Negotiate Your Insurance Renewals

I just got off the phone with the CEO of a small insurance company in the  northeast.  He is David.  His competitors are Goliath. He told me that all I have to do to get Goliath to drop their price is tell them that David is providing a quote.  He said premiums drop by 40% with the mention of his company's name. Most insurance buyers have no … [Read more...]

Construction Defect – Insurance Exclusions For Lenders

I've been talking about the issue of construction defect for a few years now. Here is the scenario. Your bank loans money to a developer for an apartment complex. Prior to completing the project, the developer goes under. You foreclose and sell the project to developer number two, who finishes the buildings and sells them. Two years later it’s … [Read more...]

Board of Director Fear Factor

I just started my review for a Northeastern bank.  One of my survey questions asks if there are any current concerns for the insurance. Here was the reply: "Yes- the board is concerned about its own liability and whether the D&O coverage is sufficient.  They typically get more worried after attending a bank conference in which this matter … [Read more...]

What Is An Earthquake?

In property insurance, we define an earthquake as an earthquake. Plus... Volcanic eruption. A tidal wave caused by an earthquake is not covered by many earthquake insurance policies. Many policies exclude damage by earthquake to exterior masonry veneer. Sinkhole collapse may be covered by earthquake insurance - or by your property … [Read more...]

When An Independent Agent Is Not Independent

First time I have heard this in thirty plus years. Bank hires me to review their coverage and help with their renewal. I think we need to see other insurance companies, as it has been a few years since there was any competition on the account. The bank tells me of an agent who is a depositor and seems to be good. I call the agent. I'm told … [Read more...]

Are the Bombings In Boston Terrorism?

Horrific.  I have been at the site of the bombings many times in my life. My daughter went to college near there. I have been a spectator at the Boston Marathon many, many times. I have friends who have run it. Horrific. The bombings may have been an act of terrorism. Your insurance policies may not consider the events to be terrorism, … [Read more...]

Commercial Auto Insurance Coverage Symbols

Commercial auto policies specify the extent of coverage provided by using symbols to indicate the breadth of the protection. The declarations page of your auto policy outlines coverage areas (liability, uninsured motorist, medical payments, etc.) with coverage symbols that apply to the type of insurance. The applicable symbols are numbers 1 … [Read more...]

Business Use Of Employee’s Autos – An Insurance Perspective

Introduction I get asked certain insurance questions regularly. One such question involves employee use of personal vehicles on company time. It's a confusing topic filled with many opportunities for misunderstanding. Most personal vehicles are insured using a "personal auto policy." Most businesses that own vehicles utilize a "business auto … [Read more...]

Property Insurance Coverage Problem – Debris Removal

Property insurance is designed to pay for the reconstruction of your building or the replacement of your property after a loss. Before you can rebuild from a fire or wind damage, you have to clean up the mess. The charred remains of the building must be disposed of before new construction can begin. A little-discussed section of your property … [Read more...]

Coinsurance – What You Don’t Know Can Hurt You

The word "coinsurance" may be the most misunderstood and confusing term in the world of insurance. One definition of "coinsurance" is used interchangeably with the word "co-pay" - the amount the insurance company pays in a claim. An eighty- percent co-pay (or coinsurance) clause in health insurance means the insurance company pays 80% of the … [Read more...]