Tuesday Morning Insurance Tidbit - Insurance-verse Bizzaro World

[InsuranceMan]

Good Tuesday Morning to You Dearest Readers,

                I know that I have been a bit absent here on the forums as of late, so an explanation is in order.  Although the Insurance-verse has been very good to me as of late, in the way of garnering many more of you into my fiefdom, thank you, it also has also been adversely karmic.  The Insurance-verse giveth and taketh away.

                I have had the continued good fortune of working with a variety of new distillers, some of which are quite large, and therefore a bit more time consuming.  As well, this time of year is usually a bit wild as the holidays and end of the year approach.  All good though, all good.

                Then …

                The insurance world has been a bit topsy turvy for the last many months.  Almost like Bizzaro World, and instead of the main character wears the big “S” on his chest, instead it is me, InsuranceMan 2.0 who has to deal in the inverted madness of the Insurance-verse Bizzaro World.  In this realm, property rates have gone through the roof, there are many geographical locations where you cannot even get standard carriers to write property AT ALL, and in other regions, Liquor Liability Insurance in non-existent.  What is happening?!?!?!?  Why have simple, routine things become so crazy and difficult?  Well, because the Insurance-verse runs on cycles.  Like El Nino, or any other cyclical phenomenon that just happens.  I have talked about this in other postings, but basically what happens is there are years with more claims that the years prior, and this makes carriers and underwriters gun shy.  They “knee jerk” react to the frequency and severity of claims, and they will either raise rates like crazy, or they will just simply pull out of a market all together.

                To protect the carrier, and mainly to protect myself, I will not name them specifically, but there is an insurance provider that I actually started this distillery insurance program with over a decade ago, that has now decided to pull out of the alcohol industry altogether.  This is a carrier that I relied on for years and years to assist me in assisting the more difficult distilleries obtain insurance.  Now, before your thoughts run off as to what makes a distillery “difficult”, it may only have to do with their location, their size, or if they are just starting up and the standards won’t look at them as of yet.  It does not necessarily mean that they have had crazy claims, etc., although, sometimes, but I digress. 

                Anyway, this carrier that I depended on for this sect of distilleries has completely pulled out of the distillery insurance market because they are no longer offering Liquor Liability.  Kind of a key component of coverage for a distillery.  Here is the Bizzaro World part of this whole thing … were distilleries the cause of this reaction???  Were tasting rooms that were handing out or selling samples, over-serving folks and causing claims???  NO!!!!!!!!!!!!  It was not distilleries at all, they had nothing to do with it.  It was some sketchy bars, poorly run restaurants, and the like.  No distillery that I work with had any liquor claims … NONE!  Seems like a few bad apples truly have ruined the bunch in this scenario.

                By now, you know me well enough to know that when my citizens are in distress I fly in to save the day, usually to uproarious cheers … You’re Welcome!  So, I go to the carrier, we talk about old times and “remember when” … good times.  I then says to them, I says, “Hey, I understand that you had some pretty large liquor claims, and more and more smaller ones, but those didn’t come from distilleries, so … you know, let’s keep writing those since they are not the problem.  Whatdaya say?”  They then says to me, they says, “NO!”

                I asked why, since distilleries were not the issue.  They said that the upper management took a stance that they would pull out of the liquor market altogether, just refuse to write any kind of liquor, at all.  They seemingly could not pick and choose who to provide liquor liability to, so they just had to get out of it completely.  UGH!  You win this time you heartless monster, but I WILL BE BACK!!!

                Beat up, but not out of the fight, I went to a few other carriers and I have been able to replace this coverage through them, again, you’re welcome!  So if you find yourself in a situation such as this, shine the InsuranceMan 2.0 beacon into the sky and I will show up to assist you.  That, or you could just call or email me, that works as well.

                I will say though, there are still a few states that Liquor Liability is going to be very difficult to obtain in this new Bizzaro World.  Bizzaro Alaska, as well as Bizzaro Alabama are C H A L L E N G I N G!!!  Do not despair, I have superhero abilities in these states as well, but you need to be prepared for a bit of sticker shock, trust me.

                With that, dear reader, I must be off to do my stuff and things that I do.  Know that I hold you all close to my heart, and you are always on my mind.  I am sorry that I had left you for a time, I know I was likely missed, like a lot!!!  Here I am though, still here for you, and if you need anything, you know how to contact me.  Until next time, dear reader …

STAY VIGILANT!!!

Aaron Linden

aka InsuranceMan 2.0

aaron@roaringforkins.com     or    InsuranceMan2.0@yahoo.com

307-752-5961