Insurance Consultants Of Maine Newsletter

Insurance Consultants of Maine Newsletter
Scott Simmonds, CPCU
February, 2005

Unbiased Insurance Info & Advice For You
www.endwimpyinsurance.com

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Please feel free to forward this newsletter to your colleagues. Comments, questions and suggestions are always welcome. Email: scott@icofmaine.com.

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Debris Removal Coverage - After a fire or other catastrophe cleanup precedes rebuilding. The cost of debris removal is part of your insurance claim. Most property insurance policies, however, limit the amount of coverage to 25% of the direct property damage plus $10,000. The total coverage for rebuilding and the cost of cleanup is limited to the amount of your insurance. Consider increasing your protection. Keep in mind that the storage of hazardous materials or asbestos in your building will dramatically increase the debris removal expense.

WC Tip - Get A Copy Of Your Audit Worksheets - Ask your insurer to provide you with a copy of the audit worksheet prepared for your most recently expired workers' compensation policy. This document provides the details of how the auditor determined your final premium. It lists employees, classifications and payrolls. Look for errors such as the inclusion of overtime and the incorrect classification of employees.

Personal Insurance Tip - Consider Increasing Your Uninsured Motorist Coverage - If you're in an auto accident caused by another driver you'll expect that their insurance will pay for your damages and injuries. But, what if they don't have insurance? In most states uninsured/underinsured motorist protection is a part of the auto policy. The coverage pays your medical bills and other expenses that arise from your injuries if the party responsible for the accident either doesn't have any liability insurance or doesn't have enough. In most cases the coverage doesn't pay for damage to your car. Consider increasing the amount of coverage you have.

Risk Management Idea - Buy a supply of disposable cameras for your cars and for each location. Instruct your employees to take pictures of any accident or incident. Recently a guest was injured at a hotel owned by one of my clients. Pictures were immediately taken of the area to preserve evidence of the condition of the stairs, carpeting and general area. If the guest ever decides to sue, the photos could be helpful.

Disability Insurance As Part Of A Buy/Sell Agreement - In a recent conversation with an accountant, I mentioned the importance of disability insurance as a funding source for a buy/sell agreement between partners or stockholders in closely held companies. Most business owners buy life insurance as part of the planning process. The disability of an owner can cripple a small company. The cash flow provided by a disability insurance policy can mean the difference between the survival and collapse of a business.

Buildings Underinsured - According to a survey by construction cost estimators Marshall & Swift, 61 percent of U.S. households are underinsured by an average of 25 percent. I'm sure similar statistics would hold true of commercial properties. Review the amount of coverage on your buildings regularly. The penalties for under-insurance can be severe.

Long Term Care Costs - A recent report by Genworth Financial, Inc. places the average cost of long term care at $72,000 per year. Planning for long term medical care is as important as having a will. Perhaps long term care insurance is the best solution for you. Perhaps another approach is advantageous. The time to plan is now. Speak with your attorney and accountant. Start the planning process. Also, speak with your parents about their plans.

End Wimpy Insurance - In a conversation with a client a few weeks ago I was paid a compliment. "You put an end to wimpy insurance coverage." he said. I thought it was funny. When I got back to my office I played around with it a bit. Announcing my new web address: http://www.endwimpyinsurance.com! Sure, the old link still works (www.icofmaine.com). This one is more fun though.

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Biggest Business Insurance Mistakes White Paper - Get my "20 Biggest Business Insurance Mistakes" ebook in printer friendly form. Send a blank email to bizmistakes@icofmaine.com to receive your no obligation copy. What was on 40 pages of e-text is now available on 10 printer-friendly pages.

"The 20 Biggest Personal Insurance Mistakes" White Paper Now Available! - Readers have been asking for my personal insurance hints. It's here, hot off the ether! Just send a blank email to personal@icofmaine.com. Your copy will be sent to you immediately, at no cost of course.

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Your Privacy - I will never sell or distribute your email address to any other person or organization.

Do You Have The Right Insurance? Contact me to discuss an unbiased review of your insurance program. Do you have the right coverage? Can your policies be fine-tuned to improve the protection? Can changes be made to ease the administrative burden insurance causes? Are you getting the service you should from your broker? I can help. Call 207.284.0085 or email me at scott@icofmaine.com. Remember, I don't sell insurance so I'm unbiased.

Need A Speaker? I'm pleased to speak to trade, business or service associations about insurance topics. Call 207.284.0085 or email me at scott@icofmaine.com. Also check out my speaker's page at www.icofmaine.com/ispeaker.html. Associated Builders and Contractors members, come see my presentation at the April 21st meeting.

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Scott Simmonds, CPCU
Insurance Consultants of Maine, Inc.
20 Sofia Road
Saco, ME 04072-9017
Phone 207 284-0085
Fax 801 991-4027
scott@icofmaine.com
http://www.endwimpyinsurance.com

Unbiased Insurance Solutions

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Insurance Consultants of Maine, Inc. is an unbiased, fee-only insurance and risk management advisory firm. We don't sell insurance and never accept fees or commissions from insurance companies or agents.

Comments regarding insurance policies or products in this newsletter are for information purposes only and do not constitute an endorsement. I accept no fees or payments of any kind from any insurance organization or any company mentioned in this newsletter.