Video instructions and help with filling out and completing Which Form 5495 Liability

Instructions and Help about Which Form 5495 Liability

Hello I'm Jeff Gordon I'm gonna try to give you in less than three minutes a overview of the difference in liability policies the occurrence form versus in a forum so let's get right into it a current form was the traditional form of liability covers for years and years and claims made was developed as a lower-cost way of providing liability coverage and it also allowed the reason it's lower cost is allow insurance companies to close their books as an update termination of a policy for anything that might have happened that it has not been reported so let's give an example so in the occurrence form the insurance company policy that response is response when loss actually occurred so for example let's say here at our office outside our building someone slips and falls on July of 2012 and we don't know about it we don't hear about it but a year goes by and they're still 18 things aren't quite right they finally contact an attorney and the attorney says just something let's sue those guys and so they actually come after us in July of 2013 let's say also just for the sake of argument gonna pick on a traveller's here let's say the travel oops was our carrier here then we switched companies to peerless in 2013 even though this claim gets reported in 2013 it's going to be travelers when the loss occurred who's going to defend us for that slip and fall that happened at our premises now for our errors and omissions we have a claims-made policy so it works very differently let's say that in July of 2012 we get really bad insurance advice or we make an error or an omission in developing an insurance plan for someone but we don't know about it and yet the company that we've that we've given this advice to is suffered a loss so a year goes by same sort of thing and they finally hire a lawyer and they say let's go after Gordon so they then come after us in 2013 now difficult from the occurrence form with claims made when the claim is reported again we had travelers now we have perilous peerless will be the company that would defense this particular claim now so it's less expensive so there are two things that you really give up when you have claims made one is and then two very important things that you need to take care of what is called the retro take the regular they basically says okay peerless you're going to go back to in this example in 2012 or if we had coverage prior to that that rupture they should go even further back maintaining the retro game is very important if we had canceled our policy on December 31st 2012 and then wait until January 2nd 2013 our new retro date is going to be January 2nd saying very careful with continuity of coverage so that's what we're going back in time for losses that we don't know about that it may have happened the other part is tale coverage so let's say for the sake of argument that we decided to close our business on December 31st 2013 but then there's some claims that have happened back here that we don't even know about but we know there might be some out there so we want to make sure that even though we're not buying insurance coverage anymore that we have some protection for the claim that gets reported out here or out here for something that happened back here that's what tale coverage is typically that's purchased in one three five or ten year periods depending upon how long it might be medical malpractice has a very long tail products liability very long tail other types of insurance shorter tails a three-year tail might be plenty so these two items are very important parts of claims many policies but you know something don't rely on a whiteboard video for this kind of information for real professional advice for your situation contact us at

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