Thank you, Burke Nursery, for renewing with us for the 10th year! We really appreciate your business. http://ping.fm/crakH

What is Tail coverage?

In the world of D&O, E&O and other types of Claims-Made policies, "Tail coverage" or an Extended Reporting Period is an extended window of time in which a policyholder can report a claim.

Professional and Management liability claims have long "tails" on them. A wrong can occur in 2008 and not be realized until 2009. Once a claim is filed for that wrong, which policy responds: 2008 or 2009?

Claims-made policies state that the policy in effect when the CLAIM is MADE will be the policy to respond. As such, if the policy doesn't renew, then the coverage window ceases.

In the above example, a wrong occurred in 2008 and was discovered in 2009. If the insured chose not to renew their 2009 policy, then he or she would not have a policy to cover that claim - even though the wrong occurred in 2008, when they did have a policy in effect. Get it?

When a Claims-Made policy cancels or is not renewed, the policyholder has the option to purchase an Extended Reporting Period (ERP or Tail), which will extend that window allowing him/her to report claims resulting from activities when the coverage was in force.  Any agent worth his or her salt should recommend an ERP to clients once a Claims-Made policy ends.

The Hartford is 200 years old

Congratulations to The Hartford Insurance Group! They are one of my insurance markets, and The Hartford is celebrating its 200th birthday this month. Hartford was incorporated on May 10th, 1810.

Did you know that Abraham Lincoln purchased a fire insurance policy from The Hartford to protect his home in Springfield, IL? He bought the policy in 1861, shortly after he had been inaugurated as President.

Hartford has been a reliable company partner for us. Congratulations on 200 years. You look great!

working on an insurance quote for an Italian restaurant. I'll quote it anytime you want...

The Better Insurance Update - Spring 2010

I just sent out the Spring 2010 edition of my e-newsletter.  I use it to summarize recent blog and Twitter posts.  Insurance never sleeps!

 

The BETTER INSURANCE UPDATE   Better Insurance Knowledge for all from Brock-Norton Insurance Agency    Spring 2010      In This Issue The Dangers of Distracted Driving Build Your Network Recent Tweets Quick Links   BrockNorton.com    Claims Reporting   Get a Quote     The Dangers of Distracted Driving   Do your employees drive company vehicles?   Do they use company-issued cell phones?   DID YOU KNOW:  If your employee causes an accident while using a cell phone for work, then your company can be held liable?   The best defense is a written corporate policy that regulates employees' cell phone behavior behind the wheel.  My client, ZoomSafer and I prepared a white paper to assist companies in developing these policies. An effective cell phone usage policy should contain:  Mission statement  Definition of prohibited behaviors  Employee/driver acknowledgement statement  Enforcement and discipline guidance Once you have a policy, be sure to enforce it.  If managers don't take it seriously, the employees won't either.    Click here for more details...   Build Your Network, Build Your Business   Looking to build your business?   Want a dedicated team of professionals who are actively looking for new opportunities for you?   Come Visit the Reston Herndon Professional Networking Group (PNG).     PNG meets Thursday mornings, 7:45 - 9:00 am in the ASCE/Bechtel Conference Center in Reston, VA. Recent Tweets    issuing Performance bonds for 2 clients: a construction firm & security co. Opportunities are out there for company growth. Optimism growing 11:40 AM May 21st     wrote Liability & Property for a commercial investor with 3 buildings in Chantilly, VA. Improved his coverage & saved him $2000/yr. 1:18 pm May 18th     Workers comp insurers in 'precarious position': NCCI. http://is.gd/c7DXi. Large losses in 2009 & lower rates meant carriers lost money. 9:49 am  May 13th

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Nonprofits, Don't Expose Your Ds and Os!

Serving on the Board of a Nonprofit organization is a big step.  You're dedicating your time and energy to a worthy cause.  However, you may not be aware that you are also exposing your personal assets to liability claims.

If you serve on the Board of a Nonprofit organization, ask the organization how it will protect you if you are named in a Liability suit.  Directors & Officers Insurance protects Board members individually if sued for mismanagement of the organization.  Many smaller nonprofits have tight budgets and choose to go without this protection.

Directors & Officers Insurance sounds expensive, and it sometimes can be.  However, if you're a small organization, you may be surprised at how affordable the coverage can be.  Ask an agent about it.

One of my brokers, Victor O. Schinnerer & Company, Inc., developed a great article on the dangers of going without D&O coverage.  This is required reading.

8 Compelling Reasons to Insure Your Non-Profit Organization

Here are some snippets:

Reason #2:  Insurance protects your organization’s assets, as well as the personal assets of people that sit on the board.  Remember, even frivolous claims cost you time and money to defend yourself.

Reason #4:  Staying continuously insured could reduce your costs.  Firms that renew their coverage may be eligible to receive longevity credits just for staying continuously insured in our program.

Reason #5:  Buying and keeping Directors & Officers coverage is a much better option than relying on the Volunteer Protection Act for help.  The Act/Law does not prevent a volunteer from being sued. In addition, compensated individuals (the most obvious being compensated employees and directors or officers) are not provided protection under the law.

HELP WANTED

We're seeking a Personal Lines Insurance producer/CSR to service & grow the existing book of Home & Auto policies. Salary plus commissions.  Email me (jimmy@brocknorton.com) for details.