Tag Archives: insurance

Mythology, Legends, and Lies In Insurance (Part Two)

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Follow the link below for another great article that addresses many of the common and dangerous myths that policyholders believe.  Listed below are some more myths:

 “It’s better to pay small liability claims out-of-pocket rather than report them to the insurance carrier.”

 “Statute does not require me to have workers’ compensation, thus you (a higher tier contractor) can’t require it either.”

 “I pay him with a 1099.  He’s an independent contractor, not an employee.”

 “If a workers’ compensation injury is less than a certain amount, I do not have to report it to the insurance company.”

 “Flood insurance is only for those in ‘flood zones.’”

  More Insurance Lies Clients Believe 

 Source: Chris Boggs, Insurance Journal, August 2009

Mythology, Legends, and Lies In Insurance (Part One)

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Follow the link below for a great article that addresses many of the common and dangerous myths that are believed and passed on by policyholders, “experts” and even insurance professionals.  Here are a few of those myths:

 “If I don’t have anything, they can’t get blood out of a turnip.”

 “There is no need to purchase liability limits higher than my net worth.”

 “That’s why I buy insurance (no need to implement risk management or loss controls).”

 “Corporate status will protect me from liability, I’ll just declare bankruptcy and shut down.”

 “Insurance is all the same.”

Insurance Lies Clients Believe And Pass On To Others

Source: Chris Boggs, Insurance Journal, August 2009

Electrical Power Strips Pose Fire Hazard

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Electrical power strips, we all use them, but are we using them correctly?  We often learn from the mistakes and accidents of others which gives us insight on how to help prevent possible losses of our own. 
 
John Sadler comments: we insured a dry cleaner client that had a large fire loss in 2004 in excess of $200,000 to building and contents as a result of daisy chaining office equipment. As a result, we are fully aware of the attention that each client needs to pay to this important area of loss prevention.
 
Click on these links for more information on preventative measures:

Hall of Shame for 2008 Insurance Fraud

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“The Coalition Against Insurance Fraud’s Hall of Shame reveals the previous year’s largest, most-brazen or dumbest insurance schemes.  Insurance fraud is an $80-billion crime annually, and has grown more violent and invasive in recent years.  The No-Class of 2008 reflects that trend.”
 
Nine swindlers were selected to the Insurance Hall of Shame.  Among them were an elected judge who fabricated auto injury claims, insurance agents who sold fake Workers Compensation policies, a serial home arsonist and dentists who performed useless root canals on children. 
 
Possibly the most violent, two elderly women made friends with homeless men and took out a total of $3 million in life insurance on them.  The women named themselves as beneficiaries and arranged for cars to run over the men.  Both women received life for their scheme.
 
 
Source:  Insurance Journal