Your comments, questions and suggestions are always welcome. Email: scott@icofmaine.com


Terrorism Insurance
The phone is ringing off the hook with clients asking about terrorism insurance! Here are some of the issues around the terrorism coverage that is a part of the Terrorism Risk Insurance Act (TRIA) signed by President Bush on November 26, 2002.

After 9/11 terrorism was excluded as a cause of loss from most insurance policies. The exclusions defined terrorism broadly to include acts of domestic and foreign terrorism. Acts of destruction, chemical and bio-terrorism were also excluded.

The TRIA removes the exclusion from policies for acts of Foreign Terrorism when the event is "certified" by the Secretary Of The Treasury and the damage is over $5,000,000. The act allows insurer to charge a premium for the above and allows the policyholder to reject coverage.

The act leaves uncovered acts of domestic terrorists (Oklahoma City type bombings), events not certified by the Sec. Of The Treasury, and acts of terrorism where the event causes less than $5,000,000 of damage. These acts are also excluded by your (and most other's) insurance policies.

Premium charges for the limited terrorism coverage varies widely. Some insurers are offering the coverage at no additional premium. On property insurance, I have seen rates of 3 to 11% of the property premium. Insurers are also quoting coverage for terrorism on some general liability policies. The average seems to be about 3% of the standard liability premium.


Inland Marine Insurance
Inland marine insurance can cover property of all types. Typically, such policies are used to coverage "items subject to transportation". Fork lifts, back hoes, back hoes, and other mobile equipment are commonly insured on inland marine policies. Computers and manufacturing equipment can also be insured on an inland policy.

Businesses that take possession of the property of others use inland policies to cover items in their care - jewelers, dry cleaners, and computer repair shops.

Two important issues to consider with inland policies...

Valuation Clause - Some inland policies value property on a replacement cost basis some on a market value basis.

Coinsurance - Some policies include a penalty if the amount of coverage is not equal to 100% of the actual value of the policy.

Be aware of policy limitations as to perils and use of property on the water (a problem for contractors). Mobile equipment may have policy exclusions for damage caused by exceeding weight restrictions (cranes and lifts).


OSHA
I'm in the midst of a five-week training program by OSHA (one day a week) over-viewing the rules and regulations of safety. Put on by the Maine State Department of Labor, so far, the classes have been excellent.

The Maine state Department of Labor puts the classes on. See their website for info on sessions in your area - http://www.state.me.us/labor/bls/saftwkrs.htm.


Work Comp Experience Modification Information
I just launched a new web based service to help employers control their workers' compensation premiums, http://www.modmanager.com. The site is designed to help business owners understand an important component of their workers' compensation insurance, the experience modification. The site includes information and tips as well as access to a tool to provide a customized report outlining issues, strengths and weaknesses in a businesses workers' compensation claim management and loss control plan. Give the site a try and tell me what you think. The site and the report are free.


Work Comp Bills Pending In Maine Legislature
Someone pointed out to me that pending laws are called "bills" because they cost us money. Bad bills can cost lots of money! Here's a listing of pending workers' compensation bills in the Maine Legislature http://www.me-ri.org/MWB%20March%203%202003.htm. Hearings have been held on many of these issues. A quick review will tell you that many of these will increase the cost of workers' comp in Maine. Tell your legislator what you think.

The Maine Economic Research Institute (MERI) is an independent, private, not-for-profit corporation governed by a board of directors who are business owners, CEO's, and senior staff representing a diverse group of Maine companies. MERI's Board and staff are focused on creating a "healthy economy, strong businesses, and quality jobs". Their primary focus is the legislature, bills put forth and votes taken.

Take a look at their website for your legislator's voting record on important economic issues - http://www.me-ri.org. Consider supporting MERI's work by joining. The fees are modest and they provide a valuable service.


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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 04072-2431
Phone 207 284-0085
Fax 801 991-4027
scott@icofmaine.com
www.icofmaine.com
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Insurance Consultants of Maine, Inc. is a fee-compensated insurance and risk management advisory firm. We improve our Clients’ operations by controlling their cost of risk including their cost of insurance. Insurance Consultants of Maine helps businesses manage, develop and implement insurance and risk management plans tailored to their unique needs.

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