The Industry Everyone Loves to Hate…
That would be insurance - “But sir, the insurance isn’t for you, it’s for your loved ones…” – or in the case of California, the attorneys that file the litigation against your company. I guess that would make them Sacramento’s loved ones.
So, what about Insurance? Well, it is like another well known adage; you really don’t like paying for it, but you can’t be without it, and when you need it, you love it.
On a recent conference call with Marsh McLennan, a well known national insurance carrier, there were some low points and highlights:
Auto, truck and fleet insurance premiums will continue to go up. In spite of everyone staying home, the industry experienced increased losses – go figure.
Businesses doing self-insurance for comprehensive and collision is becoming more common as a means to reduce insurance costs. So are captive insurance programs. You should check it out. Marsh will do that.
Workers comp continues to stay competitive and rates are even trending down – assuming your covid claims don’t cause an issue. Oh and guess what? Farmers Insurance has entered the Workers Comp business.
Employment practices liability insurance continues to see double digit increases. Tell your employees to keep their hands to themselves and don’t take shortcuts on payroll - “i’s dotted and t’s crossed”, everyone. And that particularly applies to the owner of the business. Just because you are the boss and know better doesn’t make it ok, acceptable or immune from litigation.
A 28 minute lunch is NOT a 30 minute lunch.
You know how some business owners pay people “cash under the table”? Just hope your employee didn’t meet his law school graduate cousin Eddie at the Labor Day BBQ that just passed the bar that is drinking the beer that your employee just bought with the cash you paid him under the table.
Cyber Security is experiencing 300% to 800% increases with LOTS of caveats, exclusions and conditions. Just to repeat, “password01” really isn’t a strong password; you should add a special character – that’ll do it.
Marsh McLennan is hosting a cybersecurity Q&A this week. Click here to learn more. Or just catch my update next week.
Speaking of cybersecurity, if you want a second opinion, or better yet, a first opinion on your company’s cyber security, call Eric Hanson at Inland Productivity Solutions. He will tell you if your computers are masked appropriately against viruses. The fellow knows his stuff.
Covid and Insurance - The 1st U.S. Circuit Court of Appeals will hear its first COVID-19 business income interruption insurance case, an appeal by the Legal Sea Foods restaurant chain from the dismissal of its lawsuit against Strathmore Insurance for breach of contract and unfair claims practices. A federal judge in Boston ruled that Legal Sea Foods did not plausibly allege “direct physical loss or damage” to its restaurants, even though it said the virus had been “physically present” at some locations, since viruses harm people rather than property. As I hear results, I will update you.
“Ida to Cost Insurers at Lease $31 Billion” – referring of course to Hurricane Ida and not to some malware with the codename Ida.
Chubb, Travelers, Allstate and Progressive are the top four insurers with the greatest exposure.
Reinsurance will soften the blow – simply stated, that’s when the insurance companies get insurance on their own policies and another insurance company covers some of the costs.
In a completely unrelated story, flood insurance is seeing significant premium increases. Crazy, right?
Speaking of reinsurance, do you have a blanket policy for yourself or your business? You might want to think about it so ask your insurance agent about the pros and cons. It can be inexpensive insurance for the worst-case scenario. Please refer to the previous paragraphs about Ida, cyber security, and cousin Eddie for potential reasons.
Finally, from a story I personally heard this week… never, ever, ever let your insurance policy expire. Ever. Unless you have expired. In which case, it really is for your loved ones, and not for you.
