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.

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.

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.

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.

For all the Irish and those who wish they were

Happy St. Paddy's day to you. Save some green by a regular review of your insurance be it personal or business. Someone once said that the only thing certain is change. Because this is true your exposures to loss change and you should be prepared to handle the new exposures through a regular review of your insurance coverages. Your agent should be willing to assist you in this endeavor. After all that is why you pay him or her commission. One tip concerning change regards lien holders. When you pay a vehicle off be sure the insurance company deletes the lien holder. If this is not done and a loss occurs the check you receive will be made payable to you and the lien holder shown on the policy. This causes delays in you getting your money. You would be surprised how many people experience problems because of this very thing.
So wear the green and save some too.
Wes Proud to be Irish Lane
The Insurance Advocate

Saving $$$$ on business auto insurance

We often find business owners paying for Personal Injury Protection coverage under their business auto policy when all vehicles are being driven by company employees who are covered by Worker's Compensation insurance. This is a duplication of coverage and should be avoided. One client in Houston, Texas was paying $2,545 per year for the PIP[Personal Injury Protection] coverage. When shown the duplication aspect of having both he elected to immediately drop the PIP coverage.
Many times, not always , insurance agents simply copy the previous agent's coverage when writing a businesses account. Watch this carefully business owners and you will save money in most situations.
Questions about your coverage? Contact The Insurance Advocate-Serving the consumer since 1993.

Risk Management Rules-Know before you buy Insurance

Anyone individual or company needs to understand the basic rules of risk management before purchasing insurance products. Risk management is a "buzz term" which relates to how exposure to risk of loss is evaluated. The three[3] simple rules of this art are: Never risk more than you can afford to lose; Never risk a lot to save a little and; Know the odds facing you.
Many people over the years grasp the first two principles but struggle with the third one. Perhaps an example will help clarify the third principle. Once I owned a small sail boat that was purchased for the sum of $1,600. The liability on this boat was picked up under my homeowners policy so that risk of loss was covered. I did not insure the boat for damage or total loss. I was willing to risk this exposure because the total cost of the boat was low and it was stored when not in use in my garage.
The odds of a loss were small. This is how you understand or know the odds.
If you operate a vehicle or a fleet of them as is the case with a business the odds of having a loss are high indeed. The vehicles operate daily and in all kinds of weather.
So before you buy insurance apply the simple rules of risk management and you can usually save money.