Insurance Consultants of Maine Newsletter
Scott Simmonds, CPCU
December, 2003
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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


HAPPY HOLIDAYS

Business Interruption Insurance
I am regularly asked to explain business income insurance. First, let's get past semantics. The following terms mean the same thing: business interruption coverage, loss of business income, time element, use & occupancy. They all mean the same thing - protection from the loss of income that occurs when a business is shut down due to a fire or other insured loss.

For fifteen years I have used the same story to help non-insurance people understand what exactly business income coverage does. It's a silly story but it makes the point.

Pretend you own a goose. Your goose lays golden eggs. If your goose gets run over by a truck it's going to take you nine months to get a new goose. You have insurance that will pay for the cost of the new goose (property insurance). How about the value of the eggs you won't get in the nine months you're without a goose? Business income coverage pays the value of the eggs while your waiting for your new goose.

Part two of business interruption coverage is extra expense. Extra expense coverage pays the increased cost of getting your goose in five months instead of waiting nine.

Class dismissed.

The New Medicare Law And Health Savings Accounts
The new Medicare Law has received a great deal of press. Most of the focus is on the prescription drug benefit. Perhaps a more important provision is the formal establishment of Health Savings Accounts that allow individuals to put money aside on a tax preferred basis without the "use it or loose it" provision of current Medical Reimbursement Accounts. Here's a summary based on a report by the National Association Of Insurance Commissioners - http://www.icofmaine.com/medicarehsa.pdf.

Long Term Care Insurance
I recently put on a personal insurance seminar for the employees of the Town of Falmouth, Maine. It was a great session with many questions. There was a great deal of interest in Long Term Care Insurance. If your considering LTC insurance I recommend you check with your state insurance department. Most have a guidebook of coverage and information on insurers authorized to sell the coverage. In Maine check out http://www.state.me.us/pfr/ins/ltcare.htm.

Come See Me!
On 1/13/94 I'll be the featured speaker at the Androscoggin County Chamber of Commerce's Brown Bag Lunch Forum. Come hear my program covering Employment Practices Liability Insurance - What is it? Who needs it? What to look for! I'll provide information on the details of the coverage and how to make sure you're buying the best policy. Call the Chamber if you're interested in attending -- 207.783.2249.

Real Time Service Standard
I'm not sure there is anything more annoying than not being able to reach someone you need to talk to. That's not a problem for my clients. I answer all client email messages within one business day. When I am out of my office my calls are forwarded to my mobile phone so you can reach me when you need me. Phone messages from clients are returned in 90 minutes during business hours.

Speaker Available!!!
I'm pleased to speak to groups and associations about insurance and risk management topics. Call on me if you need a presenter! I'm told I actually make insurance interesting. Click here for details: www.icofmaine.com/ispeaker.html


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

Help With Your Experience Modification
Goto http://www.modmanager.com for help understanding your work comp experience modification. Check out this free tool.

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.

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Scott Simmonds, CPCU
Insurance Consultants of Maine, Inc.
Saco, ME 04072
Phone 207 284-0085
Fax 801 991-4027
scott@icofmaine.com
www.icofmaine.com
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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.

© 2003 Insurance Consultants of Maine, Inc. All Rights Reserved. We encourage sharing this newsletter in whole or in part if copyright and attribution (including my web address) are always included.