What few people outside of the insurance industry know is that on your policy you will find what is covered by looking at the exclusions, not the coverage section. And unfortunately there is an optional exclusion on the general liability policy that can sneak up on people, particularly contractors. At Clinard Insurance Group in Winston Salem, North Carolina, we specialize in helping all kinds of contractors, from small artisan contractors to larger, heavy equipment contractors so we make it a point to keep an eye on this exclusion for our clients.
So what is this demon exclusion that can sting a contractor on his general liability insurance? Well it is called the xcu exclusion and the letters x, c, and u stand for explosion, collapse and underground. This exclusion is added by a special endorsement to the policy and it modifies the exclusions already found in the policy to remove coverage for losses related to these areas. For instance if you are a landscaping contractor who installs sprinkler lines and you accidentally hit a gas line and create an explosion, you’d better hope you don’t have the letter x (for explosion) showing up on this endorsement to your policy. If so, this is one loss you will be paying out of your own pocket. Ouch!
Other contractors who run risks with this type of stealth exclusion are grading contractors, excavators, sewer and water line installers and anyone who works with any kind or blasting or explosive materials.
At Clinard Insurance we specialize in contractors of all types and we know that you need to be building things and not trying to decipher tricky exclusions on your general liability insurance policy. If you want to do business with an agent who watches your back for you and works with hundreds of other contractors just like yourself, visit us online at www.thecontractorshelper.com.
The source material for this article was taken from http://www.insuranceanswerguy.com/
Wednesday, March 25, 2009
Tuesday, March 24, 2009
Looming NC Homeowners Insurance Crisis – Part II How To Protect Yourself
At Clinard Insurance Group in Winston Salem, NC we are keeping an eye on a developing crisis in homeowners insurance availability for North Carolina residents. The NC Beach Plan will likely become insolvent when the next major storm hits the NC coast. In my part I article on this topic I explained just how and why this crisis has developed. This part II article tells you what you can and must do now to protect yourself from being swept up in this disaster.
When insurance companies doing business in NC begin to renegotiate their July 1 reinsurance contracts, they will discover that they are no longer able to purchase insurance for Beach Plan assessments that will hit them when the next big storm hits the NC coast. They will then begin to scramble to lessen the impact of this potential assessment. There are three ways that they can do this:
When insurance companies doing business in NC begin to renegotiate their July 1 reinsurance contracts, they will discover that they are no longer able to purchase insurance for Beach Plan assessments that will hit them when the next big storm hits the NC coast. They will then begin to scramble to lessen the impact of this potential assessment. There are three ways that they can do this:
Work to have the laws in NC changed so that the insurance companies do not have to carry the losses that will be incurred by a Beach Plan that has not lived within its means…
Reduce the number of homeowners insurance policies that they write in NC…
Increase the rates on homeowners insurance policies in N.C.
How each company reacts will be a direct function of their market share. It is estimated by some experts that the assessment from a category 3 storm strike could be as much as $5 million per 1% market share. The largest homeowner insurance provider in NC is estimated to have a market share of nearly 25%. That means this company is facing potential assessments of over $125 million! So the companies with larger market share are likely to do everything that they can to reduce their market share. This means you will see companies raising rates, applying high percentage deductibles and non-renewing policies. Already in NC we are seeing companies require that consumers place their auto insurance with them in order to write a home policy. Some companies are planning to stop writing new home insurance policies in NC altogether until this crisis is settled.
The flip side of this is that some companies with very low market share in NC may take this opportunity to increase their homeowners policies. If they go from .25% market share to .5% market share, they can double the number of policies that they write and only increase their assessment risk by about $1.25 million, a price that many could afford.
So what can you do? Here’s my quick list for the steps you can take to protect yourself from getting swept up in this mess.
Contact your state legislators and ask them to work to solve the Beach Plan crisis. The rates for those owning beach property must be increased, perhaps as much as 1000%.
Make sure that you are not insured with one of the insurance carriers with the largest market share as they will be the most impacted. The top 3 in NC are: Nationwide, Allstate, then State Farm, in that order. Each of these companies will have a heavy burden in assessments when the big one hits. One of these companies is already asking their customers to sign “consent to rate” forms prior to renewal that allow them to charge rates above the rates that they filed with the NC insurance department. This is a big warning sign and should be a red flag to anyone who insures their home with this company.
Place your home insurance with a company with low market share. They will be the most flexible when times get hard and they will be most able to keep writing home insurance and the least likely to send you a non-renewal notice.
Put your home and auto insurance with the same carrier. This will give you the best rate and it will also give you more clout with that insurance company since you will be a bigger client for them.
Use an independent agent. Agents that are direct writers and only represent one insurance company like the big 3 mentioned above will not be able offer you an alternative if they close their doors for homeowners insurance. It is better to establish your relationship with an agent and a company before the market tightens up.
At Clinard Insurance Group we are an independent agency and represent many companies. Some of our companies have low market share or large surplus and they will be able to weather this homeowners crisis very well. If you would like to know more about us and how we can help you keep your home insurance intact, please call us toll free at 877-687-7557 or visit us on the web.
The source of much information in this article can be found at www.insuranceanswerguy.com.
Monday, March 23, 2009
NC Homeowners Crisis Is Brewing – Part I
At Clinard Insurance Group in Winston Salem, NC we try to keep our fingers on the pulse of changes coming down the pipe for our clients. And what we see today is that in North Carolina there is a major homeowner insurance availability crisis brewing and recent actions tell us that this crisis is about to reach a tipping point. By this time next year many people may have trouble finding insurance for their home… at any price.
It doesn’t take much to read the tea leaves on this one. But if you aren’t looking you will miss it. And since no consumers are looking, let me shine a light on this one for you.
Unless you are lucky enough to own a beach house, you probably have never heard of the Beach Plan, or its formal name: The N.C Insurance Underwriting Authority. The Beach Plan is a quasi public insurance program of last resort to insure the wind and hail exposure of homes in 18 counties on the NC coast. You see, insurance companies have had all the losses they can stand from hurricanes and tropical storms on the coast so they have pulled out of these counties. The Beach Plan is now holding the bag on 99% of the wind and hail exposures on our coast.
The problem is that the Beach Plan is under funded. They don’t have anywhere near enough assets to pay the losses of a major storm or hurricane. Here are some numbers: As of last August the Beach Plan was insuring $75 billion in coastal property. Some experts estimate that their exposure has been increasing at $1 billion a month since then. The Beach Plan currently has $650 million in the bank as surplus against a large storm and they have purchased another $1 billion in reinsurance coverage. So you can see, they have funds available for $1.6 billion of losses but they are insuring over $75 billion. One big storm and poof, no more money to pay claims.
So right now you are probably thinking, “I don’t have a beach house so I guess it’s not my problem if the Beach Plan goes belly up”. But if you think that, you couldn’t be more wrong. You see, the Beach Plan, as a governmental organization, has a little trick up its sleeve. The have the power of assessment. What does that mean?
In NC, every insurance company who sells homeowners insurance policies in this state, can and will be assessed for any Beach Plan shortfall according to their market share in NC. That means your insurance company (no matter who you purchase from) is vulnerable to being assessed by the Beach Plan for losses the Beach Plan may experience due to a storm. And now these assessments are estimated to be over $5 million per 1% market share. That will be enough money to put many insurance companies out of business.
In the past, insurance companies have been able to purchase insurance to protect them if they were to be assessed. As of July 1st this year, that will most likely no longer be available. Faced with the risks of crippling assessments in the event of a category 3 or higher hurricane, most companies are waking up to the fact that they have to make changes and either raise their rates or reduce the number of homeowners policies that they have in NC or both. Many homeowners in NC will begin to receive non-renewal notices from their insurance companies and when they try to find a new company to insure them, they will experience much higher rates or in some cases, no insurance availability at all.
So what can you do to protect yourself from this looming crisis? At Clinard Insurance we are keeping an eye on this problem for you as it develops and we have lots of ways to help you through it. Visit our web site at www.ClinardInsurance.com or watch for part II of my blog for specific tips and tricks you can take now to protect keep yourself from being swept up in this crisis.
The source data for this article was pulled from The Insurance Answer Guy.
It doesn’t take much to read the tea leaves on this one. But if you aren’t looking you will miss it. And since no consumers are looking, let me shine a light on this one for you.
Unless you are lucky enough to own a beach house, you probably have never heard of the Beach Plan, or its formal name: The N.C Insurance Underwriting Authority. The Beach Plan is a quasi public insurance program of last resort to insure the wind and hail exposure of homes in 18 counties on the NC coast. You see, insurance companies have had all the losses they can stand from hurricanes and tropical storms on the coast so they have pulled out of these counties. The Beach Plan is now holding the bag on 99% of the wind and hail exposures on our coast.
The problem is that the Beach Plan is under funded. They don’t have anywhere near enough assets to pay the losses of a major storm or hurricane. Here are some numbers: As of last August the Beach Plan was insuring $75 billion in coastal property. Some experts estimate that their exposure has been increasing at $1 billion a month since then. The Beach Plan currently has $650 million in the bank as surplus against a large storm and they have purchased another $1 billion in reinsurance coverage. So you can see, they have funds available for $1.6 billion of losses but they are insuring over $75 billion. One big storm and poof, no more money to pay claims.
So right now you are probably thinking, “I don’t have a beach house so I guess it’s not my problem if the Beach Plan goes belly up”. But if you think that, you couldn’t be more wrong. You see, the Beach Plan, as a governmental organization, has a little trick up its sleeve. The have the power of assessment. What does that mean?
In NC, every insurance company who sells homeowners insurance policies in this state, can and will be assessed for any Beach Plan shortfall according to their market share in NC. That means your insurance company (no matter who you purchase from) is vulnerable to being assessed by the Beach Plan for losses the Beach Plan may experience due to a storm. And now these assessments are estimated to be over $5 million per 1% market share. That will be enough money to put many insurance companies out of business.
In the past, insurance companies have been able to purchase insurance to protect them if they were to be assessed. As of July 1st this year, that will most likely no longer be available. Faced with the risks of crippling assessments in the event of a category 3 or higher hurricane, most companies are waking up to the fact that they have to make changes and either raise their rates or reduce the number of homeowners policies that they have in NC or both. Many homeowners in NC will begin to receive non-renewal notices from their insurance companies and when they try to find a new company to insure them, they will experience much higher rates or in some cases, no insurance availability at all.
So what can you do to protect yourself from this looming crisis? At Clinard Insurance we are keeping an eye on this problem for you as it develops and we have lots of ways to help you through it. Visit our web site at www.ClinardInsurance.com or watch for part II of my blog for specific tips and tricks you can take now to protect keep yourself from being swept up in this crisis.
The source data for this article was pulled from The Insurance Answer Guy.
Friday, March 20, 2009
Shopping For Insurance Online -- Shopper Beware
During these recessionary times a lot of people have felt compelled to try a “do it yourself” approach by shopping for insurance quotes on line. At Clinard Insurance we strongly support the idea of doing research and we want every one of our clients to be well educated consumers when it comes to their insurance protection. But there are several risks associated with online insurance shopping and I want to make you aware of them so that you don’t stub your toe if you choose this approach.
An entire industry of insurance lead resellers has cropped up over the past few years. These are companies that advertise on Google and other search engines and use “pay per click” advertising to lure insurance shoppers to their site. They then offer the visitor a chance to complete a form with personal information so that the shopper can receive an insurance quote.
What happens next is that the shopper’s personal information is then sold to many different
insurance agencies across the internet and these agencies all compete to get you a quote the quickest. Sounds good so far doesn’t it. The trouble is that these 3rd party lead resellers are not very diligent about who they let sign up to buy their leads. This means many unscrupulous businesses are now able to gather information about the insurance shopper., simply by posing as an insurance agent and signing up to buy these leads. The result for the shopper could be a minor annoyance like increased junk email or it could go as far as full blown identity theft. Either way, the risks are just too high for the consumer.
We have a better idea for you. At Clinard Insurance we know the importance of getting the most bang for your buck and we want you to be able to keep your personal information safe. If you feel like you would like to check out the marketplace for the best possible rates, give us a call. We are an independent agency and this means we represent many different companies so we can help you find the best rates for your particular situation while making sure you have the kind of coverage that meets your comfort level.
Find and independent agent that you trust. Then let them explore the marketplace for you. They can keep your personal information safe and save you time. If you don't have an independent agent that you know or trust, please visit the Clinard Insurance web site for more information. We will be happy to help you in any way that we can.
The source information for this article can be found at The Insurance Answer Guy web site.
An entire industry of insurance lead resellers has cropped up over the past few years. These are companies that advertise on Google and other search engines and use “pay per click” advertising to lure insurance shoppers to their site. They then offer the visitor a chance to complete a form with personal information so that the shopper can receive an insurance quote.
What happens next is that the shopper’s personal information is then sold to many different
insurance agencies across the internet and these agencies all compete to get you a quote the quickest. Sounds good so far doesn’t it. The trouble is that these 3rd party lead resellers are not very diligent about who they let sign up to buy their leads. This means many unscrupulous businesses are now able to gather information about the insurance shopper., simply by posing as an insurance agent and signing up to buy these leads. The result for the shopper could be a minor annoyance like increased junk email or it could go as far as full blown identity theft. Either way, the risks are just too high for the consumer.
We have a better idea for you. At Clinard Insurance we know the importance of getting the most bang for your buck and we want you to be able to keep your personal information safe. If you feel like you would like to check out the marketplace for the best possible rates, give us a call. We are an independent agency and this means we represent many different companies so we can help you find the best rates for your particular situation while making sure you have the kind of coverage that meets your comfort level.
Find and independent agent that you trust. Then let them explore the marketplace for you. They can keep your personal information safe and save you time. If you don't have an independent agent that you know or trust, please visit the Clinard Insurance web site for more information. We will be happy to help you in any way that we can.
The source information for this article can be found at The Insurance Answer Guy web site.
Monday, March 16, 2009
The Good Luck Wallet
On Valentine’s Day and my valentine and I had a great time together today creating random acts of kindness. You see, that day was the kick off date for the Clinard Insurance Good Luck Wallet program and so we spent the morning hiding the first 10 wallets around town. What a blast!
You might be wondering, what in the world I am talking about. Well, it is really very simple. You see, I began to realize that the media is in the business of finding and reporting bad news and usually I don’t really have a beef with that. But these days, that bad news is making everyone fearful of spending money or taking chances on our economy. But really, if you think about it any economy is partly a shared delusion. If someone pulls back the curtain and gets everyone feeling negative, then we can start the kind of self replicating downward spiral in which we are all currently caught. How can we get some positive spin going?
Well, I’m not naïve enough to think I can change things on my own. But if a butterfly in the Amazon can spark a hurricane half a world away (the so called butterfly effect), then hey, I willing to flap my wings a bit as well. We shall see what happens.
Here is the deal. I’m hiding 50 wallets all over town, some easy to find, others more difficult. In each wallet is a gift card for $10 and a note telling the finder that this is a random act of kindness and they can either spend it on themselves or try and find another way to pay it forward and share this gift with someone else. We have created a web page called www.GoodLuckWallet.com where we are asking the finders to go and tell their story. Where did they find it? What did they do with it? How did it make them feel? Our hope is that at least some of the finders will be willing to share their stories with us. You can visit the site to read these stories. Please check back often as we hope more stories will be added as time goes on.
Of course it is possible that no one shares a story with us. I’m okay with that. I have taken this on to help spread some goodwill and perhaps generate smile or two. I’m not tied to any outcome at all with this, I just wanted to start it and let it go where it will, depending on the randomness of the human spirits that find these wallets. Either way, I have had a blast so far. I hope you will enjoy this as well.
The source material for this article was pulled from the Clinard Insurance Group website
You might be wondering, what in the world I am talking about. Well, it is really very simple. You see, I began to realize that the media is in the business of finding and reporting bad news and usually I don’t really have a beef with that. But these days, that bad news is making everyone fearful of spending money or taking chances on our economy. But really, if you think about it any economy is partly a shared delusion. If someone pulls back the curtain and gets everyone feeling negative, then we can start the kind of self replicating downward spiral in which we are all currently caught. How can we get some positive spin going?
Well, I’m not naïve enough to think I can change things on my own. But if a butterfly in the Amazon can spark a hurricane half a world away (the so called butterfly effect), then hey, I willing to flap my wings a bit as well. We shall see what happens.
Here is the deal. I’m hiding 50 wallets all over town, some easy to find, others more difficult. In each wallet is a gift card for $10 and a note telling the finder that this is a random act of kindness and they can either spend it on themselves or try and find another way to pay it forward and share this gift with someone else. We have created a web page called www.GoodLuckWallet.com where we are asking the finders to go and tell their story. Where did they find it? What did they do with it? How did it make them feel? Our hope is that at least some of the finders will be willing to share their stories with us. You can visit the site to read these stories. Please check back often as we hope more stories will be added as time goes on.
Of course it is possible that no one shares a story with us. I’m okay with that. I have taken this on to help spread some goodwill and perhaps generate smile or two. I’m not tied to any outcome at all with this, I just wanted to start it and let it go where it will, depending on the randomness of the human spirits that find these wallets. Either way, I have had a blast so far. I hope you will enjoy this as well.
The source material for this article was pulled from the Clinard Insurance Group website
Saturday, March 7, 2009
Contractors: 4 Key Tips To Consider When Buying General Liability Insurance
General liability insurance is one of the first types of policies you will need if you are starting a new business. At Clinard Insurance we are seeing many new small business startups. Starting your own company is popular these days with the layoffs we are seeing in our economy. The best choice is often to pursue something that you love doing and so we are seeing lots of people starting new businesses around their building skills. But just because you love to build things doesn’t mean you know the best way to protect yourself and your company from lawsuits.
Here are some tips for pitfalls that you should avoid when buying general liability insurance.
Choosing the right agent. The first place people generally go for their business insurance is the insurance agency that handles their home and auto insurance. In some cases this will work out well. But the risk is that your current agent may be licensed to sell you general liability insurance on your new company while really possessing very little experience in evaluating the hazards and risks of your specific type of company. I would suggest that you go out there and look for an agent that specializes in insuring other small businesses like yours. Ask your competitors who they used. At Clinard Insurance we have a niche specialty in small contractors and we speak their language and understand their needs. If your agent doesn’t specialize in your business, I suggest you find one who does.
Claims Made or Occurrence Policy Type: Construction claims made policies became popular in the mid 1980’s and have been around ever since. The promise of these policies were lower rates, but at what long-term damage? In some instances there is no cost savings. Claims made polices for a contractor are the worst possible policy you can buy. Let me explain: Claims made policies allow you to make claim on your policy only during the year they are in force. Contractors have claims down the road, not always just in the same year as the project is built!
Also, if you want to leave that company and go to another company, you will have to purchase additional insurance to cover you for the next 10 years… that’s right, 10 years! Why? Because the law allows customers to file a lawsuit for construction problems for up to 10 years after the project was completed.
An Example:
You build a new room addition, everything goes well and you and your customer are very happy with the final outcome… 4 years later your customer calls you and says that the roof is leaking and water came in the house and ruined his new $25,000 grand piano. He expects you to repair the roof, the drywall, wallpaper, carpets and, of course, replace the grand piano….
A claims made policy will not allow you file a claim 4 years later unless you stayed with that same company the whole time. If you intend to change companies after you have had a claims made policy, you must make a decision. If you want to have protection for any claims that have not occurred yet, but will in the future, you will have to purchase “tail” coverage. This coverage will extend the time in which you can file a claim. And tail coverage is not cheap.
If you decide not to buy the “tail” you will not be able to report a claim against the claims made policy. And to make matters worse, some companies do not offer the 10 year extension.
So…. When your claims made policy comes up for renewal, you must decide:
Ø Do I leave the company and pay the additional insurance for coverage for the next 10 years, or go without protection.
Ø Do I stay with the same company? Their prices on the new year may stay the same or go up sharply.
Ø Do I switch to another company who has better rates and coverages?
This limits the marketplace for you, and makes it harder to accept a better bid from another insurance company. Claims made policies may work in other industries, but for Contractors they are a disaster. Take time after reading this report to see if your current policy is either an occurrence form or a claims made form…..
Insurance Company Rating It is up to you to do the due diligence and ask your agent about the financial health of the company from whom you are buying your general liability insurance. As the previous tip implied, sometimes the claims may be very much delayed and you need to know that your company can pay a claim for you 10 years from now. Use only A rated or higher insurance companies to protect your business.
Exclusions, Understand Them Clearly Be sure to take the time to ask your agent about the policy exclusions and what they may mean for you. Here are some exclusions that contractors should consider when purchasing a general liability insurance policy:
Pesticide, Herbicide and Fungicide Exclusion, Employment Practices Liability Exclusion, X.C.U exclusion, Contractors Warranty Exclusion, Professional Liability Exclusion, Asbestos, Independent Contractors. If you don’t know exactly what these mean for you on your policy, contact your agent and get the help you need to understand it clearly. This may change the way you run your business.
Subcontractors Be sure that you understand just how your policy treats subcontractors. Are you covered if they have no insurance or not enough for the loss? How much coverage should you require of your subcontractors? How often should you obtain certificates of insurance? How can you be sure that the certificate of insurance is legitimate. (I have seen fraudulent certs for sale on ebay before). If you are not clear about the answers to these questions vis-à-vis your business and your general liability policy, you should call your agent right away and get the answers you need to sleep well at night.
As you can see buying general liability insurance is not a simple as calling your agent and asking for a quote. You need an experienced professional that understands the policy forms and your business. At Clinard Insurance we specialize in helping small contractors navigate the dangerous waters of the insurance world. If we can help you further, or if you would like more information about Clinard Insurance Group, please visit our web site.
Source information for this article was pulled from the Insurance Answer Guy.
Here are some tips for pitfalls that you should avoid when buying general liability insurance.
Choosing the right agent. The first place people generally go for their business insurance is the insurance agency that handles their home and auto insurance. In some cases this will work out well. But the risk is that your current agent may be licensed to sell you general liability insurance on your new company while really possessing very little experience in evaluating the hazards and risks of your specific type of company. I would suggest that you go out there and look for an agent that specializes in insuring other small businesses like yours. Ask your competitors who they used. At Clinard Insurance we have a niche specialty in small contractors and we speak their language and understand their needs. If your agent doesn’t specialize in your business, I suggest you find one who does.
Claims Made or Occurrence Policy Type: Construction claims made policies became popular in the mid 1980’s and have been around ever since. The promise of these policies were lower rates, but at what long-term damage? In some instances there is no cost savings. Claims made polices for a contractor are the worst possible policy you can buy. Let me explain: Claims made policies allow you to make claim on your policy only during the year they are in force. Contractors have claims down the road, not always just in the same year as the project is built!
Also, if you want to leave that company and go to another company, you will have to purchase additional insurance to cover you for the next 10 years… that’s right, 10 years! Why? Because the law allows customers to file a lawsuit for construction problems for up to 10 years after the project was completed.
An Example:
You build a new room addition, everything goes well and you and your customer are very happy with the final outcome… 4 years later your customer calls you and says that the roof is leaking and water came in the house and ruined his new $25,000 grand piano. He expects you to repair the roof, the drywall, wallpaper, carpets and, of course, replace the grand piano….
A claims made policy will not allow you file a claim 4 years later unless you stayed with that same company the whole time. If you intend to change companies after you have had a claims made policy, you must make a decision. If you want to have protection for any claims that have not occurred yet, but will in the future, you will have to purchase “tail” coverage. This coverage will extend the time in which you can file a claim. And tail coverage is not cheap.
If you decide not to buy the “tail” you will not be able to report a claim against the claims made policy. And to make matters worse, some companies do not offer the 10 year extension.
So…. When your claims made policy comes up for renewal, you must decide:
Ø Do I leave the company and pay the additional insurance for coverage for the next 10 years, or go without protection.
Ø Do I stay with the same company? Their prices on the new year may stay the same or go up sharply.
Ø Do I switch to another company who has better rates and coverages?
This limits the marketplace for you, and makes it harder to accept a better bid from another insurance company. Claims made policies may work in other industries, but for Contractors they are a disaster. Take time after reading this report to see if your current policy is either an occurrence form or a claims made form…..
Insurance Company Rating It is up to you to do the due diligence and ask your agent about the financial health of the company from whom you are buying your general liability insurance. As the previous tip implied, sometimes the claims may be very much delayed and you need to know that your company can pay a claim for you 10 years from now. Use only A rated or higher insurance companies to protect your business.
Exclusions, Understand Them Clearly Be sure to take the time to ask your agent about the policy exclusions and what they may mean for you. Here are some exclusions that contractors should consider when purchasing a general liability insurance policy:
Pesticide, Herbicide and Fungicide Exclusion, Employment Practices Liability Exclusion, X.C.U exclusion, Contractors Warranty Exclusion, Professional Liability Exclusion, Asbestos, Independent Contractors. If you don’t know exactly what these mean for you on your policy, contact your agent and get the help you need to understand it clearly. This may change the way you run your business.
Subcontractors Be sure that you understand just how your policy treats subcontractors. Are you covered if they have no insurance or not enough for the loss? How much coverage should you require of your subcontractors? How often should you obtain certificates of insurance? How can you be sure that the certificate of insurance is legitimate. (I have seen fraudulent certs for sale on ebay before). If you are not clear about the answers to these questions vis-à-vis your business and your general liability policy, you should call your agent right away and get the answers you need to sleep well at night.
As you can see buying general liability insurance is not a simple as calling your agent and asking for a quote. You need an experienced professional that understands the policy forms and your business. At Clinard Insurance we specialize in helping small contractors navigate the dangerous waters of the insurance world. If we can help you further, or if you would like more information about Clinard Insurance Group, please visit our web site.
Source information for this article was pulled from the Insurance Answer Guy.
Monday, March 2, 2009
Deaths from Motor Vehicles Accidents Was Down for 2008
Two studies show that in 2008 the rate of deaths in automobile accidents dropped by as much as 10% across the U.S. That’s about 3000 lives that were not lost in 2008 to traffic accidents. 3000 lives! Wow.
So what is causing this reduction in deaths on our roads and highways? Well right now it is difficult to say for sure but here are some ideas about what might be going on.
Gas Prices Last Summer - When gas prices shot up, two things happened that are significant. First of all, people began to slow down to get better gas mileage. In fact, did you know that a full sized pickup truck will get around 27.5 miles a gallon when driven at a continuous speed of 45 mph? And it is proven that going slower gives motorists a better chance at both avoiding and surviving a wreck. The second change that occurred is that people started driving less miles. But the statistics show that the number of deaths per mile driven also dropped. So this doesn’t explain everything.
Cars Are Safer - Lately car companies have been going beyond just what the law requires in terms of safety and coming up with and installing new technologies. They have learned that safety is an important selling tool and this is beginning to have a positive impact on society as a whole. An example of this currently is the increasing presence of stability and anti-rollover technologies in vehicles. This will be mandated in new vehicles by 2012 but many new vehicles have it now anyway.
Crash Test Data - Another impact on making cars safer has been the sharing of safety data with the public. The NHTSA and the IIHS have been making their crash test ratings available on line and people are using them and looking it up before they buy a car. This has forced the car makers to focus on this when designing new cars. A good example of this would be the side impact results on smaller cars. This year an IIHS study found that 11 of 21 small car models earned good ratings while in 2006 just 3 of 19 small car models achieved this result.
Seatbelt Laws - The effort to get more motorists to wear seatbelts has finally gained real momentum. The NHSTA recently found that 83% of motorists wear their seat belts and that is the highest rating in history.
I think this good news on our highways is something we should all be proud of and share with one another. At Clinard Insurance Group we rarely have a client involved in an accident that includes a death. But every time it happens we see the tragic results that family members are left with. People often use the phrase “If it saves just one life…… it will be worth it”. In this case over 3000 lives were saved in 2008. In some ways that is just mind boggling. 3000 lives. Congratulations USA!
The source information for this article was pulled from The Insurance Answer Guy.
So what is causing this reduction in deaths on our roads and highways? Well right now it is difficult to say for sure but here are some ideas about what might be going on.
Gas Prices Last Summer - When gas prices shot up, two things happened that are significant. First of all, people began to slow down to get better gas mileage. In fact, did you know that a full sized pickup truck will get around 27.5 miles a gallon when driven at a continuous speed of 45 mph? And it is proven that going slower gives motorists a better chance at both avoiding and surviving a wreck. The second change that occurred is that people started driving less miles. But the statistics show that the number of deaths per mile driven also dropped. So this doesn’t explain everything.
Cars Are Safer - Lately car companies have been going beyond just what the law requires in terms of safety and coming up with and installing new technologies. They have learned that safety is an important selling tool and this is beginning to have a positive impact on society as a whole. An example of this currently is the increasing presence of stability and anti-rollover technologies in vehicles. This will be mandated in new vehicles by 2012 but many new vehicles have it now anyway.
Crash Test Data - Another impact on making cars safer has been the sharing of safety data with the public. The NHTSA and the IIHS have been making their crash test ratings available on line and people are using them and looking it up before they buy a car. This has forced the car makers to focus on this when designing new cars. A good example of this would be the side impact results on smaller cars. This year an IIHS study found that 11 of 21 small car models earned good ratings while in 2006 just 3 of 19 small car models achieved this result.
Seatbelt Laws - The effort to get more motorists to wear seatbelts has finally gained real momentum. The NHSTA recently found that 83% of motorists wear their seat belts and that is the highest rating in history.
I think this good news on our highways is something we should all be proud of and share with one another. At Clinard Insurance Group we rarely have a client involved in an accident that includes a death. But every time it happens we see the tragic results that family members are left with. People often use the phrase “If it saves just one life…… it will be worth it”. In this case over 3000 lives were saved in 2008. In some ways that is just mind boggling. 3000 lives. Congratulations USA!
The source information for this article was pulled from The Insurance Answer Guy.
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