January, 2012

Liquor Liability: Our Fastest Growing Market

We are happy to report that Hospitality Mutual has broadened our agreement.
All MAIA agents may now access Hospitality Mutual Insurance Company through the Number One Insurance Agency, Inc.

Go Pats!! Cover your Super Bowl revelers with a Temporary Event policy. The application is quick and easy and rates begin at $125 for up to 249 guests with a limit of 50/100/100. For rates on higher limits and/or guest counts, go to page 2 of the Temporary Events Application.

Grab up to 40% in savings….Loss Control Credit is now available for Liquor Liability risks with liquor sales over $1,000,000 and are 5 years loss free. (Hard copy loss run required.)

Contact Program Manager, Colleen Lahna, with any questions by email at clahna@massagent.com or by phone at (800) 742-6363, extension 361.

E&O: Warning to Agents – The E&O Risks of Scrap Metal Theft

The first MA E&O Claim regarding the theft of scrap metal from a vacant building was recently reported and closed with a payout just under $100,000. The media has covered the growing trend of vacant buildings being stripped of copper wire and other valuable metals.  Thus far, reports of these thefts have typically been in other states, but unfortunately this trend has moved to MA. We found it startling that nationally, an average of 2 claims per week are coming in on this new exposure!

What’s happening:  When a property becomes vacant, typically after a certain amount of time, the coverage for theft and vandalism drops from the policy.  If scrappers move in, they raid the property for scrap metals, copper wiring and tubing and other valuables. The thieves may earn a few dollars reselling their stolen goods, but almost always cause extensive damage to the property. The AC unit, plumbing and wiring are often heavily damaged or destroyed in the process.

Upon seeing the damage and the lack of coverage, Building Owners then claim that they either  1) weren’t aware of the drop in coverage, 2) that they notified their agent of the building’s vacancy or 3) that the agency should have been aware of the vacancy, even if they weren’t notified directly, if the agency is in the same town/city. This has resulted in claims ranging from $50,000 to $200,000!!! While this is most often an issue for commercial exposures, E&O claims have come from some residential properties as well. 

Recommendations:  Educate your client base about the changes to coverage when vacancy occurs.  If you learn of a vacant property, be sure to send notice to your client of the changes to their policy due to the vacancy.  Have your insured sign-off on the receipt of this notification. If you are unable to get a sign-off, be sure to document what and when you sent the notice within your client’s file. Lastly, be sure your entire staff is aware of the trend, the change in coverage and your new procedures in handling this exposure. 

As always, our E&O Team is available to answer any questions.  You may contact Ellen Stoppel or Michelle St. Angelo via email at estoppel@massagent.com or mstangelo@massagent.com respectively or by phone at (800) 742-6363.

Thank you for your business!

WC: We're Spreading the Word For your consideration…Markets Available

  • We’re open to Landscapers that also plow snow…driveways and parking lots - no shoveling duties.
  • We welcome Daycare Providers.
  • We have an appetite for Family Style to High-end Restaurants.

Send in your application (acord 130) to Barbara Lobdell via email at blobdell@massagent.com or by fax to (508) 634-2931.

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Please update our office when there are changes to your email address (or with your agency staff). Also, please remember to include an email contact when sending any new business submissions.
Keeping us informed helps us service you faster.

Reminder from RLI

RLI recently released a Revised Personal Umbrella Application (PUP276 01/12) which has a slight change to Question #18, to more clearly state their position.

RLI will continue to accept the (01/11) application for now but we have placed the new edition on our website for easy access as we expect it will become Mandatory for MA insured’s within a few months.

Meet Your Agency Team

Ann Tobin, CISR, CIC is the Agency Manager at Number One Insurance Agency. She began working at Number One/MAIA in 2002 as the RLI Program Manager. How times have changed! She now handles all day to day operations for Number One, participates as a member of the Five Star review team, and can always be found working at MAIA's annual convention and trade show The Big Event in November. Contact Ann with any questions you might have about accessing the markets available for your agency and your clients.

Know Your Options:
Markets Available from Number One

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