I recently had a lengthy conversation with a client regarding certificates of insurance and being named as an additional insured. Here are a few bullet points that came out of our conversation where you might benefit…
- A certificate of insurance isn’t worth very much to the holder. It simply states that the insured had coverage at the limit shown on the day the certificate is dated. That’s it, that’s all. For all the holder knows, the insured canceled their policy the next day. Certificates are nice to have (I guess) for the recipient, but they really are limited in scope and time sensitive. You can’t bank on them.
- If you are an additional insured, the insured’s insurance company is obligated to defend and pay for you in the event of a claim where you are named. You will be notified if the policy cancels or is set up to non-renew. That’s the good news. Make sure any certificate shows you listed as an additional insured.
- Certificate holders can receive a certificate at no cost to the insured. After all, there is no risk. Some insurance companies charge insured’s a fee for adding additional insureds because they are adding risk.
- Additional insureds never increase the limit, so the more additional insureds, the more quickly the limit can be exhausted. In most cases, defense costs are in addition to the limit. If you have a surplus lines company involved, make sure that is the case.
I’m a big believer that if you have a risk exposure (i.e. landlord-tenant, contractor) then you should be named as an additional insured and receive proof that this occurred. Otherwise, being a certificate holder means nothing because it gives you no rights and little information.
Be safe,
Yesterday, I dropped my new MacBook. The two seconds of stunned silence spoke volumes!
Fortunately, nothing broke or cracked, however the lighting is dimmed considerably, and I can only vaguely make out icons and my wall paper. This morning I called Apple to see what could be done.
What I received was perhaps the most efficient customer service I could ask for. I was told I could expect to hold on the phone for 5 minutes. It was about 2 minutes. The representative took me through a series of steps to determine the issues. He then shipped me a box to send in the laptop for further inspection and fixing. He even said it could probably be done under warranty. The entire process took about 10 minutes and I hung up satisfied. That is the symbol of a company that “gets it” when it comes to service. Does your insurance agency “get it?”
All insurance agents claim to have magnificent customer service. How do you measure it to find out? Here are a five items to consider. There are more and I will post them in the coming weeks…
1 - Do they promptly return phone calls and e-mails (within 24 hours - should be less)?
2 - Does their web site provide value and resources for you?
3 - Do they send out a regular newsletter with tips and strategies?
4 - Do they call you annually to review your insurance?
5 - Do they know your name when you call?
“Customer service” means different things to different people. Regardless of your definition, you should be getting it from your agent. If you’re not, your over-paying for your insurance.
Be safe,
I was just quoted in the November 7th edition of the Daily-Journal (IL) on Renters insurance -
“Dan Weedin, a longtime insurance and risk management consultant based in Washington state, advises renters to purchase renter’s insurance for another reason: Liability coverage. He said it can cover a renter’s responsibility to other people injured at his home — whether the renter, his relative or pet caused that other person’s injury. “One bad liability claim (slip, fall, and disability) at your apartment during a party where alcohol is served, can be catastrophic financially,” Weedin said.”
Thanks to AntonioYoung for including me. You must be an online subscriber to read the entire article, which is excellent.
Don’t own your home and wondering if you should have renters insurance? If so, the answer is a resounding YES! Here are three reasons why…
- It’s very inexpensive. For between $150-$300 a year, you can protect your property and your liability. Don’t tell me you don’t have anything worth insuring. You have clothes, dishes, and furniture. That by itself is worth $10,000. Throw in your computer, Wii, video games, and TV and the value gets bigger.
- Liability. You have a party where alcohol is provided and someone slips, falls, and becomes disabled. No renters insurance and the bill and consequences fall on you. For less than $1 a day you can protect yourself financially.
- Ease into market. Someday you will probably buy a house. Now you have a track record with an insurer and it makes it substantially easier to get coverage on your home at a competitive premium.
There are many reasons and situations to self-insure. This isn’t one of them. Regardless of your age or where you find yourself in life, if you are renting you must purchase renters insurance.
Be safe,