Insurance Consulting

Scott Simmonds, CPCU, ARM

Insurance from an Unbiased Point of View

December, 2006 -- www.ScottSimmonds.com

More On Bidding Your Insurance - Over the past few months I have included several pieces in this newsletter about the bid process and how bidding your insurance offers an opportunity of better coverage at a better price. Here is an article I wrote for Mainebiz - the best business newspaper in our state - http://www.scottsimmonds.com/mainebiz10-06.pdf.

Consider Your Renewal Dates Carefully - The most popular renewal date for business insurance programs is January 1. The first of July is also popular. The “quarter changes” of April and October first are also busy times for insurance companies. You don’t want your insurance to renew anywhere near these dates. Underwriters and agents are scurrying around, trying to renew three or four times their normal workload. Unless you are spending $1,000,000 a year on your insurance, you won’t get the attention you deserve. If you currently have one of the above policy dates, consider changing it to a date like February 17. Think about your cash flow. Select a month for renewal when you have money in the bank and time to spend with an agent.

One exception… rarely do I recommend changing policy dates on workers' compensation policies. The experience modification calculation does not respond well to changing policy periods.

Special Perils - Perils are causes of loss – fire, lightning, wind, hail. Special perils coverage provides the broadest causes of loss on a property insurance policy - protection for any cause of loss not excluded by the policy. Common exclusions are earthquake, flood, nuclear, intentional damage by the building owner, damage by insects or animals, and mold.

Deductibles - I find that most small businesses have relatively low deductibles. Things happen in our daily lives. Don’t use your insurance to pay for the bumps in the road. Look to insurance to help you through catastrophes.

Did vandals damage your sign? Why look to insurance to pay for such? Did a windstorm damage a few shingles on your roof? Fix them and move on. Insurance should be for when your roof is destroyed or for a loss that would have a devastating effect on your company’s financial health.

Use high deductibles on your property insurance to reduce your premiums. Consider $5,000, $10,000 or higher. Small losses are a cost of business. Budget for them.

Note: Never pay liability claims yourself. Report damage to other people’s property or persons as soon as possible. Even if it seems that the injury is minor, report the claim to your insurer quickly.

Life In Maine And Other Stuff - We had our first snowstorm a few weeks ago. Melted two days later. On my walk through the woods the other day I saw a flock of ducks on the pond. Yesterday at noon the water was frozen. No more ducks.

One of the more comical sights over the past few weeks was the group of 5 wild turkeys running up and down our street.

My year as Rotary Club president is half over now. It's been a great experience. I'll repeat my message of several months ago: Check out your local Rotary Club. You will be surprised at the excitement, energy, and activities - locally, nationally, and internationally.

Biggest Insurance Mistakes White Papers - Get my white papers covering the biggest business and personal insurance mistakes. Send a blank email to bizmistakes@ScottSimmonds.com for a copy of the business mistakes paper. Email to personal@ScottSimmonds.com for the personal insurance version. No cost.

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@ScottSimmonds.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@ScottSimmonds.com. See my speaker's page at www.ScottSimmonds.com/ispeaker.html.

Forward This Newsletter To Your Friends - Feel free to pass this newsletter on to others whom you think would be interested.

Scott Simmonds, CPCU, ARM
Insurance Consulting
Phone 207-284-0085
Scott@ScottSimmonds.com
ScottSimmonds.com

Comments regarding insurance policies or products in this newsletter do not constitute an endorsement. I accept no fees or payments of any kind from any company mentioned in this newsletter.