Monthly Archives: January 2009

More Motorist Driving Uninsured Due to Economic Decline

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“Approximately one in six drivers across the U.S. may be driving uninsured by 2010, according to a recent study from Insurance Research Council IRC).”
 
“The report also found a strong correlation between the percent of uninsured motorists and the unemployment rate:  An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point.  Based on current unemployment rate projects, the percentage of uninsured motorists is expected to rise from 13.8 in 2007 to 16.1 in 2010.”
 
The economic downturn may initiate an increase in uninsured motorists but will vary from state to state.
 
Based on this trend, it is more important than ever to make sure that Business Auto policies contain adequate limits for Uninsured Motorists and Underinsured Motorists.  These coverages allow businesses to look towards their own insurance carrier for a deep pocket in the event that employees are injured in an auto accident by an uninsured or underinsured driver.

Business Insurance Rate Declines Continue

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According to the Market Barometer at MarketScout, rate reductions for property and casualty insurance continued in November.  There was an average rate reduction of 10% of accounts producing premiums over $250,000 whereas smaller accounts were down 8%.  On a continuous rate reduction cycle, small business owners’ policies reversed course and where down 9% in November in comparison to 12% in October.
 

Workers’ Compensation Claim Over Perfume

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A New Jersey court ruled that a woman could pursue a Workers’ Compensation claim after alleging that a co worker’s perfume resulted in a disabling injury.
 
“If you tell people that this is a woman with a chronic medical condition who smells some perfume and gets sick, should people have to pay for that? But I guess the appellate division says they should.”
 
Sexton was 64 years old at the time of the incident. Since then, DiMuzio Sorochen said her client has been largely dependent on an oxygen tank to breathe and unable to work.
 
It is interesting to note that the claimant had an existing lung condition caused by smoking a pack of cigarettes a year for 64 years.
 
As a general rule most courts and Workers’ Compensation commissions will go to great lengths to find that an injury or occupational illness is compensable.
 
Source:  Insurance Journal