In life, as in business, education, and any large organization, the only thing that doesn’t change is that everything changes.
New operational subsidiaries are formed, people in key leadership positions leave and arrive, school districts see new clubs and sports teams rise and fall. Nothing wrong with any of this. It’s the natural ebb and flow. It’s how the world works.
The sticky part comes in, however, when you assume the insurance coverage in place extends to any or all of those modifications. Or worse, you don’t think of that question at all.
The old adage about why it’s dangerous to assume certainly applies. A policy is written at a moment in time, under specifications and structures that exist then. Unless provisions have been written into that policy to automatically include new elements to the entity being covered, they may not – and probably will not.
Always err on the side of caution and communication. Check with your insurance provider any time the terms, shape, size, or any other variable impacts your organization. When changes are afoot, make sure you know who and what is covered under your policy – so that any necessary adjustments can be made before costly surprises arise.
Contact the professionals at The Reschini Group for more information.
Copyright 2022 The Reschini Group
The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.