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.
Get 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.
A subscription to IRMI Update is absolutely free. Use the
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to initiate or terminate your subscription.