Employer liability insurance has long been in place, even though it has now largely been superseded by workers’ compensation. Liability insurance protects employers in instances where Part I of the worker’s compensation policy does not. If a claim is denied, there may still be a way for you and your Costa Mesa employment law attorney to convince the insurance company to reconsider.
Use Your Broker
Brokers universally assist companies that have hired them to secure liability insurance. Their motivation is that this is part of their job; they have already been paid to provide assistance in the form of the commission they were paid.
Many brokerages maintain claims advocates whose primary function is to assist insured companies when a problem regarding coverage arises. You can be assured that your broker knows what kinds of information need to be provided to prove your coverage. Indeed, often an issue arises simply because of a misstatement in the claim. Brokers also know the proper policy forms and language to be used to successfully prove coverage.
Insurance Market Cycles
Your Costa Mesa employment lawyer can attest that the insurance market moves through cycles. As such, the willingness of insurance companies to accept claims that are less than rock solid tends to vary depending on the point in the cycle.
- Hard markets: A hard market is one which favors the insurance company. In a hard market, money tends to be tighter and coverage more difficult to obtain. Thus, liability coverage is more expensive, and the insurer is more likely to enforce the language of a given policy; and
- Soft markets: A soft market, on the other hand, is one in which either more capital is available or there are more entrants in the market. Thus, coverage is easier to obtain, and the broker is more likely to be able to convince the insurance company that a claim is valid which in a hard market would be denied.
If You Need Legal Assistance
If you are an employer, it is very important that you have insurance coverage to protect your company from costly liability claims. Call a Costa Mesa employment law attorney today to arrange a consultation. Call Daily Aljian, LLP at 949-861-2524.