Blog

Are you donating your money to an insurance executive?

03.04.10

By Chris Peterie, Swingle Collins & Associates

If your accountant or attorney has created entity structures to protect your business owner’s assets, minimize your risk and help reduce taxes, chances are, you’re not covered.

Here’s why:
The Fifth Circuit Court has ordered that there will not be coverage for
unlisted entities on your policy, period. So for example, if your entity changed from LLC to Inc.,
and you don’t notify your agent of that change, and the revision doesn’t make it to your policy, you’re not covered.
Regardless of what you’re paying in premiums (which I find 95% of the time to be 30-40% too much).

Prove it to yourself. Here’s what to look for on your existing policy:
“No person or organization is an insured with respect to the conduct of any current or past
partnership, joint venture or limited liability company that is not shown as a Named Insured in
the Declarations.”

Now what?
Call your agent immediately and get all of your entities listed so you’re not just donating money to insurance executives (I’m guessing your tax payments and TARP fund donations are enough).


posted by Rachel Meador on 03.04.10 • comments (0) • Risk Management