As we approach Halloween, it’s easy to think about all the spooky stories of ghouls, goblins and ghosts. But, sometimes the scariest stories aren’t the silly ones we make up to tell around a bonfire. The stories that will really leave you feeling terrified are the true ones. Here are some tales about scary insurance claims from companies* and homeowners.
Wish “Ida” Known
Hurricane Ida produced heavy rains and devastating flooding on its path from the Gulf Coast across the Mid-Atlantic. Many homeowners woke up to flooded basements and costly repairs. Unfortunately, a standard homeowner’s policy will not cover weather-related flood damage. Had the insured homeowner known this, they could have added a flood policy to their property coverage to adequately protect them from the storm. Flood policies are easily purchased whether the property is in a high flood zone or not.
Parking Lot Pinball
While driving a service truck through the company lot, the insured company’s driver forgot to secure an attached boom crane. The crane inadvertently swung open, striking multiple employee-owned vehicles. The boom crane caused extensive damage to the vehicles and the workers required rental vehicles while the cars were out of commission. Without the proper business auto insurance policy, these costs could fall on the company, or worse, the employees themselves.
You’ve Got Mail, They’ve Got Your Password
More and more companies rely on their IT network and integrated software systems in operating the day-to-day logistics of their business. Imagine the company’s surprise when attempting to log in and they’re met instead with a lock-out screen and a ransom demand from foreign hackers.
Without Cyber Insurance the costs of restoring access, recovering compromised data, and repairing the affected systems would fall squarely on the company. Thankfully, they purchased cyber insurance coverage ahead of time, and a trained team of cyber response professionals was there to respond quickly during their time of need.
The Runaway Jury
A small-business owner was named as the key defendant when a plaintiff sustained life-altering injuries after a freak slip-and-fall incident on the business owner’s property. The insured business owner had General Liability coverage up to $1,000,000 and figured that amount was sufficient should he ever face a claim. The Plaintiff rejected a settlement offer within the General Liability limit. A twelve-member jury found the business owner liable and awarded damages of $3,000,000.00. Without any excess/umbrella policy, the insured is now personally liable for damages exceeding the $1,000,000.00 cap.
If you don’t want to be part of your own insurance claim horror story, we recommend working with the McConkey team to review your policy and ensure you have the coverages in place to keep you and your organization protected.
*Companies names and identifiable information have been omitted for confidentiality.