Risk & Business

Since its inception, the Federal Flood Insurance program has struggled with debt. This government backed program is currently 24 million dollars in the hole. The reason is that the Federal program has not charged the proper premiums for the risks that are in flood zones. Big payouts have ensued from storms over the years, and the debt has grown. So many in the industry are calling for private money to take over the program. There is plenty of capital in the insurance  marketplace and also new technology to help charge the proper premiums for the exposure., so now may be the time. Unfortunately the Federal Government does not have the political will to make that happen. The main reason is most policies are under priced and to make the corrections many voter's premiums would skyrocket.  In 2012 the Biggert- Waters bill did just that only to have it recalled because of the public outcry when they got their renewal bills. Sooner or later something has to be done. If the debt hole conti

The insurance marketplace that we deal with every day in America is directly tied to world events. So expect insurance rates to rise over the next year, especially in property. The Tianjin China port explosion will cost the world insurance market in excess of 1.5 billion dollars. This is a very big insurance event. This port was being used by most of the Fortune 500 companies in the world. As these companies make claims to their respective insurers, capital that is stored up in insurance companies will need to be replaced. So how do insurance companies replace capital?  They raise rates.  Only time will tell but it will be a sure bet that property rates will rise in 2016. Until next time be careful out there and know your risks. G. Kevin Nemith President CNC Insurance Assoc. & The Small Business Insurance Center Proudly Serving DE, MD, NJ, PA, & VA www.cncinsurance.com www.bizinsurancetv.org

Business liability policies will cover advertising, marketing and trademark liability claims. The coverage language is found in Part B of the standard ISO General Liability policy. The ability for businesses to do their own marketing and advertising has increased with technology, but so has their exposure to claims. Just a few years back, most businesses would hire marketing or advertising firms to promote their business. These firms would carry special insurance to cover claims. Now, with business owners doing their own thing, they are finding themselves testing their business general liability policy for coverage. So what will the business owners' liability policy will cover? You can expect coverage for libel & slander, violation of right of privacy, copyright infringement, and trademark infringement. With the explosion of do it yourself advertising and marketing, many small business owners are surprised when they get sued for one of these exposures. The good news is that th