Author: Melvin

Importance of Professional Liability Insurance for Financial Institutions

Each industry faces its own unique risks. The financial industry is no exception. For instance, your company or bank could find itself in the midst of a shareholder dispute. If you don’t have insurance and you’re found liable, then you could end up paying a lot of money to resolve the dispute. Here is why insurance for financial institutions is important.

Offers Legal Protection

One key reason for having professional liability insurance is that it can offer legal protection should your company be entangled in some kind of dispute or allegation. Regardless of whether the claim is true or not, the legal fees can quickly add up.

Provides Financial Protection

All it takes is one claim to damage your bank or financial institution financially. This can in turn hurt your customers who rely on your company for their financial needs.

Customized Coverage

Some financial institutions are unaware that they can work with an insurance agency to develop a customized plan that meets their professional liability insurance needs.

These are just a few reasons why professional liability insurance for financial institutions is important. A good insurance policy can help protect your company both legally and financially from potentially damaging claims. In the end, you should determine what is best for your customers and your business.

Options on Buying Whole Life Insurance

There are several advantages to a single premium life insurance policy, and this makes it a desirable way to insure for many people, especially those with a family to make sure will be prepared in the event they pass on. For one, the death benefit can be passed on tax-free. This is perhaps the biggest benefit afforded by the policy. In addition, this benefit will go to an individual’s heirs without having to go through probate, which provides a huge advantage to those with larger estates.

You also don’t have any worries that the policy will lapse because a single premium payment is made, so there is no need to worry about late payments. The coverage also offers faster access to the policy amount. This could be crucial in cases where the policy owner needs money to cover long-term care costs or other large expenditures. As an example, if the policyholder is suffering from a terminal illness it will often allow access to a portion of the death benefit.

Taxation on single premium whole life

Beneficiaries will receive all proceeds tax-free, however if the cash value is withdrawn, or a loan is made against the policy, the earnings portion of the policy amount will be subject to taxes. Certain situations and circumstances where a single premium life insurance policy can really be an advantage is when the individual is below 55 years old and has a 30-year working horizon. The time frame allows the policy enough time to allow the cash-value to grow.

For seniors 50 and older, looking to maximize available benefits when transferring their wealth, the policy will allow them to set aside a large amount of money for their heirs, or if you have heirs who will need a lifetime of income as in the case of special-needs children or grandchildren, heirs who may need a lifetime of income upon your passing.

Certainly you may have questions about the policy and may want to compare different policies and the benefits of one type of whole life policy over another. These questions are best handled by an agent familiar with this insurance sector.


The Ins and Outs of Financial Guaranty Coverage

A financial guaranty insurance policy acts much like a surety bond, insurance policy or as an indemnity contract when issued by an insurer. It’s an insurance policy that covers financial loss resulting from default or insolvency, changes in interest rates, currency exchange rate changes, restrictions imposed by foreign governments, or changes in the value of specific goods or products.

A financial guarantee is a non-cancellable indemnity bond backed by an insurer to guarantee investors that principal and interest payments will be made. Several insurers specialize in financial guarantees and similar products that are used by debt issuers as a way of attracting investors. A bank guarantee, on the other hand, is a promise from a bank or other lending institution that if a particular borrower defaults on a loan then the bank will cover the loss.

Why guarantees attract investors

Traditionally, bond insurers have provided guarantees of payments on municipal bonds, where defaults have been very limited. But since the late ‘90s they have become increasingly involved as guarantors of elements of various structured financial products. This includes the credit enhancements provided by these entities that have played an important role in making securities based on sub-prime loans attractive to a wide range of investors.

Despite the growing role of financial guarantee insurance in the secularization process that has come to characterize modern financial markets, the entities providing this specific financial service received relatively limited attention until early 2008, when several rating agencies began scrutinizing the role of bond insurers in structured finance.

In most cases, financial guarantors disclose the scope and intent of their guarantees in financial statement notes. Guarantees issued between parent companies and their subsidiaries do not have to be recorded as liabilities on a balance sheet. For example, in the case of a parent company’s guarantee of a subsidiary’s debt to a third party or a subsidiary’s guarantee of the parent company’s debt to a third party or another subsidiary, neither would have to list these obligations on a balance sheet.

However, all financial guarantees must be disclosed, including  the nature of the guarantee, including any terms, recent history, as well as events that would activate the financial guaranty insurance policy, the maximum liability along with any provisions that could enable the guarantor to recover funds paid out in a guarantee. This is complex language that should be discussed with your insurer.


Insurance Solutions for Retail Stationary Establishments

If you’re in retail selling stationary and office supplies you may be wondering if there are any insurance packages that are the right fit for your specific business. Solutions for stationery retailers insurance can vary based on your company’s specific needs. They can include everything from basic business coverage and liability, to workman’s compensation packages.

Property insurance is designed to protect your business in the event of theft, vandalism or weather damage among other things. Liability insurance protects you and your employees in the event of an accident on your property. Similarly, workman’s compensation policies are designed to take care of your employees in the event an injury leaves them unable to work. These policies can provide wages for the time period in which they are incapable of working, as well as cover medical costs related to any treatments or medication that may be necessary after the incident. The exact benefits provided by workman’s compensation may be dependent on the policy chosen. A professional can answer any questions.

Liability insurance is important for any business but so is workmen’s compensation. Take care of your business and employees with solutions for stationery retailers insurance. When you know you’ve found the right insurance fit for your company you can feel secure in your coverage.

What to Know About 10 Pay Life Insurance Policies

If you’re in the market for life insurance you may be looking at some 10 pay life insurance policies. If you’re wondering what makes these different from traditional policies, you may want to keep reading for some more information.

In most cases 10 pay plans contain the same life insurance coverage as what you would expect to find with a traditional plan. These plans may also include some of the additional options found with many life insurance policies. These can include accidental death coverage, or options to borrow against your plan or receive early payments in the case of a terminal illness.

The biggest difference is the fact that with a 10-pay plan your premium payment plan is designed to occur over ten years instead of a lifetime. This means that after ten years your insurance policy should be paid for in full, allowing you to know your coverage is there for your family if something should happen, while not having to worry about further payments.

As you can see many 10 pay life insurance policies have the same coverage as the traditional policies most people are used to. The difference lies in the fact that the premiums are designed to be paid over 10 years instead of a lifetime. If you think this policy type may be a good fit for you, your insurance provider can help.

What a Wholesaler can do for Insurance Agents

If you’re an insurance agent looking to offer a wider range of insurance products to your current and prospective customers, a wholesale insurance broker can bring a lot of expertise and variety to your business. Exceptionally prosperous clients may need larger, more expensive liability coverage than you’re used to providing, and this can be an area with lots of regulations you’re not familiar with. If you want to grow your client base with impressive accounts, this is where wholesale brokers can be useful.

In the broad field of business, there are many risks to identify. If you’re not familiar with a particular area of liability, a client could be in legal danger. Do you offer products for environmental, special events, energy and liquor liability? Would all of your clients know they need that specific type of coverage? The right insurance broker can present you with a large variety of products with a long history of experience so you can present more options to your clients and help them make an educated decision. Using a wholesaler can also help improve your portfolio, so you can show prospective clients an impressive track record and earn their trust. A wholesale insurance broker can bring experience and a strong reputation to your business and offer your clients reliable and adequate coverage.

Insurance for an Extended Reporting Period is a Safety Net

You may have heard the term, “tail coverage” before but weren’t quite certain exactly what is tail coverage. It’s simply a provision found within a claims-made policy that permits you (the insured) to report claims made against you at such a time as when your policy has expired or been canceled. Tail coverage will require you to pay an additional premium to provide cover if any wrongful act that gave rise to a claim against you took place during the expired/canceled period of the policy.

As an example, let’s say that you purchased a claims-made policy for the period January 1, 2016 to January 1, 2017, and paid for tail coverage with a term extending to Jan. 1 2018. Even if you decided not to renew the policy when it expired in 2017, under the tail coverage, you’ll be able to report claims to the insurer during the period when the tail coverage was active, as long as the claim resulted from a wrongful act that took place during the original policy term.

Tail coverage provides an extended reporting period

An extended reporting period (ERP) is a designated time period after a claims-made policy has expired during which a claim may be made and coverage will be triggered as if the claim had been made during the policy period.

Buying tail coverage is generally a one-time purchase and does not expire, and it cannot be cancelled by the insured or the insurance company that issues it. In most cases, tail coverage must be purchased within 60 days after your claims-made policy terminates, and may not be available if your policy was cancelled due to non-payment of premium.

Essential coverage for physicians

Whether carrying medical malpractice insurance on your own as a private practice physician or as an employee of a group or hospital, tail coverage should be a top priority when considering any changes to your coverage. Most claims-made policies include a provision for malpractice tail coverage. When a claims-made policy is cancelled, or not renewed by a physician, or his or her group, the insurance carrier will offer a tail quote.

A quote for tail coverage must be accepted and paid for (or declined) within a limited period of time, usually 20 – 30 days from the cancellation date. The coverage is optional but is highly recommended for physicians wishing to protect themselves from potential claims that may arise as a result of prior acts. If you want to know what is tail coverage, it’s the best way to cover your actions after your term policy expires.


Why Condo Associations Need D&O Coverage

Owning a condo holds many conveniences that can lure potential buyers. One of the biggest is that condominiums are usually managed by someone else, freeing the buyer of a large amount of responsibility. Condo managers often take on the maintenance and safety aspects for the building, and this can lead to serious legal risk. There are many insurance coverage options available, but some could be more useful than others. If you manage a condominium as a condo association, directors and officers liability coverage could be an important addition to your business practices.

This type of liability insurance is useful in protecting the members of a condo association in case of a lawsuit. There are many instances when this would be needed, like in cases of injury or contract disputes. This type of insurance can cover damages and defense fees, but the best way to decide the terms of your policy is usually by consulting an insurance professional. An insurance service should be able to assess the risks that are unique to your property and help you decide on policy limits. There are also many other types of coverage you may want to look into that can help protect your condo association. Directors and officers liability coverage is a great start in building the right policy for you.

What’s the Big Deal About Legionella?

According to the Centers for Disease Control, as many as 18,000 Americans are hospitalized each year with Legionnaire’s disease, an infection caused mainly by microscopic bacteria called legionella pneumophila that occur naturally in the environment. Water is legionella’s breeding ground, and just like you, it likes it warm. Legionella insurance can protect your business if this nasty little bacterium decides to start a family in your plumbing system or any other breeding ground at your business or property.

Legionella’s Turf

Legionella is commonly found in lakes and rivers, but it’s also particularly fond of industry. Some of the bacteria’s favorite spots include:

  • Large-scale plumbing systems
  • Water cooling towers
  • Hot water tanks
  • Hot tubs
  • Water systems that use an evaporative condenser
  • Water systems that release a spray of warm water, such as spas, aerators, and shower heads (both in use and just for maintenance practices)

Protect Your Water

The bad news is, that’s an extensive list of legionella hangouts, which means legionella is a concern for a plethora of industries and services. The good news is, more and more insurers are offering legionella insurance to protect against the liabilities, costs, and damages — both structurally and to your reputation — posed by a legionella outbreak. If you’re a building, property, or plant owner who deals with water, the threat of Legionnaire’s disease should not be ignored. Choose a water treatment insurance plan that offers coverage for legionella-related liability claims, and keep your property, and peace of mind, protected.

Workplace Accidents: How Workers’ Comp Helps Employers

Workman’s comp insurance is designed to protect employees who are injured on the job. However, it offers several benefits to employers as well.

1. It helps keep employers and employees on the same side.

Without workman’s comp insurance, employers almost always end up in an adversarial position with their employees. In this situation, injured employees have to sue to get compensated for the associated expenses. When employers purchase a policy to protect their workers in case of injury, employees are less likely to resort to litigious behavior to have their needs met.

2. It saves money.

Workers’ compensation insurance eases employers’ financial burden. It not only covers employees’ approved medical expenses but also pays temporary disability if their injury requires them to take time off work. This gives the employer the financial freedom to hire a temporary replacement or offer current employees overtime to cover the injured employee’s workload until he or she can return.

3. It can improve workplace safety.

Insurance providers have a vested interest in reducing the number of claims they receive. To that end, many workman’s comp insurance companies offer safety education programs for their members. When employees are educated and safety protocols are improved, the workplace becomes safer.

Workers’ comp is helpful to both employers and employees alike. It gives employees the comfort of knowing they are covered if an accident happens, and it empowers employers to keep their business running well.