Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.
Issue link: https://idoi.epubxp.com/i/105596
ASSOCIATIONNEWS By Andrew Stergiou The Right Coverage In the past, a door dealer had to make basic choices when evaluating their business insurance program, involving price, coverage, and deductibles. Often, one could not have a combination of a competitive price, broad coverage and low deductibles. This has not been more evident than this year with many insurance carriers increasing workers' compensation and general liability premiums due to the hard market, as well as other factors not even relating to the dealer's own loss experience. These premium increases have been caused by changes in the insurance marketplace, the economy as a whole, and, even Super Storm Sandy. They have resulted in double digit increases with clients which have had zero losses in the last 5 years. In other words, premium increases recently enacted have had little, or nothing, to do with door dealer-related risks, yet there are increases nevertheless! We all know it is wise to have adequate and realistic coverage, which protects insureds in the normal course of running their business. However, often in the past, the cost for this was prohibitive. In many cases, broad form insurance coverage was simply not available at any price. That prohibitive cost or lack of choice in options is a thing of the past. IDA members are turning to the IDAssurance Program for economical prices, broad forms, and limits of coverage. IDAssurance provides IDA members with superior loss experience, the potential to lower their insurance premiums and receive the best possible insurance coverage. Coverage that IS available in the marketplace, and with the insurance industry's highest rated admitted and licensed insurance carrier, Liberty Mutual Insurance Company, which is Rated A XV by AM Best. In general, construction companies are experiencing a much more challenging liability market as underwriters seek to raise premiums and restrict coverage to make up for years of soft market conditions and recent adverse economic trends. Many door dealers received up to 20% in discounts during the last 5 years due to the soft market. At the same time, insurers have found that their investment earnings, the "life blood" for the industry, have shrunk dramatically to extremely low, and unsustainable, levels. insurance carriers are increasing rates and this comes against the backdrop of medical cost inflation and changes to some state statutes that have extended coverage beyond the insurers' originally intended scope. Since its inception in September of 2006, the IDAssurance Program has provided its insureds with coverages which were lacking in previous policies. Many insureds found out, much to their dismay, that they were, in fact, NOT covered for work they were actually performing (Residential, Tract Housing, etc)! Cont. on page 58 United Steel Products has a special situation. We have divisions which manufacture, install, and service rolling doors. Our previous broker had us in an insurance program, which had all our divisions on one policy. Andrew, through the IDA Assurance program, was able to split our polices to cover our individual divisions, gave us better coverage, lowered our deductible, and saved us more thanr 10% on premiums. If you're in the door industry, this is the insurance program for you. Because of these factors (unsustainable discounts, done merely to maintain their market share, and low investment earnings), those premium discounts, enjoyed by many contractors and dealers during the past five years, are no longer being offered. Many V O L U M E Alfredo Franza, VP of Operations – United Steel Products, Corona, NY 4 6 I S S U E 1 2 0 1 3 57