In the introductory post on this subject, I made the basic observation that traditional convention gives contracts and insurance parallel realities: The lawyers handle the contracts and brokers/risk managers assemble the insurance program. Gaps can undermine the contract or corporate insurance when the two realities lack coordination, which may remain undiscovered if a loss or liability has not materialized. Part 2 considers how this approach can yield problematic outcomes be

In many areas of life, we get advance guidance about correcting otherwise reasonable instincts in precarious situations: “Put your own mask on first”; “Avoid braking when losing traction”, or “Just say no to drugs”. Commercial policyholders/insureds may stand to benefit from similar guidance. This article identifies some sensible instincts by commercial policyholders that may undermine their opportunities for coverage in the aftermath of a loss: 1. "We probably don't have c