IRMI Update—Issue #72
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
September 9, 2003
In This Issue
Colleague,
We recently completed our annual insurance market survey for the September
issue of The Risk Report, concluding that
the marketplace has leveled out for most lines of insurance. It seems to have
stabilized for the property, auto, primary liability, and, in most states, workers
compensation lines, while it remains difficult for the D&O, many professional
liability, products liability, and excess liability lines. Barring an excess
of man-made or natural catastrophes or a precipitous decline in the stock market,
we expect the insurance market to remain stable for the next 12 months.
What does your experience suggest? Are things easing up a bit? Do you see
some competition returning to the market? What should commercial insurance buyers
expect to see when they renew in 2003? [See reader
comments.]
Registrations are coming in fast for the 23rd IRMI Construction
Risk Conference, and it appears that the hotel room block will sell out
again this year. You still have some time, but if you are planning to attend,
please sign up soon.
Thanks for your support. Have a great day.
All the best,
Jack
Jack P. Gibson
President
IRMI
Stop Construction Equipment Theft—In 2001 over
$1 billion dollars of contractors' equipment was stolen from jobsites in just
the United States. Most often stolen were: skid steers, backhoes, compressors,
and generators. According to police reports, quite a few thefts were perpetrated
by workers within the industry—people familiar with their employer's security
practices (or lack thereof). Professional theft rings have also formed because
jobsite equipment and tools are easy to steal and fence. According to one reliable
source, nearly 70 percent of stolen equipment remains within a 100-mile radius.
The remaining 30 percent is transported or shipped overseas. Some is dismantled
for parts.
The cost of stolen jobsite materials and equipment is a lot more than actual
replacement value, even if it was covered by insurance. Some hidden costs that
may not be noticed immediately include:
- Delay of work
- Lost production by employees
- Time lost in reporting and completing police reports
- Time lost in entering an insurance claim
- Possible increased insurance costs or policy cancellation
- Time spent in follow-up and identification for police recovery efforts
- Insurance company internal paperwork and claims payments
Contractors that have been victims of equipment and materials theft have
become very creative in foiling theft attempts. Hidden fuel shutoffs, removing
a fuse or circuit breaker, using steering locks, locking hydraulic cylinders
in a down position, special parking procedures, and dozens of other ideas have
emerged.
By: Rick Longstaff
President
VISTA Training, Inc.
Burlington, WI
www.vista-start-smart.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
acknowledge your contribution as we did for Rick.
There are now 454 articles on IRMI.com, and many more are in production.
Below you'll find summaries of some recent additions with links to the articles.
What's New—We have recently updated IRMI Online to include the latest
issues of our newsletters, The Risk Report, Captive Insurance Company Reports, and Financing Risk & Reinsurance, as well as
supplements to a number of the reference manuals. If you subscribe to IRMI Online,
please go directly to a summary of the new issues and information with direct links into the publications. If you
don't subscribe to IRMI Online and would like to learn more about it, read our summary of what it can do for you.
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Practical Remedies for Construction Insurance Headaches—The IRMI
Construction Risk Conference allows you to choose between 24 workshops covering
such topics as alternative market solutions, preparing marketing specifications,
design liability insurance, dealing with insolvent insurers, workers compensation
trends, mold, construction defect, and surety bond problems. We've assembled
a prestigious team of 58 experts to present these sessions and asked them to
give you practical advice you can use. If you're an agent, accountant, or lawyer
you'll also receive CE Credit (in most states). See the agenda for more information
and the speaker lineup.
IRMI Workers Comp Gives You the Answers You Need—IRMI
Workers Comp is probably the most complete reference available on the
subject of workers compensation. It gives you a detailed summary of each state's
law focusing on the information risk managers, underwriters, and agents most
need to know, the most thorough interpretations of the coverage afforded by
the policy and endorsements in print, guidelines for accessing the residual
market in each state, how to arrange coverage when a PEO is used, and much more.
Learn more about IRMI Workers Comp.
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