Primarily, concurrent periods is defined as the period wherein two or more insurance plans are in the course of process in order to cover identical item for the same danger and for the same benefit.
Some definitions explain that concurrent periods are akin to two or more policies which covers up identical exposure with the same phase in the policy and the kind of coverage produced. It is significant for primary and extra liability policies to be synchronized. When we speak of income protection in hospitals, wherein a certain patient is confined because of other injuries or illnesses all together, the corresponding benefits will be paid just like if the whole disability resulted on one cause.
On the other hand, concurrent insurance depicts a different view. For instance, an individual who prudently managed his own company’s risk will certainly buy insurance. And because such person is concerned that he might become liable because of the negligence of his contractors and suppliers, he may require them to make sure that they will meet the requirements. Such person may also monitor his work sites and workplace for concerns and safety, such as on discrimination.
But unfortunately, accidents occur regardless on how careful one may be, and a person’s company can be sued. So if one will likely rely on the insurers in order to defend the claims and supply indemnification for judgment or settlement, can he easily rest knowing that a risk has been minimized and has established a harmonized insurance coverage plan? Yes he can, by means of obtaining the correct coverage and added insured status in the first place. To face a challenge in coordinating such coverage is the next step.
Whenever a person has several policies to select from, also known as concurrent coverage, then he should be aware of the options available to him and select carefully to avoid astonishment whenever there would be an opportunity in settling a claim. Otherwise, it will be the time to pay such judgment.
In the multi-faceted world of concurrent insurance, a smart policy holder must know what he must do. One of the most terrible times to take up the issues is only after a prime insurer is being deselected and being left out from the loop concerning the ongoing litigation. If such policy holder faces a higher liability more than what is initially expected, it would be difficult, if not impossible to get back, though such insurer has asked for coverage.
The correct strategy in choosing insurers in order to respond to certain claim would depend on one’s particular condition, the magnitude of one’s potential exposure to liability, and the nature and dynamics of relationships with insurers and the contracting parties. However, there are small numbers of principles that can be worth keeping for in mind:
– One must be conservative and honest in terms of internal assessments on potential exposure. It does good to be optimistic in considering liability risks.
– Selective tender must not mean choosing information flow. For if one decides on a particular insurer, he must maintain his rights in keeping the selected insurer updated and informed concerning the litigation developments.
– Avoid shocking surprises and astonishment. Subject to an appropriate confidential protection, one must invite a certain deselected insurer in order for him to participate in settling the issues, or the least, by keeping the deselected insurer impart from settlements towards a discussion.