Month: October 2011

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Radon/Silica Update

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Radon/Silica Update

I want to make everyone aware of the current radon situation that has hit the world of granite. Below are links to two articles that make very broad statements.

Whether they are accurate or not (and we know they are not), is not the issue. The legal system today looks for situations like this, and with some mismanaged media, they create an atmosphere that may lead to potential law suits.

In anticipation, we have worked with a major insurance carrier and developed a contractor’s pollution liability policy that protects your business from this type of suit. It will provide defense costs as well as judgments up to the policy limits ($1,000,000 to $10,000,000 available).

In addition to radon, the policy will respond to any silica-related claim. Almost all general liability policies have an absolute pollution exclusion. These types of claims will most likely not be covered under a standard general liability policy.

The stand-alone pollution policy can be written for one to three years and has a minimum premium of $3,000 with a $5,000 deductible. You are now able to make a business decision as to whether to transfer the risk to an insurance company or retain the exposure in-house.

If you would like a premium indication, please complete the short Quote Request and fax to our office. If you would like additional information, please call me at 908-598-7813. I am available to discuss this or any other insurance-related issue.

Marc A. Rosenkrantz, CIC, AAI
President

New Insurance Coverage for Radon and Silica Offered through Schechner Lifson Corporation

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New Insurance Coverage for Radon and Silica Offered through Schechner Lifson Corporation

Summit, New Jersey – September 15, 2008, Schechner Lifson Corporation (SLC), a preferred provider of insurance and safety management services for the Stone Industry, in conjunction with an A+ rated insurer, has introduced a Pollution Liability Policy which includes coverage for Radon and Silica.
In the past months several articles have made very broad statements about Radon and Granite. Although there has been no confirmed litigation thus far, plantiff’s attorneys have been advertising on the Internet for potential clients. The combination of an aggressive legal system and media attention creates an atmosphere that may lead to potential law suits.

“A pollution policy designed by SLC is the first to offer coverage for Radon and Silica exposures” said Marc Rosenkrantz, President of Schechner Lifson Corporation. “This policy will enable fabricators, installers, and distributors to insure themselves and their businesses in the event of a suit or loss in cases involving Radon and Silica.”

Industry experts have declared this new pollution policy very important for the industry. Limits available for the pollution coverage range from $1,000,000 per occurrence, up to $10,000,000. Each policy has a $5,000 deductible. Premiums are as low as $3,000 per year with a three-year commitment. Preferred pricing is available for various associations, accredited fabricators and contractors.

For more information contact:

Marc Rosenkrantz, President
Schechner Lifson Corporation
(908)598-7813
marcr@slcinsure.com

How Common Insurance Causes Can Work To Your Detriment

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How Common Insurance Causes Can Work To Your Detriment

In this article we take a look at how some common insurance clauses and practices can work to your detriment – and how to avoid these problem areas.

Coinsurance Clause

Many insurance policies available today include a Coinsurance Clause. Essentially, a Coinsurance Clause will penalize an Insured if it turns out that they have not purchased a ‘satisfactory’ amount of coverage on either their inventory, building, or both.

Take an example where an Insured has property with a replacement value of $1,000,000, a Coinsurance Clause of 80%, and a policy limit of $650,000. In the event of a $500,000 loss, how much do you think the Insured would collect (before deductible):

A. $500,000
B. $650,000
C. $406,250

In this example, the Insured would only collect $406,250. The Coinsurance Clause mandated that the Insured carry a limit of at least 80% of the value of the property, which here would be $800,000. Any partial loss would be paid using the following equation:

(Limit carried / limit required) x amount of loss

Limit Required

Did the Insured make a conscious decision to buy a lower limit, hoping to save on premiums? Did the agent not determine the real replacement cost of the property, nor recommend an appropriate limit? All are possible, but in any event, the Insured is out of pocket almost $100,000.

The Solution – The Property Policy available through the Marble, Stone and Tile Insurance Connection doesn’t have a Coinsurance Clause – – so that if a conscious decision is made to buy a lower limit, or the property turns out to be worth more than thought, the Insured doesn’t get penalized.

This coverage is available for all inventory, and rented or owned buildings and equipment.

Valuation

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Valuation

Imagine the following – out in your warehouse, an ocean container with a shipment of new inventory just tipped over as the mis-operated gantry was preparing to strip-out. As a result, $100,000 of goods just sheared into chips, worthy perhaps for use in a nice terrazzo or mosaic application, or for sale to the local garden store as a ground cover.
Or, was that $250,000 in goods?

Why the discrepancy? Let’s assume that the $100,000 was your cost, but that the product could have been sold for $250,000. Had the loss happened during delivery, a typical ocean policy would provide CIF+10%, or $110,000. On land, most Property insurance policies pay replacement cost on inventory, which in this instance wouldn’t even give you the 10% provided by the Ocean policy.

Do your policies take your margins into consideration?

The Solution – The Property Policy available through the Marble, Stone and Tile Insurance Connection covers your goods at Sales Price – – so regardless of whether the damage happens on the ocean or in an accident while in your inventory, your business doesn’t suffer.

Audits

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Audits

PART I

Congratulations! You’ve just landed a major supply contract that will drive your sales up by 40% over last year! More congratulations from your insurance company! You’ve just caused your General Liability premiums to go up by 25%, because it’s rated on your gross annual sales!

Is this ‘fair’? We don’t think so. Chances are, the loss exposures haven’t increased all that dramatically. Why should success be penalized?

The Solution – premiums for the General Liability Policy available through the Marble, Stone and Tile Insurance Connection are rated on a fixed amount of property – – so even if your sales go up, your costs remain constant.

PART II

Many Ocean Marine policies require that you keep records of each shipment, and submit them to the insurance company each month so they can ‘track’ your activity and premium usage.

Do you have the time to keep and file such records? Even insurance companies don’t have the personnel to track and bill reports under this antiquated process.

The Solution – premiums for the available Ocean Marine Policy are rated against your gross sales – – an up-front deposit is based on estimated sales, and premiums are adjusted at the end of the year using your actual sales figure. The above examples are based on certain assumptions and are for reference only. However, don’t make assumptions when it comes to your business. Let mystic take the mystery out of your insurance program.

Some “Hard” Facts About Insurance

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Some “Hard” Facts About Insurance

Question: What is one of the hardest substances known?
Answer: Diamonds – created by great pressure; changed from coal into clarity.

Question: What is one of the hardest things to do?
Answer: Change – whether under great pressure or not, sometimes it’s hard to perceive benefits with clarity.

How can you get a ‘gem’ of an insurance policy, and pocket much more than spare ‘change’?

By making sure that your insurance premiums are working as hard as possible. The Marble, Stone and Tile Insurance Program was built for companies like yours. It can help protect all your assets through broader coverage with lower up-front costs, provide a better return on claims payments, and pay your sales prices, insuring your profits as well.

Don’t settle for a diamond in the rough. Have your policies appraised by the experts. For crystal-clear insight, call Marc Rosenkrantz of

Schechner Lifson Corp.
4 Chatham Road
Summit, NJ 07901
800-475-0826 in NJ or 800-279-9360 (everywhere else)

Turning Shavings Into Savings

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Turning Shavings Into Savings

“Sharpen your pencil”. Sometimes, that’s what buyers tell their insurance agents after receiving a better proposal from us. It’s tough being a benchmark, and we wonder why our prospects would want to work with someone who has to be told to do a better job.

When you get a quote under the Marble, Stone and Tile Insurance Connection, you can be assured that we’ve ‘taken the lead out’ of our pencils. We only refine our numbers if your exposures have changed.

The difference between ‘carved in stone’ and a ‘penciled-in job’

Make sure your insurance agent works as hard as you do. The Marble, Stone and Tile Insurance Program was built for companies like yours. It can help protect all your assets through broader coverage with lower up-front costs, provide a better return on claims payments, and pay your sales prices, insuring your profits as well.

Get more service from a service industry, without having to provide a hard target to your agent. Need assistance? Call Marc Rosenkrantz of

Schechner Lifson Corp.
4 Chatham Road
Summit, NJ 07901
800-475-0826 in NJ or 800-279-9360 (everywhere else)

An Argument Against Gambling

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“We haven’t lost a container in ten years”.

That’s what we hear sometimes when prospects or clients decline insurance for their imported goods while in transit on the ocean. With a 20-footer averaging $25,000 to $50,000 (and often higher), some importers feel it’s cheaper to absorb that rare loss than to purchase a policy covering all shipments. Are you overdue for a loss?

“We get our coverage through our freight forwarder/ broker/shipper (circle one)”

Most importers who rely upon someone else’s policy to cover their goods end up paying way too much for this convenience. They end up insuring their costs only, and get no protection for their profit on the goods.

Don’t gamble – understand the risks and rewards

The more you ship, the greater the odds are of losing a box or two. The more you use someone else’s policy, the more you will pay to reduce your loss. If you sell $2,500,000 of imported goods, your own policy would start at as little as $3,750 for a year’s coverage. Ten years of insurance costs less than the average container. Sound rewarding?

Make sure your insurance works as hard as you do. The Marble, Stone and Tile Insurance Program was built for companies like yours. It can help protect all your assets through broader coverage with lower up-front costs, provide a better return on claims payments, and insure your profits, paying your sales price.

We also have competitive ideas for insuring Inventory, General Liability, Workers Comp, Vehicles, and all owned or leased property. Health, Life and 401(k) plans available, too.

Smart risk managers bet with the house, instead of using theirs as collateral. Need assistance? Call Marc Rosenkrantz of Schechner Lifson Corp.

4 Chatham Road
Summit, NJ 07901
800-475-0826 in NJ or 800-279-9360 (everywhere else)

Schechner Lifson Corporation