The higher education industry is facing challenges. Traditional funding models and sources are under attack. Changes in the political landscape and social norms have increased the cost and frequency of investigations and litigation. Insurance premiums continue to rise. College and university risk managers are often the first line of defense on these issues. They must respond in real time to questions about the nature and scope of the institution’s insurance coverage and the likelihood of certain risks being covered.
The good news is you’re not alone. There is an entire industry of professionals dedicated to protecting policyholders like yours, whether it’s through negotiating stronger policy terms or assisting with reviewing, reporting, and resolving complex claims. Many risk managers and insurance brokers that I have spoken to over the years are unsure of when to involve outside insurance coverage counsel. In some ways, this makes sense. Risk management and insurance procurement are heavily legal—or legal-adjacent—tasks; however, they often sit outside the scope of the general counsel’s office. This article seeks to bridge the gap between risk and legal by providing foundational guidance on when to seek outside coverage counsel and what to ask.
Involving Trusted Counsel in Policy Placements and Renewals
For most institutions, renewing their various lines of insurance coverage creates a series of annual seven-to-eight-figure transactions. In any other area, spending at that level would trigger a line-by-line legal review of the relevant agreements, whether by in-house or outside lawyers. Yet insurance coverage is often treated differently. To be clear: There is nothing wrong with an experienced risk manager partnering with a sophisticated insurance broker to manage policy renewals. However, bringing in an outside coverage lawyer who specializes in coverage disputes can add value to your placement team.
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