Insurance Terms-Earned Premium

Premium used in an insurance policy as the policy term progresses.An annual policy that has run for 5 months has five-twelfths of its premium earned. In workers' compensation, premium is earned as the employer incurs payroll expense. Liability insurance may also be rated on a payroll or sales basis. Class dismissed … [Read more...]

What The Best Do

Companies that successfully manage their business insurance plan follow the following best practices: 1) They meet at least annually with their insurance broker to review coverage, business changes, and plans. 2) They monitor and facilitate all claims, keeping their insurance company adjusters on track. 3) They manage risk to avoid losses.4) They … [Read more...]

Keeping Secrets From Your Insurance Agent

Your insurance agent can only respond to the changes in your business that he or she knows about. Some agents are more proactive than others. The ultimate responsibility, however, is with you to let them know. Here are some issues to bring to your agent's attention:--Changes to your operation such as new products or services, expansion to … [Read more...]

Property Insurance Screw Ups – Low Deductibles

Insurance isn't for the small events that are a part of life. Let the insurance company take care of the big claims while you manage the small, “normal” bumps in the road. Consider a property deductible of $10,000 or more. Look at your auto policy’s collision insurance. Ask your agent what the premium savings will be for doubling your … [Read more...]

Property Insurance Screw Ups – Specific Insurance

There are a great many ways to screw up your property insurance.A common error is specific property coverage - having your policy list each location and coverage section separately. For example:$1,000,000 coverage on your Main St building$500,000 on the contents of Main St$1,200,000 on your North St building$750,000 on the contents of North StThe … [Read more...]

Property Insurance Penalty Hurts You

In most property insurance policies there is a penalty called coinsurance. Here is what you need to know about coinsurance - it never helps the insurance buyer.Coinsurance = BadAsk your insurance advisor if there is a coinsurance clause in your property insurance policies (building, contents, inland marine, computer, business interruption … [Read more...]

Commercial Auto Insurance – An Overview

The commercial auto policy provides insurance coverage for cars and trucks used in a business. Policies can include protection for owned and non-owned vehicles. Issues to Consider: -Is your liability coverage adequate? A minimum coverage for most businesses is $1,000,000 with additional limits provided by a commercial umbrella policy. -Is your … [Read more...]

Controlling Costs in a Recession

I recently received a request from a reporter from a national magazine asking about actions a business can take to survive a recession. My response:Companies that bid their insurance can save 20 to 40 percent on their coverage. The current property and casualty insurance marketplace is as competitive as any in recent memory. Insurers want to … [Read more...]

Are You Attractive?

I was just interviewed by a reporter looking for information on safety equipment and its use in controlling workers compensation losses.An issue came up that warrants a post.To get the best rates on your insurance you must be attractive to insurance companies. Well run, safe companies with good loss records will get better quotes than average … [Read more...]

Insurance Dating

Insurance agents and underwriters around the world are still cleaning up their January 1 renewals.It happens every year.By my estimate (not scientific) at least 30% of commercial insurance programs renew on January 1 or December 31.Unless you are spending $2,000,000 a year on insurance, your insurance renewal is not getting the attention you … [Read more...]