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I'm talking with a guy that owns two restaurants. Both restaurants are located in leased spaces.

He has a CGL issued through Erie insurance. There is no Fire Legal Liability mentioned but there is building coverage of $50,000.

I would say that if this man's operations cause a fire, burns the building
Fire Legal Liability would come in handy.

What do you think.

He has 1 mil/2mil liability.

In order to protect him, and yourself from and E&O claim, it would be in everyone's best interest for you to recommend that this coverage be included under the GL coverage. Check with Erie Insurance to find out what the maximum amount they will offer. You should also check to see what the lease requirements are.

Well Erie is not my company, it is the company I am quoting against.

I can't count how many times I see a commercial policy with a exceptionally low premium but with inadequate coverage.

This morning I presented a quote for a personal line HO. The guy had over $11,000 in scheduled jewelry, dwelling $400,000 (this house is not in CA so $400,000 is still a very very nice place). There is a competing agent that quoted him almost 45% of what I quoted. Anyhow, here's the deal, my State has a website to view published rates. The only way this other agent could be 45% less is if they were not quoting $500,000 liab. or perhaps forgot about the $11,000 in scheduled jewelry. The published rates on the State website just do not reflect a difference of 40 percent.

The policy that I had wanted him to take has $10,000 jewelry / $10,000 silverware already built into the base without scheduling; covers that good old mysterious disappearance. Without endorsements it has a bunch of other goodies built into the policy. I know it isn't the cheapest on the block but it is never 45 percent higher.

So I left, telling the guy to get a printed quote and then we will talk. He has his company's health plan with me and wants to give me the HO.

Sometimes I just think this is a strange business because people don't realize the value of adequate coverage until it is too late. If that car or TV isn't meeting expectations, back it goes. If after a disaster, the insurance you bought doesn't meet expectations you are SOL.

I would never quote without Fire Legal or Damage To Premises Rented To You (as it's called by ISO now) coverage for an insured who is renting or leasing a premises. I would make sure it's at least a $300,000 limit or even higher.

Most agents are only interested in sales, not actually providing the best coverage. I'm sure I'm not telling anybody here anything new.

You and I agree!

Sadly the insurance business isn't what it was in 1982 when I started. Just like everything else in society, agents look for the quick hit, the quick sale, gotta make my numbers and the heck about the client. Within the next 3 months that agent is on to the next job leaving the unsuspecting policy holder holding the bag.