Risk Management News & Reports

Below is a collection of important news and reports vital to protecting your company from risk.
Please check back frequently to stay abreast of all the current industry news..

50 Ways to Leave No Cover by Randy Spencer

Risk Intelligence Blog

With Valentine’s Day just behind us, Randy Spencer has his own take on Paul Simon’s “50 Ways to Leave your Lover”.

Did Randy (our favorite insurance company-side lawyer) let the cat out of the bag?  Methinks so.  All in fun of course (but not so humorous if caught in one of the truths behind the comical verses)!

50 Ways To Leave No Cover by Randy Spencer (Randy.Spencer@coverageopinions.info)

The problem is all inside your head

she said to me

People paid for a liability policy

And now your desk has paper in piles

And people screaming about

upcoming trials

The answer is easy if you take it


Just close those files and set yourself


I’d like to help you in your struggle

With those large loss reports that you

must juggle

There must be fifty ways

To leave no cover

Your notice was late Kate

And then you didn’t cooperate

That’s not an occurrence Terrence

It’s impaired property Lee

You furnished alcohol Paul

You intended that Matt

We’re just excess Bess

We reserved on Buss Gus

Your claim relates back Jack

You spilled pollution Lucien

It’s a four corners state mate

That’ not PD Bea

The plaintiff’s your employee Dee

You’re just not an AI Ty

You never gave notice Otis

Your payment was voluntary Jerry

An insured, a dog is not, Spot

You had knowledge of falsity Leigh

We just never intended to cover that Pat

You prejudiced us Russ

That relief’s only declaratory Lori

You’re not legally obligated to pay Jay

That’s not trade dress Les

There’s misrep. in your app. Kap

We defended but we don’t have to

indemnify Guy

We’ll just investigate Nate

Your claim’s not first made Wade

There’s other insurance Vince

You’ve got an uninsured share Claire

The damage is your own work Kirk

Wrong policy term Thurm

We forgot to reserve but we still didn’t

waive Dave

It’s TCPA Faye

Or call it a junk fax Max

It’s not an accident Kent

We don’t cover an assault Walt

We lost your file Kyle

And your file too Lou

Your watercraft’s not less than 26 feet


Emotional injury is not BI Di

That’s not a professional service


I just ignored my boss Ross

We don’t cover recall Saul

The policy is void Boyd

That’s mobile equipment Clint

That’s not a suit Newt

And for no reason at all your claim’s

denied Clyde

There must be fifty ways

To leave no cover

Originally posted on http://coverageopinions.info/RandyVol2Issue4.html

Insurance Companies Behaving Badly


How we got one to pay for this pollution claim

Our best chance to help clients comes from managing risk and negotiating insurance before something happens.  But, sometimes we get called in after a claim. In this one, an employee had run a pallet jack into a heating oil tank, creating an environmental situation.  The insurance company refused to pay for  the clean up.

The claim denial was based on a pollution exclusion in the policy. It was an implausible denial; there were convincing ways to show that the exclusion shouldn’t apply.  We decided on an alternative strategy.  By making the claim under debris removal we could give the company a chance to pay the claim without admitting they were wrong in interpretation of that exclusion.

We sent the letter on November 8th.  After numerous follow ups we got a response dated December 12th. The response was short and to the point – “an oil spill is not a covered cause of loss, no costs to clean up are covered.” The adjuster did not support this with policy language, he merely made this statement.

If you can’t read the policy, you would probably have to accept this denial, assuming that the insurance company knows what they are talking about. But, in truth you are not supposed to read the policy, and if you can, it’s difficult to navigate.  Claims adjusters and brokers have very little training in coverage interpretation,  and there is no reason to assume they are right. We took this over the adjuster’s head, and showed the logic by careful reference to policy language. The claim got paid.

Taking advantage of policyholders on claims that are not big enough for law suits is too common. We can make the insurance industry behave for you.

-This post was written by Abby Krueger of LicataRisk Advisors.  Contact Abby with questions or comments at akrueger@licatarisk.com

LicataRisk Construction and Real Estate Event Just Concluded

Our Risk Advisory Breakfast was held on January 26 at the Boston College Club, 100 Federal St, Boston.

Construction & Real Estate – The Riskiest Industries? – Part 2

Topics included:

– Construction collapses and other incidents – who pays for injuries? How does the builders risk policy respond if design error is involved?

– Insurers continue to add harmful coverage terms and conditions – know about them and fight back

– The risk of shared limits property programs with total lack of disclosure

– The game of passing off liability to the other party – don’t be on the receiving end

– Legal cases on the above and much more

– The latest on FEMA flood changes, ahead of our April breakfast which will be focused totally on flood risk

Why the Insurance Market is Like Quicksand

– A round-up of the latest insurance industry abuses, and how to watch out for them, including the most ominous sounding of them all – what the courts call “illusory insurance!”

A large, enthusiastic group of contractors and real estate folks, and their advisors attended.

Our next breakfast will take place on April 23 which will be focused on flood risk.  A representative from FEMA will join us.  Please contact Brent Trethewey at BTrethewey@LicataRisk.com for more information.

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