This was a great post from MetLife Auto and Home and Tague Alliance felt that it was worth sharing:
Focus on Retention
As you enter the New Year, take some time to reflect on ways to improve your business model in the coming year. This may include expecting more than others think possible. One area of critical importance is customer satisfaction. Ask yourself, “Is your client the most important person on the premises?” A few simple steps can start you down the road to improved customer service.
5 Simple steps that can make a difference in your retention (by Larry Moffett)
Review your agency's 3-year retention numbers
This simple act will give insight on how your customers view your agency. Is your retention level in the 90 percent range or in the 70’s? The lower the retention percentage, the more probable customer satisfaction is an issue. Often, when we think about customer satisfaction, we think in terms of “over the top” service. That’s great, and a worthy goal to strive for. But, “over the top” service probably won’t happen in most agencies on a consistent basis. What is possible and attainable is for the agency to render service that will resonate with their clients. Generally, this can be achieved with little or no investment. Customer satisfaction is achieved not through programs, but by changing behaviors and attitudes. Customer satisfaction increases when agencies intentionally focus on areas that truly resonate with clients. Educating front-line staff—training and coaching them to adopt skill sets that resonate with customers—pays big dividends.
Determine how your agency measures up
Reliability - if the level of service dependable? Are the clients' concerns addressed and questions answered in a reasonable timeframe?
Assurance - does the service build confidence?
Empathy - do the people giving the service communicate they care?
Responsiveness - are customers needs uncovered and addressed?
Tangibles - pay attention to the things your customers see and feel. Do staff and surroundings appear professional and inviting?
Take control of factors that can influence customer satisfaction
Multi-policy: Customers who have more than one policy with the same agency/company, such as auto and homeowners insurance, are more likely than clients with mono-line policies to be satisfied with their policy offerings. “Bundled clients” renew policies at an 11 percent higher rate than “single policy” clients.
Get it right the first time: Customers are more satisfied when they only have to contact their agent once to resolve an issue. Satisfaction declines significantly with each additional client-initiated contact.
Return calls: When call backs to clients are required, agents who call back as promised get consistent high satisfaction ratings.
Time is critical: Clients who file physical damage claims expect prompt service. Same-day response to the first notice of an accident, followed by a settlement within a week and repairs completed within two weeks, characterize best practice. Some data suggests satisfaction with claims handling drives 44 percent of the overall impression of the insurer.
Policy reviews
Clients who have their policy needs reviewed each year report satisfaction levels that are significantly higher than those who do not. Customer surveys reveal that nearly half of those surveyed report that they have not been offered an annual policy review by their agent. Unless a customer files a claim, offering the client a “risk review” is one of only a few opportunities an agent has to build trust with the customer. Otherwise, the sum of their interaction is limited to paying their bills and reviewing periodic policy changes.
Stay focused and enjoy the benefits
High levels of customer service mitigate price; good service helps shift the focus away from price. Our friends in retail learned long ago that the better the service, the higher the prices they can charge for their products. The bottom line is that happy customers directly equate with agency financial performance. Every customer lost has an impact on the bottom line
Tague Alliance is focused intently on R.P.G. - Retention, Profit, Growth! Growing is made much more difficult when your agency retention is lagging. For every client and policy that you keep, it is one less that has to be found, quoted, and sold.
Tuesday, January 17, 2012
Tuesday, January 10, 2012
Snowmobile Safety
Do you have any clients that take winter trips to the snow? If you clients have snowmobiles, here is a good article to share with them. It's a great lead in to get the opportunity to quote the business!
Bounding over trails through woods, over fields and across frozen ponds or lakes with cold blasts of air whipping around are all part of the fun that thousands and thousands of people enjoy during winter in their snowmobiles. Snowmobiling’s fun should not mask the fact that it still involves the use of fast, heavy vehicles that, in collisions, can cause severe injuries and damage to property. Some models of snowmobiles and all-terrain vehicles operate at speeds that rival automobiles. Unlike autos, they are open vehicles, lacking the structural protection of even the smallest auto; therefore the danger to snowmobile users is far higher.
The danger of being injured while operating snowmobiles is compounded by some important factors. Snowmobiles are operated over rough terrain with obstacles that are often hidden by snow. They are operated in areas where the drivers are not familiar with paths or trails. Novices and older operators with poorer reflexes are attracted to recreational snowmobiling and these vehicles are often used very late at night, in remote areas. Another consideration regarding use of snowmobiles is that operators also combine driving with drinking and alcohol intensifies the other dangers.
Naturally there are practices that can help lower the chances of being in a serious accident. Snowmobile operators should:
Avoid solo snowmobiling - having another person around in case of an accident is probably the greatest safety practice.
Properly maintain the snowmobile to insure safer operation
Dress in appropriate safety gear and clothing, including water-repellant apparel
Operate snowmobile at speeds that are appropriate for conditions and terrain
Do not drink alcohol while operating a snowmobile
Use marked trails and don’t stray off of them
Carry a first aid kit, as well as other emergency equipment, especially tools, flashlights, compass, matches, etc.
Avoid crossing bodies of water as breaking through ice is a major peril (drowning is a chief source of snowmobile accident fatalities).
If you've got your own snowmobile, make sure it's insured! We can provide you with the best snowmobile policy available. And our companies don't require that you have a homeowners or renters policy.
Contact Tague Alliance with any questions about placing stand alone snowmobile business!
COPYRIGHT: Insurance Publishing Plus, Inc. 2010
Bounding over trails through woods, over fields and across frozen ponds or lakes with cold blasts of air whipping around are all part of the fun that thousands and thousands of people enjoy during winter in their snowmobiles. Snowmobiling’s fun should not mask the fact that it still involves the use of fast, heavy vehicles that, in collisions, can cause severe injuries and damage to property. Some models of snowmobiles and all-terrain vehicles operate at speeds that rival automobiles. Unlike autos, they are open vehicles, lacking the structural protection of even the smallest auto; therefore the danger to snowmobile users is far higher.
The danger of being injured while operating snowmobiles is compounded by some important factors. Snowmobiles are operated over rough terrain with obstacles that are often hidden by snow. They are operated in areas where the drivers are not familiar with paths or trails. Novices and older operators with poorer reflexes are attracted to recreational snowmobiling and these vehicles are often used very late at night, in remote areas. Another consideration regarding use of snowmobiles is that operators also combine driving with drinking and alcohol intensifies the other dangers.
Naturally there are practices that can help lower the chances of being in a serious accident. Snowmobile operators should:
Avoid solo snowmobiling - having another person around in case of an accident is probably the greatest safety practice.
Properly maintain the snowmobile to insure safer operation
Dress in appropriate safety gear and clothing, including water-repellant apparel
Operate snowmobile at speeds that are appropriate for conditions and terrain
Do not drink alcohol while operating a snowmobile
Use marked trails and don’t stray off of them
Carry a first aid kit, as well as other emergency equipment, especially tools, flashlights, compass, matches, etc.
Avoid crossing bodies of water as breaking through ice is a major peril (drowning is a chief source of snowmobile accident fatalities).
If you've got your own snowmobile, make sure it's insured! We can provide you with the best snowmobile policy available. And our companies don't require that you have a homeowners or renters policy.
Contact Tague Alliance with any questions about placing stand alone snowmobile business!
COPYRIGHT: Insurance Publishing Plus, Inc. 2010
Tuesday, November 22, 2011
Tague Alliance - We Have Been Saying The "Hard Market Is Coming"
Tague Alliance members need to be prepared for what a Hard Market brings: disruption to our books of business, more pressure on carrier appointments and production, a sharper focus on profitability and book quality, and policy rewrites. The Hard Market is disruptive and every few years the insurance cycle shifts. In our estimation, 2012 will be the transition year and possibly very disruptive.
The silver lining is that many more people will be shopping their insurance which creates more new businesses opportunities for our members. On the flip side, proactive client management is the name of the game to ensure you are retaining the majority of your client base.
Be prepared so your agency can take full advantage of the changing market place.
Below is a great article which provides some insight into the first nine months of 2011 and how the industry is doing.
Specialty Insurers Lead Way in 2011, but Industry Underwriting Results Down
NU Online News Service, July 21, 1:41 p.m. EST
Specialty commercial insurers continue to lead the way for property and casualty insurers’ underwriting results for this year’s first nine months, but results overall are down sharply compared to same period in 2010, according to a Fitch Ratings analysis.
Fitch says underwriting results for a group of 47 publicly traded P&C insurers and reinsurers it follows have deteriorated so far this year, posting an aggregate combined ratio of 105.3 compared to 96 a year ago. Fitch adds that 32 of the 47 companies posted underwriting losses for the year’s first nine months compared to 15 companies in 2010.
Fitch adds that the group reported a net profit of $9.7 billion during the year so far compared to a net gain of $26.4 billion last year.
Catastrophe losses are partly to blame, with losses for the group more than doubling to $28 billion for the first nine months this year compared to last year. Additionally, realized investment gains are lower, totaling $4.2 billion in the current year so far compared to $5.9 billion in the first nine months of 2010.
While all lines are feeling the effects of the weather and economy, specialty commercial insurers have seen the best results of commercial-lines sub-segments, which Fitch says is a trend that has continued over the past several years. “The group’s aggregate combined ratio rose by 5.9 points to 98.1, but was still the only segment in Fitch’s analysis to produce an underwriting profit,” Fitch says.
The segment benefitted from favorable loss-reserve development, which trimmed 5.9 points from the aggregate combined ratio, but that favorable development is down from the 6.4 points trimmed in the first nine months of 2010.
The benefit of reserve releases across the industry is down for 2011 so far compared to 2010. The overall impact has been 2.8 points trimmed from the industry’s aggregate combined ratio in 2011 compared to 3.5 points in the first nine months of 2010. Fitch says the vast majority of underwriters in its group continued to report favorable development, but the rating agency cites Hartford Financial Services Group and HCC Insurance Holdings as two notable exceptions that saw unfavorable reserve development.
For personal lines, the aggregate combined ratio jumped from 95.7 to 102.4 as the sector was hit by Hurricane Irene on the East Coast and heavy tornado activity and winter-storm losses earlier in the year.
Reinsurers saw their aggregate combined ratio climb to 117.3 from 93.1 a year ago due to first-half catastrophes such as earthquakes in New Zealand and Japan, Australian floods and U.S. storms. Reinsurers did report a third-quarter underwriting profit, Fitch says, as Hurricane Irene losses centered more toward primary writers.
Commercial diversified insurers’ combined ratio is 104.6 for the year so far, compared to 96.6 at this time last year. Fitch says only two insurers in its group for this sector—ACE Ltd. and Hartford—produced accident-year combined ratios under 100.
Pointing to trends over the year so far, Fitch says capital generation is at a standstill, loss reserve releases are moderating, catastrophe losses are compounding and there has been a sharp drop in return on capital. However, Fitch notes that signs of a pricing shift have materialized.
“Fitch Ratings believes that this price reaction is well overdue,” the rating agency says, “but it remains unclear if momentum will hold for further pricing improvement that is necessary to return the broader market to adequate return on capital levels.”
Thursday, October 20, 2011
Tague Alliance - New California Work Comp Laws
Tague Alliance and SIAA member agencies who write commercial insurance and specifically Workers Compensation Insurance in California need to stay somewhat current on the plethora of new laws that were recently signed into law by Governor Jerry Brown. Take a look at this great article from the Insurance Journal:
California Workers’ Comp Institute Compiles List of Bills Signed by Brown
October 19, 2011
The California Workers’ Compensation Institute on Wednesday released a review and compilation of 20 bills signed by Gov. Jerry Brown in 2001.
The bills include:
• AB 55, Gatto: Extension of the right of entertainment production companies to use payroll firms as the employer of record to pay taxes, union dues and workers’ compensation.
• AB 228, Fuentes: Allows State Compensation Insurance Fund a limited ability to cover out-of-state employees of California employers.
• AB 300, Ma: Sets new requirements for safety, training and sanitation for those engaged in the business of tattooing, body piercing or permanent cosmetics.
• AB 335, Solorio: Calls for benefit notice changes in the content and delivery of benefit notices and other injured worker information.
• AB 378 Solorio: Sets guidelines for dispensing compound drugs to injured workers, defines when such drugs are reimbursable and reimbursement amounts, and eliminates incentives for doctors to refer patients to pharmacies in which they or their families have a financial interest.
• AB 397, Monning: Requires contractors to show proof of workers’ compensation coverage or exempt status (if they have no employees) when renewing their license with the state.
• AB 436, Solorio: Authorizes a $4.3 million loan from the Uninsured Employers Benefit Trust to the State Public Works Enforcement Fund to enforce prevailing wage requirements on public works projects.
• AB 469, Swanson: Requires private employers to give a new written notice to nonexempt new hires, with detailed wage and employment information and the name, address, and phone number of the workers’ compensation insurance carrier.
• AB 507, Hayashi: Revises the “Pain Patient’s Bill of Rights” and removes Department of Justice’s authority to: 1) employ a physician to interview and examine patients about the prescription, possession, or use of controlled substances; 2) require the patient to submit to the interview and exam; and 3) allow the physician to testify in administrative proceedings.
• AB 585, Fong: Extends the work-related cancer presumption given to firefighters and fire and rescue services coordinators to active firefighting members of a fire department serving NASA.
• AB 878, Berryhill: Requires workers’ compensation insurers to report the cancellation of a contractor’s policy to the State Contractors License Board and makes the violation of workers’ compensation laws a cause for disciplinary action by the License Board.
• AB 1136, Swanson: Requires general acute care hospitals to set up safe patient handling programs with trained lift teams or lift support staff and back injury prevention plans by Jan. 1, 2013.
• AB 1168, Pan: Requires the state to adopt by Jan. 1, 2013 a fee schedule setting maximum fees for services by vocational experts used in workers’ compensation claims
• AB 1263, Williams: Prohibits former State Compensation Insurance Fund (SCIF) officers and directors from lobbying SCIF for two years after their employment ends, and requires that any consulting they do for SCIF be approved by SCIF’s board.
• AB 1425, Assembly Ins. Committee: Allows insurers to disclose with the quote (prior to acceptance) that a policyholder’s premium may be refunded on other than a pro rata basis.
• AB 1426, Solorio: Abolishes the workers’ compensation court administrator position and redistributes the duties to the Department of Workers’ Compensation administrative director and the appeals board.
• SB 457, Calderon: Requires the WCAB to determine, based on liens filed, reimbursement for benefits paid or services provided by self-insured employee welfare benefit plans, notwithstanding the Official Medical Fee Schedule, when payment for self-procured medical costs for a work injury or illness is awarded.
• SB 459, Corbett: Prohibits and sets penalties for the willful misclassification of employees as independent contractors.
• SB 684, Corbett: For policies issued or renewed on or after July 1, 2012, workers’ comp insurers must disclose when a quote is provided if they want to use arbitration to resolve disputes and make explicit that businesses do not have to agree to out-of-state arbitration/dispute resolution.
• SB 826, Leno: Allows the DWC to fine claims administrators up to $5,000 per year for violating workers’ compensation information system data reporting requirements and calls for an annual report showing claims administrator reporting compliance rates.
Monday, October 17, 2011
Breaking Down Equipment Breakdown!
Equipment Breakdown Protection
Equipment Breakdown coverage can be hard to understand! Tague Alliance wants to make sure you are able to present these types of coverages to your clients with confidence and knowledge. Read below to get the low down on the breakdown:
Many businesses use commercial property forms to insure their tangible assets. However, they also need Equipment Breakdown Protection Coverage due to some limitations found in those same forms. An Equipment Breakdown Coverage policy handles a substantial loss exposure to items such as unfired vessels - Air, steam or water tanks, refrigeration systems, rollers, steam pressers, ironing equipment, steam cookers, generators, chemical processing tanks, motors, switches and controls, compressors, pumps, gears, etc. because commercial property policies typically exclude losses involving machinery or equipment breakdowns. The breakdown form provides the following coverages:
1. Property Damage - This coverage pays for direct damage to covered property (certain types of office machinery and equipment) that has to be listed (described) in the policy.
2. Expediting Expenses - This coverage applies to extra costs insured experiences in order to make temporary repairs and to speed-up (expedites) the permanent repair or replacement of damaged property.
3. Business Income and Extra Expense – Extra Expense Only - These coverages may, optionally, be purchased together; or to buy extra expense coverage alone. For example, a covered business loses most of its records due to a breakdown of its main server. Most of the costs associated with restoring the information would be covered by the equipment breakdown policy.
4. Spoilage Damage - Spoilage damage to raw materials, property in process or finished products is covered when that property is either in storage or in the course of being manufactured, the insured owns or is legally liable under written contract for the spoiled property and a lack of or excess of power, light, heat, steam or refrigeration caused the spoilage.
5. Utility Interruption - This coverage is available ONLY when a customer also purchases coverage for Business Income and Extra Expense – Extra Expense Only or Spoilage Damage. This coverage responds to loss involving equipment breakdown created by loss of utility service (gas, electric, water or communication). Also, the loss or service must last beyond the time-limit that appears on the policy (a sort of time deductible).
6. Newly Acquired Premises - This feature automatically covers newly acquired premises purchased or leased by the insured and the period of protection depends upon the length of time selected for this coverage (i.e. such as 30 days, 60 days, etc.).
7. Ordinance or Law Coverage - The Ordinance or Law Exclusion eliminates coverage for loss created by the imposition of ordinance or laws affect the rebuilding of the damaged property. This coverage pays such costs, within guidelines in the coverage, provided any increase in the loss amount is necessary due to the enforcement of any laws or ordinances in force at the time of the breakdown which regulate the demolition, construction, repair or use of the building or structure.
8. Errors and Omissions - This coverage pays for loss or damage that would have been covered except for the insured’s error or unintentional omission in describing covered property, a failure to include any premises owned or occupied by an insured when coverage began or, the insured’s error or unintentional omission that results in the company canceling coverage at one of the insured's premises.
9. Brands and Labels - This provision pays part of a company's expense to remove and re-label its own, salvaged merchandise.
10. Contingent Business Income and Extra Expense – Extra Expense Only Coverage -. This Protection applies to loss resulting from a breakdown to equipment at premises upon which the insured is dependent upon in order to run its own operation, such as a key materials supplier.
Be sure to talk to the professionals at Tague Aliance in case you need details on how to best present this critical coverage to your commercial clients!
COPYRIGHT: Insurance Publishing Plus, Inc. 2006
Equipment Breakdown coverage can be hard to understand! Tague Alliance wants to make sure you are able to present these types of coverages to your clients with confidence and knowledge. Read below to get the low down on the breakdown:
Many businesses use commercial property forms to insure their tangible assets. However, they also need Equipment Breakdown Protection Coverage due to some limitations found in those same forms. An Equipment Breakdown Coverage policy handles a substantial loss exposure to items such as unfired vessels - Air, steam or water tanks, refrigeration systems, rollers, steam pressers, ironing equipment, steam cookers, generators, chemical processing tanks, motors, switches and controls, compressors, pumps, gears, etc. because commercial property policies typically exclude losses involving machinery or equipment breakdowns. The breakdown form provides the following coverages:
1. Property Damage - This coverage pays for direct damage to covered property (certain types of office machinery and equipment) that has to be listed (described) in the policy.
2. Expediting Expenses - This coverage applies to extra costs insured experiences in order to make temporary repairs and to speed-up (expedites) the permanent repair or replacement of damaged property.
3. Business Income and Extra Expense – Extra Expense Only - These coverages may, optionally, be purchased together; or to buy extra expense coverage alone. For example, a covered business loses most of its records due to a breakdown of its main server. Most of the costs associated with restoring the information would be covered by the equipment breakdown policy.
4. Spoilage Damage - Spoilage damage to raw materials, property in process or finished products is covered when that property is either in storage or in the course of being manufactured, the insured owns or is legally liable under written contract for the spoiled property and a lack of or excess of power, light, heat, steam or refrigeration caused the spoilage.
5. Utility Interruption - This coverage is available ONLY when a customer also purchases coverage for Business Income and Extra Expense – Extra Expense Only or Spoilage Damage. This coverage responds to loss involving equipment breakdown created by loss of utility service (gas, electric, water or communication). Also, the loss or service must last beyond the time-limit that appears on the policy (a sort of time deductible).
6. Newly Acquired Premises - This feature automatically covers newly acquired premises purchased or leased by the insured and the period of protection depends upon the length of time selected for this coverage (i.e. such as 30 days, 60 days, etc.).
7. Ordinance or Law Coverage - The Ordinance or Law Exclusion eliminates coverage for loss created by the imposition of ordinance or laws affect the rebuilding of the damaged property. This coverage pays such costs, within guidelines in the coverage, provided any increase in the loss amount is necessary due to the enforcement of any laws or ordinances in force at the time of the breakdown which regulate the demolition, construction, repair or use of the building or structure.
8. Errors and Omissions - This coverage pays for loss or damage that would have been covered except for the insured’s error or unintentional omission in describing covered property, a failure to include any premises owned or occupied by an insured when coverage began or, the insured’s error or unintentional omission that results in the company canceling coverage at one of the insured's premises.
9. Brands and Labels - This provision pays part of a company's expense to remove and re-label its own, salvaged merchandise.
10. Contingent Business Income and Extra Expense – Extra Expense Only Coverage -. This Protection applies to loss resulting from a breakdown to equipment at premises upon which the insured is dependent upon in order to run its own operation, such as a key materials supplier.
Be sure to talk to the professionals at Tague Aliance in case you need details on how to best present this critical coverage to your commercial clients!
COPYRIGHT: Insurance Publishing Plus, Inc. 2006
Thursday, September 15, 2011
Insuring Your Bling
Your clients may not know that they can insure their jewelry on their homeowners policy. This is a great article to share with them so they are educated on their options when it comes to insuring their bling!
Most homeowners policies provide very limited coverage for jewelry. The reason for this is that jewelry is high-valued (especially in relation to its size), is easily lost or destroyed and is vulnerable to theft (as well as fraud). If you only own a modest amount of jewelry (say just a few hundred dollars), perhaps the limited coverage provided by a basic policy is adequate. However, when high values are involved, consider buying special insurance coverage (sometimes called a floater). A few options are available such as buying supplemental insurance that is attached to your homeowners or tenant's policy or purchasing a separate jewelry policy.
Discussing what is needed and expected from separate coverage is very important. Does the coverage consider jewelry values that increase over time? Does it cover mysterious disappearance (when you know the property is gone, but can't pinpoint when and how the property was lost) and other causes of loss, or just fire and theft? Discussing the coverage also helps you understand the steps you must take to make sure that you keep the maximum coverage in force and whether the coverage you receive is worth the additional price.
Documenting The Jewelry's Value
If the jewelry has just been purchased, a store receipt or certificate should establish the insured value. However, as time passes or circumstances change, the insured value must be reevaluated, perhaps by seeking an appraisal (expert opinion). Getting an appraisal that affirms your jewelry's current value is an excellent way to assure that your property is properly protected. Of course, make sure that you work with a competent appraiser (check their credentials and number of years of experience). It is also helpful to talk to a potential appraiser. Does she seem to have the necessary expertise? How willing and able is she to explain her work? There are several professional jewelry and appraisal associations that can give you information on appraisers and appraising methods. All of these items are important, especially since you have to pay a fee for an appraiser's services.
Handle With Care
Once you're certain about the value of your jewelry and the adequacy of its insurance coverage, you need to properly handle your jewelry. After all, who wants to actually file a claim? If you own a significant amount of expensive jewelry you may want to look into other precautions such as:
* Get new appraisals every two or three years, sending a copy to your insurer
* Take photos of your jewelry from several angles; again, share copies with your agent or insurance company
* Consider a quality in-home security system, including a hidden vault or storage area
* Take care on where and when your jewelry is worn to try to avoid becoming a theft target
* Keep original receipts and all appraisals, especially if they demonstrate that the jewelry's value is appreciating
* Ask your jeweler whether they have access to "Gemprint," or a similar jewelry identification system that documents a jewel's distinctive markings much in the manner of fingerprinting.
* Consider storing jewelry that is rarely worn in a bank or saving institution’s vault. (Note that such special storage often qualifies for an insurance premium discount)
Again, your first step is to talk to an insurance professional since he or she shares your concern that you have the protection you need at a price you can afford.
If you have additional info regarding scheduling your client's jewelry, Tague Alliance can help you answer any questions you may have. They can be reached at 760-729-1143, or you can visit them on the web at www.TAGUEALLIANCE.com
COPYRIGHT: Insurance Publishing Plus, Inc. 1999, 2002, 2008
Most homeowners policies provide very limited coverage for jewelry. The reason for this is that jewelry is high-valued (especially in relation to its size), is easily lost or destroyed and is vulnerable to theft (as well as fraud). If you only own a modest amount of jewelry (say just a few hundred dollars), perhaps the limited coverage provided by a basic policy is adequate. However, when high values are involved, consider buying special insurance coverage (sometimes called a floater). A few options are available such as buying supplemental insurance that is attached to your homeowners or tenant's policy or purchasing a separate jewelry policy.
Discussing what is needed and expected from separate coverage is very important. Does the coverage consider jewelry values that increase over time? Does it cover mysterious disappearance (when you know the property is gone, but can't pinpoint when and how the property was lost) and other causes of loss, or just fire and theft? Discussing the coverage also helps you understand the steps you must take to make sure that you keep the maximum coverage in force and whether the coverage you receive is worth the additional price.
Documenting The Jewelry's Value
If the jewelry has just been purchased, a store receipt or certificate should establish the insured value. However, as time passes or circumstances change, the insured value must be reevaluated, perhaps by seeking an appraisal (expert opinion). Getting an appraisal that affirms your jewelry's current value is an excellent way to assure that your property is properly protected. Of course, make sure that you work with a competent appraiser (check their credentials and number of years of experience). It is also helpful to talk to a potential appraiser. Does she seem to have the necessary expertise? How willing and able is she to explain her work? There are several professional jewelry and appraisal associations that can give you information on appraisers and appraising methods. All of these items are important, especially since you have to pay a fee for an appraiser's services.
Handle With Care
Once you're certain about the value of your jewelry and the adequacy of its insurance coverage, you need to properly handle your jewelry. After all, who wants to actually file a claim? If you own a significant amount of expensive jewelry you may want to look into other precautions such as:
* Get new appraisals every two or three years, sending a copy to your insurer
* Take photos of your jewelry from several angles; again, share copies with your agent or insurance company
* Consider a quality in-home security system, including a hidden vault or storage area
* Take care on where and when your jewelry is worn to try to avoid becoming a theft target
* Keep original receipts and all appraisals, especially if they demonstrate that the jewelry's value is appreciating
* Ask your jeweler whether they have access to "Gemprint," or a similar jewelry identification system that documents a jewel's distinctive markings much in the manner of fingerprinting.
* Consider storing jewelry that is rarely worn in a bank or saving institution’s vault. (Note that such special storage often qualifies for an insurance premium discount)
Again, your first step is to talk to an insurance professional since he or she shares your concern that you have the protection you need at a price you can afford.
If you have additional info regarding scheduling your client's jewelry, Tague Alliance can help you answer any questions you may have. They can be reached at 760-729-1143, or you can visit them on the web at www.TAGUEALLIANCE.com
COPYRIGHT: Insurance Publishing Plus, Inc. 1999, 2002, 2008
Monday, August 1, 2011
The Business Owner Policy
Here is a VERY educational article to read about Business Owner policies. Commercial accounts are a great way to build your book of business and are an even better way to increase your cross sales. Check out the article below to educate yourself on the basic idea of a BOP!
If you own and/or run a smaller business, your insurance needs may be properly handled by a businessowner policy (BOP). BOPs are similar to a homeowners policy, offering both property and liability protection. Businesses such as retailers, wholesalers, small contractors, artisan contractors, dry cleaners, restaurants, offices and convenience stores (including those with gas pumps) are eligible for BOP coverage. All such operations may be insured by a BOP as long as they are not larger than 25,000 square feet in total floor area or have gross annual sales greater than $3,000,000 (per location). Cooking operations, due to the higher fire and other accident exposures, have significantly more restrictive guidelines, such as being disqualified for a BOP when it square footage exceeds, typically, 7,500 s.f.
PROPERTY COVERAGE
BOPs protect buildings as well as the following:
* building additions (completed or being built)
* indoor and outdoor fixtures
* machinery and equipment
* landlord furnishings,
* mowers, ladder, snowblowers, and similar maintenance property
* outdoor furniture
* floor coverings
* refrigerating appliances
* ventilating appliances
* cooking appliances
* dishwashing/Drying appliances
* clothes washing/drying appliances
* materials, equipment, and supplies
* temporary structures
* located near the insured premises
LIABILITY COVERAGE
The policy's protection for business personal property (such as office equipment, copiers, desks, etc.) applies whether the property is located inside or immediately outside the covered buildings. The category also includes property you own, lease or control (i.e., borrow or control) as long as the property is used by the business.
Businessowners liability coverage provides comprehensive protection for claims or suits made by other parties. Its liability section covers losses involving injury to other persons or damage to property that belongs to others. It also provides limited protection against personal injury (slander or libel), advertising injury and losses involving an operation's products or services.
Naturally, there are certain situations that are not covered by a BOP. For instance, there is no coverage for losses involving most vehicles, money and securities; illegal property (contraband), land, water, growing crops or lawns; or watercraft.
A BOP may be supplemented to provide additional protection. Property coverage options include adding insurance for accounts receivable, valuable papers and records, earthquake, spoilage, etc. Liability coverage can be expanded to handle additional business interests, limited vehicle liability, losses related to personnel situations, liquor liability and injuries to leased employees.
A BOP may be the answer to your company's coverage needs and it may be worthwhile to get more information on the BOP from the nearest insurance professional.
Questions about BOPs? Contact Tague Alliance for additional information or check out our website!
COPYRIGHT: Insurance Publishing Plus, Inc. 2004, 2008
If you own and/or run a smaller business, your insurance needs may be properly handled by a businessowner policy (BOP). BOPs are similar to a homeowners policy, offering both property and liability protection. Businesses such as retailers, wholesalers, small contractors, artisan contractors, dry cleaners, restaurants, offices and convenience stores (including those with gas pumps) are eligible for BOP coverage. All such operations may be insured by a BOP as long as they are not larger than 25,000 square feet in total floor area or have gross annual sales greater than $3,000,000 (per location). Cooking operations, due to the higher fire and other accident exposures, have significantly more restrictive guidelines, such as being disqualified for a BOP when it square footage exceeds, typically, 7,500 s.f.
PROPERTY COVERAGE
BOPs protect buildings as well as the following:
* building additions (completed or being built)
* indoor and outdoor fixtures
* machinery and equipment
* landlord furnishings,
* mowers, ladder, snowblowers, and similar maintenance property
* outdoor furniture
* floor coverings
* refrigerating appliances
* ventilating appliances
* cooking appliances
* dishwashing/Drying appliances
* clothes washing/drying appliances
* materials, equipment, and supplies
* temporary structures
* located near the insured premises
LIABILITY COVERAGE
The policy's protection for business personal property (such as office equipment, copiers, desks, etc.) applies whether the property is located inside or immediately outside the covered buildings. The category also includes property you own, lease or control (i.e., borrow or control) as long as the property is used by the business.
Businessowners liability coverage provides comprehensive protection for claims or suits made by other parties. Its liability section covers losses involving injury to other persons or damage to property that belongs to others. It also provides limited protection against personal injury (slander or libel), advertising injury and losses involving an operation's products or services.
Naturally, there are certain situations that are not covered by a BOP. For instance, there is no coverage for losses involving most vehicles, money and securities; illegal property (contraband), land, water, growing crops or lawns; or watercraft.
A BOP may be supplemented to provide additional protection. Property coverage options include adding insurance for accounts receivable, valuable papers and records, earthquake, spoilage, etc. Liability coverage can be expanded to handle additional business interests, limited vehicle liability, losses related to personnel situations, liquor liability and injuries to leased employees.
A BOP may be the answer to your company's coverage needs and it may be worthwhile to get more information on the BOP from the nearest insurance professional.
Questions about BOPs? Contact Tague Alliance for additional information or check out our website!
COPYRIGHT: Insurance Publishing Plus, Inc. 2004, 2008
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