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Wednesday, June 29, 2011

Ten things you should know about life insurance

1. The primary motivation for the purchase is life insurance to ensure that your favourite at your death be maintained.

2. Life insurance are calculated by underwriters, which had to replace your income with your death to determine the amount of money.

3. Life insurance is acquired; usually to cover the costs of the mortgage re-payments and bills, in the event of death of persons responsible for the payment of the mortgage Special rules exist, with the premium costs, because amount reduced, the outstanding mortgage they are known as mortgage life insurance.

4. Insurance policies vary the premium prices for the maintenance of the policy and the amount payable following death or termination of the contract (sum insured), certain features of the policy detectives - including age, sex, health and occupation.

5. Three types of life insurance policies are available; Term quality assurance is a contract, lasts for a fixed term and aims, financial protection against death; Life is much like a financial investment, a premium is paid in specific intervals and is designed to provide insured sum in the event of death or at a specified future date; Endowment assurance is similar to whole life insurance, however, these guidelines mature, meaning that after a certain period the insured sum is payable whether the policy detectives have died. For the two latter types das an option to the directive is to arise at any time to obtain flat rate, the amount of which are determined by the length and amount of the premiums so paid.

6. Life insurance is very difficult and expensive to get to the age of 70; Generally, you are ever over your rates are higher.

7. In General, people are offered, the smoking, very high premiums This is because smoking is considered very high risk.

(8) For a sum insured to a person in the event of death be granted must be active in the directive on the date of the event.

9. Many quality assurance policies offer cover terminal illness and be occur with incurable disease, once a doctor is recognized, that death is likely period of 12 months payment.

(10) The term for a life insurance policy is usually a period of 2 years, although most directives take between 20-25 years or longer.

Life insurance should be regarded you as a necessary part of your financial arrangements, will be the it with peace of mind, which cared for your death your family.

A prevention step: always insured

Prevention is the word that we hear the most today. On the basis of its specific medical meaning up to casual daily activities, prevention is the key word for everything. Why is it better to prevent than to cure is already known. Ahead danger you will get the upper hand.

Every day in this century crowded / booked is a challenge. Starting with the banal awakening in the morning, if for example you can slide show on the bathroom floor wet and until the very last moment of the day in the evening, if you can find your House of thieves emptied, has every moment of its dangers. And if you - as for example the implied by is a COP - stack these risks to some professionals then this is a receipt for a disaster.

And what the biggest disappointment is the fact that you never know or guess is if bad things for you, or the extent of damage will be done. Actually no one can. But what you can do, is it, this prevents to be that bad things happen and find a way to minimize the damage to be ready.

Modern society, for which purchase finding attempts could the challenge not refuse, a way for the modern man, his peace of mind in the form of insurance to find salvation for all. And although seems pointless invest money into something that you could return no value, it proves its usefulness, every time when you are confronted with an unforeseen event. Yet another argument in its favor, it is the small contribution, on a regular basis for a large compensation in case of any occurrence take. The holder of the insurance, but also his family or a person competent is the beneficiary of this sum isn't required. So if an accident happens, your family is still be maintained. Always professional liability as a necessary step for companies with large risks implies sometimes even legal or contractual requirements predictions. The need for security is always greater than a day passes without and technology developed, accent moving from machine to man.

So should you why for the sky to fall wait? How can you undo things, after they happen? Can someone? Unfortunately no one can. But at least you will have to ensure not also for the material side of life. It is true that you do not bring money luck, but surely they can help.

Saturday, June 25, 2011

Restaurant insurance - current market for commercial insurance favors restaurant owners

The insurance industry enjoyed record profits of $60 billion less than two years ago. Numbercollection in the wake of these returns, the commercial insurance market which flooded with hundreds of millions of dollars worth of capital. This created to increase in the amount of carriers, as well on risk as a greater capacity to take. Ultimately, the influx of capital into the insurance market has resulted in an insurance environment that is extremely soft, with prices falling quickly. For restaurant owners who approach this soft commercial insurance market correctly, some of the largest premium decreases in years are available.

To understand why attractive premiums are such out there, understand a couple points:
First, insurance pricing is cyclical. The inflated prices simply cannot be maintained in the new commercial insurance environment of 2008. A major reason for this is that most commercial insurance companies are public companies. Thus, their shareholders demand growth. In order to grow, prices must be reduced to entice new clients and retain current ones. In addition, insurance carriers must new areas enter that they have no been active in historically. These carriers are then forced to write new lines of the coverage for industry segments like foodservice, hospitality, and team programs.
The second point to understanding the reason for the availability of lower premiums is that in the world of commercial insurance foodservice and hospitality is a niche area. Consequently, there is a limited amount of insurance carriers competing against one another to write a restaurant insurance account when the market is stable or hard. Now consider the reality of 2007 and 2008. you may have found that the number of carriers seeking your business doubled. The impact of this insurance market on niche industry segments like foodservice and hospitality can be exponentially greater than what is happening in the standard insurance market. This large supply increase as demand stays static leads to the falling prices that restaurant owners are now finding.
Last why is it that buyers are usually the people to realize the state of the commercial insurance market? Most policies only get renewed one time each year. The can lead to an information gap because the reality is that buyers rely on their brokers to let them know this critical information about the direction in which the market is headed. With markets shifting course substantially, and quickly, insurance buyers sometimes are not made cognizant of the shift until nearly a year later.
Ford, Moreton, select industry groups, brokerage houses, and insurance carriers themselves usually are the ones formulating reports about the insurance industry. Oftentimes, these reports can was six months behind. Rarely do they portray a precise picture of the current environment in the market. However, consumer expectations are driven by these reports. Many large companies who settled for a 10% reduction in pricing will find out later than they could have gotten reductions of 25-30% instead.
There is no doubt that this inefficiency is the Achilles' light of the commercial insurance industry, especially at a time when the industry seems to be cannibalizing itself. For foodservice and hospitality companies it is so a situation that should be taken advantage of, especially in light of the fact that it will eventually swing the other way.
While we are currently in a buyer's market, do not allow yourself to become careless when it comes to risk management. You can keep your insurance expenses at levels 25-40% lower than your competition by paying close attention to details and working with an expert. Controlling the basic elements of your risk will allow you to enjoy the benefits available in the market regardless of what cycle it is in.
Here are three additional questions you should be asking that your broker might not be answering adequately, or at all:
(1) What is my renewal strategy? Keep in mind that you want to work in the commercial insurance cycle, not the other way around. In soft markets, it is sensitive to a cancel current policy in an effort to capitalise of on lower rates. However, when the market hardens, you may want to negotiate 18-month or multiyear rate terms. You have the potential to reduce your restaurant insurance costs by 20-40% over a five-year period simply by paying close attention to insurance to cycles and acting appropriately.
(2) Overinsured am I? You have little to no chance of losing every building you insure single event one in any. However, some people continue to purchase coverage for that very unlikely occurrence. If you buildings have ten $1 million in a state, you do not need a $10 million insurance policy. This is wasted coverage and can be extraordinarily costly, especially in a hard market. Your broker should run a probable maximum loss to determine what the appropriate loss limit should be. Depending what your locations are, you realize that you only need between a $ 2-$ 3 million policy to cover the $10 million in buildings.
(3) How can I effectively manage my loss history? A good broker will assist you in this endeavor, but that your insurance losses most do not even mention it understand stick with you for five years, regardless of whether you have two locations or 1,000 locations. Commercial insurance companies use these past losses to help them predict what your future losses may be. This can have a tremendous effect on your insurance prices. If you are like most companies, you have limited knowledge of the details behind the insurance companies' loss runs. In essence, you are still being charged for a claim that occurred three or four years prior. Have them audited to be sure that details and numbers are accurate.
One point that cannot be overstressed is the importance of choosing the right broker to partner with. Unfortunately, most brokers simply do not handle enough restaurant insurance claims to maintain up to date knowledge on the insurance market for the industry. Obviously, the firm you partner with must understand your business, but you need to so be confident that they so are competent in understanding the environment and knowing the markets.
Keep in mind that these people are your representatives. You should choose them as meticulously as you would choose your legal representation. Try not to be a firm's lone client, but also make sure that you are not a "small fish in a big pond." A great broker will keep you ahead of your competition, keep you safe, and ultimately add to your bottom line.
You should therefore make every effort to meet your insurance carriers. Have a relationship with them, in addition to your broker. The carriers need to know you and understand what expectations you have. Not to mention, being on a first name basis will be a big help if you ever need a favor; inevitably you will at some point.
Finally, make sure you are maintaining open dialogue with both consultants and internal employees regarding customer-and-employee injury issues. You have to be tough on claims; but remember that communicating proactively and empathetically listening can turn into loyal cut finger and strained backs employees and lifetime customers.

The importance of commercial insurance in your life

If a person has a commercial property, you must try to secure the commercial insurance protects the investment. Commercial property often has a different structure, together with various groups of insurance requirements for residential real estate. Care to ensure that the property is completely hidden, required someone protect the unique attributes of properties. In short, aims to defend that ensures tenants from industry when a property get.

The hauptsächlichhauptmerkmale which directive must cover are cover property damage, glass and equipment coverage, public liability insurance and buildings. If have a public liability insurance it provides with the security that a public member of the property must be violated. If you have secure insurance then a person from the financial loss in the case can remain protected someone gets hurt such as an accident. However, covers were property liability may something leads directly to the property damage. This alternative be retained those finances.
Commercial buildings are costly glass facades, commercial faucets and fittings and electrical equipment. This is one of the methods for the protection of commercial insurance. If at one insurance covers the failure of equipment, gets a person protection from a major financial burden. Its failure can it expensive AC system or possible breakage of the glass.
Obtaining a reasonable commercial insurance, to defend the assets could stop financial losses one of several. It can have however very difficult to determine, appropriate insurance to cover. An insurance specialist may be a fine option when you want to cover all insurance options in an insurance company.

Commercial vehicle quotes

Transport plays an important role in our daily lives. , Healthy transport really your business into a leading position helps you bring speaking all business venture. Exports and imports of commercial vehicles are in full pace these days and as a result of the recent boom in the commercial sector to the commercial depression which affected the economy in the world strengthens various companies in the area of financing of commercial vehicles, because money see it as a potential market for their investments.

Commercial vehicles are generally categorized in two ways.
1. Light-duty vehicles
2. Heavy goods vehicles
Small businesses generally requires vans (light commercial vehicles), and they are quite popular these days. You can van insurance quotes of different companies receive and can decide that you need and what will be best for you. Usually takes into account a van insurance company, that the following things to consider before he you insurance quotes van
1. Manufacturer of the van
2. Model of transporter
3. Year of production
4. Engine size and type of transporter
In addition to all these great things that some small things is also prompts you, before you van insurance quotes - number of seats in the van, date of purchase, fuel used, approximate value of van, security measures in the van (alarm system installiertWegfahrsperre, tracking device, etc.), any change in the van, etc. carried out. So, it is recommended that van insurance to you this information with you ready in hand, must so that you be embarrassing not to the insurance of guys. Typically, you can get insurance quotes from two sources - directly from an insurance company or a broker.Still should be some good idea about the policies and have all of the insurance before you sign up for insurance.

Friday, June 24, 2011

Special insurance needs - companies needing industrial or manufacturing insurance

For those who need valuable protection of business investment, no difference in protective covers are like, because 99% of the companies in the United Kingdom are small businesses that need proper protection. Those produced or distributed products to offer, think they understand the needs of their business insurance, but they could not understand the complexity of this issue. While they provide UK general public liability and the employer's liability in these circumstances are required, you can not prepare for the problems that arise from the risky exposures, you see every day.
As a manufacturer, you must consider a number of factors that could go wrong it during the manufacturing process with your products. Nuisance liabilities, such as machines that make too much noise or cause can be too much interruption rather than ordinary small companies might need to calculate. While thinking about the problems on your own business could be enough, you must consider your distributors, suppliers, and large customers, which could be unbearable suffering losses, the attributed can be to your business or the product, which can make it.

If the thought of this fact to alerting you, it is important that you understand the complexity of insurance products, to the protection are available. In fact, there are certain policy conditions, you need to understand. Is about business interruption insurance policies, you may be required to estimate your losses, but you must take into account the consequences of this problem. For example, you might have set minimum supplier or distributors who experienced a significant loss of income and it could be attributed directly to your specific process or negligence.
Another important factor to take into account, for in the manufacturing or industrial enterprises, product happened liability complaints daily. If so, could this mean the end of your product sales, the beginning of a relationship with a good lawyer and the failure of your business. Have can avert the right commercial insurance, you can find some of the most negative parts with sufficient insurance cover, regardless of the reasons you. Can it equipment breakdowns, shortages, and other factors, you may need to follow when you make industrial or manufactured goods to other available.
The end result of this history on commercial insurance is that you adequately protected regardless. It means, you have to consider the worst case scenario, and protect your business assets, the best way, you know, like you. It is possible that a defective product can impact your business not it is possible that can damage a reputation for defective products of your company and the prospects for all distributors under you in the food chain. For this reason, it is important, known issues, early in the game to solve.
Could mean the conditions of the UK insurance industry attitude has been swallowed your town by a city city brokerage, but you can may through the murky waters of appropriate insurance for small businesses without having to navigate a scratch. If you are aware of the proper etiquette, you may find that you are prepared for almost any kind of misfortune.

Thursday, June 23, 2011

A commercial insurance quote for your business

A commercial insurance quote is easy, that estimated costs for a business insurance policy based on the information by an applicant in this case your Office to an insurance company delivered. The procedure is, that broker, an insurance company insurance quotes you will the owner so that he use an insurance policy can expose the conditions and the cost of their companies. In most cases, the estimated insurance quote directly proportional to the level of risk is involved.

The primary variable that every business owner needs to be considered is what types of coverage you will have on the field. There are many forms of insurance, the customizable and fit your unique circumstances will permit. Renters policies provide coverage for equipment and liability expositions of rented basis, while decision-makers policies, which could focus for people, even the House or property, the in operates. Although the two directives significantly in the premium plan, each tailored to your own case specific problem is.
Policy is recommended to provide liability ceiling, if there is a insurance broke claim that can leave you. You and your broker can only arguably determine the types of insurance policy cover you want.
Before picking an ad insurance quote analyze, before everything solves exactly which items your insurance premiums and on the brokerage be company many people to go for help and advice.
Can purchase multiple insurance quotes because this can ensure that you get a great selection of the current insurance market. Take in the primary offering that you received and expect that the lowest or most appropriate available. A certain amount of companies offering superior insurance cover, but unfortunately costs will provide much more, while other companies never almost as good, which excess of insurance coverage not to mention, the premium usually less is expensive.
If you find available for purchase for a commercial insurance quote, view reference with a broker agent, the experts are commercial insurance. Insurance brokers are companies a smart asset for business people, how they access your information may be too many insurance to you the best bonuses in the widest coverage can be booked. Although they require the mediation service broker fee have built relationships with several insurance companies and are generally the most appropriate company which are deliberately set. Agents provide also advice on insurance policy coverage that you need and insured the limits. If you are not really familiar with commercial insurance, it comes to strongly recommend that you get advice from an expert.
Insurance plans offers commercial insurance products will want your business. You should definitely accurate claims give to ensure history and application details, that you an accurate quote. Be knowledgeable and worry about your online business at a discount through the use of the commercial insurance payments from an insurance brokerage house.

Wednesday, June 22, 2011

Insurance trade marketing - price objections to overcome five strategic steps

Despite millions of dollars spent in insurance company advertising, many business owners still base their insurance buying decisions price. 
 
Why do business insurance buyers focus so much on the price?  Because...
 
It's a business purchase decision, which means there's very little emotional involvement and someone else (i.e. the boss) will verify that a good choice was made. Even if the purchaser would like to make an emotional decision, he can't.  It's a complicated, confusing purchase and most buyers don't want to appear ignorant, so they focus on the one thing they know. Price is comfortable because it's the currency for all other transactions. Value-added insurance is hard to envision if it hasn't been experienced in the past. Your buyer thinks of insurance as his last claims experience - period. The value gained by investing in a better insurance program is difficult for buyers to measure. Business purchasers are time starved. They won't take the time to educate themselves to understand insurance options if they don't expect the gain in benefit to exceed the burden and time lost to learning.
Ready to overcome these barriers? Here's how:
 
1. Evaluate your policyholders' needs so you can build an offer that hits their hot buttons.  

In the words of James H. Gilmore, author of The Experience Economy, "A company's goal should be to learn more about what each customer needs so that it can close the customer sacrifice gap, which is the difference between what individual customers settle for and what each wants exactly".
 
If you take the time to learn your customer's pain points and hot buttons, then you will know how to structure your offering so that it is worth more to your purchaser. You may find that some items with high perceived customer value, have low delivery costs. You won't know without research. Customer research isn't cheap, but it's a necessary element of long-term profitability. You'll want a survey to identify general perceptions and focus groups to dig in to key issues. Segment your policyholders as narrowly as possible for developing your research and your offering. It's easier to tailor value-added offerings for smaller segments with homogeneous needs.
 
Use your research to determine how to communicate your offering so that it's easy for the purchaser to measure the monetary worth of the value gained by working with you. Industry specific examples, case studies and testimonials are essential for helping insurance purchasers envision something they've never experienced.
 
2. Create a unique value proposition (UVP) that is client-focused and differentiating. 

A while back, Progressive Auto Insurance did something unheard of in the insurance industry. It provided its customers with price quotes from the competition. Then, it counseled customers to go with the company that could save them the most money - even if it meant not choosing Progressive. Why did they do it? Because it was unique, it generated attention, and it cultivated an amazing amount of customer loyalty. This is an example of differentiation in action.  What can you do to surprise and delight your customers?
 
3. Pave the way for sales with brand awareness.
In Brand Leadership, authors David Aaker and Erich Joachlmsthaler discuss a causal relationship between brand and stock return. They cite Equitrends brand power research, which found that firms experiencing largest gains in brand equity saw their stock return average 30 percent. The authors suggest that the brand equity / stock return relationship might stem from brand equity's tendency to support a price premium, which contributes to profitability. They state, "When a high level of perceived quality has been created, raising the prices not only provides margin dollars but also aids perceptions."
 
Create a high level of perceived quality through consistent marketing and communication programs. One specialty carrier was able to decrease its marketing budget by 35 percent while at the same time tripling its revenues and boosting brand awareness within its target market. This company started by calculating the cost per exposure and cost per lead for each of its marketing activities. Here's what the company learned:
Tradeshows and golf sponsorships had extremely high cost per exposure and cost per lead. Advertising had low cost per exposure, but high cost per lead (it was hard to identify that any leads were generated) Direct mail had moderate cost per exposure and the lowest cost per lead - plus prospects and marketing activities could easily be tracked throughout the sales cycle. Published articles had lower cost per exposure than advertising and high cost per lead (again it was hard to track leads)
The company drastically revised it marketing approach attending four tradeshows per year instead of 28, sponsoring five golf tournaments each year, instead of 22, eliminating the bulk of its advertising, and allocating the majority of its marketing budget to direct mail and published articles. 
 
This company used a 'pull' marketing approach, marketing directly to the policyholder prospect. Because the company operates with a limited number of agencies, it was able to co-brand many of the marketing efforts with its appointed agencies, so everyone benefited.
 
Sending direct mail to policyholders may not work with your business model. Nevertheless, you can take a combined approach - 'pulling' policyholders through published articles in their industry trade journals, and 'pushing' brand through a direct mail campaign with appointed agents. The key is to eliminate activities with high cost per exposure and high cost per lead, and replace them with activities that generate strong return-on-investment. Expenses are controlled, but a perception of quality is established making it easier to command a higher price.
 
4. Groom your internal culture to deliver your marketing promise.
 
The mantra at Disney is, "Marketing creates the brand but training brings it to life and keeps it refreshed from customers and employees alike." If you've experienced Disneyland, you've seen the mantra in action. Disney delivers its marketing promise! If you're not already aligning your hiring, training, policies and procedures with your marketing promises, you need to start now - your retention rates depend upon it. Consider these statistics from Frederick Reichheld in The Loyalty Effect:
It costs five times as much to acquire a new customer as to retain one Most companies lose 20-25 percent of customers each year If attrition is cut five percentage points, a company can add 25-75 percent in profits to it bottom line.
Imagine...Fred Smith's insurance company promises excellent service, but when he phones with a coverage question, he's placed on hold for five minutes. Frustrated, he tries the use the Web site. When he submits the question form, it errors out. He can't tell if it went through.   Could this be your company?
 
Too often, the gap between the marketing promise and the actual customer experience is huge! While a small glitch on the website and an extended hold time may seem like small infractions, they're monumental if you are a policyholder with an alternate expectation.If you sell cut-rate product, then cut-rate service is expected. Think Costco - no one minds the lines there.   But, if you sell quality, every moment of the customer experience must be quality, or you'll lose the customer at renewal. 
 
5. Strategically focus your retention efforts to optimize pricing.
 
Enlist your actuary or financial analyst to identify and profile the revenue and cost to service for each of your customer segments. You can look at a number of segment types: by size, by industry, by agency, by policy type, etc. 
Plot your customer segments onto the following grid, to determine how much time and money should be spent to retain each segment:
 
High Revenue/Low Cost to Service
Allocate biggest $ for retention Develop agency incentives Refine service to better meet needs Build relationship
High Revenue/High Cost to Service
Execute low cost retention activities Find ways to reduce cost to service
Low Revenue/Low Cost to Service
Find ways to increase revenues -  i.e. up-sell or cross-sell Execute low costs retention activities
Low Revenue/High Cost to Service
Increase pricing or decrease cost to service Consider ending the relationship
According to the Direct Marketing Association, retention rates tend to stabilize after the second purchase. The first purchase is a test. A two-time buyer is buying with full knowledge. This means that a two-time buyer (or someone who has renewed a policy once) is the best target for retention, cross-sell and up-sell efforts.
 
In their McKinsey Quarterly article, Race to the Bottom, Andreas Florissen, Thomas Vahlenkamp, Boris Maurer and Bernhard Schmidt caution companies to carefully consider the 'willingness to fly into a competitor's arms' factor when looking a customer value, retention spending and price optimization. They say, "If a customer is the kind that switches easily, retention efforts are better directed at others, since the likelihood of success is small. Managers must understand that it is better to lose fickle customers than to keep them at unrealistically low prices - an approach that cuts margins earned from all customers, even those that are less price sensitive.
 
In closing, there are several ways to change a price:
 
1. Change the price tag (the obvious)
2. Change the quantity (deductibles, limits)
3. Change the quality (coverage, service level)
4. Change the terms (service levels, payment terms, policy length)
 
The key is to be creative and strategic. Frame your price and provide your agents the tools they need to sell it. Make sure every value-added service is itemized with a monetary value. For example, if three accident prevention consultations come with the policy, assign a value for those. Make it easy for the buyer to rationalize a higher premium. Discuss short term vs. long term, and the importance of investing in an insurance partner that will improve experience ratios over time. Point out coverage that is different than the competitors so it's clear that an apple-to-apple comparison cannot be made. Finally, remember to include testimonials, case studies and success stories in the sales presentation, so your prospect can visualize the benefits of you as his partner.
 
The buyers who are throwing up price objections are also spending $3 on their lattes and $300 on their sunglasses. You see - price isn't really an objection - it's a convenient excuse when desire and understanding are lacking.

Workers ' compensation insurance - what employers should know

All U.S. employers, with very limited exceptions, are required to purchase Workers' Compensation insurance. This state-regulated insurance provides state mandated medical and lost wage benefits to employees injured during the course and scope of their employment.?? Exceptions to purchasing this mandatory insurance include very small companies that do not meet the number of employees requirement, or in some cases, very large companies that prefer to self-insure this risk. An employer's failure to comply with a state's requirements will trigger economic penalties and possible criminal prosecution.? A variety of Workers' Compensation insurance programs are available from the employer's risk finance perspective.

Exclusive Remedy & Employers' Liability
Although each state's regulations differ, they all share a common purpose. They provide an "exclusive remedy" in the form of a "no-fault" program for compensating employees in the form of medical benefits and lost wages in connection with injuries that arise in the course and scope of their employment. While Workers' Compensation insurance responds to the "no-fault" consequences of workplace injury, Employers' Liability insurance, which is typically joined with Workers' Compensation policies, provides coverage for common law claims against the employer by the employee, their family or third-parties, if the claimant or plaintiff can meet the legal standard in their jurisdiction for establishing that the injury was caused by the employer's negligence, gross negligence, recklessness or willful conduct.
The Broad Landscape of Special Funds and State Programs
Many states provide special funds to pay workers' compensation benefits to injured workers employed by companies that failed to purchase insurance. Assigned risk pools or insurers of last resort are also available for employers that commercial insurers consider too risky.
Monopolistic States
There are currently four monopolistic states: Ohio, North Dakota, Washington and Wyoming. Puerto Rico and the U.S. Virgin Islands also operate under a monopolistic structure. These states legislated requirements that Workers' Compensation insurance be provided exclusively by the state's compulsory program. Commercial insurers may not offer Workers' Compensation insurance in those four states, yet at least two of the states do allow limited opportunity for self-insurance for well-capitalized employers.
Competitive State Funds
In contrast to monopolistic state programs, Competitive State Funds are state-owned and operated insurance facilities that compete in the open market with commercial insurers to underwrite Workers' Compensation insurance solely within their respective state.
Arizona, California, Colorado, Hawaii, Idaho, Kentucky, Louisiana, Maine, Maryland, Minnesota, Missouri, Montana, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Utah, and West Virginia operate Competitive State Fund programs.
Second or Subsequent Injury Funds
In most states it's illegal for an employer to refuse to hire a prospective employee or terminate an employee if they have previously filed a workers' compensation claim.? To reduce the possibility of this form of discrimination, some states established a Second Injury or Subsequent Injury Fund. The purpose of these funds is to limit an employer's (and their Workers' Compensation insurer's) exposure by reimbursing or covering the Workers' Compensation benefits paid because of an aggravation or recurrence of a previously existing injury. Reimbursement eligibility requires that the injury must result from a qualifying permanent partial pre-existing disability, illness or congenital medical condition that may hinder person from obtaining employment.
Insurance Premium Calculation - The Loss Experience Mod Factor
This is a complex and often misunderstood concept that has a major effect upon a company's Workers' Compensation insurance premiums. On a general level, it is essentially a comparative analysis of your company's Workers' Compensation loss history for the prior three years against companies within the same or similar industries.
The standard Experience Mod, which is explained below, is calculated by the National Council on Compensation Insurance (NCCI). Employees are classified by standard identification codes depending upon their occupation. Depending upon an employer's size and diversity of operations, many classification codes may be involved in the analysis.
Simply stated, the neutral point in the rating curve is 1.0. If a company's Experience Modification Factor ("Mod") is greater than 1.0, the employer is issued a "Debit Mod" meaning the premium will be increased by a certain mathematical factor. Alternatively, if the loss history is better than expected or lower than 1.0, the employer receives a "Credit Mod" factor that will decrease the Workers' Compensation premium.
A Premium Calculation Illustration ?Using a simple example, suppose the employer only has one classification code for all employees, all of whom work in the same state, and the Workers' Compensation expected loss rate or base premium rate (as established by the state in which the company's employees are located) is $3 for every $100 of payroll.
If the employer has a Mod factor of 0.70, the premium will be calculated as 0.70 x $3 = $2.10. This means the employer is paying $2.10 per $100 of payroll, while its competitor peer group, on average, is paying $3 per $100 of payroll.
Assume the annual payroll for this employer is $2 million, the result is the employer would pay $42,000 in premium versus its competitors with a Mod of 1.0 paying $60,000 for the same coverage. Conversely, if the employer in this example had a Mod of 1.5, the premium would be 1.5 x $3= $4.5 per $100 of payroll. Using the same $2 million annual payroll, the employer in this case would pay $90,000 in annual premium while competitors with a 1.0 Mod would be paying $30,000 less for the same coverage. It's easy to appreciate how these Credit or Debit Mods will have a significant impact upon a company's bottom line, particularly as annual payrolls reach significant levels.
Many factors go into the actual calculation of a Mod including the company's loss frequency (number of losses), loss severity (the cost of the losses), and an estimate of losses that are characterized as Incurred But Not Reported (IBNR), meaning expected losses that have not yet materialized into actual workers' compensation claims.
Medical-Only vs. Lost-Time Claims
When calculating an experience Mod, Medical-Only claim reserves are generally factored at about 30% of ultimate value. Lost Time or Indemnity claims are treated very differently. The literature on calculating experience modification factors states that the first $5,000 of a Lost Time claim ultimate reserve is factored in at 100% with discounts applying above $5,000, including a catastrophic claim cap limit. Therefore, the frequency of Lost Time claims is a real driver of adverse experience. If a company has one Lost Time claim valued at $50,000, it will have less of an adverse affect upon the Mod factor than twenty Lost Time claims valued at $2,500 per claim.
The difference between how these two types of claims affect the Mod should be a strong incentive for employers to implement modified duty programs, with particular attention given to getting employees back to work during the mandatory benefit waiting period, whenever possible. This will cause the claim to be reclassified to "Medical Only" thereby reducing the multi-year adverse impact upon the company's Workers' Compensation insurance premiums.
Claim reserve management is critically important as having over-reserved claims will exponentially affect your Mod factor and correspondingly increase your premium. Having under-reserved claims is also no benefit, as the insurer's audit may result in an unexpected assessment and, of course, increased premiums going forward. Periodic reserve evaluation by a qualified professional should ensure that over-reserved cases are negotiated downward to a reasonable level and under-reserved cases are reserved properly.
Loss Prevention
Loss Prevention is the best way to keep insurance premiums in check. The process can take many forms but essentially involves identifying potential areas of work injury risk and applying techniques to eliminate or substantially reduce the risk that an injury will occur.
Identification of potential causes of risk through performance of a workplace risk assessment is the first step. This process includes critical analysis of procedures as well as physical inspection of facilities and work environments, and discussions with operational personnel and key managers.
Once the causes of potential loss have been identified, modifications can be implemented to operational and business practices in order to reduce the associated risks. The assessment process should be performed by qualified consultants, combining qualitative elements and quantitative metrics including specifications of the physical requirements of each function and the associated loss costs.
Findings should be reviewed with key stakeholders. After agreed upon modifications to operational programs and/or safety programs have been implemented, it's important to monitor results and make adjustments to the preventive measures. Periodic re-testing is important to ensure optimal results are consistently achieved as the company develops. This process has unique relevance in an acquisition scenario.
Loss Control
Loss Control is the process of reducing or mitigating the effect of losses once they occur. Similar to loss prevention safety programs, loss control should encompass well-formulated procedures to respond to various loss situations. The most common examples of loss control are obtaining immediate medical attention for injured workers and having a limited duty return to work program. Employers should conduct a post-loss analysis of the factors that precipitated the loss to determine whether modifications to the loss prevention plan are appropriate. Any post-loss control program should include a process for coordinating medical care to ensure that appropriate medical treatment is received timely so as not to exacerbate a condition while managing medical costs to avoid any unnecessary expenses. Additionally, developing a close working relationship with insurers to deal with potentially fraudulent claims, and implementing an early return to work or modified return to work program all factor into keeping losses at their lowest possible level.
OSHA Focuses On Ergonomics
The Occupational Safety & Health Administration ("OSHA") publishes a variety of guidelines on the topic of workplace ergonomics for various industries and jobs. OSHA has announced plans to heighten its enforcement of ergonomics under the General Duty Clause which requires employers to "...keep their workplaces free from recognized serious hazards, including ergonomic hazards."
OSHA Enforcement has stated:


Even if there are no guidelines specific to your industry, as an employer you still have an obligation under the General Duty Clause, Section 5(a)(1) to keep your workplace free from recognized serious hazards, including ergonomic hazards. OSHA will cite employers for ergonomic hazards under the General Duty Clause or issue ergonomic hazard letters where appropriate as part of its overall enforcement program. OSHA encourages employers, where necessary, to implement effective programs or other measures to reduce ergonomic hazards and associated musculo-skeletal disorders ("MSDs"). A great deal of information is currently available from OSHA, NIOSH, and various industry and labor organizations on how to establish an effective ergonomics program, and OSHA urges employers to avail themselves of these resources.
Workers' Compensation costs have a direct bottom line effect upon all enterprises. Managing those costs to the optimally lowest level requires operational risk assessment, planning, education, an effective return to work program, continual evaluation and active management of loss reserves and third party claims administrators. Experienced insurance professionals are an employer's best resource for minimizing the adverse effects of work-related injuries upon profitability.
The author, James J. Ilardi, CPCU, is a Chartered Property and Casualty Underwriter and President of SECURA RISK GROUP, LLC.
SECURA RISK GROUP is an independent commercial insurance brokerage and advisory firm specializing in the evaluation, design and procurement of commercial insurance policies and insurance programs for privately held enterprises, publicly traded companies, non-profit organizations and professional service firms. Licensed by the New York, New Jersey, Connecticut and Michigan Insurance Departments.

Tuesday, June 21, 2011

Commercial insurance - what is the use?

Every business owner needs a kind or other commercial insurance. It is classified as one of the most important purchases for each potential business. Commercial insurance protects the business and its has owners against a variety of events such as theft, damage to property and claims. Any company without commercial insurance is asking for trouble.

The most common types of commercial insurance are property, liability and compensation worker.
Property insurance is there to cover the cost of repair of damage to the physical property of the business unit such as buildings. It can also cover things like machines (for accidental failures of machines), remove dirt (your property should be taken by force majeure, to clean up leaves a huge chaos), contractor risk (for the case of damage caused, while construction takes place), Is glass (all Windows etc.), inland marine for (property in transit) or other people and property, the memory on your country, interruptions of business (for the restoration of lost income and expenditure during business not resume can) Ordinance (if you rip from a building), which is not compatible and then recreate it), tenant (covers damage to improvements that have been caused by employees), crime (for criminal activities, of course) and fidelity bonds (losses due to theft of a bonded employees) insurance.
You or your company is to cause injury to any third party, need you liability insurance to cover the expenditure placed on you by a lawsuit. This commercial insurance contains errors and omissions (accidental errors that cause injury), misconduct (damage caused by a professional fails to comply with the professional standard of conduct), car (used for all cars of business) and directors or officers (for claims against the company) insurance.
Have all employees in the above all, if the business has a high risk of injury of its employees, the it is day to day running of business building, a good idea to complete worker compensation. This type of commercial insurance covers the costs through an employee injured by a work related incident. It can also protect you from a lawsuit by employees said because they will receive compensation for their injuries.
If a business owner looking to start a new business, the first thing they should do is create the business plan and scouting property to commercial insurance. There is no telling how fast you need it. They must also bear in mind that a new business is a high risk for insurance companies and so they a higher premium than a similar company, which received many years in operation. This means that they should be their policy annually check and try it you work as low as possible. Everyone is good business the most profit, they can finally and unnecessarily high commercial insurance premiums in profits in a big way cut, but then, so do complaints.

Landlord insurance - so find out the best prices

If you the owner of the room are commercial or residential, you need to take measures, ensure its security and reduce your monetary liability if something happens to it. You can easily to landlords and commercial property insurance provided by a number of private and public companies. All you have to do is your needs identify and then to an insurance company, the limit with this service. A number of issues such as theft, not payments of rent, damage by fire, floods, other natural disasters, tenants and even terrorism is covered by these guidelines. If a directive does not cover all your needs choose a combination of policies that will give you maximum coverage.

What is a landlord?
The landlord insurance protects the owner of a property from any financial liability as a result of damage due to fire, explosion, flood, lightning, earthquake, theft, storm and malicious damage. The elements of a policy covered by differ from one company after another. Accidental damage, insurance, insurance, terrorism, content rent guarantee insurance and legal protection are some of the other problems that insurance may be covered by a landlord. Anyone who has a home or other commercial places in their possession under policy action commercial real estate to insurance to protect it from damage caused by the lessee or other external factors.
How to select the best landlords insurance provider
Your choice of the insurance provider may be based on the prices that they give. Consider at least 5 different insurance companies, before to narrow that meets your needs you to the bottom. Even if the prices are not the best, can provide you with a particular undertaking because of the excellent service you or your experience with them to go. The Internet is a good place to start your research on the various insurance companies and the policies that they provide to commercial property insurance. You can also use with your family and friends who have taken these corporate insurance contracts in the past.

Monday, June 20, 2011

21 + Useful insurance terms you should know

INSURED - A person or a corporation who contracts for an insurance policy that indemnifies (protects) him against loss or damage to property or, in the case of a liability policy, defend him against a claim from a third party.

NAMED INSURED - Any person, firm or corporation specifically designated by name as an insured(s) in a policy as distinguished from others who, though unnamed, are protected under some circumstances. For example, a common application of this latter principle is in auto liability policies wherein by a definition of "insured", coverage is extended to other drivers using the car with the permission of the named insured. Other parties can also be afforded protection of an insurance policy by being named an "additional insured" in the policy or endorsement.
ADDITIONAL INSURED - An individual or entity that is not automatically included as an insured under the policy of another, but for whom the named insureds policy provides a certain degree of protection. An endorsement is typically required to effect additional insured status. The named insureds impetus for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party (e.g., employees or members of an insured club) or to comply with a contractual agreement requiring the named insured to do so (e.g., customers or owners of property leased by the named insured).
CO-INSURANCE - The sharing of one insurance policy or risk between two or more insurance companies. This usually entails each insurer paying directly to the insured their respective share of the loss. Co-insurance can also be the arrangement by which the insured, in consideration of a reduced rate, agrees to carry an amount of insurance equal to a percentage of the total value of the property insured. An example is if you have guaranteed to carry insurance up to 80% or 90% of the value of your building and/or contents, whatever the case may be. If you don't, the company pays claims only in proportion to the amount of coverage you do carry.
The following equation is used to determine what amount may be collected for partial loss:
Amount of Insurance Carried x Loss
Amount of Insurance that = Payment
Should be Carried
Example A Mr. Right has an 80% co-insurance clause and the following situation:
$100,000 building value
$ 80,000 insurance carried
$ 10,000 building loss
By applying the equation for determining payment for partial loss, the following amount may be collected:
$80,000 x $10,000 = $10,000
$80,000
Mr. Right recovers the full amount of his loss because he carried the coverage specified in his co-insurance clause.
Example B Mr. Wrong has an 80% co-insurance clause and the following situation:
$100,000 building value
$ 70,000 insurance carried
$ 10,000 building loss
By applying the equation for determining payment for partial loss, the following amount may be collected:
$70,000 x $10,000 = $8,750
$80,000
Mr. Wrong's loss of $10,000 is greater than the company's limit of liability under his co-insurance clause. Therefore, Mr. Wrong becomes a self-insurer for the balance of the loss-- $1,250.
PREMIUM - The amount of money paid by an insured to an insurer for insurance coverage.
DEDUCTIBLE - The first dollar amount of a loss for which the insured is responsible before benefits are paid by the insurer; similar to a self-insured retention (SIR). The insurer's liability begins when the deductible is exhausted.
SELF INSURED RETENTION - Acts the same way as a deductible but the insured is responsible for all legal fees incurred in relation to the amount of the SIR.
POLICY LIMIT - The maximum monetary amount an insurance company is responsible for to the insured under its policy of insurance.
FIRST PARTY INSURANCE - Insurance that applies to coverage for an insureds own property or a person. Traditionally it covers damage to insureds property from whatever causes are covered in the policy. It is property insurance coverage. An example of first party insurance is BUILDERS RISK INSURANCE which is insurance against loss to the rigs or vessels in the course of their construction. It only involves the insurance company and the owner of the rig and/or the contractor who has a financial interest in the rig.
THIRD PARTY INSURANCE - Liability insurance covering the negligent acts of the insured against claims from a third party (i.e., not the insured or the insurance company - a third party to the insurance policy). An example of this insurance would be SHIP REPAIRER'S LEGAL LIABILITY (SRLL) - provides protection for contractors repairing or altering a customer's vessel at their shipyard, other locations or at sea; also covers the insured while the customer's property is under the "Care, Custody and Control" of the insured. A Commercial General Liability policy is needed for other coverages, such as slip-and-fall situations.
INSURABLE INTEREST - Any interest in something that is the subject of an insurance policy or any legal relationship to that subject that will trigger a certain event causing monetary loss to the insured. Example of insurable interest - ownership of a piece of property or an interest in that piece of property, e.g., a shipyard constructing a rig or vessel. (See BUILDERS RISK above)
LIABILITY INSURANCE - Insurance coverage that protects an insured against claims made by third parties for damage to their property or person. These losses usually come about as a result of negligence of the insured. In marine construction this policy is referred to an MGL, marine general liability policy. In non marine circumstances the policy is referred to as a CGL, commercial general liability policy. Insurance policies can be divided into two broad categories:
First party insurance covers the property of the person who purchases the insurance policy. For example, a home owner's policy promising to pay for fire damage to the home owner's home is a first party policy. Liability insurance, sometimes called third party insurance, covers the policy holder's liability to other people. For example, a homeowners' policy might cover liability if someone trips and falls on the home owner's property. Sometimes one policy, such as in these examples, may have both first and third party coverage. Liability insurance provides two separate benefits. First, the policy will cover the damage incurred by the third party. Sometimes this is called providing "indemnity" for the loss. Second, most liability policies provide a duty to defend. The duty to defend requires the insurance company to pay for lawyers, expert witnesses, and court costs to defend the third party's claim. These costs can sometimes be substantial and should not be ignored when facing a liability claim.
UMBRELLA LIABILITY COVERAGE - This type of liability insurance provides excess liability protection. Your business needs this coverage for the following three reasons:
It provides excess coverage over the "underlying" liability insurance you carry. It provides coverage for all other liability exposures, excepting a few specifically excluded exposures. This subject to a large deductible of about $10,000 to $25,000. It provides automatic replacement coverage for underlying policies that have been reduced or exhausted by loss.
NEGLIGENCE - The failure to use reasonable care. The doing of something which a reasonably prudent person would not do, or the failure to do something which a reasonably prudent person would do under like circumstances. Negligence is a 'legal cause' of damage if it directly and in natural and continuous sequence produces or contributes substantially to producing such damage, so it can reasonably be said that if not for the negligence, the loss, injury or damage would not have occurred.
GROSS NEGLIGENCE - A carelessness and reckless disregard for the safety or lives of others, which is so great it appears to be almost a conscious violation of other people's rights to safety. It is more than simple negligence, but it is just short of being willful misconduct. If gross negligence is found by the trier of fact (judge or jury), it can result in the award of punitive damages on top of general and special damages, in certain jurisdictions.
WILLFUL MISCONDUCT - An intentional action with knowledge of its potential to cause serious injury or with a reckless disregard for the consequences of such act.
PRODUCT LIABILITY - Liability which results when a product is negligently manufactured and sent into the stream of commence. A liability that arises from the failure of a manufacturer to properly manufacture, test or warn about a manufactured object.
MANUFACTURING DEFECTS - When the product departs from its intended design, even if all possible care was exercised.
DESIGN DEFECTS - When the foreseeable risks of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design, and failure to use the alternative design renders the product not reasonably safe.
INADEQUATE INSTRUCTIONS OR WARNINGS DEFECTS - When the foreseeable risks of harm posed by the product could have been reduced or avoided by reasonable instructions or warnings, and their omission renders the product not reasonably safe.
PROFESSIONAL LIABILITY INSURANCE - Liability insurance to indemnify professionals, (doctors, lawyers, architects, engineers, etc.,) for loss or expense which the insured professional shall become legally obliged to pay as damages arising out of any professional negligent act, error or omission in rendering or failing to render professional services by the insured. Same as malpractice insurance.
Professional Liability has expanded over the years to include those occupations in which special knowledge, skills and close client relationships are paramount. More and more occupations are considered professional occupations, as the trend in business continues to grow from a manufacturing-based economy to a service-oriented economy. Coupled with the litigious nature of our society, the companies and staff in the service economy are subject to greater exposure to malpractice claims than ever before.
ERRORS AND OMISSIONS - Same as malpractice or professional liability insurance.
HOLD HARMLESS AGREEMENT - A contractual arrangement whereby one party assumes the liability inherent in the situation, thereby relieving the other party of responsibility. For example, a lease of premises may provide that the lessee must "hold harmless" the lessor for any liability from accidents arising out of the premises.
INDEMNIFY - To restore the victim of a loss, in whole or in part, by payment, repair, or replacement.
INDEMNITY AGREEMENTS - Contract clauses that identify who is to be responsible if liabilities arise and often transfer one party's liability for his or her wrongful acts to the other party.
WARRANTY - An agreement between a buyer and a seller of goods or services detailing the conditions under which the seller will make repairs or fix problems without cost to the buyer.
Warranties can be either expressed or implied. An EXPRESS WARRANTY is a guarantee made by the seller of the goods which expressly states one of the conditions attached to the sale e.g.,"This item is guaranteed against defects in construction for one year".
An IMPLIED WARRANTY is usual in common law jurisdictions and attached to the sale of goods by operation of law made on behalf of the manufacturer. These warranties are not usually in writing. Common implied warranties are a warranty of fitness for use (implied by law that if a seller knows the particular purpose for which the item is purchased certain guarantees are implied) and a warranty of merchantability (a warranty implied by law that the goods are reasonably fit for the general purpose for which they are sold).
DAMAGES OR LOSS - The monetary consequence which results from injury to a thing or a person.
CONSEQUENTIAL DAMAGES - As opposed to direct loss or damage -- is indirect loss or damage resulting from loss or damage caused by a covered peril, such as fire or windstorm. In the case of loss caused where windstorm is a covered peril, if a tree is blown down and cuts electricity used to power a freezer and the food in the freezer spoils, if the insurance policy extends coverage for consequential loss or damage then the food spoilage would be a covered loss. Business Interruption insurance, extends consequential loss or damage coverage for such items as extra expenses, rental value, profits and commissions, etc.
LIQUIDATED DAMAGES - Are a payment agreed to by the parties of a contract to satisfy portions of the agreement which were not performed. In some cases liquidated damages may be the forfeiture of a deposit or a down payment, or liquidated damages may be a percentage of the value of the contract, based on the percentage of work uncompleted. Liquidated damages are often paid in lieu of a lawsuit, although court action may be required in many cases where liquidated damages are sought. Liquidated damages, as opposed to a penalty, are sometimes paid when there is uncertainty as to the actual monetary loss involved. The payment of liquidated damages relieves the party in breech of a contract of the obligation to perform the balance of the contract.
SUBROGATION - "To stand in the place of" Usually found in property policies (first party) when an insurance company pays a loss to an insured or damaged to the insureds property, the insurer stands in the shoes of the insured and may pursue any third party who might be responsible for the loss. For example, if a defective component is sold to a manufacturer to be used in his product and that product is damaged due to the defective component. The insurance company who pays the loss to the manufacturer of the product may sue the manufacturer of the defective component.
Subrogation has a number of sub-principles namely:
The insurer cannot be subrogated to the insureds right of action until it has paid the insured and made good the loss. The insurer can be subrogated only to actions which the insured would have brought himself. The insured must not prejudice the insurer's right of subrogation. Thus, the insured may not compromise or renounce any right of action he has against the third party if by doing so he could diminish the insurer's right of recovery. Subrogation against the insurer. Just as the insured cannot profit from his loss the insurer may not make a profit from the subrogation rights. The insurer is only entitled to recover the exact amount they paid as indemnity, and nothing more. If they recover more, the balance should be given to the insured. Subrogation gives the insurer the right of salvage.

Essential characteristics of commercial truck insurance

There are different types of insurance to the approved the commercial vehicle. The importance of commercial truck insurance can not be overlooked at all not. If you a vehicle like a truck you own for the purpose of which use commercial use, then it is absolutely important for you for commercial trucks carry insurance when you're your truck for the commercial purpose. Many States in the United States have to required for the commercial truck insurance as it comes with many benefits. If your truck with the business to do, you need a commercial truck insurance. The insurance provides a fixed cover in most States. Some of the features of commercial truck insurance include:
There are random guidelines, the necessary of resources in the event of an accident. In most cases, accident caused it a refund on the medical bills and the treatment changes such as the therapy etc.. Commercial truck insurance will pay for the funeral expenses, in the case of permanent disability after the accident caused in the event of death of the victim which pays policy, also for the loss of earnings.
Then, that the intermediary liability coverage, which covers occurred the costs due to the property of the victim is. In the case of a property of the driver, amount is paid as the main responsible person is held and of the driver's commercial truck insurance cover.
Who is uninsured or underinsured is is to cover the expenses of the accident if the driver of a vehicle gets killed on the accident to the negligence of uninsured driver of another vehicle. The commercial truck insurance is very beneficial in the event of a case hit and run accident. The direct refund policy covers the entire cost of the damage be subject after the accident if the driver of your car is innocent.
The Commercial truck insurance not so popular with the masses. There are also several other policies, that a civil is not much known. It is the State of SR22 auto insurance. The need for an SR22 auto insurance is a requirement as such, but is a part of the policy by the Illinois drivers expected to take place. The SR22 auto insurance policy depends on the circumstances which the driver currently in is. Purchase a State SR22 auto insurance means that you get a certain vehicle under cover. For example, if the coverage for the owner, you may take only your own vehicle. If you invest in other expensive SR22 auto insurance policies as the owner operator insurance, may other vehicles in addition to your own take. You are choosing the right kind of coverage for the situation in is absolutely important that meets the specific requirements of the SR22 auto insurance policy and protect your vehicle and to drive while you.

Sunday, June 19, 2011

Managing the cost of commercial insurance for your business

Whenever someone to a commercial business is a company car, he or she has to deal with, which reduces the impact of risk on the business risks in the way. Risk management is part of a business. Failed risk management see belly up go the company in a relatively short time. There are various techniques to risk management.

Risk can be reduced, ignored, embraced or avoided. The approach that you use when managing risk from depends on the nature of the risk and have their importance on the business and the amount of the effect, the actions you can take the risk to reducing. A risk management technique, to pay the company attention is insurance.
Insurance is virtually, because not every risk can be reduced, ignored or embraced - the cost of taking one of the other approaches to manage the risk too expensive under certain circumstances as or may fail, completely shielding the company from the effects of risk. For example, can try next to a busy city street, a company, whose Räumlichkeiten is and protect the premises through the setting up of barriers and concrete bollards all round.
However this could not necessarily protect the premises of the impact of the truck acceleration that you still can flip dash through the barrier and the buildings. The direct costs of repair, as well as losses due to downtime protect a proper cover the business in the event of such an incident by compensating the company required.
Commercial insurance , which is business of the risk of theft, physical damage, injuries to employees or people in the business premises and unforeseen circumstances interrupt abruptly business processes crucial in the protection. Make sure that you buy too much or too little insurance, it is advisable that you the internal policies and procedures of the company with the objective initially reduce risks then insurance the risks that remain and, that you significant consolidation.
An example of an internal policy document that can help to manage the coverage you want to buy is a security and emergency response policy. Such a policy would describe the things that all employees who must comply with to ensure that the work environment is less susceptible to the materialisation of a risk event. An example of such behaviour would be all employees to one environment promote clean desk and not leave paper clutter or other easily combustible materials lying around. Electrical equipment must be turned off at the end of the day. All of these would serve to reduce the risk of fire in the premises. Risk management is part of the establishment of a safe workplace.
Such risk-conscious policies and procedures are not only good for making the entire work environment a safer place to work and work - they give the companies a better basis in negotiating lower commercial insurance premiums.

Saturday, June 18, 2011

Do I have enough insurance?

Review your insurance needs
Most people are either underinsured or over insured. There may be many different reasons for this, but at the end of the day is the burden of proof on us, to ensure that we cover. Just how sure we that we cover, without over insured? The first what, that requires each person to do when content take out home insurance to ensure that in drawing up an inventory, you appreciate all your mobile assets at replacement value. If you have not the time or the expertise to do this little bit of work, you can an appraiser to do rent it for you. They are relatively inexpensive and are experienced in these matters, so you can assured that you are covered the correct amount.
In addition to making sure that budget you cover, you should rethink the value of the content of your household at least once in the year. Inflation changes the replacement value rather quickly and in the case of a break-in, of course want to make sure that all paying your claim to cover sufficient for the replacement cost, which has been stolen.
One thing that often leads to you to underinsured is elements that should be specified in an insurance policy. Collectibles, antiques, art and jewelry are exemplary. If you have works of art, let us say painting in this example, you can be very knowledgeable about their value. After all, paid for them in the first place! Keep in mind that many elements such as works of art and other collectibles in value over the course of time significantly can increase. For this reason it is of the utmost importance, this element relatively regularly evaluated.
If you are underinsured, the result would be the claim that the "average clause" in the directive is called. These are standard in insurance. Say your budget, for example, you assure content for $30,000 and get broken. When the Inspector comes to your home after you throughout the set, he finds that the value of the content of your household are in fact $60 000. If the burglar only with half of your property insurance company moved, figures of $15,000 and not $30 000 only. This is because you content ensures only half your budget, and are as such for the 50%. That would be a major disaster for everyone, and it is easily preventable by simply making that your coverage is appropriate.
If you are unsure how you go about that from an insurance company, home are content, consult an independent insurance broker for help. If you, you able believe to assess your own needs, and you try to use a direct insurer or a cheap policy of find an insurance comparison site. This will work out usually faster and cheaper than an insurance broker. You have works of art, which are very expensive it would be wise to find specialized kinds of insurance instead.

Falling ill against travel - your medical survival guide

If your traveling, lose your luggage or with a wallet is stolen right pain. However, this pales into insignificance next to the pain, which can result from disease or maintaining an injury while abroad.
Not all countries have a free health service, so you could run to thousands on a medical bill if you fall ill. For this reason, it is wise (to say the least) not only to travel insurance, but also to ensure that you get an adequate level of coverage of your policy.
Pay doctor doctor - when do I need my medical bills?
If you are attacked only small amounts each for medicine or smaller treatment, then it is less trouble immediately - then you can claim numbers, that the expenditure later back.
In severe cases, then make sure you, your insurance provider emergency contact management if you encounter any difficulties. You should then be able, larger medical expenses directly to your insurer to charge. Keep in mind, that you meet the policy deductible in such cases must be.
The exclusions are doctor doctor - what?
The directive can be declared void your travel insurance provider if you to inform them about pre-existing conditions. Therefore, it is best to tell them if the traveler with the policy one:
have pre-existing medical conditions
* pregnant women are (usually more than 20 weeks, although check your insurance provider limit to make sure)
* Wait surgery or some form of medical examination
* against their doctor to Council travel
Also, although you may be rare health, you could be yourself at risk by participating in activities deemed dangerous by your insurance provider. If you suspect that this is the case, then ask your to define insurance providers, which are activities considered dangerous, and you can then determine the right level of cover.
Doctor doctor - is what with my medication and vaccinations?
What whatever your goal, it is a good idea for each are fully insured medical emergencies, including the repatriation.
If you no medications with you, you have to first check, whether it is legal in the country you are visiting. If there are drugs, then it is of a good idea, the prescription and ideal one take doctor letter has prescribed.
Pack any medication in your hand luggage, as it is less likely, that lost.

Insurance company complaints - who are the top 10 companies with the least number of complaints?

The New York State Department of insurance (DOI) released just the 2008 annual ranking of the auto insurance complaints. The report was issued, so that consumers insurers find the car, which best suits their needs. You can use this report to compare the ranking of the insurance company you do business now, or check another company you are may be considering.
This report analyzes data from 2006 and 2007. It is one of only companies in the State of New York. However, as New York is a densely populated state, with large urban centers and big suburban areas, the report can be considered a good representation of the insurance company performance nationwide.
How does the ranking work
The insurance companies are organized on a complaint rate. The relationship is by the number of complaints against companies as a percentage of their entire private car car business confirmed calculated.
Insurer the least honest complaints per million dollars of bonuses appear at the top of the list. The company with the highest proportion of complaints are in the bottom place.
Learn more about check
The ranking of an insurance policy is important, but it is only a feature that consumers should weigh when considering business with an insurance company. Others are:
o recommendations from friends, relatives, neighbors or co-workers about the experience they had with their insurance companies
o price premium versus value
o find you on the Internet for other ideas
o check the State DOI website, who do valuable consumer information about company business can include in your state.
What is the ranking, and does not contain any
Private passenger insurance the only type is evaluated o.
o it contains only the consumers to the complaints referred to DOI. It contains no complaint directly to the insurance companies.
o complaints be "confirmed" If the DOI is true with a consumer, that an insurance company decided an inappropriate.
o information from previous years is included in the tables, so that consumers can see if the company has improved or become worse.
o all companies with at least $10 million in 2006 and 2007 are included in the ranking. Insurers with less than $10 million were recorded they had 10 or more complaints against them.
Top three most common complaints
1. Monetary settlements - settlement amount is too low.
2. Policy terminations
3. Speed of insurance fees
2007 Car complaint listing (rank lowest number in lead, later, as you go down)
1. Mercury General Group
2. American Express, AMEX Assurance, IDS property/casualty
3. Eveready insurance co.
4. Electric insurance group
5. Amica mutual
6. Preferred mutual insurance co.
7. United automobile assurance service group (USAA)
8. Chubb
9. Utica mutual
10. State F * arm
11. Central Services Group, Central Group, NY Central mutual fire in the.
12. Main Street America Group, national Grange mutual
13. Progressive
14. Liberty Mutual
15. Kingsway insurance group, General Lincoln in the.
16. Response insurance group
17. Nationwide insurance
18. American modern programming examples group, American family home in the.
19. St. Paul travelers
20. Unitrin group, Kemper
21. Erie Insurance Group
22. Berkshire Hathaway insurance, GEICO
23. Allstate Insurance
24. The Hartford insurance group
25 Hanover insurance, programming examples, Allmerica financial Alliance
26 Metropolitan group
27. American national financial group
28. Allianz Insurance Group
29. GMAC, Integon, MIC P & C, national General programming examples co.
30 Zurich Ins.Group, above all, Maryland accident
31 Hannover Re Group, Clarendon national
32. State wide insurance
33. White Mountains group, OneBeacon, Esurance, car a in the.
34. National insurance
35. Safeco Insurance Group
36. American International Group (AIG)
37. Tri-State programming examples consumer group
38. Interboro mutual
39. Infinity property & casualty
40. Long Iceland insurance
Conclusion
If your car insurance provider not on this list is displayed, it could be that they sell not insurance in New York. Or it could be that the number of complaints is worse than the company in the position of # 40!
Think of this statement, my friends.
The only one that really is what one of your auto insurance what is happening, if you submit an application. Claims are to hold promise. If the insurance companies don't, towers keep its promise to the complaints!
So, why would you ever consider business with an insurance company lower than number 10 on the list?
If you are one of the unfortunate people to experience the a car losses of whatsoever, you need to know how you handle your insurance claim, so that you maximize your recovery. I will also say: If you use not the strategies for providing a claim found in my book, money, collects on you not all that you collect claim have. You need to know, how you control of your insurance claim and add hundreds or even thousands of dollars of more your claim settlement. See for more information in the website in the resource box shown below.

Friday, June 17, 2011

Tips for shopping for business insurance

If you are at a point where you need to find decent insurance for your business, you inevitably have many conflicting stories and opinions, but it is important to remember that many of these are based on solid facts. You can also notice that shopping for insurance is nothing short of a nightmare is, but here again; much depends on the nature and the way in which you go about it.
* First of all, you must try to understand, to operate as insurance in General. In other words, you need to make you familiar with the various things insurance companies, look if a person applies for cover when you consider that there are many things that can have a direct impact on the amount you end up paying for cover.
* In contrast to what you have heard it may possible, very affordable prices and at the same time having to not to to preserve compromise quality. The main reason people get good coverage, that's cheap is because they rush things without any form of research in advance.
* Certainly if you can a few hundred pounds or even a few thousand pounds each year on insurance by you meet just a few, then it is in the interest of the company to ensure that all necessary changes are made. If you insure your business, it is regular house insurance or car insurance, covers in this commercial insurance are various aspects of your business, and as such it can necessary changes in multiple areas of your company to make certain. In other words, it is not only your business premises on, must be focused but instead have to look on things like vehicles used by your organization, and possibly, you need to make some changes how your employees are affected.
* Business premises: it goes to your premises, insurance companies will be interested to find out how safe are the premises to potential shocks. In other words, they want to know whether your premises by a full-featured burglar alarm system are protected, they want to know about all Windows security bars, they will know want, whether you have sufficient emergency lighting night time, and of course they want also evidence among fire and you will find measures prevent forest fires in place. For example, the premises have a recognised fire alarm system, several smoke detectors, should and when feasible, it should be also a sprinkler system in place.
* Business vehicles: for many companies, vehicles play a vital role, and without them, profits would fall dramatically. This should be every business owner reason enough to ensure that all business vehicles are properly maintained and contains, which kept be alone in a secure area when not in use. We simply say that this certainly consider something that is all insurance companies, so as an entrepreneur, you have even more reason to ensure that your business vehicles remain safe. For the lowest prices possible to qualify, you must ensure that all business vehicles equipped an alarm system, and preferably also an immobilizer.
* Many insurance companies are also now ready, confirm the use of GPS tracking devices installed in your vehicles by them have, very good end could get you your prices even further reduced. Of these measures, you comply with the insurance company you go with that all your business vehicles in a safe area at night or at times are included if they are not used.
* The total cost of business insurance can also be reduced if you are ready to increase the "excess". Essentially, this is the percentage of claims, you need to pay. In other words, if you are willing to pay the first 1,000 pound claims, pay less for insurance than you, would be if you pay were ready only the first 300 pounds.
Business insurance can a delicate matter, and yes it can be a costly affair, but that said, there are many steps one can take to ensure you get the best possible cost and quality.

"Benefits of a local insurance agent vs online direct" "insurance"

Since the year 2000 started direct insurance like GEICO and progressive, as are top players in the insurance industry. The insurance industry calls "direkten" because they sell directly to you on the Internet without agents who can advise these companies which cover may be right for you, and they offer only a product of the company. I read an article about the amount of these companies spend money on advertising, "said the October 2010 consumer reports, these quirky characters in car insurance TV show could you more laughs than actual savings." "According to a survey 2009 only 14 percent of consumers, the premiums compared, found that she had saved money to my switch to the direct air carrier".
Here, three main points, is why a local insurance agent is a must for the purchase of insurance is.
(1) The first point and probably most importantly, if you buy from a local agent, they are face to face to help you in selecting the right cover. A local agent can collect some information about your assets and chose the correct liability to protect cover you, your family and your assets. You can help the deductible on your vehicles according to your budget and needs focus also give you the right comprehensive and collision. Stay local and the only way to go is an agent, who cares if you are properly insured and always the best value possible.
2. Claims! No one everyone thinks, that they want, have a claim. But you have to have ever you would like to purchase from Kagi, a local agent. A process, the claims can be a long ordeal when dealing with insurance. If it ever a problem, will you want to a local agent, that it to help. Otherwise, if you purchased insurance directly online and not have an agent, it is the insurance company you vs.. No one is on your side to defend your rights.
3. Saves money! In the long run, will you go to save money with a good local independent agent. Is a general misconception about insurance, that is with local agents more, costs you wrong. Some companies want to, since go, then they not numbers of agents commissions of the bag. For example, progressive rates are identical, if you go through an agent or directly online with the exception of one case. They started an incentive for consumers, direct, where they offer a discount of $50 on your first 6 months of premium buy. Then your rate jumps back to level with what an agent can offer you. Is $50 for 6 months, no representatives of worth, you make sure that you have the right coverage? I do not believe, but this is for you to decide.
As you can see, it is very important a local insurance agent. Insurance companies are relieved every day, to insurance online and as insurance gets more complex purchase to a local caring agent to protect you, want to.

Thursday, June 16, 2011

Insurance marketing with postcards - 15 top postcard in direct-mail offers

Postcards are excellent direct marketing vehicles. Due to the short format, they are not the big close sales, but they are awesome at rinse people who are interested in are generating requests and make your phone ring with very warm prospects.
One of the biggest advantages of the direct mail marketing campaigns is so suspect to highly qualified targeted to customers and prospects can be current and past. Postcards can be sent with precision to a highly specialized mailing list. Because postcards so selectively a target group, in contrast to the most advertising can send media such as newspapers, magazines, trade shows, radio and TV, there is no wasted advertising costs.
Direct marketing campaigns with postcards are as postcards are cheap to print, address and low cost. A very aggressive marketing campaign - including sending a postcard all two weeks for a full year - is only $13. The postcard, printing, mail shop (Inkjetting the address and sort zip sequence), and postage costs cover these costs.
All direct mail formats, postcards are the easiest way to handle - no folding, stuffing, tab, paste of - only address and e-Mail. And postcards make your phone ring by using the age old marketing directly criteria the right headline, clever copywriting, bright graphics and a compelling offer with a solid call to action: "pick up only the phone and call now for this free offer!"
I mentioned you need a great offer the phone ring, properly to make? Here are 15 suggestions...
Remember, the goal of marketing postcard is not Direktsendung campaign in General, to sell something - it is only the reader view and your telephone ring to make. So make your plans sound great and make "calling information" sound so enticing and just reached the reader only natural for the phone. Here are some offers the phone ring was to make specifically for the insurance industry. In the field of insurance? Some of these change and they work for you!
? are new coverage from our Office and our new line of the provider. Call now and receive our free brochure on...
New LTCI at discount rates.
New: Low-cost travellers insurance.
? new types of policies available... Call you now find at the very different types of policies, you can now...
New: Waiver.
Now: The new tractor insurance
New: Half-year policy - why buy a whole year... If you need,
? free upgrade. As our provider switch, some provide extended coverage new directives for the same price. Call and see whether you upgrade for free! Call now and...
? new lower prices: Some prices rise, some just below go. Call us for our free list of cost-cutting...
? new discount insurance companies. Our new offer "No Frills" provider now ultra low-cost simple cover. Call now to see whether you are for qualify...
? FREE Policy Review. (Make this offer, or "on special request." a wonderful twice per year) Call us for a...
? new products are available in the car, life, health, LTC, and business protection. Call now for...
? our new providers offer better prices, policies, and reporting. Call now for...
? more protection, less costs. Selected cover. Call now for...
? thank you for your business
? thanks for your recommendations
? free quotes. To quote us a pleasure.
? immediate coverage - immediate bond. Why wait? If you are in a hurry and our agents need coverage
? immediate quotes for the most reports to your request!
? free lunch. Yes, we're buying! You call for...
? free booklet! "11 Ways to save on your insurance!" "How to for questions and get a lower price!"
? free analysis! Let me look on your policy portfolio, and I show you where you can save money. Get rid of lousy coverage that you do not need.
? to reduce the risk: Call us quotation marks first for all of your insurance.

How to auto get quotes quickly and easily

Have you finally decided car insurance to availing? If so, you know where you it and your budget for such required effort ever, the insurance cover, you feel for you, the company is suitable already? There are several ways, such as one good car insurance quotes, which can be very useful in the search. If you have an intensive familiarity with the possibilities, see easy it certainly together one drag huge data from different companies.
Car insurance quotes can be obtained in two effective methods. First of all, select Auto company, situated in the vicinity of your residence or Office may, so it would easily be a meeting for you. But before he should on their doorsteps, you already have an idea of their needs. Typically insurance companies require a driving record, know the mileage of your car and everything worth knowing about. You must show the insurance agent that you well versed with also have car insurance and you, to say what you like, want to let it know what cover to recommend you.
However, this option must to more than just a date your time as you much fixed. You can have as many car insurance companies like you and do the same process again to visit. Is better to do business personally, but know whether you an other way, which is much easier, you can consider this only a second option.
The second way to get auto insurance quotes is over the Internet. With the use of the Internet, you can extract offers with a simple mouse click. You can even receive, choose from the hundreds and thousands of companies that offer car insurance. All you have to do is to give the postal code of the area and within a few seconds, you receive the information you want. Is this far better than meeting with an insurance agent, right?
It is recommended that you first list reputable car insurance companies to go your selections you to their website and a request for quotation. If you finally chose the best, you can buy the directive directly over the Internet. Between the two options, auto insurance online get is offers the fastest and easiest way. You must only make sure that you get only quotes from reputable companies.

Wednesday, June 15, 2011

Become An Insurance Agent

Handsome commissions allow between 20 and 35% for anyone with the right skills and build motivation, a successful business in the insurance industry. Whether you decide to start a franchise to buy or your business from scratch, has this business potential, a handsome return and at the same time, to help others manage their risks effectively produce.
Before, you don't get us even ahead of us
Insurance agent requirements differ from country to country, so it's important, before you begin to do research. Their local Department of Commerce or searching on good place to Google started to get. In most countries, you need a license agent. This includes usually a relatively short course and examination.
Finally you need to succeed with excellent sales skills. Most of your working day will be issued to make consulting with clients and sales. Its very important that you are relaxed to foreign and sell your policy can make without potential customers feel pushed or unpleasant.
The start-up
There is not much need to get started. You need to a small office at home with a work area, desk, Chair, computer, printer, Office software and business stationary such as business cards, letterheads, and an invoice template. If you are on a tight budget you should download software suite open Office instead of the purchase of Microsoft Office as your.
The choice of a go it alone or buying insurance franchise depends largely on your budget. Franchises sell for between $50,000 and 75,000 US dollar (USD). If you can afford this one is much simpler route to take. Training, licensing, branding and support a few will all give you provided. If you do not have the budget or simply prefer to start your own business, is the independent option for you. As an independent insurance agent, you must be connected with an insurance company. Extensive online research in the features and benefits offered by each insurance company before registering for a program to do. Is the best information to seek feedback from actual agents, that information is as follows, often found on forums, user groups, such as Yahoo groups and maybe even the occasional blog.
Making it work
The key to success in this highly competitive industry is to specialize in a small part of the market. For example, you could focus on small business insurance or commercial property insurance, the possibilities are endless. Companies fail rarely out to fokussierend; shy you focus not on a very small niche in the industry. Home business vs. small business insurance is insurance a good example of this.
Marketing
Once you're set up, Word of mouth for a large part of your new business will be. Up to this point, you must work hard to establish itself in this very competitive industry. Advertise your services in the local classifieds, community of publications, on posters, signed outside your home online by developing a Web site with useful content and cold calls.
Their advertising efforts directly in your chosen niche target. If for example you in insurance for boat's, focus specialize your efforts often is by advertising in places this target group. Places like shipping publications or Yacht Club.
Do not forget
Do not forget hidden costs, such as membership fees to be taken into account, industry associations and omissions insurance.

 
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