We have blogged on this before. US Mail delays continue to cause insurance coverage issues.
Letting your malpractice insurance lapse has consequences. Insureds sometimes see the ‘Automatic’ Extended Reporting Period Endorsement section in malpractice policies thinking there is a grace period. The only time this option is valid is if the insured has not renewed coverage with any insurer. There are no coverage extensions unless the insurer states so in writing. There is no grace period.
Trusting US Mail to deliver your application, acceptance or payment has become risky. Announced mail delivery changes continue causing lapsed coverage. If documentation and payment are not received on a timely basis coverage lapses. Insurers continue to tighten their backdating underwriting guidelines. Coverage lapsing leaves few good options.
L Squared offers electronic alternatives to help prevent coverage lapses:
1. Email, portals, and faxes are the preferred methods for receiving applications
2. Some insurers have online applications
3. Acceptances of coverage can be emailed or faxed
4. L Squared has electronic web page payment methods for ACH or credit card payments
5. The L Squared ACH form can be filled out and emailed back at no charge
6. Our premium finance company permits over the phone payments
7. Premium financing can be set up to electronically withdraw payments
8. Direct bill payments can be set up for automatic withdrawal or done through the insurers’ website
Having claims-made coverage lapse can cost your prior acts coverage. Now more than ever it is important to be timely with completing applications and making payments.
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080