Your comments, questions and suggestions are always welcome. Email: scott@icofmaine.com
WHAT'S IN A NAME?
Every insurance policy has a listing of insureds. Usually the first page of the policy shows the "named insureds". Are all the correct entities listed on your policies? Are the names spelled right? Does the name include the appropriate business form such as Inc. Corp. or L.L.C.?
In addition to the listing on the policy the contract language inside the policy spells out "Who is an insured." In many cases, the policy will automatically include employees, directors and subsidiary organizations where the "named insured" holds more than 50% of the ownership.
Getting the right name on a policy seems like a simple issue. However, almost every insurance program we review includes at least one error. Such can affect your coverage in a claim.
RESTAURANT GENERAL LIABILITY CODES CHANGE
General liability policies carry classification codes based on business type and operation. The general liability rating codes for restaurants have recently been changed.
In the past, there were 12 different classifications. Two of the twelve remain unchanged, ten have been eliminated and thirteen new ones have been added. If you run a restaurant chances are that your classification will change.
Will your insurance company pick the correct class for you? Wouldn't it be better to be proactive and make sure the class is right? Call me for details 207.284.0085
SERVICES FOR NON-PROFITS
Non-profits have unique exposures to loss. As a community service, Insurance Consultants of Maine offers Pro Bono and reduced fee services to selected non-profit groups. Please send me an email about your organization - scott@icofmaine.com or give me a call 207.284.0085
NON-ADMITTED INSURANCE COMPANIES
Insurers can be divided into two categories, Admitted and Non-Admitted. Admitted insurers are, in effect, licensed by the state. Their financials, policies and rates are submitted to the state insurance department or bureau for approval. They are also part of the state guarantee fund. Should an admitted carrier become insolvent (the insurance equivalent of bankruptcy) the fund pays losses by policyholders - similar to the protection offered to bank depositors by the FDIC.
Non-Admitted insurers choose not to go through the states review process. The state "authorizes" certain non-admitted insurers to sell their policies in the state. Policyholders are not eligible for the guarantee fund. Insureds must also pay a policy premium tax of about 3%.
Don't read into the above that non-admitted insurers are bad insurers - some of the best insurers in the world choose to go the non-admitted route - American International Group, certain companies within the Travelers family and Lloyds of London are non-admitted carriers.
For a listing of insurers that are approved, though non-admitted, go to http://www.state.me.us/pfr/ins/sl_companies.htm
TERRORISM INSURANCE
Many insurance policies are being issued with an exclusion for Terrorism. With such, no coverage is available if a terrorism event includes or meets one or more of the following standards: damage to property exceeds $25 million, , the terrorism involves nuclear materials, the terrorism is carried out by means of the biological or chemical materials, or, of an attack in which pathogenic or poisonous biological or chemical materials are released.
Some policies add the following as defining a terrorism event: 50 or more people are killed or sustain serious injury.
Further, if several events appear to be related and occur within a 72 hour period they will be considered one event.
Using this definition the anthrax
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Scott Simmonds, CPCU
Insurance Consultants of Maine, Inc.
15 Cherryfield Ave
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 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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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.
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