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


Medical Payments Coverage Confusion

Several questions have come up recently about medical payments coverage under the general liability policy. Here's an overview...

Med pay is designed to provide payment for bodily injury on or next to your premises or because of your business. I've often called medical payments "good will coverage" - a customer slips and falls - med pay covers the expenses of the injuries up to the limit of coverage (usually $5,000 or $10,000) regardless of your negligence or the customer's klutziness.

Med Pay coverage will not pay for injuries to employees or contractors you hire. Some policies have added exclusions for others related to the business - I've seen residents excluded on a policy for a nursing home, students and sports injuries excluded for schools - volunteers excluded for non-profits.

The coverage is handy for two reasons. First, why have a customer mad at you over the payment of a $2,500 emergency room bill? Second, perhaps quick payment of bills without a fight will prevent the injured person from suing.

If an injury was due to your negligence then liability insurance provides protection. Here's an example... Mary owns a store. Roger comes to the store and slips on the ice. His initial doctor bills are $3,000. Mary's med pay coverage pays the bill. A month later Roger decides to sue Mary for $50,000 because he has not been able to work since the accident. Mary's general liability coverage defends her in the suit and would pay any ultimate award if she is found liable for the injuries.

Class dismissed.


Is Anyone Else Sick Of Lousy Service From Insurance Companies?

It’s time for business insurance buyers to stop accepting poor performance.

For more than twenty years I have made my living in the insurance industry. Four years ago I started Insurance Consultants of Maine to give insurance buyers unbiased “insider’s” help and assistance. As a consultant I've worked with of hundreds of my client's insurance policies. I am appalled at the service I see.

Late Renewal Quotes,
Slow Delivery Of Policy Changes,
Unintelligible Loss Runs,
Mistakes On The Policy,
Proliferation Of Endorsements

In one line of insurance, homeowners, the Maine Bureau of Insurance received 85 complaints in 2000, 96 complaints in 2001 and a whopping 487 in 2002. A 400% increase in one year! Auto insurance complaints showed a similar increase: 45 in 2000, 54 in 2001 and 337 in 2002. The insurance bureau does not publish business insurance complaint statistics. If they did, the story would not be much better.

It’s time for change. Right now. As insurance buyers, we should demand it. Take a look at expanded thoughts on this topic in the October 27th issue of Maine Biz. Once it's out, I'll post the article on my website too.

PLEASE NOTE: Email me your insurance horror stories - scott@icofmaine.com. I'm attending a state insurance department hearing on 10/23. I'll take all the ammunition I can get.


Come See Me!!!
I'm pleased to speak to groups and associations about insurance and risk management topics. Here are some of my upcoming presentations:

October 30 - Target Tech Center, Orono, ME
November 4 - Maine Innkeepers Association Annual Conference, Cliff House, Ogunquit, ME

Call on me if you need a presenter! Click here for details: www.icofmaine.com/ispeaker.html


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Your Privacy
I will never sell or distribute your email address to any other person or organization.

Help With Your Experience Modification
Goto http://www.modmanager.com for help understanding your work comp experience modification. Check out this free tool.

Workers Comp Tips
I also publish a weekly Workers' Compensation Tip designed to save business owners premium. Goto http://icofmaine.com/newssign.html

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 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.

© 2003 Insurance Consultants of Maine, Inc. All Rights Reserved.

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