Archive

Volume 35, July 2010
Environmental Impairment Coverage
Oil gushing from a blown-out rig is an obvious environmental impairment liability loss. Other types of environmental contamination take place throughout this country that are much less obvious but just as real. Some contamination may occur because of long forgotten disposed-of waste while other cases involve natural water runoff.

Water is not the only source of contamination. Air pollution can occur from the expected exhaust of chemical fumes or from unexpected releases from a fire or other type of accident. Soil contamination takes place when items are disposed of in the ground. Waste items containing heavy metals, fuel spills, and soil treatments all add to ground contamination.

Volume 34, May 2010
Contractors’ Equipment Coverage
Contractors’ equipment coverage is pure inland marine. It must be underwritten one risk at a time and one piece of equipment at a time in some cases. The marketplace shrinkage due to the slowdown in the construction industry combined with soft market pricing is causing standard markets to venture further into this marketplace. The question is whether their products will provide the needed coverage and what impact their participation may have on the loss ratio.

Volume 33, April 2010
Mobile Home Parks
There are many parts of the country where the terms upscale and mobile home may not seem to go together. However, in California, Florida, Texas, and other areas that attract retirees and snowbirds, the lower cost of manufactured housing has created a demand for upscale communities where manufactured home buyers can park and enjoy the good life.

Volume 32, March 2010
Logging
The diverse forestry industry has one common element but many differences. The common element is the tree! Every forestry product comes from timber. However, those products can be as thin as a piece of paper or as massive as a building. Some products become treasured pieces of furniture passed down from one generation to another. Others may be used and disposed of within minutes.

Trees serve many masters, but loggers have the closest relationship of all.

Volume 31, February 2010
Nurse Practitioners
Nurse practitioners can practice without physician oversight in most states. A nurse practitioner must be a registered nurse with an advanced degree in a particular specialty and must be accredited. Each state establishes the rules under which the nurse practitioner functions.

Nurse practitioners may be staff members in a physician’s office, stand-alone midwife OB/GYNs, or even part of a specialty oncology team or trauma unit. Expect to see an increasing number of nurse practitioners as health care needs expand and physician availability decreases.

Volume 30, December 2009 / January 2010
Equine Coverage
Does every child really want a pony for Christmas? Maybe, and maybe not, but horses are a valuable and necessary part of the lives of many people. Horses are work animals as well as sources of much of our recreation and leisure time enjoyment, whether we are participating or spectating. The Kentucky Derby would be just a day of mint juleps and oversized hats if not for the magnificent Thoroughbreds that race the 1 1/4 mile track. City carriage rides would not be the same without the decked-out filly and her handler. Western dude ranch activities could not take place without the trusty ranch or quarter horse. There are also numerous serious equestrian competitions that require well-trained horses and skilled riders.

Volume 29, November 2009
Amateur Athletics Accident, Disability and Health Coverages
To participate or to spectate: that is the question! More and more frequently, individuals decide that watching a game is not enough and that they would rather play it. Many are members of teams or clubs that meet on a regular basis to enjoy their chosen sport.
The potential for injury exists with any sporting event or competition. Many simply occur based on the nature of the activity, not due to negligence. However, injured persons may miss time at work and medical bills must be paid. The question is: who will pay?

Volume 28, October 2009
Architects Professional Liability
Architects have suffered with the downturn in the construction market but still remain very upbeat. The new green emphasis and environmental regulations are changing how buildings are being built as well as encouraging retrofitting of existing buildings for energy savings. And these design professionals are ready to meet the challenges!

Volume 27, September 2009
Piracy
The pirates of Somalia, Nigeria and Bangladesh show us how very vulnerable our major method of international trade is. Using primitive techniques, they have been able to capture huge cargo-carrying vessels. The vessel and its crew are held until their release can be negotiated. These aren’t cartoon characters. They are desperate people, committing desperate crimes, and they are not going away.

Volume 26, August 2009
The Lodging Industry
When times are tough, Americans… stay home. While staycations, webinars and teleconferencing may be popular ways to save money, they all negatively affect lodging industry revenue. In addition to reductions in revenue for overnight stays, revenues for all services provided, such as meetings, restaurants and other catered events, have declined.

Volume 25, July 2009
New and Used Automobile Dealerships
What does the owner of a new car dealership do when its franchise agreement is cancelled?. Although they might prefer to remain franchised dealers, many are exploring becoming used-car dealers in addition to continuing their automotive service departments. Committed automobile entrepreneurs will not want to wait in the wings, so expect to see these “un” franchised dealers find a way to stay in the market…and expect the insurance marketplace to find solutions to any coverage problems they encounter.

Volume 24, June 2009
Medical and Radiology Diagnostic Laboratories
Diagnostic laboratories are a vital part of the diagnosis process. They receive the samples, run the appropriate tests, and present the results to the physician. If any step is omitted, the diagnosis will be incorrect and treatments provided in vain or perhaps to the patient’s detriment.

Volume 23, May 2009
Prize Indemnification Coverage
Win-win-win insurance coverages are hard to find but prize indemnification or hole-in-one coverage may be it. Experts are shouting from the rafters about how now is the time for companies to increase advertising activity, even though many are reducing such expenditures. Wouldn’t this be the perfect time for one of your insureds to sponsor a unique contest that could create interest throughout the community and bring more attention to its product or service? On the other hand, how could it possibly afford the amount of payout needed to generate the greatest attention? The answer is prize indemnification coverage! A win for your customer, a win for your community, and a win for you!!

Volume 22, April 2009
The Alternative Fuel Industry
The alternative fuel industry's history has been heavily influenced by global oil and gas prices and availability. At the present time, the price of a barrel of oil has retreated to the $40s range. Corn farmers are suffering and ethanol plants are closing. However, in the midst of this, the stimulus package is providing incentives for alternative fuel providers to persevere. Wind and solar power and fuel cell technologies for cars are moving forward based on hopes that having multiple sources of energy will result in stable pricing levels and that the United States industry will control its own energy destiny.

Volume 21, March 2009
Employment-Related Practices Liability
According to recent commission reports, over 100,000 EEOC actions were reported to the federal government each year between 2003 and 2007. Each is a potential lawsuit. In addition, numerous state actions are filed which may be distinct from and in addition to the federal actions. If there were this many claims prior to Lilly Ledbetter, how many might be expected in the coming years?

Volume 20, February 2009
Real Estate Agents and Brokers Errors and Omissions
Real estate agents and brokers are friends, confidants and trusted allies used when arranging to purchase a home or business. As intermediaries, they have the knowledge the buyer and seller need to finalize an equitable purchase. In a best case scenario, both parties are satisfied at the time of closing. Unfortunately, that is not always the case. Either party may later regret its actions and, after reflecting on them, may decide that they actually received bad advice.

Volume 19, January 2009
Pawnbrokers
Business is booming! Pawnbrokers are unique financial institutions. That's right, financial institutions! They provide small, secured loans to their clients, with the security or collateral kept on site in a secured area. As long as the borrower meets the terms of the loan, the collateral in the secured backroom area is protected. However, the collateral becomes the pawnbroker's property and moves from the back room to the retail area to be sold as used merchandise if the loan terms are not met. The borrower cannot lose more than the value of the collateral. The advantage of this type of arrangement to the borrower is that there is no concern over a damaged credit report, garnishing of wages, or cascading credit card interest increases.

Volume 18, December 2008
Accountants
According to some, rule FAS 157, implemented by Financial Accounting Standards Board (FASB) on November 15, 2007 caused our current cascading financial crisis. As financial stocks started to tumble, companies were forced to restate their net worth every day. Some financial assets became so toxic that there was no market for them at all. This caused the net worth of a number of financial companies to tumble. Whether the theory is accurate or not, it is important to remember that accountants do not make the rules. They simply follow them. The public expects the accounting profession to apply a consistent, professional approach to the preparation of financial statements that fully complies with all FASB standards.

Volume 17, November 2008
Social Service Providers
What is a social service provider? It may be defined as an organization that sees its revenue decrease as its client base increases. These agencies provide both temporary and permanent shelter and supply food through daily meals or groceries for a family to take home. They provide day care for children, as well as for adults, and provide a degree of protection for those least able to protect themselves.

Volume 16, October 2008
Beauty and Barber Shops
How much would you pay for the perfect haircut? Barbers, beauticians and their customers deal with this question constantly. What is the price of perfection? Beauticians and barbers no longer simply cut hair. This industry is constantly changing as the owners work to meet the needs of their clients. However, this creates problems. How can the insurance industry properly address and respond to the exposures of an industry constantly in a state of flux?

Volume 15, September 2008
Security Guards and Investigative Agencies
Security guards and investigative agencies offer services ranging from the extremely broad to the quite limited. They are recipients of the client's trust. If that trust is violated, the client suffers. However, in the same manner that an insurance company can never insure every potential cause of loss for its policyholders, no security operation can protect every potential threat to its clients. In both cases, carefully worded contracts are needed to explain what is expected of each party.

Volume 14, August 2008
Toy Manufacturers and Wholesalers
Americans are enthralled with toys and games. While we still love and cling to the dolls and action figures of the past we, along with our children, grandchildren, nieces and nephews, also seek out the new and innovative ones of the present. Each year the New York Toy Fair issues reports about the new “hot toys” and we know that by the time Christmas rolls around, they will be sold out in stores but still available for outrageous prices on eBay. While Mattel, Hasbro and Fisher-Price invent many of the more exciting toys and games, many individuals create toys or games at home and need products liability insurance.

Volume 13, June/July 2008
Bridge Contractors
The August 2007 collapse of the I-35W St. Anthony Falls Bridge in Minneapolis was a wakeup call to the nation. Although engineers and other experts had talked about the crumbling infrastructure for many years, it took an actual collapse to focus political attention on the problem. Bridge construction is expensive and requires many experts familiar with the construction process. Appropriations bills have recently passed to increase the funding for bridge inspection and repair. Political candidates are using this bridge collapse incident and the general need for infrastructure repair as campaign issues. The result is an expectation of more funding for bridge inspections, construction and repairs in the future.

Volume 12, May 2008
Oil and Gas Operations
Even though the price of oil is dancing around well above $100 per barrel these days, our oil and gasoline consumption is unchanged. Although “where there's a will there's a way” may be true, a better maxim may be "where a profit can be made, an entrepreneur is researching a way to do so." As the price per barrel of oil increases, the potential profit from tapping domestic oil and gas reserves also increases. Oil and gas wells are being drilled deeper and farther away from shore. Drilling horizontally instead of vertically is another technique used to extract oil and gas reserves inaccessible by vertical drilling.

Volume 11, April 2008
Outfitters and Guides
Adventure is truly a rush! Kayaking, hunting, fishing, birding and mountain climbing are activities that can bring families and groups together in ways that build lasting bonds. The challenges in these activities encourage individuals to perform in ways they may have considered beyond their capabilities and create an awareness in them of nature and of themselves that exceeds the activity at hand. However, these adventures are not for inexperienced novices. That is why outfitters and guides are vital to the success of these types of adventures.

Volume 10, March 2008
Vacant Buildings
Location, location, location! That's the mantra of the real estate agent. But what happens when the location is perfect, the price is right, the seller has moved out but the credit market is so tight that no purchaser can afford to buy it? In many cases, another building winds up in the growing pool of vacant properties. Some of these properties are owned by individuals, others by businesses and some now belong to banks through foreclosure proceedings.

Volume 9, February 2008
Boats and Yachts
Like automobiles, boats and yachts are modes of transportation but the coverage required is quite different and more than just an auto policy on water. Boats and yachts can also substitute as residences but the coverage provided is different and does not match that provided by a homeowners policy. Instead of simply being an extension of standard personal lines coverages, boat and yacht coverages are extensions of ocean marine coverage forms.

Volume 8, January 2008
Medical Equipment Products
Medical equipment designed for use by professionals in the treatment of patients is now expected to be operated by ordinary people. This means the assumptions made by the equipment designers must be changed. Instruction books, labeling, training and warranties must consider these new customers.

Volume 7, December 2007
Nutraceuticals
A nutraceutical is much more than just a dietary supplement because it is designed to treat specific disorders in addition to supplementing a diet. Since there are no Food and Drug Administration (FDA) clinical trials, their effectiveness is unknown so the standard insurance market approaches these products with a degree of skepticism.

Volume 6, November 2007
Exterior Insulation and Finish Systems
The excitement about Exterior Insulation and Finish Systems (EIFS) has turned to gloom because of the numerous individual and class action lawsuits filed that claim toxic mold due to moisture retention.

Volume 5, October 2007
Private Corrections Industry
The privatization of the prison correctional system in the United States is moving forward at a rapid pace. In order to meet the needs brought about by the explosive growth in the prison population, local, state and federal authorities are turning to private industry at an increasing rate.

Volume 4, September 2007
Adjusters Errors and Omissions
Independent adjusters represent the insurance company, while public adjusters represent the claimant. They are charged to fairly represent their clients by adjusting losses based on the facts of the insurance policy and the loss that occurs. The problem is determining what is fair.

Volume 3, August 2007
Motor Truck Cargo
This edition of the Insurance Marketplace Cybercast reviews the motor truck cargo marketplace as a whole and addresses current problems in the NAFTA commercial zones and problems that may occur when NAFTA is fully implemented.

Volume 2, July 2007
Medi spas
While traditional spas provide a variety of treatments, most are nothing more than expanded beauty shops. However, the Medi spa is an entirely new and different concept. It offers medically supervised Botox treatments, dermal fillers such as Restylane and Juvederm, laser hair removal, microdermabrasion, skin corrections and a number of other minor surgical treatments in addition to the comfort and services of a traditional spa.

Volume 1, June 2007
Mini wraps
A major coverage problem in the residential construction marketplace is being solved on the west coast with a general liability only wrap-up sometimes called a mini wrap. Since the problem is becoming more national in scope, will the mini wrap also become the national solution?