Ask Stacy Insurance

One of the biggest mistakes businesses make in commercial insurance is choosing the policy before choosing the broker.

Real Example: Imagine you get a better premium insurance quote from your broker- move forward, cancel your prior policy, only to get a bill for $56,333 to retroactively pay your cancelled policy!

Today I’m binding coverage for a candy wholesaler/importer- Package, Products Recall, Inventory, Cyber, Employment Practices, US & Global hired and non-owned auto, Workers Compensation and Umbrella. But- I am NOT issuing coverage for Ocean Marine.

This account was a perfect example of why policy wording matters just as much as premium.

On the surface, the insured’s Ocean Marine policy looked solid, but buried in the form were major problems.

The insured was underreporting inventory values by approximately 80%, triggering a co-insurance issue that would dramatically reduce a claim payment after a loss.

Even worse, the policy contained a retroactive fully earned premium audit provision if canceled mid-term — meaning canceling the policy could have effectively tripled the audit premium retroactively ($56,333)

After carefully reviewing the wording, I found an exception in the contract stating co-insurance would not apply if excess inventory coverage existed elsewhere.

So... rather than triggering cancellation penalties, I creatively:

• Added inventory onto the package policy as Business Personal Property
• Structured it with a $500,000 deductible
• Allowed that policy to function as excess over the Ocean Marine
• Avoided the co-insurance issue

We will let the Ocean Marine policy expire naturally. Once expired, we’ll transition the client into a properly structured Stock Throughput program with broader protection and — surprisingly — a lower premium.

This is the difference between simply selling policies and truly understanding risk transfer.

Sophisticated insurance is not just about premium.
It’s about strategy, structure, and reading the fine print.
And this is why you chose your broker before your policy!

Marshall+Sterling

Our Marshall+Sterling March Annual Sales Conference: I walked away incredibly grateful.

Grateful to be part of a company that not only brings together some of the best minds in insurance, but truly listens to its employee-owners. That kind of culture — where voices are heard and ideas shape the future — is rare, and it’s what continues to set us apart.

Being surrounded by this level of expertise, collaboration, and shared commitment to doing things the right way is something I don’t take for granted.

A big thank you to Daymond John for an inspiring keynote. Your story, perspective, and practical advice on resilience, discipline, and ownership really hit home — not just in business, but in how we show up every day.
Looking forward to carrying this momentum forward.

Finally- passed Friday November 22, 2024: No more various definitions of windstorm losses. Coming soon: One standard definition across all NY insurance carriers of what the definition of windstorm is. This is much needed for our coastal friends and those others with special windstorm deductibles!

Governor signs PIANY’s windstorm bill into law - PIA Northeast News Gov. Kathy Hochul has signed A.2866/S.4199 into law, authorizing the New York State Department of Financial Services to create a single, standardized definition of “windstorm” in homeowners insurance policies. This long-awaited legislation marks a significant milestone, bringing clarity and cons...