Insurance Consultants Of Maine Newsletter

The Insurance Fixer
Scott Simmonds, CPCU, ARM
May, 2006

Unbiased Insurance Info & Advice --- www.InsuranceFixer.com

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Feel free to forward this newsletter to your colleagues. Comments, questions, and suggestions are always welcome. Email: Scott@InsuranceFixer.com.

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Review Contracts For Insurance Issues

I recently learned that a client was entering into a lease agreement with a day care provider who wanted to use my client's facility to run a satellite location. I requested a copy of the contract that was being drafted. My client's attorney had done a fine job with indemnification agreements, hold harmless clauses, and the like. He also included a requirement for insurance. It didn't go far enough though. Here are my recommendations:

--I suggest an increase the required aggregate limit of liability insurance to at least $2,000,000. They day care's liability policy probably includes this now. However, if they don't, increasing the aggregate to $2m will increase their premium very little. A low aggregate limit of coverage hinders protection in the case of multiple claims.

--The liability policy should include coverage for physical and sexual abuse as well as coverage for corporal punishment. Some day care policies will specifically exclude such losses. Look for affirmative coverage in these vital areas.

--Add a requirement for workers compensation and auto liability insurance (if kids are transported at any time)

--You should require that your tenant provide a certificate of insurance showing the required coverage.

--I suggest that you include a comment in the document that your tenant must insure their own property (toys, appliances, equipment, games, etc.) for loss by fire and other cause of loss.

The above may not be appropriate for your operation. It does, however, point to the need for your insurance adviser to review contracts you sign. At the very least, you need to know how your insurance will respond to the provisions of the document.

Leases, contracting agreements, joint venture agreements, and the like should be reviewed by your insurance advisor. Call me if I can be of assistance.

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Congratulations SBA's Maine Business Person of The Year

I'm proud to say that Maine's Small Business Person of the Year is a client of mine; Susan Giguere founder and CEO of Care & Comfort in Waterville, Maine. Well deserved Sue! See Care & Comfort's website at www.careandcomfort.com. A fine organization that helps a great number of people - a great client too!

Small Business Person of the Year is an annual award given by the Maine District office of the U.S. Small Business Administration (SBA).

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Life In Maine And Other Stuff - After more than a year of lessons I gave my second violin recital at my niece's third birthday party a few weeks ago. The five people in attendance were amazed - all family members. I think my mother cried. I'm finally past "Mary Had A Little Lamb." BTW, I play a 99 year old violin made by my Great Great Grandfather. Maybe try to play is more accurate.

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Welcome New Subscribers - Seems like my fame is growing. I have twice the subscribers I had a year ago. For those new to the newsletter, an archive of past issues is at http://www.insurancefixer.com/newspast.html.

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

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

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Scott Simmonds, CIC, CPCU, ARM
Insurance Consultants of Maine, Inc.
Phone 207-284-0085
Scott@InsuranceFixer.com
http://www.InsuranceFixer.com

Unbiased Insurance Solutions

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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.