Product Recall Insurance - A Guide for Small and Mid-Sized Food and Beverage Companies

All companies operating within the food and beverage industry, whether multinational in scale or independent local growers or food and beverage processors, are under constant risk of severe financial loss due to product contamination. This article provides some practical information about the risks, the heightened regulatory involvement, how traditional insurance may apply, a brief peek on what to expect in the event of a recall and options for effective protection through the utilization of Product Contamination & Recall insurance.
Two Key Areas of Focus
· How to transfer the financial risk of product contamination and product recall, and
· The critical necessity of integrating the insurance claim process within the recall event.
A One-Week Food Recall Snapshot
A snapshot of the U.S. Federal Food Safety website over a recent seven day span reveals food product recalls involving: Salmonella contaminated raw frozen fish, undeclared milk allergens in a Taco dinner product, Listeria contamination of pizza products, undeclared egg allergens in a sausage product, Listeria contamination of deli-sandwiches, mislabeling of a frozen pasta product, undeclared Sulfite allergens contained in a fruit preserve, undeclared peanut allergens in an almond snack, and of course, potential Salmonella contamination of fresh vegetable packaged salads. Most of these recalls affected independent private businesses and illustrate the vulnerability of all food and beverage businesses.
The Implications of the Food Safety Modernization Act ("FSMA")
The potential effects of the FSMA with its passage into law on January 4, 2011, suggest that we can expect to realize more product recalls. Here are some key points to consider:

• Enhanced Record Keeping & Full Access by FDA

Food producers are required to maintain detailed records of food safety and security protocols, including manufacturing, packaging, and distribution process of every food product for a minimum period of two years.

• Registration, Inspection & Rejection of Imports

Food facilities must be registered,
Imports will be rejected when a foreign facility refuses inspection,
Increased inspections of U.S. and foreign food facilities

• FDA Authorized to Mandate a Product Recall

The FDA's authority to effectuate a unilateral product recall product was previously limited to baby formula and could only previously recommend a product recall. Under the FSMA the FDA can unilaterally order a product recall.

• Whistleblower Protection

The FSMA provides protection to employees reporting regulatory violations.
The fact that the FDA can now unilaterally order product recalls and the codification of the protection afforded to employees reporting violations signals the need for heightened urgency on the part of the food and beverage industry enterprises to ensure that they are adequately protected against the devastating financial and reputational consequences caused by a product recall event.
How Can a Food or Beverage Enterprise Protect Itself?
Business Insurance 101
Every business owner has a varying degree of familiarity with a Business Owner's Insurance Policy ("BOP") which provides most smaller enterprises with two main forms of coverage: Commercial General Liability, Business Property, as well as a host of other ancillary coverage ranging from Business Automobile to Data Privacy Breach coverage. Some BOP policies also contain limited Employment Practices Liability and limited Employee Dishonesty coverage.
Unfortunately, many independent companies operating in this industry are operating under the misconception that their basic commercial insurance coverage will provide protection in the event of a product recall. Nothing could be further from the truth.
How Would a Commercial General Liability (CGL) Policy Respond?
For the limited purposes of this discussion, a CGL policy will provide defense and indemnification for claims of policy-defined "Bodily Injury or "Property Damage" brought by third-parties against the policyholder. Coverage under these policies is typically triggered by an "Occurrence" which is further defined as an "Accident." CGL policies generally require that the "Bodily Injury" must have a physical manifestation to trigger coverage, rather than simply a claim of emotional distress. While specific policy language is always subject to the interpretation of a court, it is generally held that a physical bodily injury caused to a consumer arising from a contaminated product would be covered as a product liability claim under a CGL insurance policy.
While the associated bodily injury claims may be covered under a standard ISO CGL policy, those same policies also contain an exclusion typically entitled Recall of Products, Work or Impaired Property. That provision precludes coverage for any claims of damages associated with any loss, costs or expenses involving the policyholder's product, work or impaired property if it involves a product recall or withdrawal because of a known or suspected defect.
The CGL - Product Recall Hybrid Policy
A recent entrant into the commercial insurance products arena provides limited coverage for some of the product recall expenses that would be otherwise uninsured under a standard CGL insurance policy. This type of combination policy provides coverage only for:
Customer notification costs of recalled product,

• Recalled product shipping and disposal costs,
• Refund, repair or replacement product costs
• Reimbursement for third-party expenses including defense costs

It should be noted that the above expenses represent only a portion of the overall expenses that a company would incur in the event of a product recall.
The Commercial Property Policy
Commercial Property policies are available either with a more restrictive policy form only covering loss caused by policy-specified Perils (causes) or on an "All Risks" basis under which coverage is triggered from any cause or peril unless it is specifically excluded by the policy. Commercial Property policies provide coverage for, among other things, physical loss or damage to inventory and stock, which is pertinent to a discussion about product recall. Whether an affected product or stock has been actually physically injured by a covered peril is the initial determination that must be made in order to determine if the Commercial Property coverage will apply.
Additionally, Property policies contain a number of other provisions that may come into play to limit or exclude coverage in connection with a product recall event. One provision found in all Commercial Property policies is the Pollution Exclusion. This type of exclusion invariably contains the term "contaminant" which depending upon the particular Property policy and the legal jurisdiction that would interpret the Property policy's coverage, may be held to apply to a contaminated product inventory or stock.
Product Contamination and Product Recall Insurance
The optimal way a food or beverage company can protect itself from the economic and reputational damages caused by a product recall is to transfer that risk through an insurance mechanism that is designed to specifically respond to a recall event.
Coverage under these policies are typically triggered by one or more of the following policy-defined events: Accidental Contamination, Malicious Contamination or Product Extortion.
First-Party Coverage responds to the policyholder's:
• Business Income Loss,
• Recall Expenses,
• Product Rehabilitation expenses,
• Consultant and Advisor costs
• Extortion costs
Third-Party Coverage responds to the policyholder's:
• Liability for claims brought by third-parties such as distributors, wholesalers, or supermarkets or other customers, for their economic loss and reputational damage in connection with a policyholder's product recall.
This coverage is typically triggered when it is determined that consumption or use of the suspect product either has resulted in bodily injury or property damage or will result in bodily injury or property damage within 365 days of the product's withdrawal.
Optional Coverage offered by at least one major Product Recall insurer includes:
• Product Refusal Coverage protects against economic loss caused by the refusal of an insured product during a scheduled delivery. The refusal must be caused due to a publication that the insured product will cause bodily injury and because bodily injury has been caused by a similar product.
• Intentionally Impaired Ingredients Coverage provides protection in the event of contamination or impairment of an insured product that results from an ingredient supplied to the policyholder and when the contamination or impairment was intentional and wrongful but not malicious.
Pre-Recall Consultative Services
Sophisticated Product Recall insurers will provide the policyholder with some limited of Pre-Recall Risk Management services as part of the protection afforded under the insurance policy.
These consultative services provided by external experts may include the analysis of one or more of a policyholder's Crisis Management plan, its training & development processes, reviews of manufacturing and corporate systems and processes. There is little doubt that small to mid-sized companies without the benefit of dedicated risk management professionals can benefit from such analyses and advice. This process, which is voluntary, also benefits the insurance underwriters as it provides a deep view into the potential vulnerabilities of a policyholder to product contamination and recall, which if uncorrected to the satisfaction of the insurer, may result in less favorable terms and/or higher policy premium.
Complete Access & Cooperation
Unless a company has gone through the process of a product recall claim, most companies don't realize their contractual obligations to fully cooperate with their Product Recall insurer. This means to immediately notify the insurer of a suspected event and to allow the insurer and their experts full access to records, product, company personnel and facilities. The insurer has the contractual right to complete access to the policyholder's books and records and to inspect the policyholder's property and operations at any time in relation to the subject matter of the Product Recall policy.
Coverage Determination- The Scientific Analyses Process
Upon notifying the insurer of a suspected or actual product contamination, in almost every instance the insurer will exercise its contractual right to perform a scientific analysis of the product to determine whether it has in fact been contaminated, and whether the contamination rises to the level that it will reasonably cause bodily harm to consumers.
Policyholders must be prepared to share their scientific analyses data with the product recall insurer to support their claim for coverage. Depending upon the nature of the contamination, triggering coverage for voluntary recalls can be contentious if the respective experts' conclusions do not align. Therefore, identifying highly qualified external experts in advance of a product recall will afford the policyholder the ability to react quickly to obtain the required analyses in the event of a recall. Advance consultation with legal counsel experienced with food and beverage product recalls can be a useful process for identifying scientific experts that are qualified to serve as effective litigation experts.
Crisis Management Coverage
Product Recall policies almost universally provide either a specified sub-limit as part of the policy's aggregate limit or an additional separate limit to pay for the policyholder's cost to retain a Crisis Management firm to handle public relations in connection with a product recall. This is an important aspect of coverage as it affords immediate access to expert assistance to restore a company's reputation in the event of such a crisis. Most policies will require the policyholder to select from the insurer's pre-approved list of qualified crisis management firms.
Insurer's Right of Subrogation
As is the case with most insurance policies, upon payment of a covered Loss under a Product Recall policy, the insurer has the contractual right to seek recovery from a third-party that may have caused the loss, which includes bringing litigation in the name of the policyholder. This can become a delicate business issue when a policyholder's key supplier would appear to be the source of the problem. While most insurers will not waive their right to subrogation (unless there is a corresponding higher premium paid at policy inception) it is a point that policyholders must keep in mind and may become a relevant aspect of the negotiation of the claim.
Other Key Considerations
The Directors' & Officers' Liability Policy - The Failure to Purchase Insurance Exclusion
Commercial insurance policies of every variety contain a standard exclusion to coverage that essentially states the policy will not apply if there is a claim alleging the failure to purchase insurance or adequate insurance that would have covered the loss against the company.
Food and beverage companies that have investors who may bring litigation against a company for financial damage caused to a company that was involved in an uninsured product recall may understandably think the purchase of a D&O or Management Liability policy would protect them from most investor claims alleging corporate mismanagement. However, in the event of an uninsured product recall event, the D&O policyholder may find they are without the protection from investor lawsuits they thought they had purchased under their Directors' & Officers' Liability policy because they chose to not purchase Product Recall insurance.
Some Practical Steps To Take
Every food and beverage company, large or small, must have a product recall crisis plan in place which identifies both internal and external management personnel and a process for managing the crisis event. The plan should be reviewed periodically and mock-tested with distribution chain partners to identify areas for improvement. This pro-active approach will favorably distinguish a potential Product Recall insurance applicant to insurers and result in more favorable premiums.
Some basic actions when a product contamination is suspected:

• Immediately notify legal counsel, and preferably retain coverage counsel.


• Immediately notify regulatory authorities.


• Immediately notify everyone in the suspected product's distribution chain.


• Immediately notify your insurance broker and all potentially involved insurers in writing including Commercial General Liability, Commercial Property, Product Recall and Directors' & Officers' Liability insurers. Communications should be pre-approved by legal counsel.


• Immediately isolate and preserve all suspected contaminated product wherever located and do not destroy any contaminated product.


• Maintain accurate financial records of all costs associated with the product recall.


• With advice from legal counsel, retain qualified external experts to perform a scientific analysis of the suspected product and to determine causation of the contamination.


• Coordinate access to the suspected product, facilities, and records with the insurers' claims representatives and experts through legal counsel and your insurance broker.


• Manage all external communications through a central point of contact.

Final Thoughts
The increased authority of the FDA to unilaterally order product recall under the Food Safety Modernization Act will likely increase the incidents of involuntary product recalls. FDA ordered recalls should lessen the potential contention between policyholders and Product Recall insurers with regard to the necessity of the product recall.
The extremely significant financial benefits of the coverage afforded by this catastrophic insurance product both in terms of first-party coverage for the policyholder as well as third-party liability coverage for loss to the policyholder's distribution chain partners cannot be overstated.
Managing a product recall claim is a complex process requiring coordination between the policyholder's senior financial and operations management, internal and external experts, legal counsel, insurers and their cadre of corresponding experts.
When selecting an insurance representative for this highly specialized insurance product, food and beverage companies should carefully consider the insurance professional's demonstrated claims experience, their ability to work effectively with internal and external resources and with insurers to achieve a fair and equitable resolution of the associated claims. Careful selection is particularly vital for small to mid-sized companies without the dedicated internal risk management resources for coordinating the various aspects of the claim process.

James J. Ilardi, CPCU is Managing Principal of Secura Risk Group, LLC, a New York-based commercial insurance brokerage firm serving small to mid-cap privately held enterprises. http://www.securarisk.com/

Article Source: http://EzineArticles.com/expert/James_Ilardi/751841

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Life Insurance FAQs

Buying the right type and the right amount of life insurance can be a confusing process, especially if you are just beginning to research the best life insurance policy for you and your family. There are many questions to consider and there isn't a one-policy-fits-all answer. Although you will definitely want to discuss all of your options with a reputable insurance agent who will provide recommendations based on your specific needs, here are some life insurance FAQs to get you started:
How much insurance do I need?
The amount of life insurance you need depends on your individual circumstances and may need to be modified several times during your life as your family grows and your assets increase. The general rule of thumb is that your insurance equals six to eight times your annual gross income. However, there are many important factors to take into account:
• The number of individuals who are financially dependent on you
• Income sources and amounts other than your salary earnings
• Whether you are married and, if so, your spouse's annual gross income
• Whether you have any special insurance needs, such as mortgages, estate planning, college funding, etc.
• The amount of death benefits payable from an employer-sponsored insurance plan and social security
What is term insurance?
Term life insurance provides protection for a specific period of time, and it only pays a benefit if you pass away during the term. Term insurance is a popular option because it is generally inexpensive when you purchase it at an earlier age and benefits can be used to pay off outstanding debts.
What is whole insurance?
As long as you pay the premiums, which will be higher than term insurance, whole life insurance remains in effect throughout your lifetime. Whole life insurance policies are especially beneficial if you want to use your insurance as collateral for loans or receive cash payments while you are still living.
What is universal insurance?
Universal life insurance gives you permanent insurance protection, but it is more flexible than whole life insurance because it allows you to select the amount of protection that best fits you and your family. You can increase or decrease your universal coverage as your insurance needs change, and have more control over the amount and frequency of payments.
Whom can I name as a beneficiary?
Your beneficiary is the person or persons for whom you will want to provide financial support when you pass away, and is typically a spouse, children, or other relatives. However, remember that you may need to update your insurance policy as circumstances change. For instance, if your spouse becomes unable to handle financial matters or you get divorced, you may need to review and modify the beneficiary designation on your policy.
Can I name my estate as beneficiary?
The short answer is yes, but it may not be the best option for a variety of financial considerations. For example, many state laws dictate that life insurance benefits paid to an estate must go through a probate process before your beneficiaries can receive the proceeds of your policy. You will want to speak with your legal advisor to discuss the financial implications of naming your estate as your beneficiary.
Do I have to take a medical exam?
Medical exam requirements vary depending on the life insurance company, but most will require some form of exam to obtain an objective evaluation of your health. As you might imagine, the results of a medical exam will influence the type and amount of insurance for which you are eligible. One of the most important health factors is whether or not you smoke cigarettes. Due to the increased mortality risk associated with smoking, smokers almost always pay higher premiums and, in some cases, may be denied life insurance coverage.
These are likely just a few of the questions you have about life insurance. Get all of the answers you need to choose the best type and amount of insurance for you and your family when you meet with a trustworthy insurance agent. Learn more about insurance by visiting http://www.KellyWilliamsIns.com or calling 562.498.8661.

Kelly Williams is the president of Kelly Williams Insurance, a boutique, full-service Long Beach insurance company specializing in all lines of insurance including auto, home, life, health, and business. Kelly Williams Insurance was founded in 1895 and is based in Long Beach, California. The insurance company also serves Orange County and Los Angeles County. Visit http://www.KellyWilliamsIns.com or call 562.498.8661 to learn more about the company's personal and business insurance products.

Article Source: http://EzineArticles.com/expert/Kelly_C._Williams/1304389

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15 Tips to Save Money on Auto Insurance

"You can save hundreds on car insurance!" Really?
We've all seen the commercials... "Call today and save hundreds!" Believe it or not, there is some truth to it. Take advantage of the cost saving tips below and then stay put! Your insurance company will reward you for staying with them; just make sure that you follow the tips below to save when you're ready to shop. If you feel like you're paying too much, you might be! Here are some tips on saving on home and auto insurance.
1. Shop early
Many companies offer discounts on auto insurance if you shop at least 7 days in advance of your current policy expiration date. This discount varies, but can be as high as 10% and depending on the carrier, can stay on the policy for several years. Companies reward responsible consumers who shop early and pay their bills on-time; they say it is an indication of predicting future losses.
Other products may be eligible for an advance shopping discount too. Be sure to ask!
2. Bundle your policies - but also shop individually!
Bundling your home and auto insurance together in the same place has been touted for years by the likes of captive carriers, but that's because they only offer one company. There is still some truth that it can save you money by packaging your home and auto policies together. Some carriers will discount your premium as much as 30% for bundling the two policies together. That said, it doesn't mean that their rate without the 30% discount is the best. Have your agent quote you out separately as well to ensure that it is best to bundle them together. Some companies offer "mini-packages" where you can put your auto and umbrella with one company (creating a mini-package) and home with another. Talk to you agent about what is best for you.
3. Go to a local independent agent
Local insurance agents offer insurance products through many companies and can save you time by shopping you through all of their companies at once! Think about what your time is worth. Do you really want to spend your time calling several different insurance companies, giving out your personal information over and over just to get a quote? Save yourself the hassle and look for a recommended local independent agent. Keep in mind that some 1-800 companies will not run your MVR (motor vehicle record) prior to issuing your policy. So, if you have any tickets or accidents your rate may be artificially low. They will send you a bill within 30 days for any missing violations or accidents.
4. Take EFT or pay in full options
By putting your policy for either your home or auto on an Electronic Funds Transfer (EFT) or paying the policy in full, you can save upwards of 10% off of your premium. Ask your agent about different payment options and how much they differ. You're paying monthly by mail anyway, might as well save while you pay!
5. Talk to your friends
Friends love to share when they are able to save money on their insurance or any product for that matter. It makes them feel good! It is human nature to want to help others and feel like an expert at the same time... so start asking who your friends are insured with and maybe you can share this article with them to help them too!
6. Stay with the same company longer
Insurance companies now offer longevity credits for loyal customers. They know it is far better to retain a current customer than it is to attract a new one. Stay with a company longer and they will often reward you with perks such as accident forgiveness, better rates and disappearing deductibles! It is also good to touch base with your agent once a year to see if there are any new discounts too.
7. Keep your credit in good health
Like it or not, your credit has an incredible influence on your insurance premiums. Insurance companies say that credit is a good indicator of future losses. Credit improved lately? Your insurance company can often re-run your credit with your permission to see if you're eligible for a better rate.
8. Previous insurance limits
Those low policy limits may be hurting you. If you tend to select lower than 50/100 liability limits on your policy (we'd always recommend at least 100/300; ask us why) you will be penalized if you go to another carrier. When a new insurance company takes you on as a customer, they will actually tier you based partially on your previous insurance limits. Come to them with low limits and they will penalize you and your premium will be higher. Consider raising your limits. Not only is this a good idea to save money, it is a good idea to protect you financially in the unfortunate case of an accident.
9. Raise your deductibles
Are you carrying low deductibles? You're paying more for it. While everyone is different on how they want to use their insurance, consider this: Do you really want to make a claim for less than $500? This could affect your premiums in the future, even if you're not at fault! Talk to your insurance agent about what is the best option for you.
10. House rebuilding cost is different than what you paid for it.
This is a big one! Many people think that what they paid for their home is what they need to insure it for. Of course you want to protect it and have it rebuilt in the unfortunate even of a fire or possible storm damage. However, when you insure your home for what you paid for it, you're taking into consideration the value of the land. The average property has 30-40% of the value in the land. Most insurance agencies will use a cost estimator for the rebuild value of the home, but then will talk to you about it. Make sure you don't include the value of the land.
11. Avoid being a claims magnet
We see people all the time turn in theft or vandalism claims for stolen personal effects in their vehicles. Not only are those personal effects usually not covered (iPods, cds, cameras) the claim usually stems from them leaving it visible on the seat of the vehicle that was damaged. If you have an iPod or other MP3 device in your vehicle, consider stuffing it below your seat or putting it in the glove box out of sight. Furthermore, always talk to you agent BEFORE you turn in a claim so they have the opportunity to help with the claims process.
12. When shopping for a new car or house, consider the cost to insure it first!
The least expensive vehicles to insure are your conservative sedans and minivans. Many companies offer free insurance quotes for vehicle changes and you can often access right online through your insurance provider.
When looking at purchasing a new home, consider if it is near any creeks or bodies of water as your mortgage broker may require you to carry flood insurance which can run into the thousands of dollars a year. While that sound of water is tranquil, it will likely increase your insurance premiums to be near it. Get a quote before making an offer!
13. Education level
Like it or not, insurance carriers have started giving discounts on their products based off of how much education you've received. Have some college and you get a larger discount than someone with a high school diploma. Have a graduate degree and get the largest discounts available (usually only around 1-3%).
14. Ticket falling off soon? Ask for an MVR review!
Make sure you tell your agent about this. Penalties can vary greatly, but it isn't unusual for them to be in excess of 50% increase in your premiums. 1st tickets aren't as heavily penalized as the 2nd or 3rd. If you have a ticket coming off of your insurance the carrier can often do an MVR review (depending on your state). Keep in mind, if the company reviews your MVR, they may find additional tickets that you haven't told them about, so if you've recently received another, it may be best to keep quiet.
15. Other items to consider:
a. Simply by adding an umbrella to your auto policy can almost cover the cost of the umbrella itself!
b. If you have youthful operators in the house, they may be eligible for a good student driver discount.
c. Mature driver (55+)? Some companies offer discounts for mature drivers who have completed a safety course lately. To find one near you, just type in "Mature Driver Course" into Google and you will find many!
Chess Insurance is a local independent insurance agent in Redmond, WA. If you're looking for auto insurance in Redmond, WA please give us a call!

If you're looking for Auto Insurance, Home Insurance, Business Insurance or more in Washington State, call Chess Insurance agency at 425-392-1588! We are an independent agency in Redmond, WA and can save you money!

Article Source: http://EzineArticles.com/expert/Vanda_Chess/1344345

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What Are the Different Types of Auto Insurance Policies?

What is an auto insurance policy and What will an car insurance policy cover? car insurance service offers protection to the driver and passengers in the event an accident occurs. But it is up to you to choose the level of protection you will get.
What questions are you to ask your auto insurance service provider when it comes to auto insurance matters?
in this article, we would discuss on what are the different types of auto insurance policies? we would provide them in details so that when you read through the end you will have knowledge on the different types of car insurance policies.
Types of auto insurance policy
Third party or Liability insurance -
This is often the lowest form of auto insurance policy offered by auto insurance service providers. This is the basic insurance policy you can have, if you got involved in an accident, and after investigation it was proved to be your fault, the auto insurance service provider will pay all the damages to the other party of the accident.
The cover you can get from auto insurance service provider is usually set beforehand. There is a basic set maximum amount they will pay you in case you got involved in an accident.
For instance, the agent can agree on a $10000 coverage per individual for bodily injury and or $40000 coverage in bodily injury and choose $10000 in property damage sustained in the accident.
You need to confirm from your auto insurance service provider what they will cover and what the limits are. Some insurance companies might offer you a very low premium only for you to realize that your cover is minimal and unrealistic.
Collision and comprehensive insurance coverage -
In a simpler term, comprehensive insurance coverage offers you protection in case you got involved in an accident and are proven to be responsible for the collision the insurance provider will pay for the repair of the vehicle.
But it doesn't appear simple as you may think, the car insurance service provider will almost always have the final say on the amount to be paid out, so if it is cheaper for them to give you the market value for the car, then they will most definitely do it.
You may have the belief that your car is worth $10000.00 but the real market value of the car may be $5000.00. This is a common scenario. So if it happens that the real value of the repair of your car is more than $5000.00 then the insurance service provider will simply pay the real value of the car.
you have to make sure your auto insurance service provider is not in full control of the real market value of the car, normally an organization like the AA will always provide an impartial market value.
concerning third party insurance policy, the insurance service provider will almost attempt to limit the amount they will pay out to you, but in general terms, comprehensive insurance policy will always have a higher limit.
Recreation Vehicle -
A recreation vehicle often requires its own insurance, a Recreation vehicle insurance is quite different from the basic auto insurance. You should not assume that because your car has a comprehensive insurance, so is your recreation vehicle as well.
Other Types of auto insurance
Medical, Personal Injury protection and no fault cover -
This insurance will cover the medical expense for you and your passengers in case you got involved in a collision.
The insurance service provider under the no fault cover insurance policy will pay you regardless of who is at fault in the accident. This provides you the peace of mind for your family and friends.
Personal Injury protection is often a minimum requirement that is practiced in some states or countries, you can ask your insurance service provider what are the requirements in your state.
Underinsured /Uninsured motorists' insurance coverage -
This policy offers protection to the policyholders if the person at fault is underinsured or not insured at all. It is advisable to ask your insurance service provider what will be your charges in case you got involved in such a situation. Normally the insurance provider should not charge you some extra premiums.
Rental reimbursement, towing and labor -
This extra coverage often given with a comprehensive insurance are considered as specials by auto insurance companies.
So in case your car got damaged the insurance service provider will pay you for rental cost for only couple of day. They can also offer to pay for the towing of your vehicle but not always included in the policy. You can also inquire from your insurance company what is included in the cover.
The legal requirements.
Most countries and sometimes states will require a certain level of cover ranging from full comprehensive auto insurance to a third party auto insurance.
However, in most cases, it is normally up to you as the driver to ensure that your insurance service provider offers you the minimum required you deserve. In most cases they are not under any obligation to instruct you of the requirements.

Article Source: http://EzineArticles.com/expert/Arinze_Valentine_Okafor/1355762

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Car Repair Insurance Cost - Facts and Myths Unrevealed

Whenever you pay for a new car, either brand new or later model, you do not need extra policy such as car repair insurance packages since it's typical to have manufacturer's warranty. That warranty mostly lasts for about 3 to 5 years. But how do you think that you will be affected if you are driving older car? Or perhaps a car with no remaining warranty in it? What do you plan to do about it? A lot of car owners do not realize the importance of this extra insurance package and auto repair insurance cost becomes secondary when you talk about the benefits it provides. From the moment that your car warranty expires, auto insurance should protect you from expensive car repair costs.
Auto Breakdown Insurance Cost - How to determine?
Most car owners do not like the idea of extra auto breakdown Insurance Cost when buying a car. But you have to know that the standard policy on auto insurance you use in legally acquiring a vehicle to drive does not cover repairs. There are times that comprehensive coverage and collision is included in the policy, but still it does not cover needed repairs on worn or failing parts. Although repairs are covered by a warranty, the problem will begin when it expires. This is when auto repair insurance becomes advantageous to car owners: what is not in general covered by your standard car insurance policy will be covered by auto repair insurance.
But wait. What is really the cost of auto repair insurance? If you would like to get a clear answer, read the succeeding paragraphs.
Getting a Car Repair Insurance Quote
Bear in mind that cost varies from one insurer to another. This is the reason why it is very important for you to get a car insurance quote. By doing this, you will be able to know how much car insurers charge their car repair insurance. Another importance of getting a car insurance repair quote is that you will be able to compare the insurance costs of different companies, so you can save a high amount of money.
However, requesting for an insurance quote would not just be as easy as 123 because car repair insurance companies rely on some information that would serve as the basis in order for you to be provided with the right insurance quote designed for you. That basically includes:
- The model and make of your vehicle.
- Your driving history and age.
Among all these pieces of information, the number one factor that greatly influences the auto breakdown insurance cost is your age. The younger you are, the more expensive your payment for the insurance would be. Your driving record will also affect the amount you have to pay for the auto breakdown insurance because the more accidents you got involved with, the higher the amount you have to pay. Of course, if you are a good driver, you will be able to get more rewards and you just have to pay a minimal amount for the policy.
Most of the time, you will see that the offered rates change dramatically from one insurer to another, and you might wonder why. Well, this is because of the fact that every car repair insurance provider has their own qualifications and requirements. So, as long as you obtain a quote for car repair insurance, you will not be exposed to the risk of making the wrong decision in availing the insurance service of the wrong insurer.
Now that you already know how to get a quote, you should discover the truth about car repair insurance estimates.
The Truth About Auto Breakdown Insurance Estimates
Auto breakdown insurance estimates need to be obtained if you have been involved in an accident because you can use it to get your insurance money. However, in order to make this possible, you have to follow what is indicated in the car insurance policy.
If the vehicular accident wasn't your fault, you can submit car breakdown insurance estimates for damages to the company that handles your insurance or to the company that handles the insurance of the other party at fault. Now, if you choose the first option, you will be able to incur a deductible.

Author Mack Kokson has written many useful articles and reports on Car Repair Insurance. Check out other useful articles and information on Car Repair Insurance Cost at Carrepairinsurancetips.com and get best car repair insurance quotes for your dream car.

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Service Quality And Customer Satisfaction In Insurance Sector - An Indian Perspective

Customer service is an integral part of life insurance organization. It is necessary to identify the key success factors in life insurance industry, in terms of customer satisfaction so as to survive in intense competition and increase the market share. Companies involved in the insurance industry offer a wide variety of products and supplementary services that consumers in need of insurance coverage could readily infer as being "insurance" related. Insurance in India has been spurred by product innovation, streamlining of sales and distribution channels along with targeted advertising and marketing campaigns. With increased globalization and presence of a large number of players in the market place, the very definition of customer relationship and satisfaction is in danger of being proved incomplete.
From a company value perspective, fulfilling customer needs are a key source of income to an organization and achieving complete customer satisfaction is the only key for the company to succeed.
Service cannot be subjected to objective quality control tests before it is provided to the general marketplace; it is only with experience that we know how consumers perceive the quality of the services they receive.
Customer service has become a distinct component of both product and service sectors and with the developments in information technology many businesses find demanding and knowledgeable customers.
Service quality, customer satisfaction and customer value have become the main concern of service organizations in the increasingly intensified competition for customers in today's customer-centred era.
Service quality improvements will lead to customer satisfaction and cost management that result in improved profits. Contemporary service sector firms are compelled by their nature to provide excellent service in order to prosper in increasingly competitive domestic and global marketplaces.
As service firms find themselves in an increasingly competitive and complex business environment, they are inevitably driven to examine their service delivery processes critically. The focus of such internal analysis is ultimately about customer satisfaction, and how bottom-line results can be actualized through delivering quality services to customers via flawless interface platforms. This is not only the case in the private sector, but it also is increasingly so in the public sector. Public sector firms are trying to make administration more efficient and more citizen-oriented.
The insurance industry affects money, capital markets and the real sectors in an economy, making insurance facility necessary to ensure the completeness of a market. It is an industry with strategic importance for any country as it contributes to the financial sector as well as confers social benefits on the society.
At the micro-level, an insurance policy protects the buyer against financial loss arising from a specified set of risks at some cost. It thus reduces anxiety and promotes financial stability by providing a much needed social security net, especially in times of crumbling family ties and nuclear households in developing countries. The role of life insurance is undergoing a phenomenal change today as is evident from the service bouquet and the product advertisements. The emphasis lies on insuring oneself and one's close family members for self-reliance more-so because nuclear families are the emerging trend in India.
To meet the varying needs of various individuals, the life insurance players have a vast foray of products and services in their bouquet. Besides this, almost all companies offer the flexibility to customers to choose the most suitable product for themselves by combining features of a number of products and services together. Thus life insurance companies have to customize the services to improve the quality of service to suit the customer as per their needs.
The insurance industry forms an integral part of the Indian financial market, with insurance companies being significant institutional investors. In recent decades, the insurance sector, like other financial services, has grown in economic importance. This growth can be attributed to a number of factors including rising income and demand for insurance, rising insurance sector employment, and increasing financial intermediary services for policy holders.
A sound national insurance market is an essential characteristic of economic growth. This is not surprising as the insurance industry forms a major component of an economy by virtue of the amount of premiums it collects, the scale of its investment, and, more fundamentally, the essential social and economic role it plays by covering personal and business risks. By encouraging these factors that promote insurance demand and aid financial development, policymakers possess a strong tool to stimulate economic growth.
A number of foreign insurance companies have set up representative offices in India and have also tied up with various Life Insurance companies. The business environment is constantly changing and demand for adaptability among the organizations tends to increase. Demands from customers, technological development, change of value and globalization are the factors that drive the need to change and develop an organization. It is hard to get advantages by quickly adapting technology to product or service in an efficient manner. The ability to handle organizations intangible assets such as service is of great importance to reach success, then the ability to invest and manage tangible assets.
The quality of the service is a pre-requisite for financial institution' market performance and subsequently, economic performance.The companies that offer the best technologies and great quality in every service and that have trained and motivated its employees in order to provide an efficient service are creating adequate framework for the success of a relationship marketing orientation. Financial sector as such is broad and has a wide scope and includes Banks, Insurance companies and Brokerage Firms.
While the natural tendency of many Life Insurance Companies to better price the product and services so as to increase the market share. More specifically the "Service Cost" was found to lead to the policy of "Efficiency pricing". Regarding the pricing behaviour of companies operating in different service industries, insurance companies are mainly endeavouring to offer unique services in their market. Moreover, they are bound to place an emphasis on their broader social and political environment due to their social character and the high regulation. They are also endeavouring to incorporate their pricing strategy into their overall marketing strategy and, thus, formulate a cohesive marketing strategy. This might be attributed to the fact that most life insurance companies operating in India have established well-organized marketing departments. It is also interesting that, while they use some standard list prices, they are also negotiating their prices individually with some key customer.
"The cost of the service" along with "competitors' prices" is the two most important characteristics that trigger pricing decisions. Other important characteristics are the "service quality", the "market strategy", the "customer orientation", the "intensity of competition among the existing companies" and the "type of the service", which indicate that the companies in our sample tend to place their emphasis on service and organizational rather than environmental characteristics when they set their prices. Once it is recognized that competition takes place between companies' offerings and not the companies themselves, it becomes apparent that a "market" focus is appropriate.
As most life insurance companies would recognize, the offering, which is presented to potential customers through the market, is the primary focus of competitive strategy. While accepting that the resources and reputation of a company may add value to an offering, this does not alter the fact that customers choose between offerings. Although the two ways split works well for product offerings and some service offerings, for many financial services the advice and assistance are core parts of the service and are in many cases indistinguishable from the "product" being offered. However, the distinction remains useful in that it highlights the fact that both product features and advice and assistance provide options for differentiation. These options are developed by introducing the concepts of content or image differentiation for merchandise or personalized differentiation for support.
Although intangibility is certainly a key characteristic of services, tangibility performs an important role, particularly in service industries which have high tangible components. A certain degree of tangibility and intangibility exists in both service process and service output. Even in service industries involving less prominent tangible elements, tangibility cannot be completely ignored. In particular, the more a service has tangible components, the more important are these tangible dimensions in service quality.
During the service process, if there are tangible actions physically involving people, security and reliability are perceived as being more important than in those services which predominantly involve intangible actions directed at people's minds. In addition, if tangible actions directed at goods and other physical possessions are involved, customers perceive tangible dimension as being more important. Finally, with respect to service output, if a service involves the making of a tangible product, or providing added value to a tangible product, the importance of perceived value increases.
Further, many customers who are strongly familiar with interpersonal services may never be satisfied with purely technology-based services. This is probably even more important in the relationship-based cultures of India. Customers seem to want technology to be integrated into interpersonal relationships, not to replace them, regardless of their own personal technology readiness. The perception of customers is that salespeople can use technology to solve their problems, helping to develop a sense of trust and satisfaction that is likely to extend their relationship. The salespeople are the critical element in the interaction and relationship, and technology's role is a support element that helps them develop their relationships.
The world is currently witnessing uncertainty and volatility in financial markets, arising out of concerns over the fiscal position and weak growth outlook for developed markets. However, India's strength lies in its domestic growth drivers, which position our country for strong and sustained growth over the long term. Several growth fundamentals are in place, which include rising savings and demand, growing global competitiveness and a favourable demographic profile. Rapidly rising per capita incomes have translated into rising demand for goods and services, and the desire for higher standards of living. The rural economy has also been transforming with rising incomes providing the impetus to consumption and savings. A growing consuming class combined with the human capital to drive growth will take India to higher levels in terms of inclusive and rising purchasing power. Future growth will be driven by the hopes and aspirations of over a billion people. Life insurance is a key sector in the financial services space, which is expected to see significant growth in the coming years as the growing savings pool seeks long-term investment options as well as products for mitigating the impact of potential future risks, including health and mortality.
Rising financial literacy levels in the country have increased the demand for financial solutions across the country. Penetration of life insurance solutions in particular has witnessed robust traction. Being sensitive to the needs of people and providing the highest quality of service has earned the loyalty of customers, which has enabled the companies to execute a strategy of profitable growth.
The financial year 2011 has been a defining year for the Indian life insurance industry. The Regulator introduced significant and exciting changes that altered the dynamics of the life insurance industry.
These changes further reinforced the proposition of life insurance as a means of ensuring protection and providing financial security in the case of an eventuality. It also ensured a greater balance of power amongst all stakeholders of the industry, namely the insurer, customer and distributor. These structural changes were introduced to further augment the customers trust in life insurance and simultaneously protecting his interests. This, we believe, is extremely positive for the industry in the long run and these changes have taken us a step closer to building a world class life insurance industry.
With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the insurance and banking services' contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.
The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. In 2000, when private players entered the Indian life insurance market, they brought their own share of dynamism into the sector. At that time, life insurance was purchased primarily as a tax-saving tool.
The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. The 14 private insurers increased their market share from about 13% to about 22% in a year's time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers.
It is now a decade since the insurance industry was opened up for private participation. In the initial stages after the liberalisation of the sector, the new entrants into the life insurance industry focused on expanding operations and establishing a national footprint. This business model focused on enabling future growth in volumes through large scale expansion. While the insurance industry gained traction in this phase, the next phase of growth witnessed companies focusing on achieving profitable growth. The new regulations also required companies to re-evaluate business models and achieve a balance between top-line and bottom-line growth. It is our firm belief that the new regulations have nudged the industry in a direction which holds a very promising future.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
The opening up of the sector brought about a paradigm shift and led to the emergence of a multiple Insurance companies. The Indian customer was provided innovative and world-class solutions that offered a combination of protection and long-term wealth creation. With an increasing number of private players, the customer had an array of customised solutions to choose from. More importantly, these solutions were developed keeping in mind the diverse needs of customers at varying stages in their life cycle. Access to these financial solutions was provided through a range of distribution channels such as banks, agents, direct offices and online platforms. This revolutionised the distribution network and led to the emergence of a more diversified and multichannel distribution network, thereby providing better penetration and accessibility to customers. This was critical given the very low level of penetration of insurance in the country. In such a scenario, innovative products, improved services and the approach of providing advice were by-products of liberalisation of the sector. The customer indeed became the king.

Article Source: http://EzineArticles.com/expert/Priyanka_Roy/1271718

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Don't Let Your Insurance Company Deny Your Claim

Everyone has heard the horror stories: An evil travel insurance company denies the claim of another decent individual. Here is a recent example: An 80 year old man went on a cruise and accumulated $107,000 in medical bills after he fell sick with pneumonia which led to complications. The insurance company denied his claim. (As you probably guessed, lawyers eventually got involved). Several stories like this have many people believing that insurance companies NEVER pay claims. So the question is: Is travel insurance just a big scam? The short answer is no, but there are definitely things you need to know to help avoid becoming another tragic story.
First off, travel insurance is generally a good type of insurance to buy. "Good insurance" means paying a reasonable upfront premium to transfer a large financial risk from yourself to an insurance company. By contrast, extended warranty on your iPod can be considered "bad insurance" because the premiums are expensive and a broken iPod, although annoying, will probably not ruin you financially. Since medical costs are extremely expensive (i.e. the average hospital stay in Canada costs $7000 a day) travel insurance is a smart way to protect yourself from the potentially crippling costs of a medical emergency.
Of course that all depends on the insurance company actually paying a claim when the time comes. Claim payout rates in the insurance industry are highly guarded, but there is some anecdotal information available. In a recent article by the Chicago Tribune, the US Travel Insurance Association indicated that approximately one in six policyholders file a claim, and fewer than 10 percent of those claims are denied.1 According to Canadian insurance broker Travel Insurance Office Inc, approximately 9% of travellers have a claim, and less than 7% of those claims are denied.2
So it looks like there is at least some evidence of insurance companies paying out claims. But how can you make sure an insurance company will pay YOUR claim, without getting expensive lawyers involved?
One way to protect yourself is to actually think like a lawyer when buying travel insurance. No, you don't need a law degree from Harvard, but you do have to understand that an insurance policy is a legal contract. If there is a claim, the insurance company is going to go back that contract, which includes your insurance policy and any applications or questionnaires you completed.
In the insurance world, claims are very black or white, yes or no, covered or not covered. With that in mind, here are some tips to help keep that dreaded "denied" stamp in the insurance company's holster:
Read the policy: Contrary to popular belief, not everyone who works for an insurance company is evil. When a claim is denied, some insurance insiders sincerely wonder: "Didn't they read the policy?" Many claims are denied because the policy specifically excludes the item in a section appropriately called "Exclusions." Other denials are due to claims that are simply not covered by the policy, or the amount claimed is less than the policy's deductible. The lesson? Read and understand the policy before you buy.
Answer the medical questions truthfully and fully: Unfortunately, many medical questionnaires are often long and confusing. To fill out the questionnaire fully and accurately, you may need to consult your doctor, pharmacist, or a relative who knows more about your medical history. Don't leave your travel insurance to the last minute. The majority of claim denials are a result of people rushing through the questionnaire, or not inquiring about items they were unsure of. One insurance agent remembers asking his client, "Do you have high blood pressure?" The client's answer, "No. The three medications I take keep it normal." Remember, how you define terms is irrelevant, it's the language in your insurance contract that counts.
Pre-existing conditions: Many plans cover pre-existing conditions that are stable and controlled. However, you need to read how "stable and controlled" is defined in your policy contract. For example, a condition will not be considered "stable" if you changed your medication in any way recently. Speak to the insurance company directly if you have questions. Non-disclosure of medical information can void your coverage even if the non-disclosed conditions or symptoms have nothing to do with the conditions causing your claim. In the example above involving the man on the cruise, the insurance company denied the claim because he failed to disclose a previous heart condition in his application.
Advise the insurer of any medical changes prior to leaving: If you've already purchased your travel coverage and your health changes in any way before the date the policy goes into effect, you must notify your insurer. A health change in the interim might invalidate your coverage.
If you do get denied, fight it: There are no guarantees in life, and even the most carefully completed policy application can result in a claim denial. Regardless of the reason, don't accept the denial without a fight. The insurance company owes you a clear explanation, and make sure to get it in writing. Specifically ask for the a detailed explanation of why the claim was denied, which parts of the contract were supposedly contravened, and how you can launch an appeal. If all else fails, a lawyer may have to get involved to argue your case.
Travel insurance is definitely worth getting, and the evidence seems to show that insurance companies do pay out in time of need. However, applying for travel insurance does take some effort. Following these tips will at least lessen the chances of getting a dreaded claim denial.
Sources: (1) "Travel insurance claims can hinge on the tiniest details" Christopher Elliott. chicagotribune dot com. May 22, 2012. (2) Winter/Spring 2012 Newsletter. travelinsuranceoffice dot com.

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Article Source: http://EzineArticles.com/expert/Victor_Lawrence/1347347

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Start Saving on Auto Insurance With These Simple Steps

Here are ten easy steps you can take in your efforts to save on Auto Insurance and reduce your auto insurance premiums.
1. The first thing and probably one of the most important steps in reducing your Auto Insurance premiums is to shop around and compare insurance quotes. Insurance rates can vary quite a bit across different insurance companies for a variety of reasons, including size of insurance company, the type of vehicle, the coverage you are looking for etc. Therefore its very important that you do insurance quotes and compare rates to ensure you are getting the best insurance coverage and at affordable rates. Online Insurance Quote sites have grown in popularity as more persons search for and compare Insurance rates from the comfort of their own homes.
2. Do your research before buying an automobile as this could be the difference between a higher insurance rate and a lower one. Try to find out which cars tend to be targets for theft and vandalism and avoid purchasing those. Purchasing a vehicle with a higher theft rate could result in you paying higher insurance premiums.
3. Try to pay higher deductibles. Your deductible is the amount of money you have to pay out of pocket before your insurance policy pays a claim on your behalf in the event of an accident, theft or other damages. Generally speaking, the higher your deductibles, the lower your auto insurance premiums will be. Start paying higher deductibles and you will save on auto insurance.
4. If you are the proud owner of a home, consider insuring your car and home with the same insurance company. In most cases having your auto and home insurance with the same company can help to reduce your insurance as a lot of insurance companies offer multi products discount, up to 20% discount or more if you insure multiple products with them. Likewise If you have multiple vehicles try to have them on the same insurance policy as most Insurance companies offer multi vehicle discounts or bulk rates, which you can take advantage of if you insure multiple vehicles with them.
5. Try to drive less and by doing so you will also reduce your mileage. If you have an opportunity to walk, car pool or take the subway to work, this can help to reduce your mileage and reduce your auto insurance premiums. When you drive less you increase your chances of qualifying for low mileage discounts. Also remember that the more you drive the greater your chances of meeting in an accident. If you want to save on auto insurance, drive less.
6. Make an effort to stay accident free as your driving record and history of accidents is one of the most influential factors that can impact your insurance rates.,Avoid speeding and avoid traffic violations as the more accidents you have the higher your auto insurance premiums will be.
7. If you are a new driver, consider taking a driver's training course.A lot of insurance companies offer discounted rates to new drivers who take an approved driver training course within the last 3 years. Therefore taking these courses can help to lower your auto insurance rates. Taking a defensive driving course or accident prevention course can translate into huge insurance savings and help reduce your premiums.
8. If you can, pay your yearly insurance premium upfront instead of via installments such as a monthly plan. By doing so you can save a lot on your Auto Insurance.You can incur additional fees by being on a payment plan as many insurance companies charge interest or admin fees for their installment options.
9. Installing anti-theft devices such as alarms in your automobile could lead to a reduction in your auto insurance premiums as it means more security and safety for your vehicle.
10. Pay attention to the age, color, features and specs of the vehicle which may all have some bearing on the price of your insurance premiums. Performance and non-performance modifications may also increase your premiums. For example top end car stereos, alloy rims, custom paint job, upholstery, turbo kits, enhanced muffler and exhaust system and so on will almost certainly increase the value of your vehicle and my make it more desirable to thieves. This may result in higher insurance premiums.
These are Ten Easy Steps that you can take to reduce your auto insurance premiums and save on auto insurance.

Whether you are looking for Life Insurance, Health Insurance, Auto Insurance or Home Insurance, our aim is to help you find the best and most affordable rates. At [http://www.InsuranceIQuote.com] you will have access to free insurance comparison tools, insurance quotes and a ton of resources to help you make the right decision when shopping for insurance.

Article Source: http://EzineArticles.com/expert/Omar_C_S/1402513

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Insurance Guarantees More Attractive In Romania

Insurance guarantees have emerged as an alternative to letters of guarantee issued by banks. There are two basically types of guarantee instruments that can be used in Romania:
1. Unconditionally guarantees (issued in the form of "bank guarantees letters" issued by banks)
2. Conditional guarantees (issued by insurance companies)
Financial problems, and particularly the lack of liquidity, arising from the financial crisis which affected Romania from 2008 until in the present, forced companies from Romania to switch to insurance guarantees offered by insurance companies to the detriment of banking products such as letters of guarantee. Thus, the government decision with nr. 834/2009 mention that the guarantees issued by insurers are expressly accepted forms of guarantee by public institutes to participate in awarding the public auctions. However, nearly four years after the implementation of the new legal provisions, warranty insurance market is underdeveloped in this area.
By providing guarantees, insurer undertakes to pay compensation if the beneficiary is insured and it shows faults that can not fulfill its obligations under the contract of work / service. Most contracting authorities require companies participating in the auction bank guarantees, although the guarantees issued by insurers are expressly incorporated into the category of eligible collaterals. Companies that participate in auctions organised in Romania must know that contracting authorities do not have the right to choose or to impose what kind of guarantee is needed.
The insurer covers risks arising from failure or improper performance of the contractual obligations assumed by the Insured under contract with the beneficiary.
There are four types of collateral as it follows:
- Providing tender guarantee (Bid Bond). According to statistics in Romania, this type of insurance is the most used from the guarantee insurances. This is because this type of insurance is required in the vast majority of auctions organised for various types of projects.
- Performance guarantee insurance contract (PERFORMANCE BOND)
- Providing Guarantee for advance return (ADVANCE PAYMENT BOND)
- Provide warranty period maintenance / maintenance (MAINTENANCE BOND). Regarding the fact that in Romania the infrastructure is quite poorly developed and there are many building sites to improve it, more and more companies, especially construction companies realized lots of infrastructure projects. Many of those projects deteriorated in a short period of time after completion of works. Therefore it was decided that one of the main condition for receiving a construction work will be the presenting of a performance bond insurance.
Depending on the type of collateral required, the Insured may be:
- Bidder - Guarantee Clause of the tender offer. The term Provider means any economic operator who has submitted the tender following the announcement / invitation to tender (manufacturer, supplier, contractor, contractor, provider). or
- Contractor - for other types of collateral.
The term Contractor refers to the tenderer which has become, under the law, a party to a public contract or framework agreement (builder, contractor, subcontractor, supplier, contractor, provider).
The Insurance product guarantees offered covers the performance of contractual obligations for public and private construction projects.
Bid Bond - Guarantee Clause of the tender offer
By this clause, the Insured and the Insurer mainly in the alternative is firmly committed to ensuring Employer obligations arising from the tender offer.
Advance Payment Bond - guarantees the return clause advance
Mainly insured and insurer, in the alternative, for damages Beneficiary guarantees, if the insured is guilty of failure or improper performance of obligations under the Contract relating to the use and return of the advance, up to the amount insured.
Performance Bond - Clause guarantee of good execution of the contract
Mainly insured and insurer, in the alternative, for damages Beneficiary guarantees the maximum amount insured if the insured is guilty of failure or improper performance of obligations under the contract of work / service and the beneficiary finds some weaknesses, shortcomings, defects in the works.
Maintenance Bond - Guarantee Clause during maintenance / maintenance
Mainly insured and insurer, in the alternative, for damages Beneficiary guarantees, if the insured is guilty of failure or improper performance of obligations under the Agreement on technical maintenance and address any deficiencies receiver, warranty of the work for which it is liable under the contract execution.
The Insurance guarantees are issued under a contract between the insurance company, contractor-insured (person who needs insurance) and the beneficiary (the person who will receive insurance if the insured fails to honor its obligations under contracts or provision of services).
Providing you can use to guarantee the bid, performance guarantee of work or services, advance return guarantee, warranty or maintenance period for a service or maintenance work performed.
Therefore, the guaranty Insurances are more advantageous because it is involved the contractor to ensure financial liquidity blocking a deposit "collateral cash" for periods of time that can reach up to several years.

http://www.oferta-rca.ro/index_en.html - Since 2006, offering the best advices and solutions for Insurance romanian market

Article Source: http://EzineArticles.com/expert/Adrian_Pusca/1430595

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Travel Health Insurance: It's Easy to Get and Cheaper Than You Think

Of the concerns people have when the topic of world travel rears its exciting head, few feel as serious as the concern of getting sick or hurt in a foreign country without any form of health insurance to take care of the problem. Compared with the fear of running into serious health problems abroad, the concern of not knowing where to travel, or the worry about getting scammed, or insecurities surrounding your ability to make the money necessary to travel all seem trivial. None of those fears can kill you- getting sick or hurt abroad without any form of health insurance can.
Most forms of health insurance are nationally based, they are domestic, which means the insurance you use at home isn't going to do much of anything for you abroad. Thankfully, getting health insurance while you're travelling, or getting insurance that will cover you as you travel, is a lot easier than you think and it doesn't need to cost an arm and a leg.
An Important Question
Before we get into the nitty gritty of how to acquire health insurance that will keep you secure and feeling good during your travels you need to ask yourself a single important question- do you plan on travelling to one country or multiple destinations?
The answer to this question will determine what sort of insurance you will need. If you're travelling all over the place than you need a more comprehensive, far-reaching insurance. If you're travelling to a single city or country and setting down roots for a few weeks or a couple months then you only need to get health insurance valid within that country.
Even though you should avoid overly-detailed travel planning to figure out the answer to this question before you leave home, it is a good idea to plan your health insurance needs.
Single-Country Insurance Strategies
As far as insurance goes, if you're travelling to a single city or country you have it easy-- though it's important you act fast for peace of mind and safety's sake. You should purchase local insurance the first day you arrive.
Doing this not only makes sure you're protected no matter what happens, resolving to buy insurance your first day in a new country is also the best way to be sure you actually get it done. It's easy to put off chores and busy work, the less sexy elements of travel, when you're excited to be in a new country and itching to start exploring. Getting all the boring stuff out-of-the-way as soon as possible protects you against the dangers of procrastination- dangers that are potentially lethal when it comes to medical coverage.
But how, exactly, can you find local insurance?
Well, you have two options.

• You can spend hours trying to research local medical coverage plans online, often browsing through poorly translated websites in an attempt to compare one plan with all the others. Or,


• You can take the easy route and just ask an employee at your hostel or your hotel what local health insurance they have and what insurance they think you should sign up for. Then find out if their insurance coverage is available to visitors. Hospitality workers are there to help you out, and the more personally owned and operated your lodgings the better the chances of receiving some good advice from them.

Multi-Country Insurance Strategies
Owning local insurance in addition to global insurance is almost always a good idea. After all, it's a safe bet local hospitals will accept your local insurance card but there's no guarantee local hospitals will accept your international coverage. That being said, if you're travelling to a large number of different locations, you don't really have much of a choice. You need to get the most comprehensive global health insurance you can afford.
When it comes to global health insurance you have a couple options at your disposal.
1) First, you can take a look at your existing domestic health insurance and determine whether it provides any sort of worldwide coverage at all. The bigger the insurance carrier the more likely it will provide something for you when you're out crisscrossing the globe. If you don't know where to look and you're unsure about your current coverage you should get on the phone with a representative and start asking questions.
If your current coverage won't help you overseas you need to ask whether there's any plan provided by your carrier that will help you out as you travel. If there's an upgrade to your insurance available and if the upgrade will cover you abroad you'd be wise to pay a little extra to make sure you're secure. Acquiring traveler's insurance isn't really difficult but ultimately it's a lot easier to stick with the carrier you already have than to unnecessarily jump ship.
2) If your current carrier does not provide travel coverage while you're travelling and if they do not offer any sort of upgrade, add-on or package that will cover you abroad, then you need to locate a new carrier.
You can either switch over to a large carrier who provides a wide range of insurance options, or you can just sign on with a carrier who specializes in traveller's insurance.
3) Travel Health Insurance is a LOT more common and a LOT cheaper than you'd think. Don't be surprised if you find travel health insurance that is considerably less expensive than what you're paying for your existing domestic coverage. Not only that, but travel health insurance tends to be extremely flexible. You can purchase insurance for a single trip, you can purchase insurance for trips of varying lengths (such as 30, 60 or 90 days) and you can purchase insurance for those times you're going to travel indefinitely.
So how cheap can travel health insurance be? How does less than $1,000 dollars a year sound to you? Compared with the normal $300-$500/month you'd pay for your own health insurance, if it's not covered by your employer's travel insurance, this represents a really, really good deal.
What Types of Travel Insurance Do You Need?
When you start researching travel insurance you'll soon realize there are many types of travel insurance out there, all covering a different corner of the traveller's experience.

• The average traveller simply needs to purchase the most comprehensive Travel Health Insurance they can find. But if you're travelling to snowboard the alps or something else that may be considered risky, then Hazardous Sports Insurance might also be worthwhile.


• Evacuation Insurance might make sense to help get out of countries if political or environmental situations turn ugly, but only if you are in a country where you could reasonably assume you could be evacuated by helicopter.


• You can purchase Identity Theft Protection in case someone swipes your passport and credit cards.


• You can purchase Cancellation Insurance to make sure you end up at your destination even if your airline starts messing with your reservations or some other unforeseen problem arises.

Whether you purchase these different forms of insurance or not depends a lot on where you're going and what you plan on doing there.
But after you settle the issue of travel insurance, what's keeping you from finally taking that trip you've always dreamed of?

Allen Routledge is a backpacking travel veteran with extensive experience 'on the road' in Europe, Australasia, and the Americas. Read other articles about his personal experiences and practical travel information at http://omnitraveller.com.

Article Source: http://EzineArticles.com/expert/Allen_Routledge/1400664

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Long Tail Keywords and Insurance SEO

Long tail keywords, whether they happen to be related to insurance or any other business, are typically a three to five word search phrase, though they can be a longer and highly specific search term. These phrases can be relatively broad or extremely narrow, as internet users seek relevant content when searching for information, products and services. Google and Bing search bots index website information including Meta and on page content, and when users enter search phrases, the engines subsequently display their search results allowing users to navigate to the relevant pages (SERP).
Engines offer both organic and paid results, allowing users to select those responses they deem most germane to their query. What does this mean to the average insurance agency, broker or carrier? Insurance agents and brokers need to determine the long tail keyword phrases applicable to their organization and optimize their website for those phrases. Some insurance SEO long tail keyword examples include:

• New Mexico Truck Insurance
• Arizona Machine Shop Insurance
• New York Restaurant Insurance
• Professional Liability Insurance
• Florida Property and Commercial Insurance
• New York Coastal Condominium Insurance

The more keywords included in a phrase and the more specific the term, the narrower the results, and the less frequently that term is searched. Conversely, the shorter the phrase (auto insurance for example), the broader the results, and the greater the competition for the phrase. It's important to note that the on page insurance SEO optimization is only part of the job. For effective insurance SEO, off page optimization is extremely important including news releases, social media marketing and ePublishing. Effective long tail research and optimization can and will result in improved insurance website traffic, and when combined with an up to date website and advanced insurance website tools, should translate into an increased book of business.
How does the Google Penguin and other algorithm shifts impact your insurance SEO and long tail keyword initiatives? These types of algorithm shifts were directed at websites that violate Google's Webmaster Guidelines. The algorithm shifts account for greater emphasis on original content and social media than back link popularity. Further, insurance organizations which were focused heavily on backlink building, link swapping and directory submissions, often in pursuit of broader keyword phrases were adversely impacted by this shift. These algorithm shifts actually favor long tails keywords, as the content surrounding those keywords should be very specific, and thus very relevant to both users and search bots (search engine indexing engines). As Google, Bing and other search engines continue efforts to deliver more relevant content, quality content and focus on long tail keywords should be the mantra for an effective insurance SEO initiative.
Though organic insurance SEO and social media marketing is an important aspect of insurance marketing, insurance organizations seeking to rapidly build their pipeline will find the fastest path to B2B insurance lead generation remains insurance eMarketing and appointment setting calls. B2B insurance marketing often requires targeting a very specific niche, carrying a specific value proposition to a predetermined title or titles. For example, an insurance agency might want to discuss restaurant insurance or business interruption policies with dining and entertainment establishments. Though effective use of insurance SEO for this target market is important, agents and brokers should remember that insurance SEO initiatives are only one tool for insurance agency lead generation. Insurance SEO initiatives should be complemented with insurance eMarketing and appointment setting campaigns to ensure optimum lead generation attainment.

For more information on insurance web marketing, go to: http://www.startupselling.com. StartUpSelling, Inc. provides outsourced marketing, sales and lead generation services focusing in the areas of eMarketing, web seminar marketing telemarketing, insurance SEO, insurance agency social media marketing and website development. StartUpSelling, Inc. specializes in innovative insurance agency marketing and sales concepts. For insurance SEO, visit http://www.startupselling.com/insurance-agency-seo.html.

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Nearly 30 Ways to Save on Life Insurance

There are numerous articles helping with life insurance tips but mostly one can find just several pieces of advice there. Would it not be great to have all those saving tricks and tips at one place? We created such a list for life insurance! This list is the most comprehensive overview of all opportunities to save on Life Insurance in Canada and it was created after numerous discussions with many insurance brokers If you find this list useful, bookmark it and share with others! So, let's start!
1. Age: Apply for the policy when you are young and your premiums will be lower.
2. Round-up your age wisely: If you decide to buy a life insurance policy, make sure that your age rounds down and not up, i.e. if you are going to be 30 years old on December 31, buy the policy in the first 6 months of the year where your age is still rounded down to 29 and not 30.
3. Good health: If you are in a good health and have a good build (ratio of weight and height) when you apply for a life insurance policy, insurers will reward that with lower premiums.
4. Non-smokers: Stop smoking well in advance (at least a year) before applying for a policy - otherwise your premiums will double.
5. Good driving record: Ensure you have a good driving record before applying - a bad driving record is punished by life insurance provider (as by auto insurers) - your premiums will go up by extra 25-50%.
6. Gender: Female policyholders pay on average 25% less than male policyholders. Changing your gender will not really help - insurers consider the gender you were born with.
7. No depression: Mental health matters - those with a history of depressions pay between 50% and 200% more.
8. Family history: Having a healthy family without any serious diseases lowers your life insurance premiums as you are less likely to face a critical illness. Known serious issues in your family's medical history can increase the premiums by 50% to 250%.
9. Your medical history: Having a healthy medical history in the past (not equal to the good current health state in the moment of application) has impact on your health insurance. If you've had serious issues, some potential disease cases can be excluded from your coverage.
10. No excessive drinking: If you do not have any drinking issues, you can benefit from lower insurance rates - otherwise your premiums can increase by up to 50%. An intensive drinker would be considered somebody who drinks 3-4 beers a day.
11. Term instead of other insurance types: Choose Term insurance products instead of e.g. Universal Life. The first one is a pure insurance product whereas the latter one represents a combination of life insurance and investment product and often costs more.
12. Getting in shape: If you already have a life insurance policy and got in shape compared to your state when you signed up for a policy (e.g. spending hours in a gym), you can request a re-view of your life insurance premiums.
13. Driving offenses coming off your record: If your driving record improved while you have a life insurance policy, you can review your premiums with your insurer and get them reduced (typical time for smaller offenses to come off your driving record is 3 years)
14. Stop smoking: If you have a policy which you got when you were a smoker, stopping smoking and demonstrating to your insurer that you have not returned to it for at least 1 year will reduce your insurance premiums. Smokers typically pay double amount of premiums!
15. Stop drinking: Similar story with drinking - demonstrate that you had 1 year of no drinking and it will be reflected in your adjusted premiums for an existing life insurance policy.
16. Group Life insurance: Group Life Insurance can be an alternative to your Personal Life insurance if your employer offers sufficient coverage - at least you are protected as long as you work for the company.
17. Employee / Union members: Some companies offer discounts to union members (e.g. IBM Canada or Research in Motion)
18. Drop unnecessary additional coverages: Check additional riders offered with a life policy to decide if you need them e.g. Accident death benefit (higher payouts in case of death through an accident), term conversion rider (in case you want convert your Universal policy into Term)
19. Avoid guaranteed issue life policy: People with good health do not need a guaranteed issue life insurance policy (these are policies that do not require a medical exam but they cost more) - do a health check / exam and enjoy lower life insurance premiums.
20. Professional Membership: Are you a member of a professional organization (e.g. Certified Management Accountants of Canada or The Air Canada Pilots Association)? Then some insurance companies offer you a discount.
21. One policy for your spouse and you: You can get one policy for both your spouse and you - it will be often cheaper than two single life insurance policies (also called a multi-life policy)
22. Adjust coverage amount: Make sure that you are not taking more insurance coverage (but also not less) than needed: perhaps $1,000,000 is enough - ask yourself and your insurance advisor if you really need $2,000,000?
23. Less-risky jobs: Not being involved into dangerous jobs like a member of the police bomb squad will help to avoid additional insurance premiums.
24.Shop around: Search, Compare, and switch insurance companies. There are many insurance providers and their price offerings for the same policies can be very different, therefore use multiple online tools and talk to several brokers since each will cover a limited number of insurance companies.
25. Alumni: Graduates from certain Canadian universities ( e.g University of Toronto, McGill University) might be eligible for a discount at certain Insurance providers.
26. Annual vs. monthly payments: In comparison to monthly payments, annual payments save insurers administrative costs (e.g. sending bills) and therefore they reward you lower premiums.
27. Welcome discount: Some insurers offer a so called welcome discount!

Alex Saltykov is a Co-Founder of InsurEye Inc, a Canadian company that provides online tools for consumers to educate them about insurance, create transparency in insurance market place in Canada and connect consumer with insurance brokers in Toronto, insurance brokers in London and all across Canada.
Alex spent years advising insurance clients both in North America and Europe while he was working for one of the leading management consulting companies. His areas of expertise are insurance, interactive consumer services, innovation, IT and operations.

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