Thanksgiving is near and we have much to be thankful for in this country. My first thanks goes to our men and women in uniform who are serving here and abroad. Secondly I am thankful for my family and friends. Without them I fear my life would have taken a wrong turn. At this time of year stop and ask yourself what you should be thankful for. Meditation and restful thoughts go a long way in bringing peace in this very confusing world. Take care of yourself and since life is a journey enjoy the trip.
Wednesday, November 18, 2009
Tuesday, April 7, 2009
Insurance savings
Well St. Paddy's day has come and gone and next weekend is Easter. God's blessings upon all this special time of year.
It takes only a little bit of homework to see savings in your insurance program. Here are a few guide points: 1.Remember Risk Mgt. rule; Never risk a lot to save a little.
2. Use deductibles whenever and wherever possible. This applies to health insurance, auto insurance and property insurance. Some General Liability insurers allow deductibles. Review your cash position and consider the General Liability deductible. 3. Control losses through the use of safety programs. Lower losses lead to lower premiums. At least once each year review all losses with your agent to be sure they have been handled properly and close claims that have been settled. Far too often insurers leave settled claims open with reserves that go against your loss ratio even after the claim has settled. We once saved a client a good deal of money by reviewing the claims history with his insurance company.
It takes only a little bit of homework to see savings in your insurance program. Here are a few guide points: 1.Remember Risk Mgt. rule; Never risk a lot to save a little.
2. Use deductibles whenever and wherever possible. This applies to health insurance, auto insurance and property insurance. Some General Liability insurers allow deductibles. Review your cash position and consider the General Liability deductible. 3. Control losses through the use of safety programs. Lower losses lead to lower premiums. At least once each year review all losses with your agent to be sure they have been handled properly and close claims that have been settled. Far too often insurers leave settled claims open with reserves that go against your loss ratio even after the claim has settled. We once saved a client a good deal of money by reviewing the claims history with his insurance company.
Monday, January 12, 2009
Bonds Vs. Insurance policies
Far too often insurance clients needing a bond or bonds believe that purchasing these contracts are just like buying an insurance policy. This is far from the fact of the matter. Insurance policies and bonds are purchased through insurance agents but there the similarity ends. Bonds are financial guarantees. Insurance policies are not! This is the big and major difference.
Too often clients will call an agent and say write me a bond.They then become irritated when the agent says that quite a bit of financial information is required. Bonds are underwritten to a zero loss ratio. This means that the insurance company never plans on paying a claim. This is especially true of contractor's performance bonds. Insurance policies on the other hand are written with the anticipation that losses will occur. Insurance companies do write bonds but require a financial statement from the client along with a company history including resumes on the owners. The insurance companies are very strict in their underwriting on bonds.
So when in the market for a bond or bonds get your material ready and be patient.
Too often clients will call an agent and say write me a bond.They then become irritated when the agent says that quite a bit of financial information is required. Bonds are underwritten to a zero loss ratio. This means that the insurance company never plans on paying a claim. This is especially true of contractor's performance bonds. Insurance policies on the other hand are written with the anticipation that losses will occur. Insurance companies do write bonds but require a financial statement from the client along with a company history including resumes on the owners. The insurance companies are very strict in their underwriting on bonds.
So when in the market for a bond or bonds get your material ready and be patient.
Wednesday, October 22, 2008
Legal defense inside your liability policies
When business owners purchase liability policies they often overlook one of the greatest benefits under the policy and that is legal defense cost. Policies state that the insurer agrees to defend the named insured against all claims brought against the named insured under the policy terms no matter whether such claims are false fraudulent or groundless. That's right the policy pays for defense and today that cost can be out-of-sight.
One client was named in litigation even though the client only had machinery on the job site and had no employees there.The cost to finally receive an instructed verdict whereby our client was dismissed from the law suit was $45,000. Thank heaven the General Liability policy paid for the legal fees. Another big plus is that insurance companies employ the best lawyers in the business.
So think about the defense cost aspect when analyzing the policy cost.
One client was named in litigation even though the client only had machinery on the job site and had no employees there.The cost to finally receive an instructed verdict whereby our client was dismissed from the law suit was $45,000. Thank heaven the General Liability policy paid for the legal fees. Another big plus is that insurance companies employ the best lawyers in the business.
So think about the defense cost aspect when analyzing the policy cost.
Tuesday, September 9, 2008
complaints against insurance agents
When dealing with clients over the years complaints about their insurance agents are discussed.
Following are the largest complaints insurance buyers have with their insurance agents:
1. The agent will not return my phone calls. Yes, in this age of instant communications this remains the number 1 complaint. My advice to clients is: People are what they do not what they say. When someone in a service industry will not return your phone calls what are they telling you. The answer is; they do not value your business much and as such you should consider finding someone who will value it.
2. The renewal quotes are delivered to me a day before the current policies expire. This is a agent trick to insure that they retain the account. Tell your agent that if his renewal figures cannot be delivered a week prior to the renewal you will find another agent who can meet your time line.
Always remember that you the insurance buyer are in charge. Agents cannot buy groceries or put gas in their cars without your commission dollars.
If problems persist contact us.
Following are the largest complaints insurance buyers have with their insurance agents:
1. The agent will not return my phone calls. Yes, in this age of instant communications this remains the number 1 complaint. My advice to clients is: People are what they do not what they say. When someone in a service industry will not return your phone calls what are they telling you. The answer is; they do not value your business much and as such you should consider finding someone who will value it.
2. The renewal quotes are delivered to me a day before the current policies expire. This is a agent trick to insure that they retain the account. Tell your agent that if his renewal figures cannot be delivered a week prior to the renewal you will find another agent who can meet your time line.
Always remember that you the insurance buyer are in charge. Agents cannot buy groceries or put gas in their cars without your commission dollars.
If problems persist contact us.
Wednesday, July 9, 2008
annuities
Hello folks! It has been a few months since my last post and much has happened. The big event was my daughter's wedding in Kerrville,Texas on June 21. She and her new husband have accepted positions at Mississippi State University in Starkville, Mississippi as college professors. I'm a very proud dad.
On the insurance front several people have asked me about annuities lately. Frankly, I'm not a big fan of these largely as a result of the high commissions paid to agents who sell them. How high you ask? The first year commissions can run as high as 40-50% of the money you deposit into the annuity. This is why these financial vehicles lock you in for a number of years. That is right. Often you cannot withdraw your money for 5-7 years should you want or need a lump sum of money. If you do insist on a withdrawal the company that issued the annuity contract will hit you with a large withdrawal penalty.Once again exercise caution when buying annuities. Agents make money selling and the more they sell the more they make.
Have a safe, great summer.
On the insurance front several people have asked me about annuities lately. Frankly, I'm not a big fan of these largely as a result of the high commissions paid to agents who sell them. How high you ask? The first year commissions can run as high as 40-50% of the money you deposit into the annuity. This is why these financial vehicles lock you in for a number of years. That is right. Often you cannot withdraw your money for 5-7 years should you want or need a lump sum of money. If you do insist on a withdrawal the company that issued the annuity contract will hit you with a large withdrawal penalty.Once again exercise caution when buying annuities. Agents make money selling and the more they sell the more they make.
Have a safe, great summer.
Tuesday, April 29, 2008
The cost saving Section 125 plan
Well tax time has come and gone. We really don't miss April 15 do we? One way to cut taxes is by installing a section 125 plan. Section 125 is under the tax code and was first established in 1978. This type plan installed by an employer allows all eligible employees to deduct what they pay for employee benefits before taxes. Employee benefits can include premiums paid by the employee for health insurance, dental insurance, vision, cancer plans, accident plans and term life up to $50,000. The employer benefits because the matching that the employer is required to meet is lowered when benefits are deducted before tax is applied. The installation of the 125 plan is a win-win for all parties involved. I have assisted many clients in this area and have not had a single complaint yet. The employer can also set up a medical spending account under the 125 plan along with day-care expense.
Need more information in these times of rising health care cost? Contact me and I'll be happy to help. Please remember that The Insurance Advocate does not sell insurance. We work on a fee for services basis.
Need more information in these times of rising health care cost? Contact me and I'll be happy to help. Please remember that The Insurance Advocate does not sell insurance. We work on a fee for services basis.
Subscribe to:
Posts (Atom)
