Because all insurance policies are legal contracts, it means they’re full of technical, legal jargon that can be difficult to follow. Despite this jargon, it’s important to know what is listed in your policies so you can be confident your coverage meets your needs, and you can quickly find answers to your questions.

Below are three practical tips to help you read and understand any insurance policy documents — whether your Home and Auto, your Malpractice or other insurance documents.

3 Easy Steps to Understanding Insurance Policy Documents

Step 1. Check your policy as soon as you receive it

Your policy document is the key to managing your risk, so it’s important your coverage is accurate and completely documented. As such, there are two main items to review upon receiving your policy documents:

  1. Review your Policy Declarations page. Make sure the named insured, address and business description are correct. Confirm the policy period and retroactive or prior acts date were issued correctly and review the policy limits and deductibles for accuracy.
  2. Review policy forms and endorsements. Confirm the policy covers the actual professional services you provide by reading what is included in the definition of professional services. Check whether defense costs are inside or outside the limits and review any exclusions that may impact core operations. It’s important to compare the issued policy to the quote you received to ensure consistency and notify your agent immediately if you find any changes.

A mistake here could leave you without enough coverage, so if your policy documentation is not correct or complete, it’s important to contact your insurance representative.

Step 2. Read through your policy the right way

There’s a method to reading your policy that will make understanding and interpreting your coverage easier.

  1. Annotate the policy document. It may be helpful to highlight key coverage, exclusions or definitions on your policy documents. Mark any areas of concern or confusion to address.
  2. Read the insurance agreement. The policy agreement and its endorsements represent the broadest area of coverage.
  3. Check exclusions. Familiarize yourself with the exclusions page. Think critically about your daily functions and ensure they are not excluded from coverage.
  4. Note exceptions to the exclusions. Occasionally, there are exceptions to an exclusion, which may be outlined in its own section.
  5. Check references to other sections. Details such as definitions, conditions or provisions affecting specific coverages may be explained elsewhere in the document. Flip to any section referred to immediately to fully understand the breadth of coverage.

Step 3. Know your policy’s terms and conditions

The coverage granted by your malpractice policy is subject to its own specific terms and conditions. The wording and phrasing of your policy matters, so pay careful attention to:

  1. The way your policy defines specific terms, such as “occurrence” or “damages” will be different than a dictionary. Understand that how these terms are defined will affect your coverage protection.
  2. Simple everyday words like “all”, “any”, “except”, “must”, etc. can carry a lot of weight in an insurance policy. These minor words can alter coverage or limits.
  3. Policy conditions. Sometimes, actions must occur before a loss for coverage to apply. In other cases, action must be taken after the loss to ensure coverage.

How the AAO Endorsed Insurance Program Can Help

  • If you have questions or concerns when reviewing any of your insurance policy documents, simply contact your AAO Endorsed Insurance program account representative with Lockton Affinity. You won’t need to worry about spending hours on the phone trying to find the right person to talk to. Wait just a couple rings before talking to a real human and your dedicated account executive that you’ll come to know by name.
  • The AAO Endorsed Insurance Program offers concierge service to support AAO members with their insurance needs. Not only is a personalized risk assessment offered upfront to ensure you receive the comprehensive coverage you need, but education and dedicated support is offered throughout the insurance buying process to address any questions you have.
  • After your policy is in force, the AAO Endorsed Insurance Program offers a library of risk management resources to help you better understand insurance, be more aware of the risks you and your practice face and make adjustments to reduce those risks.

The AAO Endorsed Insurance Program, administered by Lockton Affinity, offers all the insurance you need to protect yourself and your practice in one place — including Malpractice, Cyber Liability, Group Disability Income, Life insurance and more.

By consolidating your insurance needs, you can streamline payments, renewals and claims, ensuring you are prepared for any challenges that may arise.

AAO Members, when it’s time to renew your malpractice insurance request a quote and make an informed decision about what’s right for you.

Residents looking for Malpractice insurance when you graduate? We have you covered. Contact the AAO Endorsed Insurance Program today.