COVERAGE CORNER
COVERAGE CONCEPTS: LESSONS FROM A LEGEND By Kevin C. Amrhein, CIC I miss Jim. Exactly three years ago from the day I wrote the draft of this article, Jim Harrison – my friend and long-time mentor – passed away. The void his passing has left in the business of insurance education, dare I say the business of insurance as a whole, remains formidable. Those who knew him best will attest to his not-silent frustration with the insurance industry and its representatives’ tendency to overcomplicate and jumble concepts that he believed were quite simple. His passion for deconstructing insurance policies made him an exemplary teacher and placed him among the most respected technicians in the industry. As I think of him now, I’m inspired to share with you an exchange we had many years ago from which I still benefit. While this discussion was specific to the ISO CGL, its concepts could be applied to any insurance policy.
THE SETUP I received an inquiry from an agent regarding the “contractual liability insurance” being requested from his
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insured and how such would be created by the ISO CGL. I pieced together an impressive email response, citing the definition of “insured contract,” the contractual liability exclusion, and its exception which could create coverage. I was so proud of my effort that I showed the email to Jim. After reading it he looked up at me and said … “It’s sh*t.” I slumped down in a chair by his desk, defeated. I knew he was right because he always was. But I had no clue why. I insisted on an answer. His two-point response, summarized below, will stick with me forever.
JIM’S FIRST POINT “Words matter. If it don’t say it, don’t say it.” The ISO CGL does not provide “contractual liability insurance.” It provides general liability insurance. While it may seem like semantics, this is a legal contract. Good
FEBRUARY 2021
