May 2015

Determine Pricing for Liquor Liability Coverage

Flaming_cocktailsLiquor Liability Pricing

It’s no secret that liquor liability is a complex coverage. There are numerous variables that underwriters take into consideration when pricing and structuring a policy. For example, on liability policy that is written on the form CG 0001 (sometimes with CG 2150) the host liquor coverage provided will be sufficient as long as insured’s operations are not required a liquor license (for example, when alcohol is served free of charge for a social function). Hence, the more informed you are about the underwriting thought process for liquor liability risks, the better terms and pricing you can obtain, with the help of Paperless Insurance Services, Inc.

There are several variables to the complexity of liquor liability. First, there are 50 states with 50 different sets of laws governing liquor liability, ranging from strict liability (Alabama) to very little liability (Nevada). Second, there is a wide range of venue types – from restaurants to nightclubs to concerts – which all have specific nuances that need to be addressed. Finally, each specific location has its own unique underwriting concerns that will arise, and it is critical to address them fully when submitting a risk to market.Read More »Determine Pricing for Liquor Liability Coverage

Why Paperless Insurance Services?

A broker who does not fully understand a client’s business or lacks direct links with insurers may not only fall short in advising on coverage but can cause headaches on all sides of the insurance relationship. With thousands of insurance brokers and coverage options out there, why should you choose Paperless Insurance Services, Inc? First, before we offer any insurance… Read More »Why Paperless Insurance Services?

Dog Bite Claims Awards Average $32,000

dog bites homeowners insuranceAccording to the Insurance Information Institute (I.I.I.) and State Farm, the nation’ largest writer of homeowners insurance the cost of the average claim from dog bites and other injuries is on the rise.  I.I.I.’s analysis of homeowners insurance data found that the number of dog bite claims nationwide decreased 4.7 % in 2014. However, the average cost per dog bite claim was up 15% to $32,072 in 2014, compared with $27,862 in 2013.

The average cost per claim nationally has risen more than 67% from 2003 to 2014, due to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which are still on the upswing.

With 1,867 claims California continues to lead the list of states with the largest number of claims, followed by Ohio with 1,009 claims and New York with 965 claims, although NY state is leading with the highest average cost per claim in the country of $56,628.

The trend in higher costs per claim is attributable not simply to dog bites but also to dogs knocking down children, cyclists and senior citizens —all of which I.I.I. says can result in fractures and other injuries that increase the severity of the losses. Experts say that even normally docile dogs may bite when they are frightened or when defending their puppies, owners or food. The most dangerous dogs are those that suffer from poor training, irresponsible owners and breeding practices that foster viciousness.

Read More »Dog Bite Claims Awards Average $32,000

Addicts Can Sue Pharmacies and Doctors

According to the recent ruling of West Virginia Supreme Court pharmacies and doctors who negligently prescribed pain medication can be sued for enabling people’s addictions. According to court documents, FBI raided and shut down the Mountain Medical Center in Williamson in 2010 and found evidence of improperly prescribed controlled substances involving 29 people who became addicted while were Center’s patients… Read More »Addicts Can Sue Pharmacies and Doctors

Certificates of Insurance Law

certificate of insurance lawThe Massachusetts Division of Insurance (DOI) issued a bulletin to provide guidance on the implementation of Massachusetts General Laws Chapter 175L, concerning the issuance of certificates of insurance.

Chapter 175L was signed into law on Jan. 7, 2015, by then-Gov. Deval Patrick and became effective on April 7, 2015. The DOI stated in its bulletin 2015-02 on May 8 that the purpose of this new law is to regulate and standardize the practice of using certificates of insurance.

Chapter 175L defines a certificate of insurance as “a document or instrument, regardless of how titled or described, that is prepared or issued by an insurer or insurance producer as evidence of property or casualty insurance coverage.” The bulletin notes that the term shall not include a policy of insurance, insurance binder, policy endorsement or automobile insurance identification or information card. Chapter 175L explicitly regulates certificates of insurance for the first time in Massachusetts.

The new law codifies the long-time rule that insurance certificates may not modify the terms or conditions of the underlying insurance policies that they evidence. In this regard, Chapter 175L requires that all certificates of insurance must be both true and accurately reflect the policy they represent, and mandates that no one may knowingly prepare, issue or require the issuance of a certificate of insurance that contains any false or misleading information or that alters, amends or extends the coverage provided by the underlying referenced policy.

The new law applies to all certificates issued in connection with property, operations or risks located in Massachusetts, regardless of where the certificate holder, policyholder, insurer, or insurance agent is located.

The bulletin further stated that a certificate of insurance that violates the requirement of Chapter 175L will be deemed to be null and void. Under the law, the insurance commissioner is authorized to examine and investigate the activities of any person that the commissioner reasonably believes has been or currently is engaged in an act prohibited by Chapter 175L. Additionally, Chapter 175L grants the commissioner the authority to enforce the law by imposing a fine of up to $500 per violation.

Key provisions of Chapter 175L are as follows:

Read More »Certificates of Insurance Law

Emergency Loans for Drought Available for Small Businesses in California

Drought Loans CaliforniaSmall businesses in a handful of counties in California are now eligible to apply for low interest federal loans to help offset the costs of prolonged drought.
The U.S. Small Business Administration announced that non-farm businesses may qualify for loans up to $2 million.
Agency director Tanya Garfield says eligibility will be determined on financial impact of the drought and not on any property damage.
Drought loans bear interest rates of 4% for businesses and roughly 2.6 percent for non-profit organizations.
Applicants may apply online at the Small Business Administration website.

Read More »Emergency Loans for Drought Available for Small Businesses in California