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Issues with Business Interruption Insurance

Issues with Business Interruption InsuranceBusiness interruption insurance covers expenses resulted from a covered loss. It will provide payments loss of income, extra expense and other costs related to interruption.

The causes of business interruption can range from cyber attacks to terrorism. The property damage exposure is one of the most threatening to a business.

The top 4 business interruption issues are:

  • Getting the values right. It’s vital to get proper limits and avoid going underinsured. Also, a coinsurance clause included with the policy could decrease the amount of coverage.
  • Set the right indemnity period. Test your policy to determine if there is a time element period and whether it includes reinstatement and recovery of profit and incurred increased costs.
  • Insufficient  supply chain coverage. Manufacturing, importing and wholesaling businesses may have first, second, third and even fourth tier suppliers. It is difficult to trace and control the disruption related to supply chains.
  • Lengthy and complicated claims settlement process.

Read More »Issues with Business Interruption Insurance

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 quotes or premium indications, we learn and understand your business and your needs as a company. This helps us to find ways to customize your insurance coverage. With a variety of markets and in-depth knowledge of insurance products you don’t… Read More »Why Paperless Insurance Services?

Dog Bite Claims Awards Average $32,000

According to the Insurance Information Institute (I.I.I.) and State Farm, the nation’s 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, according to the Insurance Information Institute, the average cost per dog bite claim was up 100% to 64,555 in 2022, compared to $32,072 in 2014.

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 looking for a treatment in connection to job-related injuries or injuries stemming from car accidents. The plaintiffs had filed eight separate lawsuits against three pharmacies and Medical Center and four of its physicians. After the FBI raid, one of the… 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:

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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

Cheap Flood Insurance from $129 Annually

Would you rather pay $129 now – or $5,000 later? Just a few inches of water can cause thousands of dollars in damage to a home. Our customers are eligible for a Preferred Risk Policy (a policy with fixed coverage and premium amounts for properties in low-risk flood zones) with premiums as low as $129 annually. That’s a small investment for protecting the home you worked so hard to earn. Our access to guaranteed flood zone determinations and rapid Map-It functionality give us the tools we need to quickly offer the most accurate and competitive rates to our customers. We… Read More »Cheap Flood Insurance from $129 Annually

Contractor Insurance Requirements – A Primer

This article was originally published by AmWINS Group, Inc. It was edited and rewritten to simplify the content. To read the original article please click here.

primerWhen risk management department is assigned to focus on the major project, including construction, with particular attention to the insurance requirements to be imposed on the general contractor and any subcontractors, it’s very important not to make the insurance requirements so onerous that contractors are discouraged from bidding on the project.For those of us, who has not been involved in such projects before, let’s review insurance requirements from different projects and how those may affect our company (let’s call it ABC company – the one who impose insurance requirements).
Outdated Insurance Terminology
What may strike us about the old insurance requirements is the insurance terminology used. There is reference to “comprehensive general liability insurance” including endorsements listed as “broad form property damage,” “broad form blanket contractual liability,” “cross liability,” “XCU” and “additional named insured.” The limits are also listed as split limits – one applicable to bodily injury, and another lesser limit applicable to property damage.Similarly, the auto insurance requirement refers to “comprehensive auto liability” and workers’ compensation insurance includes the “broad form all states endorsement.” Further, all of the requirements are to be evidenced by a certificate of insurance that provides certificate holder a 30 days advance notice of cancellation. It becomes readily apparent that these requirements are so outdated as to be virtually useless – the coverage, endorsements and limits listed are obsolete and are no longer available. We must start from the beginning.Read More »Contractor Insurance Requirements – A Primer

Cyber Liability Insurance Coverage for Financial Institutions

A significant number of financial institutions have been victimized in recent months and years. Among those publicly acknowledging breaches were J.P. Morgan Chase, Bank of America, Citigroup, Sovereign Bank and Royal Bank of Scotland (RBS).  Numerous smaller institutions have also been targeted by hackers and phishers.

Recent Breaches at Financial Institutions

Total Bank (Miami, FL)
In July 2014, the bank notified 72,500 customers that their account information was potentially exposed after an unauthorized third party gained access to the bank’s computer network. Information obtained by this unauthorized third party included names, addresses, account numbers, account balances, Social Security numbers and driver’s license numbers.  The bank is offering 12 months free of credit monitoring services for those that were affected.Read More »Cyber Liability Insurance Coverage for Financial Institutions