Insurance History and Inchmaree

I first learned of the Inchmaree clause when I met Howard Candage.

Howard is an expert in marine insurance and one of the best insurance people I know. Up to the time we met (2o something years ago), I knew next to nothing about marine insurance. Howard taught me a great deal.

The Inchmaree clause extends coverage to include losses caused by unseen defects in a ships hull, machinery, equipment, bursting of boilers, errors in navigation, negligence of its captain and crew.

The Inchmaree was a UK ship involved in the 1887 case Thames & Mersey Marine Insurance Co v. Hamilton, Fraser & Co. The court ruled that the peril of negligence was not a part of the ship's insurance policy.

The clause was developed after the court case so as to provide coverage.

The perils included in the Inchmaree clause are now a part of the "risks" sections of hull policies and are sometimes called, "other perils, losses or misfortunes."

Inchmaree is a small island in Scotland.

Burnham's Insurance Dictionary

Many of my readers are insurance people - even though most of my posts are geared to insurance buyers...

This one is for the insurance pro.

Ray Burnham has just come out with a 900 page, $295 insurance dictionary. It is clear he has worked on this for years. It is an amazing work. Every insurance professional should have a copy of this book in the office.

There are 20 different definitions of "coinsurance!"

"Occurrence" has 7 different definitions.

You'll find definitions for such little used terms as "inchmaree clause," and "use and occupancy."

When an old-timer talks about a "daily," you can find it in Ray's dictionary rather than having to ask someone.

Useful terms for current usage too. Do you know what a Cyberdog is?

Well done Ray.

Mind Numbing Endorsements

Two years ago Business Insurance magazine published my letter to the editor commenting on the issue of prolific endorsements to insurance policies.

For example, a 12 page policy with 30 pages of endorsements changing every aspect of the original contract.

Read it here.

No change. I recently received a liability policy where every page of the original policy had at least 4 endorsed changes.

There has got to be a better way.

California Governor Proposes Selling Some State Workers' Comp Insurer Assets

Interesting move! While most politicians are socializing insurance, Gov. Arnold is selling off parts of a state run insurer.

Article Here

Economy Puts Ethical Pressures on Agents

In my insurance travels I have found that most insurance agents are honest.

However, here is a 3 minute video from the Insurance Journal that points to an increase in premium theft by insurance agents.

Key signs that your agent is not forwarding your premiums to your insurance company:

-You never receive an insurance policy. When you ask, your agent provides you with another binder and offers excuses.

-Claims are paid with an insurance agency check rather than a check from the insurance company.

-Simple claims are dismissed by your agent that should be paid. You receive no declination from the insurance company and no adjuster calls.

-Most personal insurance premiums are "direct-bill" from your insurance company. However, you receive an agency invoice on your personal insurance with a request that you make the check out to the insurance agent or to a name different from the insurance company name.

-Your insurance agent offers a discount for cash or for a check made payable to the agent.

Of course all of the above can be legitimate mistakes or a different process for any particular insurance company. However, it pays to keep your eyes open.

The best way to avoid this is to deal with insurance agents well known in your community and remember the old adage...

If something seems to good to be true, it probably is.

Worker Fraud on the Uptick

The June issue of Best Review includes a brief piece on the observation by fraud examiners that worker fraud is increasing.

The article admits that this may be a "chicken and egg thing" with the current economy - are people stealing because times are bad or are employers being more diligent in the bad economy looking for problems?

In any event, it points to the need for employee dishonesty insurance.

Call your agent. Ask if you have employee dishonesty coverage. If not, schedule an insurance review immediately to learn what other coverages you're missing.

Consider my insurance assurance workbook to help you learn the questions to ask your agent to be sure you have the right insurance protection.

Loss Prevention and Coffee

Many of my readers are concerned (wink) with the recent fire at a topless coffee shop here in Maine. I have been deluged by people asking me where I will now buy my coffee.

My response - As I am in risk mitigation, I always put a top on my coffee.

News Story Here

SS