Read Your Insurance Policy On Receipt To Save Headaches
Your insurance policy equals a contract between you/your company and your insurance carrier. This applies to Workers Comp policies even though they are usually more state-regulated than liability policies.
Three questions asked over the last two weeks that applied to an insurance policy made me decide to step outside of Workers Comp a little.
Using a highlighter, whether electronic or the one in your desk drawer, go over any policy line by line, word by word. I did this with an auto policy last weekend. Watching grass grow seemed more exciting. However, I did find a mistake in one of the policies, so I felt vindicated in reviewing the policy.
Our Workers Comp consultant interns initial training requires the college student to read all of our policies along with the various endorsements. Yes, I do not read the one for the businesses, the interns read them over. They learn bucket-loads of knowledge. Many compile a list of questions to ask me. So, if our interns can read them, someone can read them in your offices or at home for personal policies.
For instance, the Proof of Loss policy requirements generate so many misunderstandings. Yes, a claim must be filed immediately. However, almost all carriers in all states require a Proof of Loss in 60 days. FEMA provides a great explanation for Proof of Loss here.
A summary is:
A Proof of Loss is a policyholder’s statement of the amount of money being requested, signed to and sworn to by the policyholder with documentation to support the amount requested. It is important to understand the Proof of Loss is not the claim.
On a side note, I decided to become FEMA flood certified this year to handle FEMA NFIP claims.
Your Workers Comp insurance policy requires no Proof of Loss. However, you should read the policy front to back or as recommended in this blog back to front. The Declarations Page counts as a few pages. The Dec Pages do not count as the whole policy. Also, read the Endorsements on your Work Comp insurance policy as you receive them throughout the policy year.
Always call or email (my recommendation) with questions on your insurance policy.
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