors need to highlight potential reasons for repudiation of claims and discuss this with their clients. (Also applicable to life products)
In this case the client did not have a specific extension under their general liability section. A claim took place and the matter was repudiated. Client alleges broker should have told him. Broker alleges client has the policy document and did not tell him he needed it.
Determination: Broker should have, taking the business activities into account, advised the client of the possible repudiation if the extension is not taken. Broker negligent.
Lesson: Jot down the most common reasons for claim repudiations in a section like general liability for example. Ask your insurers to help. Discuss these with the client at least once and keep on record. Make sure they are aware of all extensions available.