General Questions

What States is your agency licensed to do business in?

Michigan, Minnesota, Wisconsin and Florida

Have you checked all of your markets for the best price?

Yes, as an independent agency, we are able to access more markets to find the best product and price to suit our clients’ needs.

Which limit of liability should I choose? Doesn’t the attorney usually just settle for the limit on the policy?

An entity must assess what is at risk in terms of exposed assets and likelihood of incident or injury as a result of their operations or products. If the limit of liability is very low and the owned assets are high, the disproportionate liability limit leaves the entity exposed. Litigates don’t necessarily simply settle for the policy limit.

What is the difference between Replacement Cost and Actual Cash Value and why can’t I just insure my building for what I paid for it?

Replacement cost pays to repair or replace with like kind and quality with no deduction for depreciation. Actual Cash Value is full replacement cost less depreciation taking into account the age of the property. Market value is very rarely the some amount as replacement cost or ACV and may not be adequate at the time of the loss.

What is co-insurance and how does it work?

It is a specific percentage of the property limit (either RC or ACU) that is the minimum required amount that must be carried, a penalty will result at claim time.

Are payment plans available?

Payment plans vary by company.

Can I buy flood insurance?

Only if the property you wish to protect is located in a designated flood zone.

Why did my rates/premium go up?

Because in the last few years, insurance companies have experienced a substantial increase in claims and are paying out more in claims than they are collecting in premiums. They have also been affected by 9/11.

Worker Compensation Questions

Should I pay some of my employees’ bills for injuries instead of submitting them all so they don’t affect my mod factor?

No. State law prohibits an employer from non-reporting of injuries. All injuries must be reported immediately to your insurance carrier. In an effort to encourage compliance with these laws, the state recently made a change in the computation method of the Experience Mod. Now only 30% of medical bills paid are used toward the development of the mod. However, 100% of wage loss still applies. To deal with frequent concerns, the state now counts all medical-only claims that are under $2,000 (incurred) as one claim. All that are over $2,000(incurred) are counted separately. Also, a form of “stop loss” kicks in after $5,000 has been paid and depending on the total paid, the mod is developed using a proportionate factor but the actual amount paid will not be levied against the employer’s mod.

Personal Auto Questions

Regarding Michigan No Fault insurance, who pays for the damage to an insured vehicle when it is determined the insured was not at fault?

The insured pays his own damages first. If there is no physical damage on the insured vehicle then a mini tort claim may be filed for recovery of up to $500.

Home Owner Questions

How do I determine how much insurance I should carry on my home?

This is ascertained by working closely with your insurance agent, who will gather the necessary information needed to conduct a replacement cost evaluation. This evaluation will indicate the amount of insurance needed to replace your dwelling using current construction cost information.