Risk & Business

The changes in the health care insurance market due to Obama Care are ground breaking. However these changes are quickly turning away from traditional insurance models. The insurance business is a "for profit" business where actuarial sound rates are charged to many in the hopes to cover the claims of others, with some money left over for profit. This is why the drafters of the new health care legislation put in a mandate. However with the White House exemption of employer plans and now recently, those who have had their current plans cancelled, the Obama Care health insurance model is at risk of collapsing as traditional insurance. Lack of the mandate reduces the spread and increases the risk in the pool. Also, the premium subsidies, delayed premium payments, and forced re-issuance of cancelled policies, put enormous pressure in insurers ability to make profit. Without profit, the health insurance companies that are the back bone of Obama Care will go bust. If this happens t

Many business insurance policies have coverage for loss of business income. If the property is damaged or destroyed and the business owner cannot open the doors, then the business income insurance coverage kicks in. However, one of the missed extensions of coverage that has to be added is off premises power outage. When the power goes out across a region, the business could lose income. This is important coverage that has to be endorsed on the business income insurance, it is not automatic. Loss of income when the power goes out can be very costly. In the winter, heavy snowfalls could knock power out for days. In the summer, thunder storms can do the same. Check your commercial insurance coverage and make sure your business income coverage also covers off premises power outage.  Until next time be careful out there and know your risks. G. Kevin Nemith, President CNC Insurance. Associates Serving, DE, MD, PA, NJ, and Va www.cncinsurance.com www.bizinsurancetv.org