When Do You Report Claims?

I just read an interesting article written for insurance agents on when to report claims to insurance companies. In 750 words the "insurance expert" said to report all claims. (So much for succinctity!) My advice to insurance buyers: -Anytime you may have injured someone or damaged their property, report the incident. -Anytime someone threatens to sue you, report the incident. -Anytime you get a letter from an attorney about an event, report the incident. -If your property is damaged and the amount is minor (less than 2x your deductible) assess your possible loss in its entirety - including the impact the claim has on your other expenses and income and decide if you want this on your loss record. I do not counsel reporting small losses. I also advise my clients to buy high deductibles. Insurance people will argue with my last point. Oh well.

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Pirate Insurance

(I can't claim this joke - sent to me by a reader - unknown author)

After many years at sea, a pirate decided to retire. Since he had suffered injuries on the job, he thought that he should collect on his worker's compensation insurance. He had a wooden leg, a hook where his right hand should be and a patch over his right eye.

The agent assured him that he would be compensated if the injuries were work related. "How did you get the wooden leg?" asked the agent.

In a booming voice the pirate replied, "Me and me mates were on the high seas when the boom swang 'round and knocked me into the sea where a shark bit off me leg."

The agent replied, "That is certainly work related. How did you lose your hand?"

"Well matey, me and me mates were on the high seas when the boom swang 'round and knocked me into the sea where a shark bit off me hand," said the pirate.

"That's also work related. Now how did you lose your eye?" asked the agent.

The pirate replied, "Well matey, I was laying on the deck one balmy day catching some rays when this seagull flew by and dropped his duty right in me eye!"

"What does that have to do with the loss of your eye?" said the agent.

"Well, y'see," he replied, "It were the first day with me hook!"

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Million Dollar Consultant Hall of Fame

I'm proud to announce that I have been inducted into the Million Dollar Consultant Hall of Fame by Dr Alan Weiss, the original Million Dollar Consultant®. I am the first insurance / risk management consultant to be so honored out of the 20 members inducted since 2006. Worldwide, six other consultants have been added to the Hall of Fame this year. Weiss has over thirty years of experience working with top companies such as Merck, GE, and Mercedes Benz. He also works with some of the best consultants in the world and singles out those he sees as particularly talented. To quote Dr. Weiss, "These consultants are regarded by peers as being among the world leaders in consulting, as evidenced by empirical accomplishments in client results, professional contributions, and intellectual property." This month marks my ninth year as an insurance consultant. July marks my 30th year in the insurance business. This award is a highlight for me. It is recognition by my peers that my work is of value.

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Do-It-Yourself Insurance Consulting

I know that, in these tough economic times, not every business owner wants to spend the money for an insurance consultant.

There still are coverage and premium questions though.

I'm in the final stages of my new Insurance Coverage Toolbox. It's a workbook of issues, ideas, and questions that will help you understand your insurance coverage. Going through the materials will give you the information you need, as a business owner, to judge your business insurance program and the quality of your insurance agent.

I'm offering the electronic (PDF) version at a pre-publication price of $79. After April 15th the price is $99. Bound copies will also be available.

Money Back Guarantee – If this tool does not meet your expectations just email us with the reasons why within 7 days. We'll provide a full and immediate refund. (Insurance agents, insurance consultants, or insurers are not eligible for a refund.)

I'm also offering a special Bank Insurance Audit Toolbox. Same idea as above, but for banks.

Visit My Insurance Book Shop For More Information.

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WC Rate Rankings Published

Every year the Oregon Department of Consumer and Business Services puts out a report ranking workers' compensation rates for all 50 states.

The latest report can be downloaded here.

Much of the info is specific to Oregon. However, in their work they provide a great deal of info on each state.

Here are the 10 most expensive states for work comp:

Alaska

Montana

Ohio

Vermont

Maine

Delaware

Kentucky

Alabama

Oklahoma

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COBRA Subsidy Under American Recovery and Reinvestment Act of 2009

COBRA requires that terminated employees are able to continue their health insurance for 18 months.  The recent stimulus bill includes a subsidy for involuntarily terminated employees.

The IRS has published info on how the COBRA subsidy will work for employers.

The subsidy pays 65% of COBRA premiums for employees involuntarily terminated from employment between 9/1/08 and 12/31/09.

Employers receive reimbursement using form 941.

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Ten Simple Things You Can Do To Manage Risk and Cut Your Insurance Premiums

1 - Email your agent - tell him that you expect that he will meet with you 120 days before your policies expire and that he will have a renewal quote to you 30 days BEFORE expiration. 2 - Test your computer backup system - tell you techies that they will delete a file in front of you and restore from the backup. 3 - Every 6 months look at a complete list of all your losses. Ask the adjusters what they have done to resolve the claims and what they plan to do. 4 - Increase your property deductibles and don't turn in small property claims. 5 - Resolve to document every action you take with an employee that could lead to a future problem. If you reprimand, write it down. 6 - Invite your underwriter to visit your operation - get your agent to bring your underwriter to see you. Build a relationship. 7 - Email employees to remind them of your policy regarding damage to personal vehicles while on company business. 8 - Have your attorney review your employment policies. Eliminate any policy that is not being followed. 9 - Take a tour of your locations and video tape what you see. Store the video in case of fire - so you can show the adjuster what the place was like. 10 - Get an unbiased review of your coverage by an insurance consultant.

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Incident Reports Help With Risk Mangement

My Dad had eye surgery last week. After the operation, as he was resting, a nurse gave him a cup of coffee - well, she tried to.  She spilled it on him. After she was sure he was OK and she cleaned up the mess, she went to her work station to complete an incident report. How do you log unusual events in your company? While spilled coffee is not a big deal, if my Dad had reacted differently he could have caused a problem in his just-operated on eye. The nurse was right to log the event. Incident reports can help with several risk management objectives. First, they document the actual event in detail allowing for a reference at some future date if a lawsuit or claim is filed. Second, reviewing logged events can lead to the uncovering of trends and the development of procedures that prevent future events. What kinds of events should be logged? Anything that is unusual, that might need to be referred to in the future. Further, log events where an injury did not occur but could have. Accidents where nobody is injured can lead to preventing future events.

In some cases pictures of the scene can be helpful.  In several of my books and other posts I have recommended disposable cameras in vehicles and at all company locations.  They are too cheap not to have available to document events and accidents.

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Spring Thaws and Flood Insurance

Maine's Insurance Commissioner recently reminded us that spring thaws are coming. With the 30 day waiting period for the purchase of flood insurance, the time to buy coverage is now. For the 4,345th time... Flood is not a covered peril on homeowners policies and most business property insurance policies. To be covered for flood you must buy a flood insurance policy.

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AIG News and Moves

I've received several calls today from reporters wanting to talk about AIG.  

The recently reports about a new government loan program have not changed my position on how insureds should tread AIG policies.

I continued to take a wait-and-see approach. As AIG programs are coming up for renewal I am suggesting that we obtain competitive proposals from other insurance companies. We will review the AIG proposal alongside the quotes from other companies.

In the consideration of which insurance company to move forward with, AIG's financial situation will certainly be a factor.

The fact remains that all of the most commonly used rating agencies continue to hold a rating above my minimum standards. A.M. Best rates of AIG as an "A."  TheStreet.com (formerly Weiss ratings) shows most AIG companies in the "B" range.

I see no reason for hasty moves or panic.

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