IRMI Update—Issue #66
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
June 3, 2003
In This Issue
Colleague,
Delivering a keynote address on May 12 at the International Underwriting
Assn. International Seminar in London, Joseph J. Plumeri, chairman and chief
executive officer of Willis Group Ltd. was quoted by Business Insurance magazine as saying,
"It is amazing that the way we still conduct our business is the same as we
did 300 years ago ... I have never been in a business that shakes hands and
then determines later what it shook hands on."
This reminded me of one of my pet peeves about the insurance industry: the
inordinate amount of time it takes to issue commercial lines insurance policies.
This was a problem when I entered the business some 24 years ago and, I'm told,
is still a problem today. Can you think of another industry where it is acceptable
to routinely sell and bill for a product today and deliver it in 4 to 10 months?
I think such delays are inexcusable, particularly with the technological advances
we've seen in the past decade.
In addition to drawing out the renewal process, delays in issuing policies
invite coverage disputes. The litigation over the appropriate policy wording
to govern coverage for the World Trade Center, where no policy had been issued
prior to the loss, is an excellent example.
What do you think about this? Is this really something to be concerned with,
or am I blowing the issue out of proportion? Have insurers improved the timeliness
of issuing policies in the past decade? What problems have you seen as a result
of delayed issuance? [See reader comments.]
We hope to see you at one of our upcoming seminars, "Captive Insurance Solutions
for the Middle Market." Drop by this web page for an agenda and registration
information.
All the best,
Jack
Jack P. Gibson
President
IRMI
Free CE Courses to the First 20 Who Respond—If
you need property/casualty continuing education (CE) credit, now is your chance!
Today only, IRMI is giving away 20 coupons to the first 20 who respond (10 to
be given away at 8 a.m. on the East Coast and 10 at the same time on the West
Coast). Each coupon is worth enough self-study courses on IRMI.com to fulfill
your state's agent/broker CE requirement for a year. There are many courses
to choose from written by IRMI research analysts, including topics such as Commercial
General Liability, Workers Compensation, Additional Insured Status, Directors
& Officers Liability, Employment Practices Liability, Fiduciary Liability, and
others. To enter the contest, click on the link above.
Focus on Training When Mergers and Acquisitions Occur—In
these days of takeovers, mergers, and consolidations of many businesses, it
is apparent that once the mergers come, redundant positions are eliminated with
many workers leaving voluntarily, especially the most experienced employees
who opt for packages and early retirement. This leaves a tremendous void of
qualified long-term employees who can perform their job functions with ease.
The quick fix is to hire less experienced workers, resulting in an increase
in workers compensation claims, usually followed by mechanical breakdown of
equipment from improper use or inadequate maintenance.
When these amalgamations take place, stricter loss/accident prevention training
should be initiated. This is different from the case of planned attrition, where
the second in command takes over. After takeovers, mergers, and consolidations,
new employees are often brought in to operate fast-paced machinery in hostile
environments with daily production targets as their number one issue.
As an example, I recently examined a 10-year incident trend for a plant.
The chart showed a continuous drop in claims every year with one exception—in
a year of considerable expansion, amalgamation, and consolidation.
By: Jim Davidson
Director B&M
Zurich North America Canada
E-Mail: jim.davidson1@zurich.com
Suggest a Risk Tip. Future issues of IRMI Update will include more risk tips from our readers. Send
us a practical tip (less than 300 words) for identifying and managing risks,
buying insurance, managing claims, or filling gaps in insurance coverages. We'll
give you credit for your contribution.
There are now 417 articles on IRMI.com, and many more are in production.
Below you'll find summaries of some recent additions with links to the articles.
-
The New Reality
of Risk: Environmental Toxic Torts—Toxic tort events can be devastating
to a company’s operations, brand, and bottom line. Carla Marino-Schwarz
discusses new environmental risk transfer products, including those being
used to handle asbestos and mold.
-
Intentional Trademark
Infringement and Insurance Coverage—Sanford Warren explains that
you need to understand what constitutes intentional trademark infringement
to determine if the intentional acts exclusion in a business advertising
clause of a CGL policy would apply.
-
Procedure for Conduct
of Appraisal Evolves in Florida—The approach of the hurricane
season emphasizes the importance of understanding how courts apply appraisal
clauses in property insurance disputes. Doug Berry explains.
-
The Ability To Disclaim
Liability Resulting from Inspection Duties—Through the examination
of case law, Kenneth Slavens reveals judicial support for the argument that
the risk the design professional assumes by inspection or observation can
be limited by contract.
- What Exactly Is an AED, and Why Do I Need
One?—Sudden cardiac arrest claims 1,000+ American lives every day.
But it doesn’t have to be that way. Steve Cyrkin explains how automated
external defibrillators can help.
-
Ask the Leadership
Expert—In this article, Wendy Capland relates frequently asked
questions by business managers about management problems and leadership
issues—and then provides answers.
In Memory of Kenneth Wollner—We mourn the passing
of our friend and colleague Ken Wollner. Before his death in April, he served
as managing director of Casualty Risk Consultants, a consultancy specializing
in property and casualty insurance and self-insurance. Ken was the editor of
the D&O Commentary section of D&O MAPS and author of the award-winning book
How to Draft and Interpret
Insurance Policies. He was also an IRMI.com Expert Commentator on
drafting and interpreting insurance policies; for a list of his articles on
IRMI.com click here.
Become
a Construction Risk Conference Sponsor—The IRMI Construction Risk
Conference is the premier forum for sharing ideas and techniques for improving
the ways we manage and insure construction risks. It also provides a unique
opportunity to increase brand recognition and differentiate your company's products,
services, and professional staff in the minds of the 1,000+ industry leaders
who attend. Learn how to become a sponsor or workbook advertiser for the 23rd
IRMI Construction Risk Conference, to be held November 17-20 in Chicago. Contact
Paul Murray at contact us or
call (800) 827-4242 for more information about becoming a sponsor. Also see
the CRC agenda for
details on the Conference.
How to Evaluate
Captive Alternatives—The hard market has people looking for innovative
solutions. However, a bad decision can cost much more than your premiums are
increasing! The IRMI Captive Insurance
Solutions for the Middle Market seminar will explain how captives work and
how to determine whether they are right for your company (or your clients).
The focus will be on solutions for accounts with premiums between $500,000 and
$5 million and will cover both group captive and rental (protected cell) captive
alternatives. Designed for busy executives (only 2 days out of the office and
1 night in a hotel), this seminar will equip you to make the right decision.
Go to this web page for more information
or call (800) 827-4242 to reserve your place.
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