IRMI Update—Issue #98
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
October 12, 2004
In This Issue
Colleague,
It is hard to imagine what it must have been like to live in Florida the
past month as 4 of the top 10 most costly hurricanes in U.S. history swept through.
These are difficult times for the people of Florida, and they are in all our
thoughts and prayers.
Being an optimist, I usually try to look on the bright side. For the insurance
industry, one positive side of the disastrous events in Florida is the opportunity
for insurers to perform on their promises. Lest we forget, a claims payment
is the industry's true product, and now is the time to deliver in a big way.
Damages are estimated to be in excess of $22 billion, and some 2 million claims
are being handled by around 15,000 adjusters. They are working very hard in
difficult conditions trying to do the right thing for their insureds.
Insurers, through their adjusters, usually do a remarkable, often superhuman,
job responding to catastrophes, and I have always felt the industry gets too
little credit for this in the media. For this reason, I would like nothing more
than to post some feel good stories about adjusters doing the right things for
customers in difficult times as we now have in Florida. Do you know of some
adjuster "heroics" that occurred in the past which you could share? Or perhaps
you can help us understand just how tough it is to be an adjuster on a CAT team
in Florida right now. [See reader responses].
Speaking of Florida hurricanes, I am happy to report that our hotel for the
24th IRMI Construction Risk Conference was unscathed by the storms. On the other
hand, the hotel is filling fast with registrants. If you are planning to attend,
please register now (and you'll also qualify for the early registration fee).
I hope to see you in Orlando next month.
All the best,
Jack
Jack P. Gibson
President
IRMI
IRMI Update reaches more than 28,000 risk managers, insurance agents, brokers,
adjusters, lawyers, and underwriters who look forward to reading the tips and
articles offered in each issue. Since yours will be the only ad in this space,
it will be seen and acted on by key decision makers. More information.
Implement Drug Testing and Background Screening—In
today's fast-paced environment, sometimes it is easy to overlook the seriousness
of the effect of drugs and alcohol in the workplace. With the inconvenience
of having to send people to a lab, along with the lost time and production,
sometimes it's easier to just let them keep working. This kind of thinking could
cause the downfall of companies, large and small. Businesses failing to drug
test and do background screenings of their employees are open to serious legal
costs and customer service risks. Consider the following:
Drugs testing:
- Over $100 billion annually is the cost to U.S. employers for on-the-job
drug abuse.
- 85 percent of drug abusers steal from their workplaces.
- 65 percent of all work-related accidents are the direct result of substance
abuse.
- 77 percent of all drug users over the age of 18 are employed.
Background Screening:
- 30 percent of business failures are due to poor hiring practices.
- An estimated 1 of every 20 working age adults (4.1 percent) will serve
time in a prison during his or her lifetime
- 53 percent of job applicants provide false information
- On average in U.S. businesses, at least half of all new hires do not
work out
Drug Testing and background screening should be up-front in a risk management
program. Think about it. It's a simple decision that will make a major impact
on your business.
By: Daniel G. Getzinger
National Association of Drug Free Workplaces (NADFW)
Altamonte Springs, FL
Suggest a Risk Tip. Send us a practical tip (less than 300 words) for identifying and managing risks,
buying insurance, managing claims, or filling gaps in insurance coverages. Submit
your tips and we'll acknowledge your contribution as we did for Daniel.
There are now 590 risk management and insurance articles on IRMI.com. Below
you'll find summaries of some recent additions with links to the articles.
We have recently updated IRMI Online to include the latest issues of our
newsletters, The Risk Report, Captive Insurance Company Reports, and Strategic RM, as well as supplements to
a number of the reference manuals. See a summary of all the new stuff with direct links into the publications.
Senior Drivers and Insurance
Concerns—As baby boomers age, the number of senior drivers increases.
Robin Olson discusses the importance of finding ways now to reduce the frequency
and severity of automobile accidents involving elderly drivers.
On October 15 the registration fee for the 24th IRMI Construction Risk Conference
will increase by $100. Take advantage of the best price by registering today.
Six pre-conference workshops and over 20 sessions and workshops will be held
at the Conference in Orlando November 8–11.
For details about all the sessions and the presenters, see the conference agenda.
To register, just complete the online registration form or call (800) 827–4242.
The Motor Carrier Act of 1980 requires that the MCS-90 endorsement be attached
to insurance policies covering auto liability exposures of certain types of
businesses. But it is a highly misunderstood and often litigated endorsement. The MCS-90 Book—Truckers versus Insurers and the
Government Makes Three clarifies the pitfalls, coverage traps, underwriting
concerns, and claims issues lying under the surface of this seemingly innocuous
endorsement. Written by the Consulting, Legal, and Expert Witness (CLEW) Section
of the CPCU Society, this book will explain the Act, the endorsement, the policy
forms, and the litigation issues. For more information, visit our Products website.
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