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Why Is My Premium Going Up? She Had The Claim, Not Me!

You’ve spent years operating a good preschool; safety is a primary concern for you; the economy is tight and you need to save money everywhere you can; enrollment is not what it was 18 months ago; here comes the insurance agent delivering the news that your premium is going up, again. WHY? You haven’t made any claims; it doesn’t make any sense.

The answer you may not be getting from your agent is that rates are going up for everyone in your state because the insurance company paid out big claims for other preschools in your state. Is that fair? Why are you paying for someone else’s claims? Now, before you get your renewal quotation is the time to think about this possibility.

Thousands of years ago, insurance was not used in common daily life. Instead, neighbors stepped in to help one another when disaster struck. If a fire burned down a neighbor’s barn, everyone pitched in with the materials and tools they had to hand plus their labor. If one neighbor did not help that was remembered by the others if the non-helper found themselves in a bad position. With everyone’s assistance a new barn was raised. If a farmer fell sick during planting or harvesting time, the other neighboring farmers filled in to assist the family knowing that when the shoe was on the other foot their neighbors would be there to help their own family.

Insurance for abuse and molestation allegations is vital coverage for any school, preschool through high school.

This coverage is important because a mere allegation of wrong doing necessitates legal representation. I would suggest you express concern to your insurer if they are “silent” on abuse & molestation coverage. The bulk of an abuse case revolves around mental and emotional harm. A general liability policy limits coverage to bodily injury; so, if your policy does not affirmatively give you abuse coverage you do not have the all important emotional harm protection.

Law and Ordinance

Local building codes (ordinances and laws) control what can be built; where it can be built and how it must be built. These codes vary from township to
township and they change over time. As construction materials and practices improve, the tougher building codes and ordinances become. The purpose of the laws is to make our buildings safer and better able to withstand natural disasters. However, these local building ordinances and laws can leave you holding the bag after an insurance claim.

In order to illustrate the potential gaps in coverage please join me in reviewing an entirely fictional claim. My fictional school is Beth’s Child Care Academy; Beth and Steven are the owners of this school.

It was a Sunday night at about 2am when the hot water heater burst into flames and my school began to burn. My school is 10 years old but I have a great alarm system installed. The fire department was on the scene within 10 minutes and after an hour of battling the fire, put it out.

In the cold light of day, on Monday morning I was able to assess the damage and it appeared that about 70% of my school had been destroyed. I called my insurance agent and reported the claim. Once the claim adjuster met with me I was able to start interviewing contractors to get my school rebuilt.

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Please be advised that information contained in this site may be dated. No insurance coverage can be bound, deleted, modified or in any other manner effected through this website. Complete information regarding coverage and exclusions can be found in policy documents. The information contained in this website is summary in nature.