Delaware Business Update by CNC Insurance Insurance Associates Inc. "Sandy And The Insurance Industry One Year Later" 10-29-2013

As a professional in the insurance business I wanted to comment about the one year anniversary of hurricane Sandy that hit the NJ and NY shores. I wanted to see how the insurance industry has handled the 60 billion dollars worth of damage. The result is not looking to good for the industry. I have read industry articles that 80 to 90 % of the claims have been paid but most of the claimants are not real happy with the industry. Also the Federal Flood program still has many claims that have yet to be resolved which adds to the public disapproval. So how is it that the insurance industry which has settled the majority of claims still is seen as the bad guys.  My take after spending over 25 years in the industry, is the process of the insurance industry is problematic. The process of adjusting insurance claims can be very difficult and usually occurs  during a highly emotional time. The process of selling and buying insurance has given the illusion that insurance is a commodity, which is discovered as being far from the truth after a claim. The process of pricing and setting rates for insurance policies can be frustrating because of audits, endorsements, and underwriting. The process creates so much friction that when it is time for the industry to do their job they are already in a public perception hole.
 We need the insurance industry even with all it's imperfections. Insurance is what keeps the economy and lives going. If the industry can reduce the friction during the process then maybe their reputation can improve. One thing is for sure, storms will continue to happen. The insurance industry will have plenty of opportunities to get better for the policyholders they serve. Until next time be careful out there and know your risks.
By G. Kevin Nemith President of CNC Insurance Assoc. Inc.
Serving DE, PA, MD, VA, and NJ.
www.cncinsurance.com
www.bizinsurancetv.org

Popular posts from this blog

Delaware Legislature Preparing To Revisit Dram Shop Liability

Here we go again. Representative Peterson is preparing to introduce limited dram shop liability for consideration. The legislation caps the liability at $250,000 but, as is usually the case, this creates a starting point where limits are eventually increased once it's decided by the powers that be that the current limit is too low. This also puts restaurants, bars, etc, at an increased risk due to the vague wording of the legislation, specifically "reckless" sale of alcohol by the business. Also, you can be sure that if this legislation is passed, that rates will go up commensurately for not only Liquor Liability coverage, but if actual damages begin to be paid out under this law, that insurance rates on the whole will see an increase.
Read more

Get employees back to work quickly to keep work comp costs down

Image
In the past I have spoken to clients regarding a particular workers compensation claim affecting them and have asked if they have brought the employee back to work yet. Too many times the answer is no, they have nothing for that employee to do since said employee is not 100% and unable to perform their specific job prior to their workers compensation injury/claim. The problem with this is that too often employers miss the point that even though an employee can't perform in the position they were in prior to their injury, it behooves the employer to create some type of alternative task/job the employee can do until such time they are able to resume their normal duties. Bringing that employee back to work means that work comp benefits /payments in that particular claim are being curtailed, thereby saving the employer potentially more being paid out, while adding to their experience mod and driving their overall work comp expenses up.
Read more

Important to notify insurance company of potential liability claims

Image
When trying to manage their insurance policies, many business owners make the decision not to turn in potential claims and decide to take care of them on their own. By paying for small claims, such as property damage, etc, they strive to keep claim frequency down and in turn keep renewal premiums down. One area of insurance they should not try to manage though is potential liability situations/claims. Most policy conditions require prompt notification of any potential liability claims to the insurance company and if a claim isn't turned in promptly, the policy language does note that the company can deny a claim due to late notification. It's important to do this early on since information/memories are still fresh and it gives the insurance company time to completely investigate the potential claim. The potential for a liability claim is most likely the small business owner's greatest area of risk, whether they operate a restaurant, cleaning service or any other busi...
Read more