Here’s an example where you can think you’ve done everything right only to have a miscommunication land you in some hot water.
An insurance broker, who had errors & omissions insurance, provided a commercial insurance policy for a client. The client’s business had multiple properties, and the insurance covered all of them.
The policy offered a blanket coverage amount for all of the properties, but the client thought that financial coverage was for each property.
So when a fire shut the business down for four months, the business owner wasn’t too pleased with his insurance and sued the broker for misrepresentation. A settlement was negotiated and the legal fees came to $32,000.