March Legislative Bills update

Japan’s Earthquake & Tsunami MAY Mean Higher Insurance Rates: 

Who would think that Japan’s disaster could affect our commercial insurance rates…but it can and probably will.  The same “reinsurers” that provide reinsurance to the US insurance marketplace provide reinsurance all over the world…Chile, Japan and yes even Haiti.  While the Chile and Haiti earthquakes did little to upset the reinsurance marketplace, the Japanese disaster will.  The insurance industry estimates of the $300+ billion in damages suffered as a result of the earthquake and tsunami, some $30 to $40 billion will be paid by reinsurers.  Reinsurers will need to raise their rates to cover these losses… and yes, that means rates will increase in the US.


Employment Practices - A New Target for Attorneys:

Employment Practices has quickly become a new profit center for attorneys. What is Employment Practices?   It is a claim or lawsuit made by employees, former employees, or potential employees AND POSSIBLY customers. It includes discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations. THIS IS NOT COVERED BY YOUR BUSINESS LIABILITY INSURANCE.

The most common examples are 1) unwanted sexual advances between employees, unwanted sexual advances between employees and customers, and 2) the alleged act of firing an employee due to their age or sex.   To protect yourself, please call us to discuss the best option.

 
Insurance Bills in the Nevada Legislature:

There are two bills that I was asked to weigh-in on that are before the Nevada Legislature.  One is proposing that the State mandated auto insurance be raised from $15,000 per person / $30,000 per accident bodily injury liability and $10,000 property damage be raised to $50,000 per person / $100,000 per accident and $25,000 property damage.  I strongly agree that the current limits are inadequate.  But… these increases unfairly target the poor.  My opinion is that we leave the requirement as it is… but I do recommend that all of our clients have at least $500,000 uninsured and underinsured motorists coverage.

Tornadoes Cause $5 billion in damage

More than 130 tornadoes pounded the South and Midwest in April.  Preliminary reports indicate that more that 10,000 buildings were destroyed putting loss estimates between 2 and 5 billion dollars.  Included in the devastation were manufacturing plants for Mercedes-Benz and Toyota Motor Corp.  Production at these plants was halted due to the storms. 
I’ll weigh-in on the other bill in my next blog. 

Please… our business is built on referrals and word of mouth.  Please recommend us to your friends.

Steve LeMond, Owner/President
Absolute Insurance Service