Insurance policies hold immense significance for business owners and professionals, as they can be a safety net for life's unexpected curveballs and can also assist business owners and professionals with proactive planning focused on mitigating specific risks. 

This article addresses common questions policyholders may have regarding the role and value of hiring a lawyer to be a part of the assessment and planning process where insurance is concerned. 

Why should I have an attorney review my insurance policies?

Insurance policies are like any other contract; their terms will be enforced as written and, therefore, it is critical that those terms reflect the deal that the policyholder seeks. In this regard, an attorney can offer valuable assistance in comprehending the terms, conditions, and offered coverages and how they are or may be applied under North Carolina law.

Attorneys can also assess potential risks and provide detailed advice on how to strategically use insurance as an integral component of a comprehensive risk mitigation strategy. Their legal knowledge affords invaluable insight into navigating the nuances of insurance, allowing prudent decision-making focused on the policyholder's interests.

Insurance companies write insurance policies with their interests in mind. Attorneys specializing in insurance counseling can help ensure that a policyholder's interests are protected by identifying policy terms and conditions unfavorable to you as the policyholder and pointing out gaps in coverage within your policy that may leave you unprotected. Their legal knowledge affords invaluable insight into navigating the nuances of insurance, allowing prudent decision-making focused on the policyholder's interests. Proactive planning to ensure the appropriate insurance coverage is in place can help policyholders avoid over-insurance pitfalls while providing adequate protection against under-insurance.

When should I have an attorney review my insurance policy?

These are just a few of the many circumstances in which it is advisable to seek the assistance of an attorney to review your insurance policy:

Before signing on the dotted line or making any formal agreement.

Your policy should work for your specific needs from the start. This means taking the time to understand the coverage limits, exclusions, and deductibles, as well as any other terms and conditions that may apply. It also entails appreciating your ability to negotiate tailored coverage; insurance need not be an "off the shelf" or "one size fits all" product.

Significant changes in your life, business, or assets.

Make sure your policy is updated and accurately reflects your current needs. This is particularly important when experiencing significant changes personally or professionally, as failing to do so may result in gaps in coverage or unexpected claims denials.

Such changes include establishing a new business or acquiring real property, as well as striking a new business contract, altering your company's board of directors, or merging a business.

Before or after filing a claim.

Get the most out of your insurance claim by having an attorney review your policy before it's filed. A review can still be beneficial even if you've already filed your claim because a review achieves two crucial aims. It identifies potential discrepancies, exclusions, or limitations in coverage, which can help avoid surprises when relying on coverage you may not have. It also engages the services of an attorney early in case you need to challenge or appeal a denied insurance claim. 

How long does the review process take?

To ensure a seamless experience, Ward and Smith's process is designed to carefully assess the individual needs of each client and guide them in leveraging their insurance policy as an effective tool. Depending on the complexity of the coverage and the duration necessary for thorough comprehension, the review timeline may vary. For greater clarity, we suggest consulting with a legal expert who can provide insight into your personal circumstances and work with you to meet your desired objectives.

What kind of insurance policies can attorneys review?

Attorneys can review all types of insurance policies. Here at Ward and Smith, our Insurance Counseling and Recovery Team routinely reviews the following types of policies: 

• Business Owners Policy
• Commercial Property
• Commercial General Liability ("CGL") Policies
• Commercial Property and Casualty ("P&C") Policies
• Commercial Umbrella
• Crime and Fidelity Insurance
• Crop and Livestock Insurance
• Cyber Insurance Policies
• Directors & Officers ("D&O") Fiduciary Policies
• Disability Insurance
• Employment Practices Liability Insurance ("EPLI") Policies
• Errors and Omissions ("E&O") Policies
• Health Insurance
• Key Person Insurance Policies
• Life Insurance
• Long Term Care ("LTC") Policies
• Long Term Disability ("LTD") Policies
• Product Liability Policies
• Professional Liability Policies

Conclusion

As the saying goes: an ounce of prevention is worth a pound of cure. Consulting an experienced attorney early on can help avoid costly mistakes like having an inadequate insurance safety net.