Some producers are worried. They have heard stories about situations where owners and operators of hotels, motels, apartment houses, and office buildings find themselves without insurance for claims resulting from injury and sometimes death of occupants overcome by carbon monoxide from heating and cooling systems. Owners and operators also are beginning to ask questions and seek confirmation as to whether they will be protected for these types of claims.
Producers find themselves in a dilemma.
If they inform clients that they have no coverage, they might lose the account. On the other hand, if they say or do nothing to address this exposure, they may confront even bigger problems later. The cases in this area are legion. The fact that the opinions in these cases are mixed adds to the anxiety because it will likely take litigation to resolve coverage questions in this area. If the insurer denies coverage outright without providing a defense, the insured is confronted with paying potentially monumental sums to have the issue resolved.