Insurance Consultants Of Maine Newsletter

Insurance Consultants of Maine Newsletter
Scott Simmonds, CPCU
May, 2004
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Feel free to forward this newsletter to your colleagues. Your comments, questions and suggestions are always welcome. Email: scott@icofmaine.com

The Insurance Consultants of Maine Crystal Ball Says! - I'm always being asked what's going on in the insurance world. Here's a snapshot of the current market and what I see in the near term:

-- Market conditions are improving in certain segments. Property insurance is more competitive. Liability for apartments, health care industries and contracting are improving but still present challenges in pricing and coverage availability.

-- Businesses with good loss records that show operational quality are having an easier time with their insurance.

-- Directors and Officers liability will continue to be challenging - premiums, claims and underwriting.

-- Insurer financial security overall is improving. It's still a concern though.

-- Insurer policyholder service lags quality standards of other industries. My own professional liability insurer issued a renewal quote on the day before the policy expired! I have a client whose policy renewed in December - no policy yet. Frankly, in general, insurance company service (other than for claims) stinks.

Liability Claims - Insurance companies are pushing harder and harder to get you to report accidents and injuries faster. They are right. Reporting "slip and falls" and other accidents gets the insurer's experts involved quickly. Have disposable cameras in all your vehicles and in all your locations. Take pictures of the damage as well as the surrounding conditions. This ultimately saves you premium dollars and aggravation.

20 Biggest Mistakes In Business Insurance - Subscribers to this newsletter can receive an advance copy of my newest e-book, "The 20 Biggest Mistakes In Business Insurance." Email me at scott@icofmaine.com and I'll send you a free copy. One reviewer, Stu Olesen of The Woodlands Club in Falmouth, Maine, commented, "I am very impressed with its simplicity. You have broken down a business necessity into a very manageable document that I can use to focus the direction and content of the annual review with my insurance agent. Thank you."

Personal Insurance Hint - Match Your Uninsured Motorist Insurance Limits To Your Liability Limits - Uninsured motorist coverage pays you for damages caused by an uninsured or underinsured person.

You're driving down the street. I run a stop sign and hit you – clearly my fault. Your car is totaled ($8,000). You have $20,000 in medical bills and are out of work for five weeks ($5,000 lost wages). Not counting “pain and suffering,” I owe you $33,000. If I have insurance my policy pays you and life is almost grand. What if I don't have insurance? What if I have no assets and a job that barely pays the bills?

Uninsured motorist insurance steps in and pays you as if I had insurance. You get paid and your insurance company fights with me. They may attach my wages and search for any hidden assets I might have. You don't have to worry about it though.

The amount of uninsured motorist coverage you buy should equal the amount of liability coverage you buy. Recall that liability coverage pays other people. Shouldn't you insure yourself for at least as much as you insure others? Plus, the premium is pretty low.

It's About Improvement - Please tell me what you like about this newsletter and what you don't like. Are there issues you'd like addressed? How can I improve the format or presentation of information?

Come See Me 1 - I'm speaking at a SCORE seminar in Ellsworth, Maine 8:00 to noon on May 6, 2004. “Insurance For Small Business, The Good The Bad And The Ugly.” My part of the program will review the basics of business insurance. As usual, I'll pepper my presentation with hints and tips on how to get better coverage and lower premiums. Contact the Ellsworth office of SCORE to reserve your spot and for more information - 207 667-5800.

Come See Me 2 - I'm a panelist at The Board Network's June 10 Governance Training Workshop. My part of the program will cover non-profit directors and officers insurance as well as other insurance issues. Call The Board Network for info 207.874.1000.

Future speaking engagements include three seminars for the Maine Society Of CPAs and several Rotary Clubs in Maine.

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

Life Insurance - How secure is your life insurance? Do you have the right kind? Is the policy set up correctly? 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.

Nonprofit Insurance Issues - I recently had an interview with Linda Roberts, CPA, of Berry, Dunn, McNeil & Parker for their newsletter. Linda provides accounting, consulting, tax, and audit services to not-for-profit entities. We covered a variety of insurance issues unique to the not-for-profit world including directors and officers, auto and general liability. See the newsletter at http://www.bdmp.com/resources/Mar04NotForProfit.pdf. The interview is on page 2 of the document.

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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.icofmaine.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. We accept no fees or payments of any kind from any insurance organization or any company mentioned in this newsletter.