Insurance topics that everyone needs to know from someone who puts Jesus first, not money or himself--------------------------
For a crazy fast Home Insurance quote please email or give me a call. www.MichaelFillers.com
Here is a recent exert of what a business associate of mine had to say about Llyods of London. Enjoy.
Lloyds of London
I recently ran into a fellow insurance professional who asked me why our insurance agency was still selling Lloyds of London products. He touted they were overpriced and went on to tell me how great his new carrier was and how they had a fancy online rater and gave clients discounts for having a document proving the house was built like the building code says it should be built. So I felt like responding publicly because if he is asking maybe someone else is wondering the same thing.
Why Lloyds- Because I want a carrier who is going to be there when I need them most. No amount of state regulation or comfort of the *state guaranty fund * can compete with a track record of being the oldest insurance provider in the world.
If you start the insurance industry (which they did in 1688), you can’t get much more seasoned than that? To put it in perspective, Lloyds has been through the economic turmoil of the Napoleonic Wars, the American Revolution, the Civil War, WWI, WWII, the Great Depression and recently survived the credit crisis caused by other large insurance companies (AIG) investing in sub prime mortgages. They were writing insurance during the Enlightment Period (remember that in school, I like to pretend I do, but really don’t). They settled claims for the Titanic, the World Trade Center, and are the leaders in aviation, space, and marine cargo insurance.
So when you ask me if they are a good company or will pay claims don’t be surprised when if I smirk just a little before I regain my composure and explain that in my opinion “they are one of the best”.
*AL State guaranty fund provides 150K for each homeowner should an admitted carrier become insolvent. It does not apply to Surplus Lines Carriers like Lloyd’s. (LLoyds have their own fund called the Central Fund which they can use at their discretion)
Other info about Lloyds of London can be found here: https://www.facebook.com/JesusInsuranceAgent/posts/1085299151483951
Michael Fillers, CPIA Morris Insurance
Commercial General Liability(CGL) vs Garage Liability
Which one do you need and what is the difference.
Below are a few excerpts or different articles discussing the
2 so you can make a good decision.
Some may wonder, though, if these liability exposures can be insured
against simply by using a commercial general liability coverage form instead of a Garage Liability policy.
the sums that the insured becomes legally obligated to pay as damages because
of bodily injury or property damage.
there are significant differences between the two coverage forms that an
insured should be aware of before he or she purchases insurance.
businesses need insurance coverage that will protect them in case they are
found liable, or accused in court of being liable, for injury or financial harm
to someone. A customer could trip and fall on the premises, or a defective
product could hurt someone or burn down a house, or a competitor might sue over
allegedly false advertising. Your business can purchase policies to cover the
instances where its exposure is greatest, or you can get a commercial general
liability, or CGL, policy which serves as a sort of blanket coverage for all
instances of possible liability--except where specifically excluded.
policies, however, do not cover liability associated with vehicles owned or
operated by a business. If a customer breaks his leg in your store, CGL will
cover it. But if your delivery van runs over someone in the street and breaks
his leg, CGL won't cover it. To obtain liability coverage for your company's
vehicles, you need a business auto policy. But these policies are geared toward
companies for whom automobile use is incidental. They can have limits and
exclusions that make them untenable for businesses, such as car dealerships,
which have enormous fleets of autos that are regularly driven by non-employees.
Car dealerships, repair shops, service stations and other
companies that work with automobiles have special insurance needs that aren't
adequately addressed by the general liability policies available to most
A CGL form can be used to cover the liability exposures of
manufacturing or processing businesses as well as service and contracting
businesses, mercantile operations, office buildings, and apartments. A garage
policy is more limited in scope, applying to auto repair shops, service
stations and auto dealerships. It is true that a garage business may sell items
like a retail store, but the main focus for the garage is garage operations--not
manufacturing, mercantile or office liability risks.
The exclusions sections of the two forms also offer some
The garage form specifically excludes coverage for bodily
injury to any person arising out of any employment-related practices, such as
coercion, defamation, harassment and discrimination. The CGL form is silent on
The "who is an insured" clauses on the two policies
are another area of difference.
The garage form makes
the point that it offers coverage for the ownership and use of autos by
discussing who is an insured for covered autos. The CGL form does not.
other hand, the CGL form permits insured status for trustees, volunteers and
spouses of partners, while the garage policy does not mention these individuals.
The definitions on the CGL form and the garage policy
represent another area that points out the different natures of the two
garage form defines an auto as "a land motor vehicle, trailer or
semitrailer. The CGL form has the same definition, but adds the sentence that
an auto "does not include mobile equipment." This addition, plus the
defining of mobile equipment on the CGL form, shows that liability from the
ownership and use of mobile equipment is meant to be covered under the CGL form
and not the garage form.
So, if a
garage business has a forklift, a riding lawn mower or a removable snowplow,
and a liability claim arises due to the use of these items, the insured may
have a problem upon presenting the claim to the garage insurer.
The definition of product also shows the different coverage
designs of the garage policy and the CGL form.
On the garage policy, products include goods or products made
or sold by the named insured in a garage business. The CGL form defines a product
as any goods or products manufactured, sold, handled, distributed or disposed
of by the named insured.