Sub(optimal)limit by endorsement

I'm a fan of sublimits by endorsement. They help underwriters manage exposure. Additionally, it gives the industry a way to test out innovative new coverage in a controlled environment. In some cases, the sublimit helps clarify intent, while providing affirmative coverage. Finally, for companies that prioritize protecting personal assets on D&O policies, the sublimit can help secure limit for what matters the most.

What I don't like about sublimits by endorsement:

Sometimes a restrictive sublimit added by an endorsement is presented as an enhancement. To make things worse, some brokers think the sublimits are enhancements. The question that every broker or client should ask is: If this policy didn't have the sublimited endorsement for this particular coverage, would there be coverage?

It's simple. If it's a gray area, let the client make the final decision.

NOTE:?

• Why am I posting this? I love insurance and helping folks do better.
• This blog/article?does not intend to provide legal advice or create an attorney-client relationship. You should consult your attorney in connection with matters affecting your own legal interests.??
• Opinions?expressed?are?solely?my?own and?do not?express the?views?or?opinions of my employer.
• I am not a broker and I don't know your specific insurance coverage. Please read the terms of your insurance policy or contact your broker for specifics.
• This is a casual post, there will be occasional typos and grammatical errors.