Recently, an insurance company released a story about a secret “Pay to Read” contest it launched offering $10,000 to the first person who read their insurance policy. The catch: the only way you could find out about the contest was to actually read the policy. 73 policies were sold and sent out before someone claimed the prize.
Not surprisingly, insurance policies are one of many important documents that people fail to read. Many employers and employees view insurance as an ordinary, mundane part of the business world. Whether it’s your E&O insurance or your life insurance policy, most people just read the first few pages before signing a form stating that they agree to all the terms and conditions.
Although it is important for all companies and employees to read and understand these documents, the real question is when was the last time YOU and other members on your team team, actually read these documents? What about documents for your benefits plans such as service provider agreements, insurance policies, plans, and summary plan descriptions?
At Oldham Law, we recommend that actually read all of your insurance policies, and related documentation, to make sure that the documents accurately reflect your understanding and desired coverage. This is not only a sound recommendation, but a duty imposed on insureds by law in the State of Texas. While is it unlikely you will win $10,000 for reading those documents, you may be able to avoid other potential problems that could save you much more in the long run.