About Policy Administration

By Motchka Curtis

Policy administration is a term that is most commonly used in reference to insurance. Insurance exists in the modern world for everything from safeguarding a person's life all the way down to safeguarding that person's investment in a particular stock or bond. Insurance is everywhere and for that reason it needs to be managed in a way that allows everyone involved in the policy to know what is going on whenever they might want a report along those lines. Policy administration is the discipline devoted to making sure that this wish becomes a reality and it usually encompasses everything starting with the quotes that are given right down to the actual management of the insurance when it is purchased by the client.

In conventional times, policy administration was a budding field that did not really get that much attention from insurance companies because of the relative expense that it brought to the table. Nobody at that point had thought about employing information systems to analyze the questions related to policy administration and for that reason accountants were required to keep everything honest and keep everything up to date. Accountants are expensive and for that reason insurance companies were not that eager to ensure that policy administration of the various insurance agreements they had in place was a top priority of the insurance firm.

With the advent of policy administration software however, that has changed significantly. The software has taken what was once a very difficult area of the insurance game and turned it into something extremely easy. Any good policy administration software package will allow you to manage everything you would find across the life of a particular insurance policy.

Insurance politics starts with first contact through quotes and rate offerings and ends with the termination of the insurance contract depending on the preconditions that were set in the initial contract. All of this information is available at the touch of a button through policy administration system software. As the future dawns bright on this aspect of insurance it is expected that further policy administration packages will only get more sophisticated as time passes.

Premium Industrial Insurance

By Sarah Martin

Over the decades, well meaning but often misinformed persons have decried what they have called "the high cost of weekly premium industrial insurance." Any offhand comparison with the cost of ordinary insurance or cheap homeowner insurance would be, of course, to the disadvantage of industrial.

There can be no escape from higher costs in view of the nature of the business. Three factors determine the cost of life insurance, whether it is ordinary or industrial-mortality, operating expense, and the interest earned on the invested funds of the company.

Of these, the first two operated to make industrial insurance cost more than ordinary. Because it was sold chiefly to the families of working men, industrial insurance had to provide for the higher mortality prevailing among this group. Despite marked improvement in the years following, the death rate of industrial policyholders still showed an excess of about 20% as compared with the holders of standard ordinary policies.

The second item, operating expense, was higher in the case of industrial insurance, not only because of the small units in which these policies were issued but also because it had to cover the cost of the additional services which industrial policyholders received.

The premiums were received in the homes weekly, and the agent often would have to call more than once to find the policyholder at home and in funds. His time was at the disposal of the people on his debit, and the policyholder was saved the trouble and expense of having to pay at the office of the company. The services of the agent had to be paid for, and they were well worth what they cost. No wonder that the operating cost of weekly premium insurance was higher than that of ordinary.

Nevertheless, progress was made consistently to reduce the difference between the cost of industrial and ordinary life insurance, and this reduction was in large measure the result of definite planning and conscious effort. Death rates of policyholders continued to decline throughout almost the entire span of life. At the younger ages they finally reached about one fifth of the former levels.

The company's broad program of welfare activities, including its extensive nursing service, undoubtedly reflected favorably on the longevity of the industrial policyholders. More and more their life expectation has come into line with that of the population as a whole. There was still a sizable difference, however, in favor of the ordinary policyholders.

Better management also reduced the expense ratio of the business. The employment of better qualified agents, their greater stability, the improved persistency of policies, the better control of details of the business, the new devices of recordkeeping, the extension of insurance without medical examination-all helped to bring the expense ratio down, although the services given were greatly extended.

In fact, the proportion of the industrial premium devoted to expenses at that point was only about one half what it was about 50 years before, and is smaller than that required by the majority of purely ordinary companies for conducting their business.

Sarah Martin is a freelance marketing writer based out of San Diego, CA. She specializes in finance, business, and life insurance. For cheap homeowner insurance, please visit http://cheap-insurance-rates.com/.

Freight Broker Training - Contingent Cargo Insurance

By Sharon D. Martin

Contingent Cargo Insurance, I've heard of it, but what is it? Contingent Cargo Insurance is an insurance policy usually carried by Freight Brokerages as a customer-based protection plan. Why does a brokerage need it since the Carrier has to have insurance? When would a brokerage need Contingent Cargo Insurance?

First of all, there is no law that requires a Freight Brokerage to carry contingent cargo insurance. They DO NOT have to carry it. But, most shippers won't deal with a brokerage that doesn't have it. Why? Most shippers feel they can sue the broker or collect from the brokers Contingent Cargo Insurance if a load is hijacked or once delivered, is damaged or missing pieces. But, this is not true. That falls under the carriers insurance. A Brokerage does not personally load the freight, count it, inspect it, nor haul it.

And a lot of times the carrier does none of this BUT haul it. Yet the carrier takes possession of the load and is therefore responsible for it. If it is hijacked, damaged, or is missing pieces, the carrier and/or receiver goes back to the shipper, NOT to the Brokerage. Then the carrier and shipper work it out or the carrier, shipper and receiver work it out. The Brokerage is truly the intermediary, but, YES, there are times when he/she can be held responsible.

Below are the only two reasons I know of as to when a Brokerage would be better off in carrying Contingent Cargo Insurance.

(1) Plain and Simple: If the Brokerage signs an agreement with the Shipper stating that he/she will take responsibility if something goes wrong.

(2) If the Brokerage fails to check out the Carriers insurance and something does goes wrong. This can hold true if a Brokerage is exceptionally busy or chaotic one day and he/she forgets to check the Carrier insurance. Maybe the Brokerage has decided to take on Agents or has hired some new Agents and out of nervousness, they forget to check the Carrier insurance. Or Maybe the Brokerage has done business with the Carrier before and doesn't think he/she needs to check the carrier insurance again. Then, all of a sudden while in route, the Carrier wrecks and a whole load of eggs are broken. No problem, the Carrier's insurance will cover it. WRONG! The Carrier had forgotten to pay his insurance premium that month and it was cancelled three days ago. But the Broker didn't know this because he/she forgot to check the Carrier's insurance. Having Contingent Cargo Insurance would have surely saved the day here.

Written by Sharon D. Martin - a1freighttraining@gmail.com

What is the Source of Groups in Group Insurance?

By Kyle J Norton

Many corporations will offer competitive packages, and that's even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will discuss the source of group insurance

1. Employers

The main source of groups is the employer group. The employer group can be one company or family of companies and the master group contract is issued to the employer or head office that covers all the employees working only for such company.

2. Trade associations

Group Benefits can also be provided for by trade associations.They are based on the fact that while you may have many different employers, all the employees are engaged in similar occupations.

3. Professional associations

Groups of professionals like doctors or dentist are often too small to purchase group insurance individually by office. However, when they are bundled together with other professional offices, it creates a very large insurance group.

4. Unions

Unions also provide group benefit for their active at work members even their members may work for difference employers or group of employers.

5. Creditor groups

Insurance is provided for each borrower of funds on a group basis up to a certain maximum. The premium charged is a flat rate per $100 borrowed or outstanding indebtedness. This type of insurance aims to protect the lender in case of disability or death of the borrower.

6. Saving groups

Insurance is provided for depositors and investors as a plan completer if they die. It generally would cover the contractual payment period only, but not equal to the total goal to be saved.

Groups are classified as being small, standard or large.

a) A small group have between 5 - 25 people. Usually, Insurance companies require medical statement will usually be required for any group with 10 employees or under.

b) Standard group has a size of 25 - 200 employees

c) Large group has about 200 - 20,000 employees.

The main characteristic of group plan is the large the group the cheaper the premiums.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page: Kyle J. Norton http://lifeanddisabitityinsuranceunderwriter.blogspot.com/ http://groupinsurance01.blogspot.com/ All rights reserved. Any reproducing of this article must have all the links intact. I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

Electronics Insurance - Are Your Electronics and Computers Covered by Your Insurance?

By Russell Longcore

There is a lot of misinformation today about consumer electronics and how it is treated by insurance companies. Most people I talk to think that if they have homeowners or renters insurance, their consumer electronics are covered.

But they usually find out that their assumptions aren't true...at claims time.

Sure, some of the property is covered. But there are a bunch of limits and exclusions that will surprise you if you have a loss and file a claim.

Don't wait until claim time to learn about this important coverage. Read this article carefully and make good decisions about your coverage.

Twenty years ago, consumer computer usage and ownership was not all that common. If you owned a cell phone, you carried it in a bag the size of a small purse. There were few home fax machines. Answering machines were pretty common, but voicemail was still on the horizon. Scanners were non-existent. Printers and copiers were huge and expensive, and you didn't see them in most homes. If you were the rare person who had satellite TV, the dish was about eight feet across and sat out in the back yard. And Personal Digital Assistants (PDAs) and MP3 players had not been invented yet.

But today....

In our home we have:

• two desktop computers with monitors

• four laptop computers

• four printers

• one stand-alone fax machine

• one combination fax, scanner, copier

• three TVs

• two VCRs

• one digital video camera with tripod for our home recording studio

• one audio mixing board, one microphone, one amplifier, two external soundcards, and a 500GB hard drive, all for our home recording studio

• two DVD players

• two cell phones, one smartphone, each with voicemail

• one satellite TV system with a 24" dish on the roof

• two Ipods

Your home may not have that amount of electronics, but then again, you might have more. The way that consumer electronics prices have tumbled over the years makes ownership much easier for more and more people.

But...is it covered? Does your homeowners or renters insurance cover your electronics?

We run three separate businesses out of our home. Most of our electronics are used in our businesses.

Do you have a home business? There are millions of home businesses...everything from home daycare to a service business to multilevel marketing businesses. Many times, those entrepreneurs own office electronics for their home business. Do you use your computers and other electronics for any kind of home business? Even if you're answering office email on your home computer, it could be considered "business use."

Are they covered by YOUR homeowners policy?

Are they covered if they are business-related?

What happens if your desktop or laptop computer is stolen, either from home or away from home? Is the theft covered by your homeowners insurance policy?

If you're carrying your laptop through an airport anywhere in America, your laptop is at huge risk for theft. (See more below) What if your laptop is stolen while you're in the airport?

Here is the answer to those questions...

MAYBE!!!!

In the Homeowners or Renters Policy, Coverage C, Contents, there are special limits of $2,500 for "property, on the residence premises, used primarily for business purposes." The policy says there is a $500 limit for "property away from the residence premises used primarily for business purposes." Of course, you will have a deductible to pay first, so if your deductible is $500 or more, you won't get ANY money from the insurance company for this loss.

Are your personal electronics covered? Yes, but only for the following perils:

• Fire or lightning

• Windstorm or Hail

• Explosion

• Riot or Civil Commotion

• Aircraft (not in aircraft, but if aircraft fall on your stuff.)

• Vehicles (not in vehicles, but if vehicles crash into your stuff.)

• Smoke

• Vandalism or Malicious Mischief

• Theft

• Falling Objects (stuff falling onto your stuff)

• Weight of Ice, Snow or Sleet

• Accidental Discharge or Overflow of Water or Steam

• Sudden and Accidental Tearing Apart or Bursting (of a steam or hot water system).

• Freezing

• Sudden and Accidental Damage from an Artificially Generated Electrical Current

• Volcanic Eruption

As I said above, the policy limit for business electronics at the residence is $2,500.

If your laptop or other portable electronics are stolen from your car, there is no coverage under your Auto insurance for the theft.

Also remember, that under Coverage C, Contents, payment is made on an Actual Cash Value basis, not Replacement Cost Value. The only way to get RCV is to add the Contents Replacement Cost endorsement to your policy. It's not automatic, you have to request it.

How about other kinds of damage that your computer might sustain?

• Accidental damage, such as dropped equipment, falls, liquid spills and auto collisions.

• Water damage

Those kinds of damages are not covered under your homeowners or renters policy.

And what about the software and sensitive data in your computer? Is that covered, too?

Not likely. In the Homeowners and Renters policies, under the "Property Not Covered" section, "business data, including data stored in computers and related equipment" is not covered.

So, to be fully covered, you'll need to buy some additional coverage.

COMPUTER AND PERSONAL ELECTRONICS INSURANCE

The leading company in the world for computer and portable electronics insurance is Safeware Insurance. They have programs for students, individuals, small and large businesses and schools at very competitive rates.

Let me take a few minutes and tell you about their outstanding insurance product.

If you own:

• Desktop or Laptop Computers

• Personal Digital Assistants (PDAs)

• Smartphones

• Digital cameras

• MP3 players

• Scanners/Faxes/Copiers

• Printers

• DVD players

• Flash drives

• Servers

• External hard drives

• Digital camcorders

• Peripherals that connect to your computers through an USB port, Firewire, PCMCIA or another input

All of these electronic products need special insurance coverage not provided in Homeowners or Renters policies.

Did you know these facts about computers?

• Accidental damage is the number one cause of loss

• Theft is number two cause of loss

• Power surge is number three

• Manufacturer warranties do not protect your computer from accidental damage or theft

• Even though some manufacturers do offer special "damage only" coverage, they do not offer coverage for theft, power surges, natural disasters or vandalism.

You already know how easy it is to have electronics with replacement value in excess of $2,500. There are loaded desktops and laptops that easily exceed $2,500 EACH.

So, you have some choices:

1. Call your agent and buy a Personal Property Endorsement to add coverage to your homeowners or renters policy. Downsides to this choice are (a) many endorsements only pay the Actual Cash Value of the damaged property, not replacement cost, and (b) perils like Accidental Damage, Drops, Falls, Cracked Screens, Liquid Spills and Auto Collisions are not covered.

2. Buy a custom policy that just adds special coverage for your computers and other electronics, like:

• Desktops

• Laptops and notebooks

• Personal Digital Assistants (PDAs)

• Smartphones

• Digital cameras

• MP3 players

• Scanners/Faxes/Copiers

• Printers

• DVD players

• Flash drives

• Servers

• External hard drives

• Digital camcorders

• Peripherals that connect to your computers through an USB port, Firewire, PCMCIA or another input

Safeware's policies cover Accidental Damage, Drops, Falls, Cracked Screens, Liquid Spills and Auto Collisions.

Business Electronics

In May 2006, burglars stole a laptop from the home of a data analyst at the Department of Veterans Affairs. The laptop contained the sensitive personal information of over 26 million veterans and military personnel. The FBI said that the laptop was recovered after an informant "snitched," motivated by a $50,000 reward.

But it's not just organizations that deal with consumer data that are concerned about thefts. Companies whose employees have laptops are naturally concerned with the value of the computer when it is the company that owns the laptop.

The Ponemon Institute, a privacy risk management think tank, released an extensive study in June 2008 entitled "Airport Insecurity : The Case of Missing and Lost Laptops." They studied laptop security at 106 American airports and found that there is an average of 12,000 laptops lost, missing or stolen at American airports PER WEEK! The airport with the worst record is Los Angeles International, with about 1,200 per week. The nation's busiest airport, Atlanta's Hartsfield, was in eighth place with 450 per week.

Further, the study found that only 33% of the laptops within the airport's Lost and Found Departments are ever reclaimed! That means that the remaining 67% of unclaimed laptops are either sold or disposed of by airport authorities. Can you imagine the amount of sensitive personal and business data contained in those laptops? No one knows what happens to that data, but it is ALL at risk. The Identity Theft risks are astronomical.

Safeware's policy covers business electronics for the hazards the homeowners, renters or business insurance policy does not cover.

Education Coverage

Students face a higher risk of damage or theft than a normal adult user. Students can experience accidents when they're putting their stuff into their locker, or accidentally get bumped in a busy hallway, or when they're running to the bus. A soft drink could be spilled on the keyboard, or they could sit their laptop bag down somewhere and later find it missing.

This policy protects students' computers against Accidental Damage, Theft, Vandalism, Power Surge, and Natural Disasters at any location within the USA, Canada and while in transit.

Small Business Coverage is for any sized business with electronics property values up to $49,999, covering Accidental Damage, Theft, Fire, Vandalism, Power Surge and Natural Disasters.

Commercial Coverage is a group plan for organizations that have electronics property values in excess of $50,000. Coverage can be one of the following: Comprehensive (Accidental Damage, Theft, Fire, Vandalism, Power Surge, and Natural Disasters); Theft ONLY, or Accidental Damage ONLY.

The Commercial policy can benefit organizations such as:

• Schools and colleges that want to make their student's notebook computers more safe and less at risk.

• Corporations issuing notebooks and laptops to their workers, and wishing to minimize their risk of capital loss.

In these organizations, the equipment is owned by the corporation or school and used by the employee or student. Experience has shown that if an individual does not own the computer, he or she is likely to take less care of the item than if they owned it themselves. Schools and businesses need to insure their equipment against the perils that could turn their expensive equipment into unusable junk.

Safeware Insurance policies do not depreciate for age and condition of your electronics. If you have a claim that requires replacement of your equipment, they pay for like kind and quality of the equipment you had. That's a HUGE difference from the Homeowners and Renters policies, and could mean thousands more dollars to you in a claim.

Worldwide Coverage is an endorsement that adds global coverage to your policy for a very low price. Standard coverage is for the USA, Canada and Puerto Rico.

Mobile Advantage insures PDAs and smartphones. You likely purchased your unit at a big discount when you signed up for a service plan. If your device is damaged or stolen, you'll have to pay full retail for another unit. However, with Mobile Advantage, you're only responsible for the $50 deductible per incident to get a brand new device.

For more information about Personal Electronics Insurance for your student, yourself, your business or your school, contact Safeware Insurance at: www.safeware.com

LAPTOP RECOVERY COVERAGE

Can you get your stolen laptop back?

There is a way that you can protect your laptop, and then retrieve your laptop after it's been stolen.

Three burglary suspects were arrested on February 1, 2008 by Albuquerque police, thanks to a stolen computer loaded with tracking software. The software is called LoJack for Laptops™, developed by Absolute Software. The tracking software told the police exactly where to find the suspects. The police were also able to recover thousands of dollars in other stolen property at the location.

Absolute Software is the leader in Computer Theft Recovery, Data Protection and Secure Asset Tracking™ solutions. It works this way: You install the LoJack for Laptops™ software and register it at the LoJack website. If the laptop is stolen, you notify your local police and notify the LoJack Recovery Team. The next time your computer is connected to the Internet, the laptop secretly notifies the Monitoring Center of its whereabouts. The Recovery Team can track its location, and provide police with the information they will need to get a search warrant and recover your laptop.

Pricing for LoJack for Laptops™ starts at only $39.99 per year.

My friend here in Atlanta, Cole Harrison, had his laptop stolen from his car recently. He had the Lojack system on the laptop, and notified them immediately when he discovered the theft. Lojack located the laptop the next day...in Thailand.

If you want protect your laptop so you can get it back after it's been stolen, contact Lojack for Laptops at: www.lojackforlaptops.com Lojack boasts a 90% recovery rate for stolen laptops.

CONCLUSION

For only a small price, you can have the proper coverage you need to protect all your personal and business electronics. Be the smartest person on your block with the right protection. Be the hero to your business with the best coverage. YOU CAN DO IT!!

Copyright 2008 by Russell D. Longcore P.S. I wrote a book that YOU need! check out: http://www.insurance-claim-secrets.com NUMBER ONE at Amazon.com in its category! My blog is at: http://insurance-claim-secrets.blogspot.com/ Nominated for Georgia Author of the Year Award 2008 Finalist, USA Book News "Best Book Awards 2008"

Insurance and Safety at College

By Cindy Hartman

Whether your children are already in college or will be soon, there are insurance and safety issues (yes, on top of everything else you need to think about!) that must be considered.

PERSONAL PROPERTY INSURANCE

Most homeowners policies cover your children's belongings while they are gaining their higher education if they live on campus, are under the age of 24 and their legal address is your residence.

Many students choose to live off campus, and that creates a need for a separate renter's policy. Renters insurance is very inexpensive and a must when you think about how much they take with them (if you don't remember how much, wait until they bring it all back home!).

FIRE SAFETY

Every year college and university students experience a growing number of fire-related emergencies. According to the USFA Fire Safety 101 Program, many factors contribute to the problem of dormitory housing fires:

- Improper use of 911 notification systems.

- Hindered evacuation efforts - fire alarms are often ignored.

- Evacuations are delayed due to lack of preplanning.

- Vandalized and improperly maintained smoke alarms and fire alarm systems.

- Misuse of cooking appliances.

- Overloaded electrical circuits and extension cords.

Check with your college to ensure they:

- Regularly inspect fire and smoke alarms.

- Have updated evacuation maps in the housing facilities.

- Inspect exit doors and windows routinely.

- Conduct fire drills and practice evacuation plans.

THEFT

According to Colby-Sawyer College, theft is the most common crime on American college campuses. Being aware of your surroundings is an important part of crime prevention, especially in areas where thieves are most likely to strike such as academic buildings, residence halls, libraries, and parking lots.

Thieves will look for cash which is sometimes left unsecured. Bikes are a good target because either whole or in parts, they can be quickly removed from campus and sold. Books, stereos, CDs and tapes can be converted into fast cash.

SAFEGUARD YOUR VALUABLES BY PRACTICING THESE EASY TIPS:

- Keep doors and windows locked, even if you are inside the room sleeping or plan to be absent for only a short time.

- Keep small, valuable items like cash, checks, credit cards, and jewelry locked in a safe place.

- Do not lend your key(s) or give your lock combination(s) to anyone, even friends.

- Do not prop open doors; this prevents unauthorized access to your residence hall.

- Record your personal property, including serial numbers.

These simple tips, from making sure you have the correct insurance coverage to knowing fire and theft safeguards, will make the years at college less stressful - for you and your children.

Cindy Hartman is President of Hartman Inventory, a woman-owned business. Visit her website at http://www.HartmanInventory.com to discover more reasons you need a business or home inventory. Also view the Turnkey page to learn about the Hartman Inventory Systems, a complete turnkey business package; start and grow your own personal property inventory service. Cindy's blog, at http://www.HartmanInventoryBlog.com, discusses marketing, management, entrepreneurship and asset inventories.

Insurance - A Great Way To Get Protect

By William Black

A contingent situation can arise at any point of time in anyone's lives. It comes without any prior notification. But we can take precautions to deal with any possible emergency smartly. This can be done by taking out an insurance policy as per your requirements. Any risk that can be quantified can potentially be insured.

There are many types of insurance available in the market such as life, auto, business, home and health insurance. Insurance companies sell various insurance plans to the consumers seeking coverage. If the insured person faces any kind of loss he can claim for the amount of coverage that he had insured for. But, it is vital to choose a right insurance coverage, from the right place.

Insurance policies can be availed through plenty insurance companies and agents but the most convenient option to apply for such policies is through extremely popular online mode. Through the online mode, you can easily understand the terms and conditions of the policy while sitting at the comfort of your home or office. You can click on several sites and can derive all the necessary information of insurance as per your requirements. A thorough research on the internet entails you to pick a perfect insurance deal at feasible premium rates. This will save your precious time as well as money, as you are not required to visit to ample of insurance companies to understand the terms and conditions of your insurance policy. Online mode provides you great chance to apply for an insurance policy in a hassle free manner.

By purchasing insurance policies, individuals and businesses can receive compensation from damages which might be arises by car accidents, theft of property and belongings, and fire and storm damage; health issues; and loss of income due to disability, redundancy or death etc.

William Black has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find insurance, unsecured loans, personal loans, bad credit loans, cash loans visit http://www.infoaboutloans.co.uk/

Statistics Show That For Millions of Americans, Insurance is More Than Worth the Cost

By James Cochran

Today, many small businesses operate without liability insurance - with the exception of the workers' compensation insurance, which is required by law. In many cases, business owners simply want to cut down on operating costs, but in today's climate in which worker compensation claims have skyrocketed, operating without any liability coverage is a highly volatile practice.

With just one claim, what took years to build can be wiped out. Without liability insurance, the business can take a major hit from the litigation process and the owner's personal assets can become vulnerable. Consider that in 2007, according to the Bureau of Labor Statistics, there were more than 335,000 cases of employees injured on the job due to contact with objects and equipment.

Workers' compensation, which is required by law in all 50 states, protects employers from liability for an accident involving an employee. This coverage will pay medical expenses and lost wages on injured employees. In cases of disability, it will provide a lump sum or annuities. It is increasingly important employers review their general liability insurance policies to ensure the coverage protects the business against claims made for bodily injury or property damage. Coverage should include medical expenses, defending the lawsuit, settlements and in appeal procedures, bonds or judgments.

Premiums on General and Professional Liability insurance can be costly, and often the cost alone dissuades businesses from purchasing it. The cost, however, of operating without liability insurance can prove to be much more extreme. The out-of-pocket costs of filing a claim alone can escalate quickly and the number of damages that can occur such as fire or theft could nudge a business towards severe debt. If a worker is harmed on the job, the employer will face medical and legal fees. Workman's comp insurance, which is required at varying levels by state, will provide a safeguard to the company.

Cost of no insurance

In September 2007, the Bureau of Labor Statistics issued a report detailing employee compensation. On average employers paid $28.03 per employee per hour. Of these costs, approximately $2.35 (8.4 percent) of total compensation went towards life, health and disability insurance - a nominal expenditure when compared to the cost of disputing or paying on a claim.

Lawsuit expenses alone can vary radically depending on several variables such as the type of claim and whether it was filed by a customer or an employee. Employers can count on spending a significant amount to defend the case. Typically costs and procedures include:

* A summons and complaint filed against the company, which results in several meetings and attorney fees, including consultation, transcript and research costs, all billed at an hourly rate.

* The claim will then progress to the deposition phase, which entails a settlement conference and a trial date. In addition to the billable hours and other various fees, the attorney will also bill for the deposition paperwork.

* During the trial, the attorney charges hourly and there's no telling how long the trial could last. It could go from several days to several weeks. In addition to the hourly fees, the defendant is also being billed for various legal fees.

* Legal fees can include transcript fees, witness fees, court reporter fees, consultation and deposition fees, research fees and mailing fees.

In the event the employee wins the case, the defendant - the employer - will brunt the burden of not only paying the settlement, but also any medical, attorney and other expenses the prosecuting party has incurred. For those organizations operating without insurance, this can put them at risk of going into major debt or bankruptcy.

In one 2004 workers' compensation case in California, a wood products company was ordered not only to pay its employees medical expenses, but also entitled the employee to, "...medical treatment as is reasonably required to "relieve" from the effects of his industrial injury, even if such treatment will not "cure" that injury..." In effect, the company will be paying for medical treatments indefinitely. The company did, however, have insurance coverage and did not have to foot the bill.

In a separate case, in 2006, an employee who suffered industrial injuries to the neck in the form of fibromyalgia was awarded payment of medical costs, in excess of $14,000, disability reaching nearly $100,000, plus life pension, which paid just over $45 per week.

Protecting assets

Insurance protects businesses against more than just worker-related claims. It can also cover disasters such as fires, natural disasters and theft.

According to a recent article in the Los Angeles Times, compensation awards to victims are now being determined for the recent Metrolink train crash in Chatsworth, Calif. and it's expected the awards could easily exceed the $200-million cap Congress implemented on railroad liability in any one accident. If the cap is removed, Metrolink will be in an extremely vulnerable position.

While most businesses will never experience a disaster of this magnitude, insurance coverage beyond workers' comp insurance may be necessary in ensuring the organization's assets are protected. A workers' compensation insurance quote should outline what coverage will include. From there the business owner can determine whether additional liability insurance is needed. Typically, liability insurance coverage includes:

* Legal costs - general liability insurance will cover litigation costs such as attorney and witness fees, as well as settlement payments.

* Medical costs - insurance will cover medical costs for individuals who may have been injured on company property, this includes employees as well as customers.

* Property damage - insurance will cover fire, theft or other incidents that damage the assets of the business. It insures the company from physical damage to the property as well as the customer's property.

* Business interruption - insurance will cover the business in cases of major disasters, such as a fire, that render the business inoperable. If the business is unable to operate, the insurance would reimburse the company for its losses and the profits that would have been made during that time.

Business operators should shop recognized, established insurance providers to find the best coverage for their needs and the best price for their budget. All companies can provide general liability and workers' compensation insurance quotes to help businesses budget for the expense.

References:

www.bls.gov/ect

http://www.dir.ca.gov/wcab/wcab_panel.htm

http://www.dol.gov/esa/owcp/energy/regs/compliance/weeklystats.htm

"Metrolink collision; Liability cap could be tested," Los Angeles Times. Page 3. September 17, 2008. By Carol J. Williams

James Cochran is the founder of Techinsurance. Since 1997, Techihsurance.com has been providing high quality professional liability insurance at a reasonable price to IT firms across the nation. They quickly became a leader in providing business liability insurance, and have since maintained their position as one of the top IT business insurance providers.

EIFS - How Synthetic Stucco Can Cause Huge Damage to Homes Across America

By Russell Longcore

IF you have EIFS on the exterior of your home, you likely have significant water damage all over your home and may not know anything about it.

The acronym "EIFS" stands for "Exterior Insulation and Finish Systems." Most people call it "stucco," although it's not true stucco. It's synthetic stucco. In this article, the terms EIFS, stucco and synthetic stucco will all be interchangeable.

There was an article in the Atlanta Journal Constitution on November 4, 2008 about Post Properties, headquartered in Atlanta. Post owns apartment complexes all across the USA. Post will spend $40 to $45 million dollars repairing over 11,000 apartments that have water damage due to improperly installed EIFS.

"This is a construction method that was prevalent in the 90s. We don't use it anymore," David Stockert, Post's CEO and president, told analysts Tuesday. Stockert also said that very little of the damage will be covered by insurance.

$45 million is just a drop in the bucket compared to the damages to single family homes across America that are covered with synthetic stucco.

Over the last twenty years, MILLIONS of single family homes were built using stucco as the exterior finish. Stucco looks great, is easy to install, has great energy-saving features and can be made to look like stone and other masonry finishes.

However, in my own experience as a claims adjuster, I've seen very little residential stucco that has been installed properly. Nearly every EIFS-clad house I've ever inspected had water, mold and termite damage behind the stucco. Sometimes the damage is so extensive that the houses have to be condemned and torn down.

I spent lots of time handling claims for Construction Defect liability that involved stucco. I don't know of any single building material that has been responsible for more builder bankruptcies in America than stucco. And, as the stucco product ages, more and more home damages are being discovered.

I remember inspecting a huge, three story wood framed, stucco exterior home in a golf course community in Athens, Georgia a few years ago. The owners discovered the damage when the wife walked over to a dining room bay window and her foot fell through the wood floor.

There was water damage on all four sides of the house, and around every door and window opening. Worse, the water behind the walls made the perfect breeding ground for termites that had been eating the house for a long time. The estimate I wrote was for $439,000, and the home was valued at about $500,000. The house was demolished and rebuilt on the foundations. The builder's liability insurance paid the claim. The new house DID NOT have a stucco exterior.

EIFS manufacturers issue shop drawings that builders are supposed to use when installing EIFS. They specify that flashing must be used around ANY door or window opening. "Flashing" are formed metal pieces that keep the water from getting behind the stucco. But in millions of homes, the builder simply butts the stucco up against the outside of the window or door, smears on the stucco finish, and seals the joint with caulking. It saves installation time and the cost of the flashing.

It doesn't take too many months for exterior caulking to crack and separate. Once that happens, water gets behind the stucco every time it rains.

So, when water gets behind EIFS, it gets trapped. Lots of homes have a layer of "housewrap," or plastic sheeting as a vapor barrier under the stucco. But vapor barriers that keep moisture out also keep moisture in. When water gets trapped behind the EIFS, it creates the perfect habitat for termites...food and water. They'll stay until the food and water run out.

Termites can destroy a home unprotected by pesticides. However, termites can also damage or destroy a protected home. Termites only need THREE THINGS TO THRIVE:

1. Access...a way to get in.

2. Moisture to drink.

3. Food...which in an average house is wood. Walls, floors, plywood, trim, windows, doors...all wood products are on the termites' menu.

The other big problem for stucco is that builders ran the product down the side of the exterior wall and then landscaped up to it. Stucco that comes into contact with the ground makes it super easy for termites to invade without detection.

Why am I telling you this about your stucco-covered home? Because your damage will likely NOT be covered by your homeowners insurance policy. Wet Rot is excluded in your homeowners policy. The standard HO-3 policy also has exclusions for damage caused by insects. The policy also excludes damage caused by mold and mildew, commonly found where the water damage is.

I urge you to have a home inspector or contractor inspect your home. Look carefully at the outside trim around your doors and windows. If you cannot easily see a metal flashing between the stucco and the door or window trim, your stucco was improperly installed by the builder. The chances are overwhelming that you have interior water damage all over your home.

The final insult is that you likely can't sell your home without making the repairs first.

If you find damage, and your insurance company denies coverage for your damages, you'll have to notify the builder who built your home that you're making a claim against his Liability insurance policy. I recommend that you consult an attorney as you begin the process.

EIFS, improperly installed on ANY building, causes nothing but nightmares and financial ruin. Don't be a victim...find out your rights and fight hard!

Copyright 2008 by Russell D. Longcore P.S. I wrote a book that YOU need! check out: http://www.insurance-claim-secrets.com NUMBER ONE at Amazon.com in its category! My blog is at: http://insurance-claim-secrets.blogspot.com/ Nominated for Georgia Author of the Year Award 2008

The Importance of Owners Title Insurance

By Cindy Bishop

There are two types of title insurance, lender's coverage and owner's coverage. Lender's coverage protects the lender in the event their interest in the property is jeopardized by an unpaid lien or encumbrance or by a challenge to the owner's title. Lender's coverage is mandatory on most mortgage loans.

Owner's title insurance is optional. Owner's coverage is the cheapest insurance a buyer will ever purchase. It protects the buyer's interest in the property for as long as he owns it. If someone challenges the buyer's title or if there are any liens that should have been paid off before closing, the title insurance company will defend the buyer's title at no cost to the buyer.

Sometimes at closing, buyers will be tempted to opt out of purchasing the owner's title portioin in order to save a few hundred dollars. Many times, the loan officer or real estate agent will even encourage a buyer to forgo purchasing this vital one time payment insurance.

We've all heard the saying "penny wise and pound foolish". It means that some people will do anything to save a few dollars today only to end up paying a whole lot more down the line. Any buyer who chooses not to purchase owner's coverage is being penny wise and pound foolish. Owner's coverage, unlike most other insurance, involves a one-time premium. The amount of the premium is based on the value of the property and may vary slightly among title companies. As mentioned previously, the coverage is good for as long as the buyer owns the property.

Most title insurance companies have a simultaneous issue option. If a buyer opts to purchase the insurance on the day of closing, he will receive a discount on the lender's policy. So, buyers should make sure to ask the closing company or attorney what the simultaneous issue rate is for the title insurance company through which they write their policies. Keep in mind that if a buyer chooses not to purchase owner's coverage, he will be required to pay the full premium for the lender's policy.

Title insurance companies also offer reissue rates for refinances. Reissue rates allow a borrower to pay for coverage on the difference between the value of the original lender's policy and their current loan amount.

Depending on the internal procedures of the title company or closing attorney, a buyer will either receive his owner's policy at the closing table or via U.S. mail a few weeks after closing. The owner's policy should be kept in a safe place along with the deed to the property as it is the only original. In most states, attorneys and title companies are only required to keep files for seven to ten years. So, if an issue arises years later, a copy of the title insurance policy may not be available from the attorney or title company because they may have already disposed of the closing file.

If it becomes necessary to file a claim, the title insurance company contains the information needed to begin that process. Be prepared to provide the title company with a detailed explanation of the claim and any supporting documentation.

Copyright © 2008 Bishop Realty Services All Rights Reserved.

Cindy Bishop, Broker, CRS, GRI, CSP Bishop Realty Services, Virginia office Visit us at http://www.buyingforeclosuresvirginia.com or http://www.greatforeclosureinvestor.com