“Key Man” Insurance
Losing an important employee who plays a large role in the company is a very tough ordeal for the whole organization. There is a large risk that the whole operation may be affected or hindered. For these situations there is the “Key Man” Insurance. It is intended to protect the company from a loss of the “key employee”. Unlike the traditional disability insurance wherein the employee is the recipient of the benefits, here in “Key Man” Insurance the company is the one who would reap the benefits. The insurance vehicles for key man insurance can take two forms: Disability insurance or life insurance. Even if you are your company’s only “key man”, you should consider taking out key man insurance on yourself. If there is anyone in your organization that you could not operate without or who's skills and experience drive your profitability then you might want to consider purchasing this type of insurance.
Tuesday, March 8, 2011
Sunday, March 6, 2011
Insurance Market
Here is a good short article about insurance pricing from the Council of Insurance Agents and Brokers. It is definitely a buyers market right now with pricing being driven down by fierce competition in the industry. We are seeing unprecedented drops in premiums tied to increased coverage. Because of this, I am careful to select 5-7 insurance markets for each of my accounts so I can find the best combination of coverage and pricing for my customers. I can't guarantee that there isnt a lower price out there somewhere, because it would be impossible to cover every market. However, I feel that I am doing my job by approaching a good number of companies for each account so we know that our pricing is competitive among the top insurers for each industry. In this type of market, buyers have to be aware that there are insurance companies out there that are trying to buy business by offering extremely low rates. Some of these companies are dangerous to do business with because they have likely cut out portions of coverage or they might be financially unstable and trying to collect whatever premium they can because they know there are people out there who will choose them solely based on price. Sooner or later the market will turn and pricing will start to tighten up and maybe increase. When that happens, you will find much more value in having a relationship with an insurance broker who understands the coverage forms and rates and can negotiate a good product.
COUNCIL SURVEY SHOWS COMMERCIAL PROPERTY/CASUALTY RATES
MELTING IN SUMMER HEAT WASHINGTON, D.C., July 19, 2010
"It’s the same old story," said Council President Ken A. Crerar. "Carriers continue to fight aggressively for new business as capacity flows into the market. It’s like someone forgot to turn off the spigot. No one seems to know when the reservoir will dry up, but in the meantime, it’s definitely a buyers’ market."
Commercial renewal pricing for small, medium and large business accounts continued to decline in the second quarter, compared with the first quarter of the year. Large account rate declines were again slightly more than the other accounts, but pricing for all account sizes was soft, according to The Council’s survey data. All individual commercial lines included in the survey experienced rate decreases, compared with the previous quarter. – Excess capacity chasing market share in the commercial property/casualty marketplace has resulted in another quarter of declining renewal pricing, according to The Council of Insurance Agents & Brokers’ second quarter Commercial P/C Market Index Survey. On average, renewal rates dropped by about 6 percent in the second quarter, compared with a 5 percent decrease in the first quarter of 2010. Brokers across the country reported that capacity was plentiful for all lines:
"New carriers continue to enter the marketplace, further driving rates down. The capacity seems endless at this point."
"Carriers have lots of capacity for new business, but also don’t want to lose renewals. If there’s competition they will lower price."
"Appetite for premium is at a desperate level. New capacity continues to come into the market (inexplicably) and there is not enough premium to feed all the mouths."
"There is an abundance of capacity for D&O and other management liability coverage. Carriers are seeking to maintain market share by cutting premium and expanding coverage."
Buyers found good deals not only on pricing last quarter, but on terms and conditions as well, according to survey comments. "Carriers are open to improving deductibles, terms and conditions in hopes of being able to keep premium flat," said one respondent. Another broker saw "lower deductibles, broader coverage terms, more liberal terms." Still another remarked that there are "generally broader terms, no additional restrictions in coverage."
There was no notable change in customer demand for insurance in the second quarter, the brokers said. Only 26 percent of those surveyed said demand was up – about the same response as in the first quarter.
The economy and credit crisis remain the top concern of brokers across the country.
COUNCIL SURVEY SHOWS COMMERCIAL PROPERTY/CASUALTY RATES
MELTING IN SUMMER HEAT WASHINGTON, D.C., July 19, 2010
"It’s the same old story," said Council President Ken A. Crerar. "Carriers continue to fight aggressively for new business as capacity flows into the market. It’s like someone forgot to turn off the spigot. No one seems to know when the reservoir will dry up, but in the meantime, it’s definitely a buyers’ market."
Commercial renewal pricing for small, medium and large business accounts continued to decline in the second quarter, compared with the first quarter of the year. Large account rate declines were again slightly more than the other accounts, but pricing for all account sizes was soft, according to The Council’s survey data. All individual commercial lines included in the survey experienced rate decreases, compared with the previous quarter. – Excess capacity chasing market share in the commercial property/casualty marketplace has resulted in another quarter of declining renewal pricing, according to The Council of Insurance Agents & Brokers’ second quarter Commercial P/C Market Index Survey. On average, renewal rates dropped by about 6 percent in the second quarter, compared with a 5 percent decrease in the first quarter of 2010. Brokers across the country reported that capacity was plentiful for all lines:
"New carriers continue to enter the marketplace, further driving rates down. The capacity seems endless at this point."
"Carriers have lots of capacity for new business, but also don’t want to lose renewals. If there’s competition they will lower price."
"Appetite for premium is at a desperate level. New capacity continues to come into the market (inexplicably) and there is not enough premium to feed all the mouths."
"There is an abundance of capacity for D&O and other management liability coverage. Carriers are seeking to maintain market share by cutting premium and expanding coverage."
Buyers found good deals not only on pricing last quarter, but on terms and conditions as well, according to survey comments. "Carriers are open to improving deductibles, terms and conditions in hopes of being able to keep premium flat," said one respondent. Another broker saw "lower deductibles, broader coverage terms, more liberal terms." Still another remarked that there are "generally broader terms, no additional restrictions in coverage."
There was no notable change in customer demand for insurance in the second quarter, the brokers said. Only 26 percent of those surveyed said demand was up – about the same response as in the first quarter.
The economy and credit crisis remain the top concern of brokers across the country.
Wednesday, March 2, 2011
Travelers Insurance - Prized Possession (Dog Commercial)
I thought this was a clever commercial. Travelers is a good company that does a great job with their advertising. I liked this commercial because every person has prized posessions in their life that they spend almost every waking hour thinking and worrying about. Insurance is a good way to protect the things you value. Hope you enjoy the video!
Monday, February 28, 2011
How to Review Your Homeowners Insurance Renewal Statement
For most of us, our home is our single largest and most important investment. Many of us have poured thousands of dollars and countless hours into maintaining, improving and (hopefully) paying off our homes. Many people own their homes free of any mortgage. These assets are pure equity. Certainly its worthwhile to invest 15 minutes a year to be sure it's properly insured.
Thankfully, the insurance company offers you a perfect reminder and opportunity in sending out your annual renewal statement. Even if your insurance is paid by your mortgage company as part of your impound account, the insurance company still mails you a statement of renewal every year to update you with your current coverage limits and deductible.
Here's a few important steps you can take to be sure that HOME SWEET HOME is properly protected.
1. Check the basics. Check your name, address and any other description of the insured property. Make sure there's been no change of vesting or ownership that needs to be updated. Check your address to be sure no numbers are transposed.
2. Check the mortgagee clause. Here's where you can be sure that the current mortagee on your home is listed correctly. Check the lender, address and your loan number. Be sure there's no old information there. Maybe you had a HELOC (Home Equity Line of Credit) or a second mortgage that no longer applies. Be sure to get them removed.
Thankfully, the insurance company offers you a perfect reminder and opportunity in sending out your annual renewal statement. Even if your insurance is paid by your mortgage company as part of your impound account, the insurance company still mails you a statement of renewal every year to update you with your current coverage limits and deductible.
Here's a few important steps you can take to be sure that HOME SWEET HOME is properly protected.
1. Check the basics. Check your name, address and any other description of the insured property. Make sure there's been no change of vesting or ownership that needs to be updated. Check your address to be sure no numbers are transposed.
2. Check the mortgagee clause. Here's where you can be sure that the current mortagee on your home is listed correctly. Check the lender, address and your loan number. Be sure there's no old information there. Maybe you had a HELOC (Home Equity Line of Credit) or a second mortgage that no longer applies. Be sure to get them removed.
HEADS UP: Whenever you have a significant claim, the mortgage company will be one of the payees on your claim settlement check. Just that alone can be an inconvenience. But it becomes a major hassle when one of the institutions listed no longer has a vested interest in your home. The insurance company is bound by contract to include the mortgage company on all settlement checks beyond a stated threshold.
*3. Check the coverage on your home (dwelling or building). This is without question the single most important coverage to examine, consider and adjust whenever necessary. Having been an agent during the two raging firestorms in San Diego, CA in this decade, I can tell you that underinsured homes are just NO FUN! Two of my clients lost their homes in the 2003 fires and fortunately they were both adequately insured. (we call all our homeowner clients once a year to review their coverages and suggest improvements and adjustments) But I can tell you that there were literally hundreds of people in the area that were not so fortunate. Many were underinsured by over $100,000! Contractors were giving rebuilding bids on homes for $400,000 with insurance policies with limits less than $300,000. See if that doesn't tweak your financial well-being just a little. Here's the solution.Get an accurate rendering of the square footage of your home. Check county records, take a look at zillow.com, call your favorite Realtor, or get a tape measure and do your thing. Usually you don't include the garage in this calculation. Once you get your square footage, then you need to determine the building cost per square foot in your area for a home like yours. Call a local contractor for a quick estimate or you can call your insurance agent. Average costs in San Diego run about $200 per square foot. With that, a 2000 square foot would take about $400,000 to rebuild. Custom homes can be significantlly more. For a more complete discussion of this, check out: How Much Homeowners Insurance Do You REALLY Need?
Your contents coverage is usually 75% of the amount you have on your home. For example, if you have $400,000 on your home, you'll have an additional $300,000 to cover your personal property (furniture, clothing, dishes, TV, collections, shoes, tools, etc) Usually this is enough, but think through it anyway. If you have antiques, art, collections of any kind then you may need more. Ask your agent for help if you need to.
4. Look at your Personal Liability Coverage. This is the coverage you need when you get sued. Little Johnny runs across your front yard and trips on one of your sprinklers and ruins his chances to become America's Next Top Model and his parents sue your for $250,000. Make sure you don't scrimp here. It's not too expensive to get $500,000 or even $1 Million of liability coverage. If you have $100,000 or less, you could be setting yourself up for a mess just waiting to happen. Put a really big checkbook between your assets and someone who sees an injury as a lifetime paycheck. You might even consider a Liability Umbrella.
5. Check your 'special limits'. This is a REALLY BROAD subject that I just can't do justice to here in this post. Simply stated, there's limits on many things such as cash, computers, cameras, jewelry, furs, goldware, silverware, tools, etc. Call your company and ask for a review. You can increase many of these limits for just a few dollars a year. Sometimes the available increase isn't enough. That's the perfect time to consider a Personal Articles Floater (or it's called many different names) It's a policy that's designed to place stated amounts of coverage on many items from jewelry, business tools, iPods, hearing aids, cameras, musical instruments and on and on. If you have more than 'the average Joe' of ANYTHING, then check this out FOR SURE!
6. Check your deductible! This can be a tremendous cost-control tool in your insurance spending. Simply stated: The larger your deductible, the greater your savings. Usually you can save close to $100 per year just by going from a $500 deductible to $1000. Pick the largest number you can stand without losing sleep at night and ask your agent or company the savings you'd realize by changing. If you have a $250 or smaller deductible, it's definitely time to change it UP! Keep in mind that you usually hit a point of 'diminishing returns' once you get to $4000 or more. This means that you'll save less and less for each additional $1000 you choose. It might make sense to go from $1000 to $2000 if you save $85 a year by doing so, but not from $5000 to $6000 if you only save another $21 by making that jump.
Monitoring your insurance costs and coverages can result in a lot of savings AND peace of mind. Be sure you keep notes and file your thoughts and changes from year to year. These recoreds will make your annual call quicker and easier each year.
Feel free to contact me anytime if you have questions.
Till next time...
It's a Good Life !
Sunday, February 27, 2011
Insurance Agents
"There are worse things in life than death. Have you ever spent an evening with an Insurance Agent?"
-Woody Allen
The above quote is a common misperception of how people view Insurance Agents. I thought I would take a minute to address my recent poll results. Hopefully the next one will produce more response. The question was asked.. What are insurance agents likely to be doing when not at work? Unless you know some insurance agents personally it would be hard to say. Let me give my quick insight into the personal life of an insurance agent:
I was introduced to the insurance business by my father who works in my same office right across the hall. If you were to ask most insurance agents why or how they got into this type of work they would very likely tell you that it was a family member. My grandfather started an insurance agency in Ogden, Utah which is run today by my uncle. My father started with them and eventually was offered another opportunity and decided to join another agency. We now have several generations of insurance agents working in the area. I was never pressured into following my father's footsteps into this industry. I think the things that appealed to me were the opportunities to make a good living, the flexibility of an open work schedule, the good people in the business, and the ability to work with and get to know people across all industries and organizations. Now that you have some background info on me, what is the answer to the poll question? Obviously, there is no correct answer. I was looking to gather info on a perception more than anything.
I have been able to meet alot of insurance agents by being involved in the industry. My father has spent the past 25 years or so serving on various boards and committes of the Independent Insurance Agents and Brokers of America and has just completed his year as the National President of this organization. Being involved with this locally and traveling with my father has allowed me to meet alot of people in the industry. In general, these are very good people who although they spend time on the golf course can usually be found reading through policies and contracts, serving in a community or industry organization, and taking classes to further their knowledge. Every Trusted Choice Agent makes a pledge of commitments to their clients which you can read here http://bit.ly/bEQN5V.
It's true, insurance isnt the most interesting or attractive industry in the world. But actually, most insurance agents don't get into the industry because they love insurance. They get into the industry because they are usually very diverse people that like to be involved with many different things. For me, the long and competitive hours of prospecting and presenting are generally rewarded with an afternoon of golf or a couple hours in the mountains or on the lake. The late nights of reviewing a contract or returning emails allow us to take a vacation with the family and be there with our children when they have a baseball game. I also enjoy the Exchange Club and other organizations I participate in that allow me to be involved with my community and give back to those who I can help. Yes, we spend long hours studying insurance concepts and forms but in the end it turns out to be a very good job with many benefits. I love insurance because it allows me to meet and work with many outstanding people and gives me the freedom to do the things that I want to do, whatever those things may be.
-Woody Allen
The above quote is a common misperception of how people view Insurance Agents. I thought I would take a minute to address my recent poll results. Hopefully the next one will produce more response. The question was asked.. What are insurance agents likely to be doing when not at work? Unless you know some insurance agents personally it would be hard to say. Let me give my quick insight into the personal life of an insurance agent:
I was introduced to the insurance business by my father who works in my same office right across the hall. If you were to ask most insurance agents why or how they got into this type of work they would very likely tell you that it was a family member. My grandfather started an insurance agency in Ogden, Utah which is run today by my uncle. My father started with them and eventually was offered another opportunity and decided to join another agency. We now have several generations of insurance agents working in the area. I was never pressured into following my father's footsteps into this industry. I think the things that appealed to me were the opportunities to make a good living, the flexibility of an open work schedule, the good people in the business, and the ability to work with and get to know people across all industries and organizations. Now that you have some background info on me, what is the answer to the poll question? Obviously, there is no correct answer. I was looking to gather info on a perception more than anything.
I have been able to meet alot of insurance agents by being involved in the industry. My father has spent the past 25 years or so serving on various boards and committes of the Independent Insurance Agents and Brokers of America and has just completed his year as the National President of this organization. Being involved with this locally and traveling with my father has allowed me to meet alot of people in the industry. In general, these are very good people who although they spend time on the golf course can usually be found reading through policies and contracts, serving in a community or industry organization, and taking classes to further their knowledge. Every Trusted Choice Agent makes a pledge of commitments to their clients which you can read here http://bit.ly/bEQN5V.
It's true, insurance isnt the most interesting or attractive industry in the world. But actually, most insurance agents don't get into the industry because they love insurance. They get into the industry because they are usually very diverse people that like to be involved with many different things. For me, the long and competitive hours of prospecting and presenting are generally rewarded with an afternoon of golf or a couple hours in the mountains or on the lake. The late nights of reviewing a contract or returning emails allow us to take a vacation with the family and be there with our children when they have a baseball game. I also enjoy the Exchange Club and other organizations I participate in that allow me to be involved with my community and give back to those who I can help. Yes, we spend long hours studying insurance concepts and forms but in the end it turns out to be a very good job with many benefits. I love insurance because it allows me to meet and work with many outstanding people and gives me the freedom to do the things that I want to do, whatever those things may be.
Tuesday, February 15, 2011
ALL IN
What do you think of when you hear the term "All In"? I think of a poker player who is so confident in his ability to win a hand that he is willing to put all of his chips on the line. I also think of an entrepreneur who is so confident in his ability to make his business work that he is willing to put all of his resources and the livelihood of his family on the line to make it happen. There are many people in our business community who have committed everything to building a successful business. This is what it takes. You have to be "all in". There are many factors we can control when it comes to building a successful business such as hard work, providing good service, fulfilling a need, developing good products, and hiring quality people. Essentially, we are able to choose the hand we are dealt. That is what makes our country great. Every single person has this opportunity to bring something innovative and new to the table and build a successful enterprise. However, there are a lot of people who are not willing to put it all on the line.
There are certain risks that we have no control over which scare people away from seizing the opportunity to go "all in". We sometimes get caught up in thinking: What happens if I go all in then my building burns down? What if I hire the wrong person who steals money out of my company and sabotages the organization? What if someone sues me because I did something wrong or didn't perform my work perfectly? What if my products are no good and cause damage to someone of something? What if an earthquake or other natural disaster puts me out of business?
Fortunately, there are insurance answers for these questions. This is why we buy insurance. Sometimes after several years of running a successful business and never having to deal with something going wrong, we start to think that we are somewhat invincible and that all those things we worried about when we started the business are no longer a threat to us. So we start to cut back on our insurance spending, commit to larger deductibles that we may or may not be able to meet, and shop our policies so competitively that we take the value of a quality agent out of the picture because we no longer need someone looking out for us. All of a sudden, we just want the lowest premiums attached to somewhat decent service so we can get our insurance certificates to the people that request them. When was the last time you sat down with your insurance agent and discussed every business exposure you could think of and looked at insurance options before deciding to retain those risks or transfer them to an insurer? When you let a new agent work on your insurance, are you looking for a lower price on the same product or are you looking for what they can bring to the table as far as advice, knowledge, and superior service?
If you are "all in" with your business as many people are these days, let's get back to the basics. Let's make sure you are properly insured. Let's make sure you know what your exposures are and what options you have. Let's make sure you know what risks you can and can't afford to retain. Let's make sure you are getting the knowledge and advice you deserve from your insurance agent. Please give me a call if you feel like it would be valuable to you to have an in-depth discussion on protecting your business assets and liabilities. If you are a client of mine, let’s spend a little extra time this next year discussing your options as we always do but taking some time to brainstorm and think about the things we might have missed or haven’t discussed before. I would encourage everyone to go “all in” because that is where success is found; but don’t do it without knowing what your uncontrollable risks are and creating a plan to protect yourself.
There are certain risks that we have no control over which scare people away from seizing the opportunity to go "all in". We sometimes get caught up in thinking: What happens if I go all in then my building burns down? What if I hire the wrong person who steals money out of my company and sabotages the organization? What if someone sues me because I did something wrong or didn't perform my work perfectly? What if my products are no good and cause damage to someone of something? What if an earthquake or other natural disaster puts me out of business?
Fortunately, there are insurance answers for these questions. This is why we buy insurance. Sometimes after several years of running a successful business and never having to deal with something going wrong, we start to think that we are somewhat invincible and that all those things we worried about when we started the business are no longer a threat to us. So we start to cut back on our insurance spending, commit to larger deductibles that we may or may not be able to meet, and shop our policies so competitively that we take the value of a quality agent out of the picture because we no longer need someone looking out for us. All of a sudden, we just want the lowest premiums attached to somewhat decent service so we can get our insurance certificates to the people that request them. When was the last time you sat down with your insurance agent and discussed every business exposure you could think of and looked at insurance options before deciding to retain those risks or transfer them to an insurer? When you let a new agent work on your insurance, are you looking for a lower price on the same product or are you looking for what they can bring to the table as far as advice, knowledge, and superior service?
If you are "all in" with your business as many people are these days, let's get back to the basics. Let's make sure you are properly insured. Let's make sure you know what your exposures are and what options you have. Let's make sure you know what risks you can and can't afford to retain. Let's make sure you are getting the knowledge and advice you deserve from your insurance agent. Please give me a call if you feel like it would be valuable to you to have an in-depth discussion on protecting your business assets and liabilities. If you are a client of mine, let’s spend a little extra time this next year discussing your options as we always do but taking some time to brainstorm and think about the things we might have missed or haven’t discussed before. I would encourage everyone to go “all in” because that is where success is found; but don’t do it without knowing what your uncontrollable risks are and creating a plan to protect yourself.
Tuesday, January 18, 2011
Termination Mistakes to Avoid- EPLI Insurance
Shared by Employers Advisor Network (slightly modified), here are a few reasons why employers lose when taken to court by an employee. Good to be aware of and think about these things:
1. The Jury Pool- It is likely that the jurors have never held an Executive or Managerial position. As a result, the jury box generally consists of people who will judge your company from the perspective of the employee rather than the employer. Many employees tend to have an "all bosses are villains and all employees are victims" mentality.
2. Employers focus on justifying rather than taking responsibility. When we make a mistake we should admit it and try our best to render a solution.
3. Failure to document- Judges and juries expect to see proof. If you ever have any question about an employee you should document everything. Poor performance, failure to comply, attempts to work it out, etc. This will go a long ways in swinging the votes.
4. Inconsistency- Do your best to treat all employees the same. Inconsistency in how you have treated people within your company will create distrust.
5. Somebody gets caught lying- Employers will often ignore, bury, or deny conduct that they consider to be potentially damaging. If the plaintiff finds out about a lie it could be potentially devastating. It is best to get everything out in the open and work from there.
6. They never received or signed an agreement- Failure to create and retain and employee/employer agreement can lead to potential problems. An agreement should set forth rules of conduct, expectations, pay, hiring/firing procedures, disciplinary actions, etc. and should be retained on file for all employees and former employees.
7. Being overly agressive- When presenting a case it is best to present both sides of the issue fairly rather than attacking the other side from the get-go.
The fact is, there are many more ways to lose at trial. Employers are the underdog. Even if you win, you are losing a substantial amount of time and money in defense. If you lose a case, it can be real big. The best defense is to have strategies and tools in place designed to prevent the filing of claims in the first place. Purchasing Employment Practices Liability Insurance is a great way of transferring this risk. Most insurance carriers that sell this insurance will make recommendations and help implement proper strategy. A litigious society puts all businesses big or small at risk.
1. The Jury Pool- It is likely that the jurors have never held an Executive or Managerial position. As a result, the jury box generally consists of people who will judge your company from the perspective of the employee rather than the employer. Many employees tend to have an "all bosses are villains and all employees are victims" mentality.
2. Employers focus on justifying rather than taking responsibility. When we make a mistake we should admit it and try our best to render a solution.
3. Failure to document- Judges and juries expect to see proof. If you ever have any question about an employee you should document everything. Poor performance, failure to comply, attempts to work it out, etc. This will go a long ways in swinging the votes.
4. Inconsistency- Do your best to treat all employees the same. Inconsistency in how you have treated people within your company will create distrust.
5. Somebody gets caught lying- Employers will often ignore, bury, or deny conduct that they consider to be potentially damaging. If the plaintiff finds out about a lie it could be potentially devastating. It is best to get everything out in the open and work from there.
6. They never received or signed an agreement- Failure to create and retain and employee/employer agreement can lead to potential problems. An agreement should set forth rules of conduct, expectations, pay, hiring/firing procedures, disciplinary actions, etc. and should be retained on file for all employees and former employees.
7. Being overly agressive- When presenting a case it is best to present both sides of the issue fairly rather than attacking the other side from the get-go.
The fact is, there are many more ways to lose at trial. Employers are the underdog. Even if you win, you are losing a substantial amount of time and money in defense. If you lose a case, it can be real big. The best defense is to have strategies and tools in place designed to prevent the filing of claims in the first place. Purchasing Employment Practices Liability Insurance is a great way of transferring this risk. Most insurance carriers that sell this insurance will make recommendations and help implement proper strategy. A litigious society puts all businesses big or small at risk.
Monday, January 17, 2011
Commercial Property
I was lucky enough to be able to spend the last half of last week in a Commercial Property insurance course and just wanted to address some issues that some of you might find to be of value.
1. Now days, some Agents are looking for an easy way out and writing business on a Business Owners Policy for those types of business that can fit under this form of insurance. Basically, it was originally designed for small businesses to give property and general liability coverage with some built in features that make it easy to manage. It is usually a less expensive way to get some great coverage. Well, since the insurance market has become so competitive over the past couple years, many companies have expanded their guidelines to write this type of policy for larger businesses. Sometimes up to $20m in sales. While there is generally nothing wrong with the policy, it can be very limiting in coverage if it is not endorsed correctly for the needs of your business. In other words, if the agent doesn't take the time to find out what limits and coverages you need, then you are getting coverage limits designed for small business which might not meet your needs even though you fit into the program.
2. Do you know what types of claims are excluded from your commercial property insurance? Standard policy forms generally exclude the following:
Earthquake, Flood, Property Away From Premise, Property of Others in your Care, Custody, or Control, Ordinance or Law, Vacancy (certain exclusions along with penalties for properties vacant >60 days), Employee Dishonesty, etc.
The reason for most exclusions on the commercial property forms is because there is generally a different policy designed to cover these items which requires its own specific underwriting. There can be big differences in the insurance companies policy forms as far as what they include and what has been removed from the policy. For price shoppers, this is really something to consider because with insurance as with most anything else, you usually get what you pay for. Insurance rates are down significantly so if your premiums are down, don't assume that you are losing coverage- that is not my point here. More than anything, if your looking for a better price, BE CAREFUL. A good quote that has to do with comparing your insurance (or anything else for that matter) solely on price:
It’s Unwise to pay too much…
But it’s worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run. And if you do that, you will have enough to pay for something better.
- John Ruskin
Remember, the best way for me to do my job is to know your business. A couple hours spent every six months or one year along with constant communication about changes, operations, etc. will go along way in helping me do my job as an insurance agent. Additionally, this is why a long-term business relationship with your insurance agent can be valuable to you. Let's spend more time talking about your exposures and what types of policy options we can provide you with to meet your needs. Keep in mind that not all risks are going to be worth it to you to transfer to an insurance company, but you ought to have the information so you can make those decisions as an Owner or Executive.
1. Now days, some Agents are looking for an easy way out and writing business on a Business Owners Policy for those types of business that can fit under this form of insurance. Basically, it was originally designed for small businesses to give property and general liability coverage with some built in features that make it easy to manage. It is usually a less expensive way to get some great coverage. Well, since the insurance market has become so competitive over the past couple years, many companies have expanded their guidelines to write this type of policy for larger businesses. Sometimes up to $20m in sales. While there is generally nothing wrong with the policy, it can be very limiting in coverage if it is not endorsed correctly for the needs of your business. In other words, if the agent doesn't take the time to find out what limits and coverages you need, then you are getting coverage limits designed for small business which might not meet your needs even though you fit into the program.
2. Do you know what types of claims are excluded from your commercial property insurance? Standard policy forms generally exclude the following:
Earthquake, Flood, Property Away From Premise, Property of Others in your Care, Custody, or Control, Ordinance or Law, Vacancy (certain exclusions along with penalties for properties vacant >60 days), Employee Dishonesty, etc.
The reason for most exclusions on the commercial property forms is because there is generally a different policy designed to cover these items which requires its own specific underwriting. There can be big differences in the insurance companies policy forms as far as what they include and what has been removed from the policy. For price shoppers, this is really something to consider because with insurance as with most anything else, you usually get what you pay for. Insurance rates are down significantly so if your premiums are down, don't assume that you are losing coverage- that is not my point here. More than anything, if your looking for a better price, BE CAREFUL. A good quote that has to do with comparing your insurance (or anything else for that matter) solely on price:
It’s Unwise to pay too much…
But it’s worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run. And if you do that, you will have enough to pay for something better.
- John Ruskin
Remember, the best way for me to do my job is to know your business. A couple hours spent every six months or one year along with constant communication about changes, operations, etc. will go along way in helping me do my job as an insurance agent. Additionally, this is why a long-term business relationship with your insurance agent can be valuable to you. Let's spend more time talking about your exposures and what types of policy options we can provide you with to meet your needs. Keep in mind that not all risks are going to be worth it to you to transfer to an insurance company, but you ought to have the information so you can make those decisions as an Owner or Executive.
Saturday, January 15, 2011
Protect Your D's and O's
Oh yes, Directors and Officers. Why would I buy D&O Insurance?
The basic principle is that companies and their shareholders are best served by knowledgeable Directors and Officers who take strategic risks based on the information that is reasonably available to them at the time the decision is made, without the threat of personal liability. But what about the Business Judgement Rule? Won’t that protect me?
From the Utah Division of Corporations and Commercial Code, “Directors and officers must act within their authority and within the powers given to the corporation. They also have the duty to act with due care. Their duty of loyalty requires them to act in the best interests of the corporation as a whole. Most management actions are protected from judicial scrutiny by the business judgement rule: absent bad faith, fraud, or breach of a fiduciary duty.” As practical as that proposition may sound, it is still within the power of states and individual companies to deny such executives indemnification for claims that arise out of their well intended efforts. As a result, D&O insurance exists.
The most sought after D&O’s are concerned with the quality of a companies insurance program because under state law, their personal assets are at risk as well as their hard earned reputation. Therefore, companies with quality D&O coverage are most suited to attract the best directors and officers to serve the corporation. D&O insurance is usually purchased by the company itself even when it is for the sole benefit of the Directors and Officers.
In terms of basic state corporate law (at least in the U.S.A.), directors and officers of a corporation can be liable if they damage the corporation by breaching their duties and contracts to the corporation, mix personal and business assets, or fail to disclose conflicts of interest. Even innocent errors in judgement by an executive can bring D&O insurance to the forefront of the matter in defending and settling the claims.
My purpose in this post is not to go into the various claim scenarios, policies available, exclusions, etc. but to make you aware of this risk (mainly pertaining to any corporation). There are many insurance products out there for D&O coverage and some include a package of other coverages as well that would maybe include Employment Practices, Crime, Fiduciary Liability, Workplace Violence, or others.
The basic principle is that companies and their shareholders are best served by knowledgeable Directors and Officers who take strategic risks based on the information that is reasonably available to them at the time the decision is made, without the threat of personal liability. But what about the Business Judgement Rule? Won’t that protect me?
From the Utah Division of Corporations and Commercial Code, “Directors and officers must act within their authority and within the powers given to the corporation. They also have the duty to act with due care. Their duty of loyalty requires them to act in the best interests of the corporation as a whole. Most management actions are protected from judicial scrutiny by the business judgement rule: absent bad faith, fraud, or breach of a fiduciary duty.” As practical as that proposition may sound, it is still within the power of states and individual companies to deny such executives indemnification for claims that arise out of their well intended efforts. As a result, D&O insurance exists.
The most sought after D&O’s are concerned with the quality of a companies insurance program because under state law, their personal assets are at risk as well as their hard earned reputation. Therefore, companies with quality D&O coverage are most suited to attract the best directors and officers to serve the corporation. D&O insurance is usually purchased by the company itself even when it is for the sole benefit of the Directors and Officers.
In terms of basic state corporate law (at least in the U.S.A.), directors and officers of a corporation can be liable if they damage the corporation by breaching their duties and contracts to the corporation, mix personal and business assets, or fail to disclose conflicts of interest. Even innocent errors in judgement by an executive can bring D&O insurance to the forefront of the matter in defending and settling the claims.
My purpose in this post is not to go into the various claim scenarios, policies available, exclusions, etc. but to make you aware of this risk (mainly pertaining to any corporation). There are many insurance products out there for D&O coverage and some include a package of other coverages as well that would maybe include Employment Practices, Crime, Fiduciary Liability, Workplace Violence, or others.
Wednesday, January 12, 2011
Umbrella Policy
Here are a couple thoughts on the Commercial Umbrella Policy. This is a policy that most businesses carry because some agent told them it was good to have and most of the businesses they communicate with have one as well. But do you know what the purpose of it is? Do you know how big it should be? Do you know how it works? Try to picture in your mind an actual umbrella that protects you from the rain and I think we might use this to paint a mental picture of how this policy functions.
First, you only use it when it rains. When the sprinkles turn to rain drops, then to hail, it's time to pull out the umbrella and protect yourself. When you find your business in the middle of a lawsuit that could settle for far more than your underlying insurance limits, this is where the umbrella policy kicks in. It provides extra limits on top of your standard liability limits (Most commonly $1 million per occurence).
Second, how much do you need to protect? Are you by yourself in the rain or do you have your family of 8 with you? A Commercial Umbrella policy can be as large as you want it to be. The good news is, the first million is always the most expensive. Beyond that, it gets cheaper for each additional million $ in coverage you choose to add. What it comes down to is: What is at stake? How much is the business worth? Beyond what point are you willing to take on the risk? Sometimes I refer to the Umbrella Policy as sleep insurance. You can sleep well at night knowing that whatever claim may be brought against you will be sufficiently covered and settled by your insurance company. Ideally, you would carry an umbrella big enough to protect the whole family.
Last and MOST IMPORTANT...Pay attention here...This is something that is frequently misunderstood. The insurance company that writes the Umbrella policy first looks at what the underlying protection is and requires that the full limits of that underlying protection be in place at the inception of this policy. So, as a business owner, the first thing you should do is have the same annual date on ALL of your commercial policies. This is something that is frequently misunderstood because most agents don't take the time to explain the ramifications of moving an effective date to improve your pricing on one piece of the pie. They just want the pie. I won't go into all the examples of why this could be a problem but I am happy to explain individually in more detail. The other thing is that all of your insurance policies should be with the same insurance carrier whenever possible. One example:
X Insurance Company underwrites a Commercial Umbrella Policy. They agree to write a $5 million umbrella policy over the underlying coverages already quoted by their own company. These underlying coverages might include General Liability, Auto Liability, Employer Benefit Liability, Professional Liability, etc. They have agreed to write the Umbrella policy based on the fact that they know the terms & conditions of the underlying insurance because it is also written by their company. The Umbrella policy is written under the assumption that these specific underlying coverages will be maintained throughout the policy period. Local Business enters into an agreement with X insurance company to provide all this insurance. 6 months later, here comes Stud insurance agent. Stud promises Local Business that he can save them 20% on their Commercial Auto insurance. The owner decides that sounds pretty good and allows Stud to bring them some quotes. The next day, Stud shows up with a quote for the Auto insurance and sure enough, he has lowered the price dramatically. The owner decides it is his best option to cancel his current policy with X Insurance half way through the year and move this piece of the insurance business. Stud is thrilled because he just picked up a piece of business and is walking away with his commission.
Here's what Stud never explained to the owner about moving this policy: The limits may have been slightly modified to bring premiums down, the terms and conditions with his company are different than those written by X Insurance, the financial rating is slightly different, the deductibles have changed a little bit, etc. So what happens when Local Business has a huge Auto claim 3 months later and tries to use the limits of their $5 million Umbrella Policy? Remember the conditions under which the policy was originally written? These additional limits of protection will no longer be available above the limits of the Auto policy.
Unfortunately, these are the types of things that all to often go unexplained to a business owner. The owner gets sucked in by low rates without considering the drawbacks because they don't understand insurance contracts. This is why you have an insurance agent that is a trusted advisor instead of a "Stud". This is why you should look for an agent that will openly discuss and take time to explain these things to you. This is one of the many, many examples of why you shouldn't make decisions about your business insurance solely based on price.
First, you only use it when it rains. When the sprinkles turn to rain drops, then to hail, it's time to pull out the umbrella and protect yourself. When you find your business in the middle of a lawsuit that could settle for far more than your underlying insurance limits, this is where the umbrella policy kicks in. It provides extra limits on top of your standard liability limits (Most commonly $1 million per occurence).
Second, how much do you need to protect? Are you by yourself in the rain or do you have your family of 8 with you? A Commercial Umbrella policy can be as large as you want it to be. The good news is, the first million is always the most expensive. Beyond that, it gets cheaper for each additional million $ in coverage you choose to add. What it comes down to is: What is at stake? How much is the business worth? Beyond what point are you willing to take on the risk? Sometimes I refer to the Umbrella Policy as sleep insurance. You can sleep well at night knowing that whatever claim may be brought against you will be sufficiently covered and settled by your insurance company. Ideally, you would carry an umbrella big enough to protect the whole family.
Last and MOST IMPORTANT...Pay attention here...This is something that is frequently misunderstood. The insurance company that writes the Umbrella policy first looks at what the underlying protection is and requires that the full limits of that underlying protection be in place at the inception of this policy. So, as a business owner, the first thing you should do is have the same annual date on ALL of your commercial policies. This is something that is frequently misunderstood because most agents don't take the time to explain the ramifications of moving an effective date to improve your pricing on one piece of the pie. They just want the pie. I won't go into all the examples of why this could be a problem but I am happy to explain individually in more detail. The other thing is that all of your insurance policies should be with the same insurance carrier whenever possible. One example:
X Insurance Company underwrites a Commercial Umbrella Policy. They agree to write a $5 million umbrella policy over the underlying coverages already quoted by their own company. These underlying coverages might include General Liability, Auto Liability, Employer Benefit Liability, Professional Liability, etc. They have agreed to write the Umbrella policy based on the fact that they know the terms & conditions of the underlying insurance because it is also written by their company. The Umbrella policy is written under the assumption that these specific underlying coverages will be maintained throughout the policy period. Local Business enters into an agreement with X insurance company to provide all this insurance. 6 months later, here comes Stud insurance agent. Stud promises Local Business that he can save them 20% on their Commercial Auto insurance. The owner decides that sounds pretty good and allows Stud to bring them some quotes. The next day, Stud shows up with a quote for the Auto insurance and sure enough, he has lowered the price dramatically. The owner decides it is his best option to cancel his current policy with X Insurance half way through the year and move this piece of the insurance business. Stud is thrilled because he just picked up a piece of business and is walking away with his commission.
Here's what Stud never explained to the owner about moving this policy: The limits may have been slightly modified to bring premiums down, the terms and conditions with his company are different than those written by X Insurance, the financial rating is slightly different, the deductibles have changed a little bit, etc. So what happens when Local Business has a huge Auto claim 3 months later and tries to use the limits of their $5 million Umbrella Policy? Remember the conditions under which the policy was originally written? These additional limits of protection will no longer be available above the limits of the Auto policy.
Unfortunately, these are the types of things that all to often go unexplained to a business owner. The owner gets sucked in by low rates without considering the drawbacks because they don't understand insurance contracts. This is why you have an insurance agent that is a trusted advisor instead of a "Stud". This is why you should look for an agent that will openly discuss and take time to explain these things to you. This is one of the many, many examples of why you shouldn't make decisions about your business insurance solely based on price.
Tuesday, January 4, 2011
A NEW YEAR
AS FAR AS WORK GOES, THIS IS MY FAVORITE TIME OF YEAR- THE FIRST OF JANUARY. IT MEANS NEW OPPORTUNITIES, NEW GOALS, AND A FRESH MARKET. EVERY BUSINESS WILL DEAL WITH THEIR INSURANCE SOMETIME IN 2011 AND HOPEFULLY THIS MEANS MORE OPPORTUNITIES FOR ME TO DO MY JOB AND PROVIDE ASSISTANCE IN THIS PROCESS. I AM REALLY LOOKING FORWARD TO THIS YEAR AS I AM ENTERING MY FOURTH YEAR IN THE INSURANCE INDUSTRY AND THIRD AS AN AGENT.
I ALSO LOOK FORWARD TO MEETINGS WITH MY CLIENTS AND MORE OPPORTUNITIES TO HELP THEM THROUGHOUT THIS YEAR AS THEY DEAL WITH CHALLENGES AND CHANGES IN THEIR BUSINESSES. I HOPE THAT THOSE OF YOU WHO READ MY BLOG WILL CONTINUE TO DO SO AS I STRIVE TO USE IT AS AN AVENUE OF FEEDING INFORMATION TO YOU AT YOUR CONVENIENCE. I WILL THEN BE ABLE TO BETTER SERVE YOU AS WE DISCUSS ANY QUESTIONS OR TOPICS IN FURTHER DETAIL AT OUR MEETINGS.
I WISH YOU ALL A VERY HAPPY AND SUCCESSFUL NEW YEAR!!
I ALSO LOOK FORWARD TO MEETINGS WITH MY CLIENTS AND MORE OPPORTUNITIES TO HELP THEM THROUGHOUT THIS YEAR AS THEY DEAL WITH CHALLENGES AND CHANGES IN THEIR BUSINESSES. I HOPE THAT THOSE OF YOU WHO READ MY BLOG WILL CONTINUE TO DO SO AS I STRIVE TO USE IT AS AN AVENUE OF FEEDING INFORMATION TO YOU AT YOUR CONVENIENCE. I WILL THEN BE ABLE TO BETTER SERVE YOU AS WE DISCUSS ANY QUESTIONS OR TOPICS IN FURTHER DETAIL AT OUR MEETINGS.
I WISH YOU ALL A VERY HAPPY AND SUCCESSFUL NEW YEAR!!
Wednesday, December 1, 2010
A Nice Note From A Client Today
I really appreciate the occasional notes of acknowledgement I get from my insured's. I really need to do a better job of sending the same kind of notes to those who work hard for me.
"Thank you for following up on this. I appreciate the professional manner Blake and yourself handled this with our insurance company. You fought for our little business. In addition, Blake went a long way in educating me (your client) about our coverage, gave me (your client) options on how to go forward, shift coverage and still get the protection we need. In short, I am a grateful customer."
"Thank you for following up on this. I appreciate the professional manner Blake and yourself handled this with our insurance company. You fought for our little business. In addition, Blake went a long way in educating me (your client) about our coverage, gave me (your client) options on how to go forward, shift coverage and still get the protection we need. In short, I am a grateful customer."
GENERAL LIABILITY TO THE "T"
Most business owners and professional service providers purchase General Liability insurance because it is a very common requirement that they have it by the people they do business with. How many people actually understand General Liability insurance and what it is for?? I want to take a minute to walk through an example which will hopefully help us all understand it a little better. I think if we understand it a little better then we might have a greater appreciation for it, which will also help us to know why it can be so dang expensive!
For my made up example, I am going to use John's Manufacturing Co. John manufactures children's toys and ships them to various distribution outlets. EVERYBODY John wants to do business with is requiring him to provide them a certificate of insurance for General Liability which includes Products and Completed Operations. The retail outlets that sell his goods want to be Additional Insureds on John's policy. John has never had any problems with any of his toys and has never had a single complaint. So, let's address some of the questions as to why John needs to have this policy in place.
What does the General Liability policy cover?
This policy protects John's Manufacturing Company againt Bodily Injury or Property Damage arising out of his operations. Generally, defense costs are outside the limits of insurance so any claim or lawsuit that is brought against John's Manufacturing Co. for Bodily Injury or Property Damage will be defended by his insurance company until settled. Any idea how much those defense costs alone can add up to?? Then, any settlements will reduce his limits for the policy year accordingly.
Nothing has ever happened before. What could possibly go wrong? Here are a few scenarios:
A school class visits John's Manufacturing facility on a field trip. While touring the buildings, one of the students is badly burned by a piece of equipment. The students family brings a lawsuit against John's Manufacturing. This type of injury could happen at any business to any visitor. A slip and fall, a negligent employee, failure to block access to a dangerous area, etc. Your premises can be a huge liability exposure for your company.
A child is poisened by a chemical used in the paint on the toys and the family brings a lawsuit against John's Manufacturing because of the unsafe product. Does your business have any products/completed operations that could potentially harm somebody?
John hires an electrician to update some wiring in his building. During the process, the electrician starts a fire which burns a large portion of the neighboring building which belongs to another business. The other business sues the electrician AND John's Manufacturing for their damages. John's insurance company will defend him in this circumstance until a settlement is made. Is what might happen is that the business sues the electrician but finds out that they dont have proper insurance or their insurance is insufficient, then they drag John's Manufacturing into the lawsuit. This is where the importance of hiring quality subcontractors comes into play and getting insurance certificates from them naming you as an Additional Insured if they are going to perform some work or provide some product on your behalf. This is why we are all required by the people we do business with to carry our own insurance!
I hope this helps clarify the General Liability policy a little bit. I am happy to answer any questions or discuss certain circumstances with you individually anytime. Truth is, there is a wide range of exposures for any business or individual that provides a product or service. The examples are endless and some of the lawsuits/settlements that go through an insurance carrier would amaze you. Remember, your business and all of it's assets are at stake and in some instances you can personally be liable in these situations. As a side note, an Umbrella policy provides excess limits to your insurance policy in the event that you have a huge claim or your base limits are exhausted. It is not uncommon for us to insure our business clients with a $5,000,000 Umbrella Policy on top of their $1m/$2m General Liability limits but these Umbrella's can go up to whatever limits make you feel comfortable.
For my made up example, I am going to use John's Manufacturing Co. John manufactures children's toys and ships them to various distribution outlets. EVERYBODY John wants to do business with is requiring him to provide them a certificate of insurance for General Liability which includes Products and Completed Operations. The retail outlets that sell his goods want to be Additional Insureds on John's policy. John has never had any problems with any of his toys and has never had a single complaint. So, let's address some of the questions as to why John needs to have this policy in place.
What does the General Liability policy cover?
This policy protects John's Manufacturing Company againt Bodily Injury or Property Damage arising out of his operations. Generally, defense costs are outside the limits of insurance so any claim or lawsuit that is brought against John's Manufacturing Co. for Bodily Injury or Property Damage will be defended by his insurance company until settled. Any idea how much those defense costs alone can add up to?? Then, any settlements will reduce his limits for the policy year accordingly.
Nothing has ever happened before. What could possibly go wrong? Here are a few scenarios:
A school class visits John's Manufacturing facility on a field trip. While touring the buildings, one of the students is badly burned by a piece of equipment. The students family brings a lawsuit against John's Manufacturing. This type of injury could happen at any business to any visitor. A slip and fall, a negligent employee, failure to block access to a dangerous area, etc. Your premises can be a huge liability exposure for your company.
A child is poisened by a chemical used in the paint on the toys and the family brings a lawsuit against John's Manufacturing because of the unsafe product. Does your business have any products/completed operations that could potentially harm somebody?
John hires an electrician to update some wiring in his building. During the process, the electrician starts a fire which burns a large portion of the neighboring building which belongs to another business. The other business sues the electrician AND John's Manufacturing for their damages. John's insurance company will defend him in this circumstance until a settlement is made. Is what might happen is that the business sues the electrician but finds out that they dont have proper insurance or their insurance is insufficient, then they drag John's Manufacturing into the lawsuit. This is where the importance of hiring quality subcontractors comes into play and getting insurance certificates from them naming you as an Additional Insured if they are going to perform some work or provide some product on your behalf. This is why we are all required by the people we do business with to carry our own insurance!
I hope this helps clarify the General Liability policy a little bit. I am happy to answer any questions or discuss certain circumstances with you individually anytime. Truth is, there is a wide range of exposures for any business or individual that provides a product or service. The examples are endless and some of the lawsuits/settlements that go through an insurance carrier would amaze you. Remember, your business and all of it's assets are at stake and in some instances you can personally be liable in these situations. As a side note, an Umbrella policy provides excess limits to your insurance policy in the event that you have a huge claim or your base limits are exhausted. It is not uncommon for us to insure our business clients with a $5,000,000 Umbrella Policy on top of their $1m/$2m General Liability limits but these Umbrella's can go up to whatever limits make you feel comfortable.
Monday, November 29, 2010
Getting To Know Me...
I have read a lot of biographies, self-development and business books over the years and just wanted to put down a few things I have learned and share a little bit about myself. It may not be worth much to you but it is a good way of reminding me of the things I should be doing to build a profitable book of business and create valuable relationships along the way. Also, hopefully by getting to know me a little bit we can find more common ground and it will give me an opportunity to know you better as well. I dont want to be seen as some insurance freak that reads policies all day :) Please feel free to comment and add your business insights and philosophies and share your interests also!
1) "Never Eat Alone" This is a book I read by Keith Ferazzi about building your network. This has been a hard thing for me to do but one way I have been able to use it is by trying to attend a lunch group at least once a week. For me, these groups include Exchange Club, WSU roundball, Rotary, local business presentations, etc. I find that I am able to spend about an hour of quality time with people who have some of my same interests and who are generally eager to stay in contact and help each other in our business endeavors.
2) Never burn bridges. This can be difficult when you get to the end of a conversation with a long-term client who is ending the relationship because they found a better price or some other reason. My theory has been and always will be that I should respect my clients decisions and try my best to continue our relationship whether I get their business or not. For me, it isnt about business so much as it is about people. Nevertheless, I know that a clients business has to be earned each and every year and am committed to doing everything in my power to keep my clients and provide the best price and service possible. Sometimes when you lose a client it is only a matter of time before they come back seeking your help. If you act bitter and upset about their decision then chances are they won't ever be coming back.
3) Apply your knowledge. Many of us spend countless hours studying our trade and trying to become experts in our industry but when it comes down to finding new business we end up doing as little as possible to close the deal. What happens when we apply our knowledge and spend adequate time analyzing and making recommendations for our prospects? We win. The amount of effort you put into a proposal will clearly show during the presentation. Rather than getting the specs and quoting, we need to spend more time analyzing, making recommendations, asking questions, negotiating, and understanding the agreements if we are to truly bring value to our clientele.
4) "The Golden Rule". We all know what it is, but do we apply it in our business transactions? Do we value relationships, service, expertise, and credibility instead of focusing only on the price? I find it difficult when I am buying a new car or a house or negotiating my cable bill to try to suck every dollar I possibly can out of my provider. I understand that they need to make a profit also and I seek a fair price based on the options available to me. I hope that my clients accept this principle as well because I cant always guarantee that there isnt some unknown or overlooked insurance company that will pop up out of nowhere and beat my price. I normally make suggestions to my clients after reviewing a number of viable and competitive options and it may not always be the one with the lowest price.
5) Hard Work. There really is no substitute for putting in the hours, making the phone calls, meticulously reviewing proposals and quotes, responding to emails, making yourself available, seeking others opinions, understanding the marketplace, providing excellent service, going the extra mile, and giving your all. Day in and day out there are no excuses. This is what it takes to be successful in any economy. I am a firm believer that the harder I work the luckier I get. It always takes a little luck but that luck is usually a direct product of doing everything in my power to make it happen.
6) Have Fun. For me, work is fun for the most part but it cannot fill this need. I have decided that I need to take a break every once in a while to go on vacation, spend time with my family, or take an occasional day off so I can be my best self when I am in the office. I like to know what my clients do for fun so we have things to talk about besides insurance when we get together. I find that it is generally pretty easy to find common interests with people and it makes working with them much more enjoyable knowing that they are real people and not 100% business all the time.
Here are a few of my interests you may not be aware of. If you have some of these same interests, let's talk about it the next time we get together!
I am an avid exerciser, I played golf in high school, I served a church mission for 2 years in El Salvador, I lived in Puerto Rico for 5 months selling home security, I like to play/watch any sport, I am a snowboarder and a skiier, I love to boat in the summertime, I love to travel and have been fortunate to visit many states and other countries including: Mexico, Canada, Peru, UAE, and India. I like to hunt and fish. I like to read business books, american history, and biographies. I enjoy Utah and BYU athletics but at heart I am a Weber State Wildcat! Most of all I like spending time with my wife and my 10 nieces and nephews.
I am generally an open book. I like to be completely honest with my clients about who I am and what I can do for them. I do not use shady sales tactics and I would never hesitate to answer a client's phone call. I don't always have every answer immediately but I can always find the answer. I dont overpromise or always say what you want to hear but I can back up my words every time.
1) "Never Eat Alone" This is a book I read by Keith Ferazzi about building your network. This has been a hard thing for me to do but one way I have been able to use it is by trying to attend a lunch group at least once a week. For me, these groups include Exchange Club, WSU roundball, Rotary, local business presentations, etc. I find that I am able to spend about an hour of quality time with people who have some of my same interests and who are generally eager to stay in contact and help each other in our business endeavors.
2) Never burn bridges. This can be difficult when you get to the end of a conversation with a long-term client who is ending the relationship because they found a better price or some other reason. My theory has been and always will be that I should respect my clients decisions and try my best to continue our relationship whether I get their business or not. For me, it isnt about business so much as it is about people. Nevertheless, I know that a clients business has to be earned each and every year and am committed to doing everything in my power to keep my clients and provide the best price and service possible. Sometimes when you lose a client it is only a matter of time before they come back seeking your help. If you act bitter and upset about their decision then chances are they won't ever be coming back.
3) Apply your knowledge. Many of us spend countless hours studying our trade and trying to become experts in our industry but when it comes down to finding new business we end up doing as little as possible to close the deal. What happens when we apply our knowledge and spend adequate time analyzing and making recommendations for our prospects? We win. The amount of effort you put into a proposal will clearly show during the presentation. Rather than getting the specs and quoting, we need to spend more time analyzing, making recommendations, asking questions, negotiating, and understanding the agreements if we are to truly bring value to our clientele.
4) "The Golden Rule". We all know what it is, but do we apply it in our business transactions? Do we value relationships, service, expertise, and credibility instead of focusing only on the price? I find it difficult when I am buying a new car or a house or negotiating my cable bill to try to suck every dollar I possibly can out of my provider. I understand that they need to make a profit also and I seek a fair price based on the options available to me. I hope that my clients accept this principle as well because I cant always guarantee that there isnt some unknown or overlooked insurance company that will pop up out of nowhere and beat my price. I normally make suggestions to my clients after reviewing a number of viable and competitive options and it may not always be the one with the lowest price.
5) Hard Work. There really is no substitute for putting in the hours, making the phone calls, meticulously reviewing proposals and quotes, responding to emails, making yourself available, seeking others opinions, understanding the marketplace, providing excellent service, going the extra mile, and giving your all. Day in and day out there are no excuses. This is what it takes to be successful in any economy. I am a firm believer that the harder I work the luckier I get. It always takes a little luck but that luck is usually a direct product of doing everything in my power to make it happen.
6) Have Fun. For me, work is fun for the most part but it cannot fill this need. I have decided that I need to take a break every once in a while to go on vacation, spend time with my family, or take an occasional day off so I can be my best self when I am in the office. I like to know what my clients do for fun so we have things to talk about besides insurance when we get together. I find that it is generally pretty easy to find common interests with people and it makes working with them much more enjoyable knowing that they are real people and not 100% business all the time.
Here are a few of my interests you may not be aware of. If you have some of these same interests, let's talk about it the next time we get together!
I am an avid exerciser, I played golf in high school, I served a church mission for 2 years in El Salvador, I lived in Puerto Rico for 5 months selling home security, I like to play/watch any sport, I am a snowboarder and a skiier, I love to boat in the summertime, I love to travel and have been fortunate to visit many states and other countries including: Mexico, Canada, Peru, UAE, and India. I like to hunt and fish. I like to read business books, american history, and biographies. I enjoy Utah and BYU athletics but at heart I am a Weber State Wildcat! Most of all I like spending time with my wife and my 10 nieces and nephews.
I am generally an open book. I like to be completely honest with my clients about who I am and what I can do for them. I do not use shady sales tactics and I would never hesitate to answer a client's phone call. I don't always have every answer immediately but I can always find the answer. I dont overpromise or always say what you want to hear but I can back up my words every time.
Thursday, November 18, 2010
IMPROVE YOUR INSURABILITY!
One of the things I try to do for each of my clients is to build a positive insurance profile and summary before submitting the account to an Underwriter. Underwriters LOVE information. They like to see details, descriptions, brochures, contracts, updates, etc. Most importantly, they like to see an ongoing Risk Management program. This shows the insurance company that the owner is doing everything in their power to prevent claims. These are the companies that get the credits and have access to more insurance carriers.
Often times, insurance carriers will offer quotes in certain industries based on their definition of “Best in Class.” For example, they may not typically write a Waste Hauler but if they receive a detailed submission showing the things they want to see, then they will likely consider offering a very competitive quote. Why? Because the truth is that most businesses purchase insurance in lieu of implementing proper risk management. The ones that do implement a quality risk management program will reap insurance rewards. Many insurance companies will request an inspection by an outside agency or send their own before deciding whether to provide a quote on something. So, what are they looking for?
Things to make a building look better to an insurance company include:
• Hard-wired smoke detectors
• Proper handrails and fire escapes
• Child-safe window hardware
• Sidewalks free of major cracks
• Closed fire doors with proper panic hardware
• Well-lit hallways and walkways
• Following regulations for elevators and laundry rooms
• Control of all maintenance issues: Practice good maintenance–no wet floors
• Do routine repairs
• Mold eradication
Make sure your risk profile includes all safety-related improvements in the property such as any alarm systems, security cameras, addition of a doorman, improved lighting, and anything else that makes your building more appealing to an insurance underwriter who can then apply credits for the safety measures taken.
Advise your insurance broker of upgrades and repairs to your building. Upgrades to major systems such as heating, electric, and plumbing greatly improve your risk profile and can present your property better to the insurance company. This may lead to better pricing and broader terms when the insurance companies offer you quotes. Insurance companies show their appreciation to those risks that have improved profiles and ongoing risk management by offering them lower rates and policies with broader terms.
Similar risk management principles apply to Auto Insurance, Workers Compensation, and General Liability. Continued maintenance, proper safety restraints and trainings, quality PR and documentation, etc. will greatly improve your insurability.
Tuesday, November 16, 2010
WHY DO I NEED EMPLOYEE DISHONESTY COVERAGE??
WHAT IS IT?
This insurance protects the employer from financial loss due to the fraudulent activities of an employee or group of employees. The loss can be the result of the employee’s theft of money, securities or other property of the employer.
WHY DO I NEED IT?
Fraud and embezzlement in the workplace is on the rise. The Association of Certified Fraud Examiners (ACFE) estimates business losses $400 billion per year or about 6% of total annual revenue. Small companies can be especially effected by theft and embezzlement because they can’t afford extensive safeguards and aren’t large enough to absorb losses. Workplace crime is carried out by employees 80% of the time. One in four employees who has committed fraud against their employer had been with the company more than ten years.
WHAT DOES IT COVER?
This insurance protects the employer from financial loss due to the fraudulent activities of an employee or group of employees. The loss can be the result of the employee’s theft of money, securities or other property of the employer.
WHY DO I NEED IT?
Fraud and embezzlement in the workplace is on the rise. The Association of Certified Fraud Examiners (ACFE) estimates business losses $400 billion per year or about 6% of total annual revenue. Small companies can be especially effected by theft and embezzlement because they can’t afford extensive safeguards and aren’t large enough to absorb losses. Workplace crime is carried out by employees 80% of the time. One in four employees who has committed fraud against their employer had been with the company more than ten years.
WHAT DOES IT COVER?
Stand alone policies are designed to cover employee thefts, robbery and safe burglaries. Coverage can also include:
1. Forgery or alteration
2. Funds transfer fraud
3. Computer fraud
4. Credit card fraud
5. Money order and counterfeit fraud
On a personal note, My brother in law owns a small business which in many instances requires that you hire one person who you trust to undertake a broad range of responsibilities. In his case, he hired someone who was in charge of paying bills, balancing books, depositing checks, etc. After being employed for several years with his company, they found out that this employee had been stealing money and making unauthorized charges on company credit cards then covering them up with other expenses. This can be a huge devastation for a small business that lives by cash-flow.
In another example, a local trucking company recently found out that their controller has been embezzling money from them for a number of years to the sum of about $1.3 million.
Many times the people who are found stealing money from their employer are people who feel they are very trusted and might feel entitled to more money or benefits. The worst thing an employer could do is assume that they have great employees who would never do anything to harm the company. Employee Dishonesty insurance can help protect you against these financial losses. If you questions about this or would like to discuss ways to ensure proper limits and coverage please contact me!
Sunday, November 7, 2010
phil heath Kai Greene Branch Warren after the 2009 Mr Olympia video phil heath met rx
phil heath
video of phil heath Kai Greene and Branch Warren after the 2009 Mr Olympia, phil heath was unlucky at the 2009 mr olympia due to some illness going into the mr olympia bodybuilding contest.
but aspect to see phil heath pushing for the 2010 mr olympia title and in much better condition then the 2009 mr olympia contest.
phil heath is wearing a met rx t-shirt in the video not sure if phil heath is still sponsored by met rx or not now.
Saturated Fat and Insulin Sensitivity
Insulin sensitivity is a measure of the tissue response to insulin. Typically, it refers to insulin's ability to cause tissues to absorb glucose from the blood. A loss of insulin sensitivity, also called insulin resistance, is a core part of the metabolic disorder that affects many people in industrial nations.
I don't know how many times I've seen the claim in journal articles and on the internet that saturated fat reduces insulin sensitivity. The idea is that saturated fat reduces the body's ability to handle glucose effectively, placing people on the road to diabetes, obesity and heart disease. Given the "selective citation disorder" that plagues the diet-health literature, perhaps this particular claim deserves a closer look.
The Evidence
I found a review article from 2008 that addressed this question (1). I like this review because it only includes high-quality trials that used reliable methods of determining insulin sensitivity*.
On to the meat of it. There were 5 studies in which non-diabetic people were fed diets rich in saturated fat, and compared with a group eating a diet rich in monounsaturated (like olive oil) or polyunsaturated (like corn oil) fat. They ranged in duration from one week to 3 months. Four of the five studies found that fat quality did not affect insulin sensitivity, including one of the 3-month studies.
The fifth study, which is the one that's nearly always cited in the diet-health literature, requires some discussion. This was the KANWU study (2). Over the course of three months, investigators fed 163 volunteers a diet rich in either saturated fat or monounsaturated fat.
What the authors decided to focus on instead is the fact that insulin sensitivity declined slightly but significantly on the saturated fat diet compared with the pre-diet baseline. That's why this study is cited as evidence that saturated fat impairs insulin sensitivity. But anyone who has a basic science background will see where this reasoning is flawed (warning: nerd attack. skip the rest of the paragraph if you're not interested). You need a control group for comparison, to take into account normal fluctuations caused by such things as the season, eating mostly cafeteria food, and having a doctor hooking you up to machines. That control group was the group eating monounsaturated fat. The comparison between diet groups was the 'primary outcome', in statistics lingo. That's the comparison that matters, and it wasn't significant. To interpret the study otherwise is to ignore the basic conventions of statistics, which the authors were happy to do. There's a name for it: 'moving the goalpost'. The reviewers shouldn't have let this kind of shenanigans slide.
So we have five studies through 2008, none of which support the idea that saturated fat reduces insulin sensitivity in non-diabetics. Since the review paper was published, I know of one subsequent study that asked the same question (3). Susan J. van Dijk and colleagues fed volunteers with abdominal overweight (beer gut) a diet rich in either saturated fat or monounsaturated fat. I e-mailed the senior author and she said the saturated fat diet was "mostly butter". The specific fats used in the diets weren't mentioned anywhere in the paper, which is a major omission**. In any case, after 8 weeks, insulin sensitivity was virtually identical between the two groups. This study appeared well controlled and used the gold standard method for assessing insulin sensitivity, called the euglycemic-hyperinsulinemic clamp technique***.
The evidence from controlled trials is rather consistent that saturated fat has no appreciable effect on insulin sensitivity.
Why Are We so Focused on Saturated Fat?
Answer: because it's the nutrient everyone loves to hate. As an exercise in completeness, I'm going to mention three dietary factors that actually reduce insulin sensitivity, and get a lot less air time than saturated fat.
#1: Caffeine. That's right, controlled trials show that your favorite murky beverage reduces insulin sensitivity (4, 5). Is it actually relevant to real life? I doubt it. The doses used were large and the studies short-term.
#2: Magnesium deficiency. A low-magnesium diet reduced insulin sensitivity by 25% over the course of three weeks (6). I think this is probably relevant to long-term insulin sensitivity and overall health, although it would be good to have longer-term data. Magnesium deficiency is widespread in industrial nations, due to our over-reliance on refined foods such as sugar, white flour and oils.
#3: Sugar. Fructose reduces insulin sensitivity in humans, along with many other harmful effects (7).
As long as we continue to focus our energy on indicting saturated fat, it will continue distracting us from the real causes of disease.
* For the nerds: euglycemic-hyperinsulinemic clamp (the gold standard), insulin suppression test, or intravenous glucose tolerance test with Minimal Model. They didn't include studies that reported HOMA as their only measure, because it's not very accurate.
** There's this idea that pervades the diet-health literature that all saturated fats are roughly equivalent, all monounsaturated fats are equivalent, etc., therefore it doesn't matter what the source was. This is beyond absurd and reflects our cultural obsession with saturated fat. It really irks me that the reviewers didn't demand this information.
*** They did find that markers of inflammation in fat tissue were higher after the saturated fat diet.
I don't know how many times I've seen the claim in journal articles and on the internet that saturated fat reduces insulin sensitivity. The idea is that saturated fat reduces the body's ability to handle glucose effectively, placing people on the road to diabetes, obesity and heart disease. Given the "selective citation disorder" that plagues the diet-health literature, perhaps this particular claim deserves a closer look.
The Evidence
I found a review article from 2008 that addressed this question (1). I like this review because it only includes high-quality trials that used reliable methods of determining insulin sensitivity*.
On to the meat of it. There were 5 studies in which non-diabetic people were fed diets rich in saturated fat, and compared with a group eating a diet rich in monounsaturated (like olive oil) or polyunsaturated (like corn oil) fat. They ranged in duration from one week to 3 months. Four of the five studies found that fat quality did not affect insulin sensitivity, including one of the 3-month studies.
The fifth study, which is the one that's nearly always cited in the diet-health literature, requires some discussion. This was the KANWU study (2). Over the course of three months, investigators fed 163 volunteers a diet rich in either saturated fat or monounsaturated fat.
The SAFA diet included butter and a table margarine containing a relatively high proportion of SAFAs. The MUFA diet included a spread and a margarine containing high proportions of oleic acid derived from high-oleic sunflower oil and negligible amounts of trans fatty acids and n-3 fatty acids and olive oil.Yummy. After three months of these diets, there was no significant difference in insulin sensitivity between the saturated fat group and the monounsaturated fat group. Yes, you read that right. Even the study that's selectively cited as evidence that saturated fat causes insulin resistance found no significant difference between the diets. You might not get this by reading the misleading abstract. I'll be generous and acknowledge that the (small) difference was almost statistically significant (p = 0.053).
What the authors decided to focus on instead is the fact that insulin sensitivity declined slightly but significantly on the saturated fat diet compared with the pre-diet baseline. That's why this study is cited as evidence that saturated fat impairs insulin sensitivity. But anyone who has a basic science background will see where this reasoning is flawed (warning: nerd attack. skip the rest of the paragraph if you're not interested). You need a control group for comparison, to take into account normal fluctuations caused by such things as the season, eating mostly cafeteria food, and having a doctor hooking you up to machines. That control group was the group eating monounsaturated fat. The comparison between diet groups was the 'primary outcome', in statistics lingo. That's the comparison that matters, and it wasn't significant. To interpret the study otherwise is to ignore the basic conventions of statistics, which the authors were happy to do. There's a name for it: 'moving the goalpost'. The reviewers shouldn't have let this kind of shenanigans slide.
So we have five studies through 2008, none of which support the idea that saturated fat reduces insulin sensitivity in non-diabetics. Since the review paper was published, I know of one subsequent study that asked the same question (3). Susan J. van Dijk and colleagues fed volunteers with abdominal overweight (beer gut) a diet rich in either saturated fat or monounsaturated fat. I e-mailed the senior author and she said the saturated fat diet was "mostly butter". The specific fats used in the diets weren't mentioned anywhere in the paper, which is a major omission**. In any case, after 8 weeks, insulin sensitivity was virtually identical between the two groups. This study appeared well controlled and used the gold standard method for assessing insulin sensitivity, called the euglycemic-hyperinsulinemic clamp technique***.
The evidence from controlled trials is rather consistent that saturated fat has no appreciable effect on insulin sensitivity.
Why Are We so Focused on Saturated Fat?
Answer: because it's the nutrient everyone loves to hate. As an exercise in completeness, I'm going to mention three dietary factors that actually reduce insulin sensitivity, and get a lot less air time than saturated fat.
#1: Caffeine. That's right, controlled trials show that your favorite murky beverage reduces insulin sensitivity (4, 5). Is it actually relevant to real life? I doubt it. The doses used were large and the studies short-term.
#2: Magnesium deficiency. A low-magnesium diet reduced insulin sensitivity by 25% over the course of three weeks (6). I think this is probably relevant to long-term insulin sensitivity and overall health, although it would be good to have longer-term data. Magnesium deficiency is widespread in industrial nations, due to our over-reliance on refined foods such as sugar, white flour and oils.
#3: Sugar. Fructose reduces insulin sensitivity in humans, along with many other harmful effects (7).
As long as we continue to focus our energy on indicting saturated fat, it will continue distracting us from the real causes of disease.
* For the nerds: euglycemic-hyperinsulinemic clamp (the gold standard), insulin suppression test, or intravenous glucose tolerance test with Minimal Model. They didn't include studies that reported HOMA as their only measure, because it's not very accurate.
** There's this idea that pervades the diet-health literature that all saturated fats are roughly equivalent, all monounsaturated fats are equivalent, etc., therefore it doesn't matter what the source was. This is beyond absurd and reflects our cultural obsession with saturated fat. It really irks me that the reviewers didn't demand this information.
*** They did find that markers of inflammation in fat tissue were higher after the saturated fat diet.
Malocclusion: Disease of Civilization, Part IX
A Summary
For those who didn't want to wade through the entire nerd safari, I offer a simple summary.
Our ancestors had straight teeth, and their wisdom teeth came in without any problem. The same continues to be true of a few non-industrial cultures today, but it's becoming rare. Wild animals also rarely suffer from orthodontic problems.
Today, the majority of people in the US and other affluent nations have some type of malocclusion, whether it's crooked teeth, overbite, open bite or a number of other possibilities.
There are three main factors that I believe contribute to malocclusion in modern societies:
In one, he made more space in her jaws by extracting teeth. In the other, he put in an apparatus that broadened her dental arch, which roughly mimics the natural process of arch growth during childhood and adolescence. This had profound effects on the girls' subsequent occlusion and facial structure:
The girl on the left had teeth extracted, while the girl on the right had her arch broadened. Under ideal circumstances, this is what should happen naturally during development. Notice any differences?
Thanks to the Weston A Price foundation's recent newsletter for the study reference.
For those who didn't want to wade through the entire nerd safari, I offer a simple summary.
Our ancestors had straight teeth, and their wisdom teeth came in without any problem. The same continues to be true of a few non-industrial cultures today, but it's becoming rare. Wild animals also rarely suffer from orthodontic problems.
Today, the majority of people in the US and other affluent nations have some type of malocclusion, whether it's crooked teeth, overbite, open bite or a number of other possibilities.
There are three main factors that I believe contribute to malocclusion in modern societies:
- Maternal nutrition during the first trimester of pregnancy. Vitamin K2, found in organs, pastured dairy and eggs, is particularly important. We may also make small amounts from the K1 found in green vegetables.
- Sucking habits from birth to age four. Breast feeding protects against malocclusion. Bottle feeding, pacifiers and finger sucking probably increase the risk of malocclusion. Cup feeding and orthodontic pacifiers are probably acceptable alternatives.
- Food toughness. The jaws probably require stress from tough food to develop correctly. This can contribute to the widening of the dental arch until roughly age 17. Beef jerky, raw vegetables, raw fruit, tough cuts of meat and nuts are all good ways to exercise the jaws.
In one, he made more space in her jaws by extracting teeth. In the other, he put in an apparatus that broadened her dental arch, which roughly mimics the natural process of arch growth during childhood and adolescence. This had profound effects on the girls' subsequent occlusion and facial structure:
The girl on the left had teeth extracted, while the girl on the right had her arch broadened. Under ideal circumstances, this is what should happen naturally during development. Notice any differences?Thanks to the Weston A Price foundation's recent newsletter for the study reference.
Saturday, November 6, 2010
Magnesium and Insulin Sensitivity
From a paper based on US NHANES nutrition and health survey data (1):
Magnesium status is associated with insulin sensitivity (2, 3), and a low magnesium intake predicts the development of type II diabetes in most studies (4, 5) but not all (6). Magnesium supplements largely prevent diabetes in a rat model* (7). Interestingly, excess blood glucose and insulin themselves seem to reduce magnesium status, possibly creating a vicious cycle.
In a 1993 trial, a low-magnesium diet reduced insulin sensitivity in healthy volunteers by 25% in just four weeks (8). It also increased urinary thromboxane concentration, a potential concern for cardiovascular health**.
At least three trials have shown that magnesium supplementation increases insulin sensitivity in insulin-resistant diabetics and non-diabetics (9, 10, 11). In some cases, the results were remarkable. In type II diabetics, 16 weeks of magnesium supplementation improved fasting glucose, calculated insulin sensitivity and HbA1c*** (12). HbA1c dropped by 22 percent.
In insulin resistant volunteers with low blood magnesium, magnesium supplementation for four months reduced estimated insulin resistance by 43 percent and decreased fasting insulin by 32 percent (13). This suggests to me that magnesium deficiency was probably one of the main reasons they were insulin resistant in the first place. But the study had another very interesting finding: magnesium improved the subjects' blood lipid profile remarkably. Total cholesterol decreased, LDL decreased, HDL increased and triglycerides decreased by a whopping 39 percent. The same thing had been reported in the medical literature decades earlier when doctors used magnesium injections to treat heart disease, and also in animals treated with magnesium. Magnesium supplementation also suppresses atherosclerosis (thickening and hardening of the arteries) in animal models, a fact that I may discuss in more detail at some point (14, 15).
In the previous study, participants were given 2.5 g magnesium chloride (MgCl2) per day. That's a bit more than the USDA recommended daily allowance (MgCl2 is mostly chloride by weight), in addition to what they were already getting from their diet. Most of a person's magnesium is in their bones, so correcting a deficiency by eating a nutritious diet may take a while.
Speaking of nutritious diets, how does one get magnesium? Good sources include halibut, leafy greens, chocolate and nuts. Bone broths are also an excellent source of highly absorbable magnesium. Whole grains and beans are also fairly good sources, while refined grains lack most of the magnesium in the whole grain. Organic foods, particularly artisanally produced foods from a farmer's market, are richer in magnesium because they grow on better soil and often use older varieties that are more nutritious.
The problem with seeds such as grains, beans and nuts is that they also contain phytic acid which prevents the absorption of magnesium and other minerals (16). Healthy non-industrial societies that relied on grains took great care in their preparation: they soaked them, often fermented them, and also frequently removed a portion of the bran before cooking (17). These steps all served to reduce the level of phytic acid and other anti-nutrients. I've posted a method for effectively reducing the amount of phytic acid in brown rice (18). Beans should ideally be soaked for 24 hours before cooking, preferably in warm water.
Industrial agriculture has systematically depleted our soil of many minerals, due to high-yield crop varieties and the fact that synthetic fertilizers only replace a few minerals. The mineral content of foods in the US, including magnesium, has dropped sharply in the last 50 years. The reason we need to use fertilizers in the first place is that we've broken the natural nutrient cycle in which minerals always return to the soil in the same place they were removed. In 21st century America, minerals are removed from the soil, pass through our toilets, and end up in the landfill or in waste water. This will continue until we find an acceptable way to return human feces and urine to agricultural soil, as many cultures do to this day****.
I believe that an adequate magnesium intake is critical for proper insulin sensitivity and overall health.
* Zucker rats that lack leptin signaling
** Thromboxane A2 is an omega-6 derived eicosanoid that potently constricts blood vessels and promotes blood clotting. It's interesting that magnesium has such a strong effect on it. It indicates that fatty acid balance is not the only major influence on eicosanoid production.
*** Glycated hemoglobin. A measure of the average blood glucose level over the past few weeks.
**** Anyone interested in further reading on this should look up The Humanure Handbook
During 1999–2000, the diet of a large proportion of the U.S. population did not contain adequate magnesium... Furthermore, racial or ethnic differences in magnesium persist and may contribute to some health disparities.... Because magnesium intake is low among many people in the United States and inadequate magnesium status is associated with increased risk of acute and chronic conditions, an urgent need exists to perform a current survey to assess the physiologic status of magnesium in the U.S. population.Magnesium is an essential mineral that's slowly disappearing from the modern diet, as industrial agriculture and industrial food processing increasingly dominate our food choices. One of the many things it's necessary for in mammals is proper insulin sensitivity and glucose control. A loss of glucose control due to insulin resistance can eventually lead to diabetes and all its complications.
Magnesium status is associated with insulin sensitivity (2, 3), and a low magnesium intake predicts the development of type II diabetes in most studies (4, 5) but not all (6). Magnesium supplements largely prevent diabetes in a rat model* (7). Interestingly, excess blood glucose and insulin themselves seem to reduce magnesium status, possibly creating a vicious cycle.
In a 1993 trial, a low-magnesium diet reduced insulin sensitivity in healthy volunteers by 25% in just four weeks (8). It also increased urinary thromboxane concentration, a potential concern for cardiovascular health**.
At least three trials have shown that magnesium supplementation increases insulin sensitivity in insulin-resistant diabetics and non-diabetics (9, 10, 11). In some cases, the results were remarkable. In type II diabetics, 16 weeks of magnesium supplementation improved fasting glucose, calculated insulin sensitivity and HbA1c*** (12). HbA1c dropped by 22 percent.
In insulin resistant volunteers with low blood magnesium, magnesium supplementation for four months reduced estimated insulin resistance by 43 percent and decreased fasting insulin by 32 percent (13). This suggests to me that magnesium deficiency was probably one of the main reasons they were insulin resistant in the first place. But the study had another very interesting finding: magnesium improved the subjects' blood lipid profile remarkably. Total cholesterol decreased, LDL decreased, HDL increased and triglycerides decreased by a whopping 39 percent. The same thing had been reported in the medical literature decades earlier when doctors used magnesium injections to treat heart disease, and also in animals treated with magnesium. Magnesium supplementation also suppresses atherosclerosis (thickening and hardening of the arteries) in animal models, a fact that I may discuss in more detail at some point (14, 15).
In the previous study, participants were given 2.5 g magnesium chloride (MgCl2) per day. That's a bit more than the USDA recommended daily allowance (MgCl2 is mostly chloride by weight), in addition to what they were already getting from their diet. Most of a person's magnesium is in their bones, so correcting a deficiency by eating a nutritious diet may take a while.
Speaking of nutritious diets, how does one get magnesium? Good sources include halibut, leafy greens, chocolate and nuts. Bone broths are also an excellent source of highly absorbable magnesium. Whole grains and beans are also fairly good sources, while refined grains lack most of the magnesium in the whole grain. Organic foods, particularly artisanally produced foods from a farmer's market, are richer in magnesium because they grow on better soil and often use older varieties that are more nutritious.
The problem with seeds such as grains, beans and nuts is that they also contain phytic acid which prevents the absorption of magnesium and other minerals (16). Healthy non-industrial societies that relied on grains took great care in their preparation: they soaked them, often fermented them, and also frequently removed a portion of the bran before cooking (17). These steps all served to reduce the level of phytic acid and other anti-nutrients. I've posted a method for effectively reducing the amount of phytic acid in brown rice (18). Beans should ideally be soaked for 24 hours before cooking, preferably in warm water.
Industrial agriculture has systematically depleted our soil of many minerals, due to high-yield crop varieties and the fact that synthetic fertilizers only replace a few minerals. The mineral content of foods in the US, including magnesium, has dropped sharply in the last 50 years. The reason we need to use fertilizers in the first place is that we've broken the natural nutrient cycle in which minerals always return to the soil in the same place they were removed. In 21st century America, minerals are removed from the soil, pass through our toilets, and end up in the landfill or in waste water. This will continue until we find an acceptable way to return human feces and urine to agricultural soil, as many cultures do to this day****.
I believe that an adequate magnesium intake is critical for proper insulin sensitivity and overall health.
* Zucker rats that lack leptin signaling
** Thromboxane A2 is an omega-6 derived eicosanoid that potently constricts blood vessels and promotes blood clotting. It's interesting that magnesium has such a strong effect on it. It indicates that fatty acid balance is not the only major influence on eicosanoid production.
*** Glycated hemoglobin. A measure of the average blood glucose level over the past few weeks.
**** Anyone interested in further reading on this should look up The Humanure Handbook
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