Downey Insurance Group Blog | Great Insurance People

After coming into the Massachusetts market in May of 2008 Progressive Insurance has had a very bumpy ride.   When Progressive first came on-line in MA we received many calls from our clients who had self quoted their policy on Progressive’s website. 

Unfortunately Progressive was using some very deceptive tactics to get people to leave the comfort of their trusted insurance professionalsand purchase their policy on-line from some computer server without a review from their current insurance professional who understands that individuals unique protection needs. 

Thank goodness most of our clients had the insight to call us so we could show them the where they were being deceived.   The most common deception that we found was not including premium for surcharge points added by the DMV even though they are requiring applicants to submit their social security number.  The quote process also informs applicants that Progressive obtains credit reports and confidential credit scoring information, which is prohibited in Massachusetts for both rating and underwriting purposes.  

Other  misleading practice’s that Progressive was utilizing to it’s own advantage included quoting short term policy’s not covering the full 12 months required by MA law, and most importantly not informing our clients about the danger in the reduction of coverage they were  quoting compared to the level of protection that they are insured at currently.

We were not the only agency that was taking notice, the Massachusetts Association of Independent Insurance Agents filed a formal complaint with the MA Division of Insurance stating similar grievances, and they released a press release to all of their member agents warning them of these deceptive practices.

Now 3 years later after luring MA residents with their to good to be true rates they are attempting an unprecedented rate hike.  This time it is Massachusetts Attorney General Martha Coakley that is taking on the on-line insurance retailer.

From Boston.com February 10^th, 2011- Attorney General Martha Coakley is pressing Massachusetts regulators to reject auto insurer Progressive Corp.’s plans to hike the rate for commercial customers by 23.5 percent.

Coakley says in a letter to the Division of Insurance that Progressive’s proposed rates were excessive and unfair to Massachusetts businesses. She also argues that the information used by the Mayfield Village, Ohio-based firm to justify the hike was inconsistent with its proposal.

Coakley says Progressive’s request contradicted its actual claims history, as well as Massachusetts’ overall claims history. The firm has refused to provide the Attorney General’s Office key data or answer questions about its calculations.

But a spokeswoman says Progressive provided insurance regulators and the Attorney General’s Office with all of the documentation necessary to support the request for a rate hike.

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Co-Op Insurance has just announced a new Group Discount Program for the New Hampshire Maple Producers Association.  This discount can be applied your current Co-Op policy, or we can help you start a new policy if you would like to take advantage of this program. If you are a maple producer in NH and you are not a member the Maple Producers Association you can fill out an application on their website linked here: http://www.nhmapleproducers.com/application.html

NHMPA members will receive 10% off of Farm, Home and Auto insurance with CO-OP!   This is essentially the same group discount that the Vermont Maple Producers Association has enjoyed for years.  Thanks Co-Op for making this available to the great peopleof NH!  Visit our website www.downeyinsurance.com or call us for additional information at 603-439-2022 or stop by our office in Keene, NH at 45 Summer Street.

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At Downey Insurance Group we are always on the look out for new products to cover new and very real exposures. Cyber Liability is one of those coverages that is becoming necessary in this new on-line world we live in today.  The internet is the new Wild, Wild, West of this country and the world so make sure your business exposure and your valued clients are protected.  Call us today for a comprehensive look at your business insurance needs 508-485-0130.   The Insurance Journal agrees that cyber liability is a huge threat to the business world, here are a few things you can do to protect yourself courtesy of The Insurance Journal:

Because cyber crime has developed into a problem with potentially catastrophic consequences, cyber risk is arguably one of the single greatest threats facing companies today. The 2009 Computer Crime and Security Survey conducted by the Computer Security Institute found that 43 percent of U.S. businesses experienced some kind of cyber security incident last year.

In the face of these threats, formal protection efforts are inconsistent at best: The World Wide Web is global and borderless, and laws that govern the protection and disclosure of confidential consumer information vary considerably from state to state and country to country.

All organizations are at risk for some type of data exposure. After all, the use of interconnected networks and cloud computing is nearly unavoidable in today’s business world and can provide innumerable benefits.

Companies need to be investing in technologies and establishing policies that safeguard data and lessen the risk of a breach, which could cause a company to incur sizable direct cleanup expenses while severely damaging customer trust and loyalty.

There are five crucial steps a company can take to protect itself from the surge of cyber crime:

1. Enlist the CFO in the fight against cyber crime.The responsibility for preventing network security and privacy exposures extends well beyond the information technology department. Rather, the chief financial officer should lead the company’s efforts and develop a holistic, enterprise-wide approach. With a visible, senior-level executive directing the cyber risk management initiative, people at all levels of the organization are more likely to fully understand the financial risks involved and work to manage them.

2. Uncover the cyber crime vulnerability, and quantify it.To comply with corporate governance best practices, an organization should hire a third-party expert to evaluate the organization’s cyber risk and the potential financial impact of a breach. Questions to consider:

• Is our organization retaining any private data about clients, vendors or employees?
• What’s the best way for us to evaluate the costs and benefits of additional IT loss-prevention expenditures?
• Should we purchase cyber risk insurance?

3. Add a cyber risk expert to the company’s board of directors.Awareness and visibility begin at the top. By having a board member who is familiar with cyber crime and understands the level of risk and the loss potential, an organization can ensure this issue remains a priority. Additionally, a board member with a deep understanding of cyber liability can guarantee a holistic approach to risk management within the company and can oversee the adoption of formal procedures to control data security.

4. Consider risk transfer solutions.Now is the time to consider an insurance solution for cyber exposure. Because security breaches typically occur in areas of the organization generally considered to have adequate security protocols — or in unanticipated areas — insurance makes good sense. Fortunately, the overall property & casualty insurance market remains favorable, and numerous insurers are committed to this field. While there’s no replacement for sound risk management practices, a comprehensive insurance policy can be a solid last line of defense.

5. Involve the HR team. Internet security must be part of organizational processes at every level and in all parts of the business. As the driver of company culture, HR can help support and strengthen information security campaigns and procedures. Because the lines between employees’ personal conduct and their business conduct — during business hours — can sometimes become blurred, HR must clearly define and communicate the company privacy policy, as well as all rules and requirements regarding employees’ use of the Internet. In addition, HR should continuously monitor employees’ use of social networking sites and remind employees that the Internet is very much a public forum.
The number of data security breaches within companies is growing exponentially as they rely more heavily on technology and the Internet. Every organization must protect its priceless data and develop ways to prevent costly breaches.

Article Courtesy of  http://www.insurancejournal.com/news/national/2011/02/14/186007.htm

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Did you treat your special someone with jewelry or fine arts this Valentines Day?  If your gift is lost or stolen do you know if it is covered by your homeowners policy?  One of the most important discussions we have with homeowners here at Downey Insurance Group is the question of whether or not they should add a special schedule of insurance for their jewelry.  Here are a few reasons why you might want to consider scheduling special coverage for jewelry, art, collections, etc.

1. Most policies limit the amount of coverage for theft of jewelry. If your jewelry burns on a house fire, this is a standard cause of loss and it will be covered along with all of your other personal property that would be lost in a fire.  But if it is stolen, some policies limit theft of unscheduled jewelry to just $1,500 per item up to a maximum of $3,000 for all jewelry that is stolen. Scheduling jewelry voids/overcomes this limit.

2. Low or No deductible for covered losses.

3. Establishes a set value for the payment of the piece’s replacement cost.

4. Expands the kinds of loss covered to include mysterious disappearance, breakage and other kinds of loss. If you just can’t find your jewelry or if it drops down the sink, or if your expensive vase breaks, normal policies will not cover that. But if you schedule your jewelry or art, those kinds of losses would be covered.

Personally, I think items 1 and 4 are the best reasons to schedule certain pieces of property, especially when they are expensive. We’ve helped clients schedule computers, bikes, wine, art, jewelry, baseball cards, guns, cameras, musical instruments and many other things.

Many of the things that our clients schedule are very important to them. Insurance can’t prevent the loss, but having the peace of mind  that an important piece can be replaced is quite a comfort!  At Downey Insurance Group we know how troubling it can be to be unsure if your loss would be covered, so call us today to review your current homeowners policy.

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For Northeastern farmers long used to coping with all sorts of cold-weather problems, this winter presents a new one: snow and ice that’s bringing down outbuildings, requiring costly repairs, killing livestock and destroying supplies.

Farmers in Connecticut alone have lost at least 136 barns, greenhouses, sheds and other structures as snow measured in feet, not inches, accumulated while January passed without a thaw.

“We’ve had other challenges,” said Joe Greenbacker, a partner at Brookfield Farm in Durham, where a fabric-covered “hoop house” caved in and killed a calf. “But this is the most snow I can remember on the ground and the biggest problem with roof issues I can remember.”

Losses still are being totaled by the state Agriculture Department. Commissioner Steven Reviczkysays no one can remember a more destructive winter.

The Northeast is suffering through one of its most brutal winters in years, with cities all along the seaboard reporting snow piling up at a record-setting pace. Connecticut has been especially hard-hit, with Hartford reporting 81 inches since Dec. 1, compared with an average of 46 inches, according to the National Weather Service.

A huge storm that swept in from the Plains this week proved to be a tipping point, dropping heavy ice and sopping rain that coated or soaked into snow piled on rooftops. Houses and commercial buildings crumbled, along with farm buildings, which tend be older or less sturdy.

In the Northeast’s short season for growing, winter woes are no stranger to farmers. They’re used to having to, say, turn on sprinklers to beat back a late frost on their strawberries.

“That happens every now and again,” Reviczky said. “But this is a situation where buildings are coming down. This is way outside the box of what is a normal challenge.”

No human deaths have been reported, but animals haven’t been so lucky. In Northumberland, N.Y., 25 cows were killed and 200 rescued when one side of a barn’s 400-foot-long peaked roof collapsed Wednesday night.

In Connecticut, 85,000 chickens were killed when a coop collapsed and 14 dairy cows and the Brookfield calf were killed, including seven cows lost when two buildings collapsed at a farm in Ellington, Reviczky said.

In Somers, two horses at Lindy Farm were euthanized after being trapped in rubble from an overnight barn collapse caused by heavy snowfall Jan. 27. International trotting star Moni Maker survived along with 12 other horses.

A wing that was not damaged housed 15 pregnant mares ready to deliver in a month, said John Belskie, a manager at Lindy Farm.

He could not explain why the barn, which was built in 2000, collapsed while older barns remained standing. But he noted that it could have been worse — a few hours later employees would have been inside, feeding the horses.

Besides the loss of structures and animals, the contents of many buildings — seed, fertilizer and other supplies — have been ruined, Reviczky said.

Greenbacker and other farmers have not yet begun to turn to their insurance policies to determine what’s covered and what isn’t.

“We haven’t got that far yet,” Greenbacker said. “Right now we’re in the mode of keeping things together and making sure we don’t have further problems.”

Hoop houses — typically a half-cylinder of fabric or plastic supported by a metal skeleton — are moneysaving alternatives to traditional barns and fared well in previous winters because snow melted between storms.

But they’re typically covered by material that won’t rip, transferring the weight to the structural supports, said John Bartok, a retired greenhouse and nursery engineering professor at the University of Connecticut. Engineers recommend two-by-fours propping up the skeleton in strategic spots.

A 1978 blizzard rivaled this winter’s storms, possibly bringing down more greenhouses, he said.

But Brookfield Farm, established in Connecticut in 1723, hasn’t seen anything like this winter since moving to Durham in 1983. It has weathered drought, floods, pests and other problems well known to farmers.

“Now,” Greenbacker said, “it’s a storm every few days.”

Article courtesy of Insurance Journal.

At Downey Insurance we provide insurance for many farms in New England through Co-Op Insurance of Vermont and our other markets.  If you have any questions regarding your farm policy or if you need help filing a claim please call us at 508-485-0130 or visit our website at www.Downeyinsurance.com.

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New opportunities are on the horizon for women in the U.S who own small businesses.  The Small Business Administration has announced the beginning of it’s new Women-Owned Small Business (WOSB) Federal Contract Program.  With the first contracts to be awarded in the fourth quarter or 2011, women can now begin to submit applications for participation on their website: www.sba.gov/wosb.  One eligibility requirements is maintaining the proper insurance coverage for your business.  At Downey Insurance our knowledgeable staff can walk you through the process of securing the appropriate Business Insurance for your risk management needs.

VermontBiz.com reported – “Implementing the Women-Owned Small Business contracting rule has been a top priority for the Obama Administration and SBA,” said Administrator Karen Mills. “Women-owned businesses are one of the fastest growing sectors of the economy. As we continue to look to small businesses to grow, create jobs and lead America into the future, women-owned businesses will play a key role. That’s why providing them with all the tools necessary to compete for and win federal contracts is so important. Federal contracts can provide women-owned small businesses with the oxygen they need to take their business to the next level.”

The WOSB Federal Contract Program will provide greater access to federal contracting opportunities for WOSBs and economically-disadvantaged women-owned small businesses (EDWOSBs). The Program allows contracting officers, for the first time, to set aside specific contracts for certified WOSBs and EDWOSBs and will help federal agencies achieve the existing statutory goal of five percent of federal contracting dollars being awarded to WOSBs.

To qualify as a WOSB, a firm must be at least fifty-one percent owned and controlled by one or more women, and primarily managed by one or more women. The women must be U.S. citizens and the firm must be considered small according to SBA size standards.

The SBA is excited to launch this new program to provide WOSBs with increased opportunities to compete for and win federal contracts, ultimately helping WOSBs create and retain more jobs. For more information on the Women-Owned Small Business Program or to access the instructions, applications or database, please visit www.sba.gov/wosb.

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Auto-insurance requirements vary among states, and Massachusetts has one of the more complicated insurance systems in the nation. One requirement of Massachusetts auto insurance law is personal injury protection (PIP), which must be included in every motor-vehicle liability or insurance policy.

Personal Injury Protection Coverage

In Massachusetts, every auto-insurance policy must provide PIP benefits. But, drivers may choose to reduce or eliminate the PIP coverage provided by their insurance companies by purchasing a deductible. In addition to reducing PIP benefits, buying a deductible also lowers drivers’ monthly premiums for their auto insurance.

How PIP Works

If a driver with PIP coverage is injured in an auto accident, his or her insurance company will reimburse the driver for medical and related expenses up to a certain amount. PIP funds are provided regardless of whether the driver was at fault in the accident.

With PIP insurance, a driver’s insurance company will pay up to $2,000 in medical expenses related to an auto accident. If the driver does not have health insurance or the health-insurance company denies coverage, PIP coverage will pay up $8,000. The expenses reimbursed with PIP funds must be incurred within two years of the accident.

PIP Benefits

PIP insurance is valuable for drivers because it reimburses expenses that otherwise may not be covered by health insurance, including cosmetic and dental services, co-payments and deductibles. PIP coverage also provides 75 percent of the driver’s lost wages or lost earning power if he or she is unemployed. Additionally, PIP funds pay for necessary services that the driver would have performed if uninjured without pay, for example, cleaning his or her home.

Article provided by Harris & Associates PC
Visit us at http://www.bharrislaw.com

If you have any questions regarding your insurance coverage, or if questions regarding your insurance claim please feel free to call us 508-485-0130 or visit our web site @  Downey Insurance Group. 

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