Originally Posted by bluemarlin08
E and o won't cover a claim against you.
That says it all. We would be essentially sharing in the client's risk, too.
Somarco mentioned clients not reading policies. They have what I call the "motel theory" of assumptions about insurance, it covers almost everything, right?
When we think of a motel room, we make certain assumptions about the basic features: 1. TV with remote 2. toiletries in the bathroom, also bathroom for you, not shared with other guests. 3. clean linens (well, some are aware this could be an issue) 4. coffee maker with supplies to make coffee. 5. ice machine down the hall, bucket with plastic bag liner in your room. 6. hoping for breakfast buffet and free parking, sometimes disappointed. 7. fridge & microwave, disappointed if not there.
Insureds think insurance covers sickness and accidents, maybe a deductible, these days they usually expect copays, some sharing, but a maximum out of pocket. Essentially the structure of group and individual coverage for several decades. In rare instances some bumped up against lifetime limits pre ACA, and there are still stories searchable online, heart wrenching ones about coverage denied to sick kids, etc.
I have 3 clients who have had claims over $1 mil, and those are the ones I know about. All had unlimited coverage after the Max out of pocket.
I could not sleep if I was selling products that could be misinterpreted, give a false sense of security & I would not be covered for lawsuits/judgments under E&O.
So, no, not selling faith based plans. People need to read up on market values and costs. Your house isn't worth what it was worth at a market peak, and lower cost health plans will cover less.