Insurance Newsletter

Insurance Consultants of Maine Newsletter
Scott Simmonds, CPCU
March, 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

Rental Cars - To buy or not to buy! That's the question when it comes to renting a car from Hertz, Avis, Budget and the like. Here's my advice… Never rent a car without buying collision damage waiver. Either buy it from the rental car company or use a credit card that includes the coverage as a customer benefit. Call your credit card company. Most gold or preferred cards offer the protection. Don't depend on your personal or commercial auto insurance. The rental agreements contractually obligate you to costs not covered by "normal" insurance – issues like “loss of use” and “replacement cost” are a major source of trouble that can be avoided (not to mention hassle) by purchasing the coverage from the rental car company or using the right credit card.

Work Comp Claims - Prompt reporting of claims will save you money. The law in most states requires that workers' compensation claims be reported within seven days. Fast reporting allows insurance company investigators and adjusters to start working on managing the claim for you. Require that your employees report injuries immediately to their supervisor. Make sure the supervisors report to your insurance company quickly. Fast reporting helps everyone. The general rule of thumb is that claims that require medical treatment or cause the employee to loss a work day should be reported.

Nonprofit Insurance Issues - I recently had an interview with Linda Roberts, CPA of Berry, Dunn McNeil & Parker for their newsletter. Linda is a not-for-profit accounting, consulting and audit specialist. 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.

Helpful E-Book: 20 Biggest Mistakes In Business Insurance- I'm in the final stages of completing my latest e-book on the twenty biggest business insurance mistakes. You can help me by reviewing the publication before I offer it to the general public - for free of course! Email me at scott@icofmaine.com and I'll send you a free copy to review when its ready. I only ask that you send me a note after you've read it. I want your thoughts, suggestions and comments. I hope to have the final version ready late April. Reviewers will also receive a free copy of the finished work.

Real Property Lease Exposures - It doesn't matter if you are the landlord or the tenant, your lease includes terms and conditions that relate to insurance. Here are some of the issues to be addressed:

--Does the lease include hold harmless or indemnification provisions? For whom?

--Does the lease address who's responsible for the replacement of damaged glass?

--Does the lease require that either party (or both) obtain liability insurance? To what limit of coverage?

--Does the lease place the tenant in the position of being responsible for buying the building insurance? Does the tenant purchase a policy or merely pay the premium for a policy bought by the landlord? Who pays for the landlord's loss of rents (loss of business income) coverage?

--Does the amount of the landlord's building insurance and the tenant's improvements and betterments coverage line up with the transfer of value that takes place over the life of the lease?

Still confused? Call me for more info - 207 284-0085

Personal Insurance Hint - Libel, Slander, False Arrest - Unlike commercial insurance, most homeowners insurance policies don't include coverage for libel, slander, false arrest, invasion of privacy. Ask your agent. You may be able to endorse protection to your current policy or use a personal umbrella liability policy to fill the gap in protection.

Virus Hoaxes - It seams that virus hoaxes are as prevalent as actual viruses. Any email you receive warning that you may have a virus should be acted on with caution - even if its from your smartest friend. Most such warnings tell you to delete a supposed virus file then spread the word to everyone in your address book. Before doing anything with your system check a reliable source like Norton (www.norton.com) or McAfee (www.mcafee.com) for info on the virus. Both web sites have an encyclopedia of real and hoax virus. Save yourself some frustration and embarrassment - get the facts before you delete files and email your friends.

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 - 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.

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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

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Scott Simmonds, CPCU
Insurance Consultants of Maine, Inc.
Saco, ME 04072-9017
Phone 207 284-0085
Fax 801 991-4027
scott@icofmaine.com
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.