All insurance policies contain exclusions. Depending on the business and the types of claims that occur, unknown exclusions may serve to contribute to the failure of the business. Unfortunately, insurance agents often overlook or wrongly assume that an exclusion does not apply to their client. Either the agent does not understand their client’s business. Or, the agent simply does not take the time to educate their business owner.
This is a colossal mistake on the part of an agent. It is simply not serving the interest of the client. More importantly, it would certainly lead to the denial of a claim.
The proper approach is for the insurance agent to review each exclusion. When appropriate, he or she can discuss with their client the impact of the exclusion. In addition, the agent should provide solutions to lessen the impact of any exclusionary language.
It is too late to remedy an exclusion that is discovered when the claim is filed.