If you have no idea what is going on with Tiger Woods, then you must have been locked up in an Iraqi Prison. Because of his shinanigans, his corporate sponsors are dropping him faster than Jimmie Johnson racing around Daytona. Why are they doing this?
Copanies have images just like celeberties. When a company hires a celebery to be the face of the company and portray the company image, they expect that celeberty to maintain that image.
Tiger Woods was a perfect spokesperson for his top notch endorsemets like Accenture, Gillette, AT&T and Buick. Blue Chip companies using a Blue Chip athelete to promote their image. What happens when that Blue Chip spokesperson loses the Blue in his Chip? What does that do to the comapnies respective image? Can a image change of a spokeperson reduce revenues and company loyalty? You bet it can. What can companies do to recoup those losses?
Now they can buy insurance against such instances. Tiger Woods has created a new insurance poicy for large cap companies who rely on celeberties to promote their image. Celeberty goes in the tank, sponsor has no worry about loss to revenue. They can recoup the losses through transfering the risk to an insurance carrier.
Do we live in an ever changing society, or what? Thanks Tiger. You gave me another arrow in my insurance quiver.
Sean Kimbrough
Thursday, December 17, 2009
Tucson Gem Show Insurance Requirements From Pima County
This year may be the last year Tucson will host the world's largest gem and mineral show. The show is administered by the Pima County Stadium District, Kino Sports Complex/Tucson Electric Park. Due to political and fiscal controversy surrounding the show, event organizers are considering pulling the plug on one of Tucson's largest annual revenue generating events.
Please follow this link to read the entire article published at Ezinearticles.com
We offer insurance coverage for vendors that plan to participate in events throughout Arizona.
Please follow this link to read the entire article published at Ezinearticles.com
We offer insurance coverage for vendors that plan to participate in events throughout Arizona.
Not All Insurance Agents Are Created Equal
Agents have fiduciary duties to their clients requiring the agent to collect all relevant details of the risk to be insured. That involves asking several questions as to the characteristics of the risk which the insured wants to place insurance against. All the collected information needs to be translated to the underwriter of the carrier which the agent wishes to quote/place the policy so the underwriter can appropriately approve and bind coverage.
Follow this link to read the entire article published on Ezinearticles.com
The article was spawned out of a request to quote event insurance which was already submitted by another local agent to a wholesale broker he and I happen to have in common. We found out that the other broker was not asking all the appropriate questions regarding the insureds operatoins. When we discovered material facts that could effect the covered needed, the insured felt we were only trying to make the other broker look incompetent. That was not the case. We only wanted to make sure the insured was receiving adequate coverage to meet his risk.
Merry Christmas.
Follow this link to read the entire article published on Ezinearticles.com
The article was spawned out of a request to quote event insurance which was already submitted by another local agent to a wholesale broker he and I happen to have in common. We found out that the other broker was not asking all the appropriate questions regarding the insureds operatoins. When we discovered material facts that could effect the covered needed, the insured felt we were only trying to make the other broker look incompetent. That was not the case. We only wanted to make sure the insured was receiving adequate coverage to meet his risk.
Merry Christmas.
Saturday, December 12, 2009
Genral Contractors, Additional Insured Endorsement Downside
General Contractors (GC) have gotten into a bad habit of automatically requiring their Subcontractors to add the General Contractor as an Additional Insured on the Subcontractor's Commercial General Liability insurance policy without regard to the negative consequences.
Follow the link below to read the entire published article on eZines.com...
General Contractors...
Follow the link below to read the entire published article on eZines.com...
General Contractors...
Friday, December 11, 2009
Divorce Insurance, Prenumptual Agreement, Preperation for the end
Are we really goiong to see insurance policies covering the costs of divorce in the near future?
"A professor at the University of Illinois at Chicago says it would be feasible for insurance companies to offer divorce insurance."
"J. Christopher Westland, a professor of information and decision sciences, says he began sketching out the actuarial tables for such insurance as an exercise, prompted initially by watching a friend go through a messy divorce and its financial consequences. After a little work, he says he found the idea is possible."
'“It’s basically a workable business,” Westland says.'
According to Profesor Westland, divorce policies would cover the costs associated with legally divorcing. That would primarily include attorney fees and court costs. It would not include any money for settlements or living expenses afterwards.
What about the moral hazard of offering an insurance policy that could encourage a spouse to file for divorce early in a marriage?
"...David Hoffman, a law professor at Temple University and an expert in contract law, who has written about divorce insurance, says he is not sure there is any way around the moral hazard and that is the idea’s undoing."
"No insurance company is likely to touch it, he says. In some states, it may not be legal to offer insurance with a moral hazard."
'“Given the moral hazard, I just don’t see it as an insurance product,” he says.'
With 50 percent of all U.S. marriages ending in divorce within 30 years, the notion of insurance against the new peril of 'Divorce' is more like saving money to cover the inevitable. Insurance companies would have to charge a premium equal to 50 percent of the benefit if they expect to at least break even on these new policies unlike homeowners insurance which is designed to insure, primariliy, against natural distaters that connot be predetermined. Can a homeowner expect a 50 percent chance that his home will catch fire, be burglarized, or destroyed in a windstorm? No. There is not a moral hazard associated with homeowens insurance. Arson is not a covered peril in any homeowners policy.
If it happens, more power to the attorneys who are the ones who will obviously benefit the most from divorce insurance. It would gauruntee their fees would be paid up to the policy limit. If you've been through a divorce, the attorney fees can create more stress than the actual breakup.
Sena Kimbrough
Big Boy Toy Insurance
A portion of this article was reprinted from the following osurce:
http://www.insurancejournal.com/news/national/2009/12/11/105912.htm
"A professor at the University of Illinois at Chicago says it would be feasible for insurance companies to offer divorce insurance."
"J. Christopher Westland, a professor of information and decision sciences, says he began sketching out the actuarial tables for such insurance as an exercise, prompted initially by watching a friend go through a messy divorce and its financial consequences. After a little work, he says he found the idea is possible."
'“It’s basically a workable business,” Westland says.'
According to Profesor Westland, divorce policies would cover the costs associated with legally divorcing. That would primarily include attorney fees and court costs. It would not include any money for settlements or living expenses afterwards.
What about the moral hazard of offering an insurance policy that could encourage a spouse to file for divorce early in a marriage?
"...David Hoffman, a law professor at Temple University and an expert in contract law, who has written about divorce insurance, says he is not sure there is any way around the moral hazard and that is the idea’s undoing."
"No insurance company is likely to touch it, he says. In some states, it may not be legal to offer insurance with a moral hazard."
'“Given the moral hazard, I just don’t see it as an insurance product,” he says.'
With 50 percent of all U.S. marriages ending in divorce within 30 years, the notion of insurance against the new peril of 'Divorce' is more like saving money to cover the inevitable. Insurance companies would have to charge a premium equal to 50 percent of the benefit if they expect to at least break even on these new policies unlike homeowners insurance which is designed to insure, primariliy, against natural distaters that connot be predetermined. Can a homeowner expect a 50 percent chance that his home will catch fire, be burglarized, or destroyed in a windstorm? No. There is not a moral hazard associated with homeowens insurance. Arson is not a covered peril in any homeowners policy.
If it happens, more power to the attorneys who are the ones who will obviously benefit the most from divorce insurance. It would gauruntee their fees would be paid up to the policy limit. If you've been through a divorce, the attorney fees can create more stress than the actual breakup.
Sena Kimbrough
Big Boy Toy Insurance
A portion of this article was reprinted from the following osurce:
http://www.insurancejournal.com/news/national/2009/12/11/105912.htm
Wednesday, December 9, 2009
Contractors, Taken Advantage of by Insurance Agents
U.S. Contractors are taken advantage of by their insurance agents at every renewal and new business submission. Why? Majority of Insurance Agents are lazy and their contractor clients take whatever their agent puts in front of them.
Anyone who purchases insurance products from an independent agent should demand quotes from multiple carriers. That’s the agent’s job, to shop the risk with several carriers to find the best choice and the best value. That is what the contractor is paying for, someone who has an understanding of his operations in order to make sure the coverages applying for are appropriate for the contractors exposure. How does the contractor know if he getting a good deal if he has nothing to compare? It’s like going to a used car lot and the salesman asks what you want. You say a sedan. He says here is the sedan for you. Give me a check and I’ll give you the keys. You say thank you and drive off the lot, down the road, get home and realize it is not the car you really wanted. Too late, you drove it home.
As an Independent Insurance Agent in Arizona who specializes in construction trades, and someone who was a construction contractor for the past 15 years, I was taught that it is my duty to my client to find the best insurance policy through the outlets I have access to. That does not mean I shop an application to 3 out of 5 carriers and pick the one I think is best for my client. It is not my job to make insurance purchasing decisions for my clients. They are paying the premium, not me. They are the ones that have to live with themselves if they made a bad decision. My duty is to present my client as many quotes as I can obtain, explain them to my client, discuss the pros and cons of each one and let my client decide which policy is best for his needs. That does not always mean the least expensive policy will be selected or the most expensive will always be declined. During my 15 years as a contractor, I never had an agent bring me more than one quote. That was all I had to choose because that’s what the agent told me I needed or it was all I could get due this reason or that reason.
I have learned it is best to let the prospect/client make the purchasing decisions. Put the pressure on them to decide what is best for their company. They are the ones who are responsible for making the premium payment. It is my job to assist them in finding the carriers and assist in making an informed, educated decision about how best to protect their largest asset and income source. Once they decide, it then takes the pressure off me if they are unhappy with their selection in the future. I reassure them, at renewal, we can take a look at the other carriers I have access to for a better fit. I left my door open for possible future problems with the contractor’s selected carrier. “You are not pleased with the claims handling of XYZ Company, Mr. Client. Do not worry. I will help you get through this rough process and then begin looking at other options for you.” When I come back with 4 other options, the same process starts all over again. I will make the presentation outlining the pros and cons of each carrier and let him decide which one is best for his company’s needs.
When I present a client with 3-5 quotes, he knows I have put some work into this process. I did not take an application, send it to 3 companies, pick the one that pays the highest commission with the highest premium and make the contractor believe that I worked so hard getting this one quote. “By the way, this is the best quote I could find based your credit, claims experience, exposure, etc.” Hogwash! I show my client the commission on each quote so he knows I am an above-board Insurance Agent not sitting in his office taking advantage of him.
Contractors need shop for insurance like they shop for any other product. Obtain as many comparable quotes as they can within a reasonable amount of time. Have the agent(s) clearly explain the differences between all the quotes and carriers. If the contractor feels an agent is not being forthcoming or is unable to explain his products professionally, the contractor should take the time to find another agent. It is not just the policy a contractor is purchasing. He is also purchasing the agent through a commission. If the contractor is not comfortable with the agent, get rid of the agent.
The same goes for the agent. I feel it is important to have a comfortable yet professional relationship with my clients. If I feel I am being taken advantage of or a client is slow making his payments, I tell him, at renewal, to find a new agent because I do not feel we have a working relationship conducive to our business goals. If the contractor feels I have met his expectations or, especially, exceeded his expectations, he asks what we can do to keep the relationship and how we can make it better. At that point, I notify him that he is on a probationary period for the next year and if he does cooperate with any of my requests, I will not submit his renewal application next year. Amazing how well contractors respond.
A contractor purchasing an insurance policy is no different than anyone else who purchases any product in a store (not so much online). When we shop for anything, we want choices. We want to feel we made the best decision based on all the factors presented to us. Commercial General Liability Insurance is no different. Why should Contractors, or any business owner for that matter, settle for less in purchasing a Commercial General Liability Insurance policy than he would if he purchasing a television for his family? A few quality choices lead to better decision making no matter the product.
David Barnett, Sr. Vice President-Commercial Division
520.908.7866
david@bbtimail.com
Anyone who purchases insurance products from an independent agent should demand quotes from multiple carriers. That’s the agent’s job, to shop the risk with several carriers to find the best choice and the best value. That is what the contractor is paying for, someone who has an understanding of his operations in order to make sure the coverages applying for are appropriate for the contractors exposure. How does the contractor know if he getting a good deal if he has nothing to compare? It’s like going to a used car lot and the salesman asks what you want. You say a sedan. He says here is the sedan for you. Give me a check and I’ll give you the keys. You say thank you and drive off the lot, down the road, get home and realize it is not the car you really wanted. Too late, you drove it home.
As an Independent Insurance Agent in Arizona who specializes in construction trades, and someone who was a construction contractor for the past 15 years, I was taught that it is my duty to my client to find the best insurance policy through the outlets I have access to. That does not mean I shop an application to 3 out of 5 carriers and pick the one I think is best for my client. It is not my job to make insurance purchasing decisions for my clients. They are paying the premium, not me. They are the ones that have to live with themselves if they made a bad decision. My duty is to present my client as many quotes as I can obtain, explain them to my client, discuss the pros and cons of each one and let my client decide which policy is best for his needs. That does not always mean the least expensive policy will be selected or the most expensive will always be declined. During my 15 years as a contractor, I never had an agent bring me more than one quote. That was all I had to choose because that’s what the agent told me I needed or it was all I could get due this reason or that reason.
I have learned it is best to let the prospect/client make the purchasing decisions. Put the pressure on them to decide what is best for their company. They are the ones who are responsible for making the premium payment. It is my job to assist them in finding the carriers and assist in making an informed, educated decision about how best to protect their largest asset and income source. Once they decide, it then takes the pressure off me if they are unhappy with their selection in the future. I reassure them, at renewal, we can take a look at the other carriers I have access to for a better fit. I left my door open for possible future problems with the contractor’s selected carrier. “You are not pleased with the claims handling of XYZ Company, Mr. Client. Do not worry. I will help you get through this rough process and then begin looking at other options for you.” When I come back with 4 other options, the same process starts all over again. I will make the presentation outlining the pros and cons of each carrier and let him decide which one is best for his company’s needs.
When I present a client with 3-5 quotes, he knows I have put some work into this process. I did not take an application, send it to 3 companies, pick the one that pays the highest commission with the highest premium and make the contractor believe that I worked so hard getting this one quote. “By the way, this is the best quote I could find based your credit, claims experience, exposure, etc.” Hogwash! I show my client the commission on each quote so he knows I am an above-board Insurance Agent not sitting in his office taking advantage of him.
Contractors need shop for insurance like they shop for any other product. Obtain as many comparable quotes as they can within a reasonable amount of time. Have the agent(s) clearly explain the differences between all the quotes and carriers. If the contractor feels an agent is not being forthcoming or is unable to explain his products professionally, the contractor should take the time to find another agent. It is not just the policy a contractor is purchasing. He is also purchasing the agent through a commission. If the contractor is not comfortable with the agent, get rid of the agent.
The same goes for the agent. I feel it is important to have a comfortable yet professional relationship with my clients. If I feel I am being taken advantage of or a client is slow making his payments, I tell him, at renewal, to find a new agent because I do not feel we have a working relationship conducive to our business goals. If the contractor feels I have met his expectations or, especially, exceeded his expectations, he asks what we can do to keep the relationship and how we can make it better. At that point, I notify him that he is on a probationary period for the next year and if he does cooperate with any of my requests, I will not submit his renewal application next year. Amazing how well contractors respond.
A contractor purchasing an insurance policy is no different than anyone else who purchases any product in a store (not so much online). When we shop for anything, we want choices. We want to feel we made the best decision based on all the factors presented to us. Commercial General Liability Insurance is no different. Why should Contractors, or any business owner for that matter, settle for less in purchasing a Commercial General Liability Insurance policy than he would if he purchasing a television for his family? A few quality choices lead to better decision making no matter the product.
David Barnett, Sr. Vice President-Commercial Division
520.908.7866
david@bbtimail.com
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