As GM Goes, So Goes the MidwestI read it this morning in Bloomberg, so it must be true; General Motors has filed for Chapter 11 bankruptcy. GM announced it has more than 100,000 creditors; no doubt some of them will soon be filing bankruptcy petitions of their own. As factories in the Midwest and dealerships across the country close, the shockwaves will reverberate through our economy. After chatting with a seasoned Detroit agency principal this morning, I’m convinced we will all be feeling tremors. Do you know which of your clients will be impacted? Is your agency prepared? Perhaps you should declare June as Accounts Receivable month in the agency and make your collections top priority. Now is the time to make those calls to everyone who owes you money, even those clients who are “good for it.” Call until you make contact with the person who has the pen. If you cannot stop by for a check today, get a commitment for later in the week and follow up. Focus on results, not contacts. Work in teams. Act as though your survival depends on it; in many cases it actually does.
It’s the Air We BreatheI spent the better part of January in Sarasota helping a friend look for a real estate bargain on a second home and following the Chinese drywall problem. In rebuilding after the hurricanes of 2004 and 2005, drywall was imported from China to meet the bourgeoning demand. Some of that drywall is now deemed to be toxic when the moisture level in the building is high. The dry wall allegedly gives off a strong rotten-egg odor causing allergic reactions and respiratory problems making the dwelling uninhabitable. It also causes corrosion in electrical wiring, air conditioning components, and appliances. It has lead to a rash of third-party, construction-defect claims in commercial lines as well a first-party property claims under the Homeowners policy. Now, the class action suits have begun. Since most of the suits have been in Florida, I have been following the issue with some detachment. However, one recent report indicates that Chinese drywall has been identified in 41 states and installed in at least 100,000 homes, perhaps some in the Midwest. I am interested in the issue as part of a larger picture. The issue? Indoor air quality. We are getting sick from breathing the air in our buildings. Today, indoor air pollution is a significant issue but not a new one. Consider Legionnaire’s disease, sick-building syndrome, asbestos, radon, arsenic-treated lumber, mold, and now Chinese drywall. What will be next? The only thing we know for certain is that indoor air quality issues will continue to emerge. And, the insurance industry will respond with exclusions, limitations, and coverage restrictions. Do not overlook the potential impact of these restrictions. Remember, an absolute exclusion does not remove an exposure; it simply makes it self-insured. If you are helping clients identify exposures, do not overlook this one.
A Note From AngelaOn a regular basis, Angela gets calls from agents who are looking for information on the number of credits they still need for the current compliance period. Fortunately, every state now makes that information available on line so that you can check your current status at any time. You can determine the date your license renews, the number of credits that have already been banked and how many you still need. Here are the links: WI, OH and IN agents visit www.sircon.com and MI agents click here. Quote of the Month:“In times like these, it helps to recall that there have always been times like these.” Paul Harvey We Are: InsuranceCe is brought to you by The Van Wyhe Group, an education firm coaching agents in ways to add value to the insurance transaction. Agents who master adding value attract business rather than chase it. | |
