Insurance programs naturally evolve over time. Policies get added, limits increase, endorsements are layered in and out, and insurance carriers come and go. It’s expected and normal, but this maturation often leads to unnecessary overlapping coverage that drives up premiums and does not improve protection.
In many cases, overlaps actually cause claims issues that result in delayed payments, coverage disputes, or denied claims.
Independent insurance reviews identify and eliminate these coverage overlaps. Taking a policy-by-policy look at how coverages interact, independent reviews highlight where coverage duplicates itself, where policies leave gaps in protection between them, and where limits and deductibles should be aligned so all policies work together smoothly.
Independent Insurance Review Overview
An independent insurance review is a comprehensive analysis of your current insurance policies. All personal lines and business insurance policies are evaluated based on how they interact with one another. Independent reviews are not tied to selling or placing new coverage, as the goal is strictly to review existing policies.
During the review process, policies are examined for common elements, including terms, effective dates, who is insured, limits, deductibles, exclusions, and endorsements. This information is then compared across all policies to identify areas of overlap, gaps in coverage, and other areas of ambiguity where it’s not clear how claims are handled or responsibilities are divided between insurers.
With clear definitions of what each policy covers, there will be no more confused overlapping coverage.
Why You Should Care About Overlaps
Most people don’t realize how detrimental overlapping insurance can be. The idea that two policies cover the same exposure usually leads to the assumption that it provides double protection. However, insurance policies are designed to coordinate benefits with one another, not stack on top of each other.
If there is overlap, carriers will fight over which policy pays first based on each policy’s “other insurance” language. This often leads to delays in payment, partial payments by one carrier, or contribution disputes between carriers. Meanwhile, your premium dollar continues to be spent on coverage that does not increase what your claim will pay.
Independent reviews cut through the confusion and show you exactly how and where limits, insured perils, and insured interests are duplicated.
Review Scope and Limitations
Define the parameters of your independent review upfront. Determine which policies will be included in the review and if it will cover personal insurance, business insurance, or both. Also establish how many years of policy history will be included. Prior years are always helpful to see if duplication is recurring.
Reviews should cover the current policy year and any prior years of available policy documentation. Since most programs are layered with primary and excess policies, umbrella coverage, specialty endorsements, etc. it’s also important to identify all policies that cover the same or similar exposures, even if they are written by different carriers.
Eliminating insurance overlaps requires knowing where they exist.
No one wants to pay for an insurance review only to find out the reviewers attempted to sell you on new coverage or keep business with the carriers they already work with. True independence means the reviewers have no placement authority, commission incentive, or underwriting relationship with the companies you do business with.
Insurance Program Reviews from Bowthorpe & Associates Insurance Producers are kept independent by separating our advisory and underwriting divisions from policy placement. Our consultants are only motivated by aligning your risk with the right insurance solutions.
Ensuring your independence.
Identifying Overlapping Coverage
The first step to removing overlaps is identifying where they exist. Reviews begin by creating a full inventory of your coverage. Each policy is analyzed to identify what is insured, who is insured, when insurance applies, and how much the policy will pay.
Policies are then laid side by side to identify areas where the same property, same liability, or activity is insured by more than one policy during the same time period. This includes general liability limits that overlap with other policies, property coverage that duplicates itself, unnecessary endorsements, and umbrella policies that protect identical limits underneath.
Since coverage can often overlap without the insured even realizing it, particular care is paid to endorsements and exclusions. They are key to determining if coverage truly overlaps.
Better Coordination Between Policies
Once overlaps are removed, it’s important to ensure your remaining policies work well together. Taking the time to clearly define how claims are coordinated between policies will prevent handling disputes or confusion about which carrier responds first when a claim is submitted.
Coordination may include changing deductibles, primary vs. excess language, or how “other insurance” is defined in each policy. Changes like these can greatly improve the clarity of your insurance program and make claims response more predictable.
Eliminating overlaps is just the first step.
Review Findings & Recommendations
Once the review is complete, findings are compiled into an actionable list of recommendations. Rather than simply identifying problems, independent reviews provide you with clear next steps for remediation and advice on how to prioritize changes.
Recommendations include removing specific overlaps, adjusting limits, and removing or replacing unnecessary endorsements. Recommendations will also include estimated impact on premium and residual risk once changes have been made. With this information you can make educated decisions about what changes you want to make and balance cost savings with your risk tolerance.
Many remediation steps can be completed at renewal or with a mid-term endorsement.
Ongoing Benefits
Just like overlapping coverage can sneak up on you, so can the benefits of an independent review. Conducting reviews once every few years prevents overlaps from happening again as your policies naturally change.
By scheduling independent reviews on a regular basis, you’ll notice your total premiums go down, claims answers are clear and predictable, and you can feel confident that your insurance program fully aligns with your exposures.
Don’t let overlapping coverage give you a false sense of security.
Conclusion
Independent insurance reviews cut through the complexity of your insurance program and provide advice on how to simplify your coverage. By identifying areas of overlap, better aligning policies, and coordinating how claims are handled, you can be sure you’re only paying for coverage you need.
If you’re ready to see how much you could save by streamlining your insurance program, contact Bowthorpe & Associates Insurance Producers today to learn more about our free review process.
Frequently Asked Questions
Q1: What is the goal of an independent insurance review?
A: The goal of an independent insurance review is to identify overlapping coverage and gaps in protection so your insurance policies work together efficiently without wasting premium or causing claims confusion.
Q2: Will two policies covering the same thing increase my claim payout?
A: Generally no. Since most policies will coordinate benefits with other policies rather than stack on top of each other, duplicate coverage will not increase claim payouts.
Q3: When should I get an insurance review done?
A: Reviews should be conducted anytime you’re about to renew your policies, after adding new coverage, when your assets or business model changes significantly, or if your premium increases without explanation.
Q4: Can independent reviews save me money on insurance?
A: Yes, most clients save money after an independent review by eliminating overlapping coverage, increasing or decreasing limits where appropriate, and negotiating better rates with their insurance carriers.
Q5: Who would benefit most from an independent review?
A: Anyone with complex insurance needs, multiple policies, layered coverage, or policies written by multiple carriers would benefit most from an independent insurance review.