Insurance Consultants Of Maine Newsletter

Insurance Consultants of Maine Newsletter
Scott Simmonds, CIC, CPCU, ARM
July, 2005

Unbiased Insurance Info & Advice
www.endwimpyinsurance.com

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Feel free to forward this newsletter to your colleagues. Comments, questions and suggestions are always welcome. Email: scott@icofmaine.com. You are getting this publication as you subscribed or gave me permission to add you to the list.

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Commercial Auto Insurance - Trailers – If you own a small utility trailer with a weight rating of less than 2000 pounds you don’t need to add the unit to your auto policy for liability coverage (damage the trailer causes to other people’s property). If you want insurance for damage to the trailer itself you will need to specifically insure it for collision and comprehensive perils.

Storage Trailers – It’s pretty common for businesses to have trailers on-site used for storage. Check with your agent. Those trailers may be considered “buildings” by your property insurance. Many policies will not provide coverage unless a “building” is listed in the policy. That could be true for the contents of the trailer too. Of course, if you move the trailer you’ll need coverage under your auto policy.

Trampolines and Your Insurance – It must be that time of year. I have had two clients call me in the past week asking about insuring trampolines on homeowners insurance. First, insurance companies hate trampolines. That being said, I have never seen an insurance policy exclude injuries caused while using a trampoline. If you buy a trampoline realize that you will have problems with your renewal as soon as your insurance company finds out about it. Insurers are sending out questionnaires regularly, asking about hazardous conditions including trampolines. Lying on these forms is insurance fraud.

I have heard that State Farm Insurance and Chubb Insurance are less severe with their underwriting. Both require safety nets on backyard trampolines, but will not cancel your insurance. At least that’s what I'm told.

Unethical Insurance Consultants - I recently read an story about an insurance consultant for a city in Illinois. Apparently the advisor was hired to help with a bid process. Bids were received and a recommendation made by the consultant. The city leaders followed the consultant’s advice only to fire her a few days later. Turns out the consultant was affiliated with an insurance broker. Not only that, she awarded the bid to her son who is an insurance agent!

My clients don’t have to worry about anything like that. I never accept fees or commissions from the brokers, agents, or insurers I work with for my clients. I don’t even let them buy me lunch. When I started my consulting practice 5 years ago I owned stock in a bank that owned an insurance agency. I sold that stock to avoid any hint of impropriety. My clients value my independent advice. I value my credibility and reputation.

Changing Insurance Relationships – I was recently asked by a national insurance publication to comment on issues that should be considered when changing insurance relationships. The question dealt with directors and officers insurance (D&O). However, I think the issues are the same for most insurance policies. Here are some of my comments:

Issues to Consider When Picking An Agent/ Broker:
--Is the agent active in the D&O market?
--What experience does the broker have with similar companies—your industry —your ownership structure?
--What insurance markets do they have access to? Will they access key insurers on a brokerage basis or directly? What's their book of business with the insurance company? Will this be their only D&O account with the particular insurer?

Issues to Consider When Picking An Insurer:
--A comprehensive review of the coverage forms is obviously key.
--On larger accounts, is the underwriter willing to meet with the client—get to know the risk?
--What other services can the carrier provide— loss prevention, advisory services etc.

On-Line Store Offers Insurance Information – I recently expanded my website to include a few special reports and the CDs from my teleseminars. Take a look at www.endwimpyinsurance.com/store.htm. Topics include:

--Premium Saving Insurance Basics For Small Business
--Insurance Trips and Traps For Consultants
--Accountants Professional Liability Insurance

I'm finishing-up an expanded version of my workers' compensation handbook, to be available next month. I'm also working on reports covering strategies for bidding insurance and a banker's insurance handbook. More on those in the coming months.

Life In Maine And Other Stuff - Those of you who asked about the porcupine that visited my back yard a few months ago will be thrilled with my latest visitor - a black bear. About a week ago, at midnight, my wife woke me up with the words, "There's a bear out back!" Sure enough there he sat, eating the sunflower seeds from the bird feeder he tore down. He munched for a bit then took off when I went downstairs to get a closer look.

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Biggest Business Insurance Mistakes White Paper - Get my "20 Biggest Business Insurance Mistakes" ebook in printer friendly form. Send a blank email to bizmistakes@icofmaine.com to receive your no obligation copy.

"The 20 Biggest Personal Insurance Mistakes" White Paper - Great info on making sure you have the right personal insurance. Just send a blank email to personal@icofmaine.com. Your copy will be emailed to you immediately; at no cost of course.

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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@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.

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Scott Simmonds, CIC, CPCU, ARM
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.endwimpyinsurance.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. I accept no fees or payments of any kind from any insurance organization or any company mentioned in this newsletter.