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Insurance for Manufactured Housing and Mobile Home Park Owners

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Insurance for Manufactured Housing and Mobile Home Park Owners

We offer a comprehensive property and casualty product, covering all aspects of the mobile home park owner’s responsibilities. The policy is designed to cover every aspect of coverage needed by the park owner.

PROPERTY COVERAGE

The property piece covers all of the park owner’s owned buildings and contents, loss of rental income due to catastrophic exposure, such as in case of a hurricane. The policy also covers contractors’ equipment and just about anything you could put into any kind of property policy.

SLIP & FALL LIABILITY COVERAGE

The second piece is the liability section, which provides coverage for any suit brought against the park owner for bodily injury or property damage. Slips and falls in these parks is the largest liability exposure.

OPEN LOT COVERAGE

We also write coverage for what’s known as open lot exposure, which covers new and used units held for sale, such as model homes, or homes the park owner has purchased from somebody in the community that are being renovated for resale. If that unit catches fire or is vandalized, open lot insurance will cover those risks.

Other coverage for park owners:

  • Commercial Automobile
  • Worker’s Compensation
  • Umbrella Liability
  • Bonds

PRICING

Many years ago liability insurance for mobile home park owners was rated on the basis of gross rental receipts, which vary from year to year. So, every time rents went up, so did the park’s insurance premium.
Mobile home parks and manufactured housing communities in New Jersey are also assessed a Pad fee, which is paid by the tenant but goes directly to the municipality where the park is located. Years ago, an insurance auditor would come to a community and audit the books. If a community began the year with $1 million in gross rents and ended with $1.2 million, the park owner paid premium on the extra $200,000 of rents, even though a portion of that rent included the pad fee to pay municipal taxes.

That’s when Schechner Lifson Vice-President Bruce Callen and his then-partner, Bill Blemmings, came up with a new way of rating mobile home parks based on a flat price per pad, with no audit.  “If a park has 250 units, for example,” says Bruce, “and they’re all tenant-owned units, they calculate a rate per tenant-owned unit, then multiplied it by the number of units in the community, resulting in the premium price.

Bruce was the principal architect of an association program approved for the New Jersey Manufactured Housing Association and is a long-time member of the association’s Board of Directors. “Most of the units in a community are owner-occupied,” says Callen. “They pay  a Lot Rental Fee to the landlord.  And most parks also own a few units in their communities and rent them out, just like an apartment. The flat price-per-unit premium easily covers both tenant-owned and park-owned properties.

Uniform Manufacturers

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Uniform Manufacturers

The National Association of Uniform Manufactures and Distributors is an international organization serving companies associated with the manufacturing and distribution of military, postal, governmental and public safety uniforms and their components (from shoes, to insignias and everything in between)

As an independent insurance agency, Schechner Lifson works with many different property and casualty insurance companies to find out what they like to do, what their area of expertise is and match them up with underserved industries in need of better coverage.

By concentrating on educating our carriers, we were able to bring four preferred companies into serving the uniform industry.  They attend trade shows, become involved in industry affairs and develop an understanding of the uniqueness of the uniform business. As such, they become comfortable with it and, as a result, do a better job of helping uniform manufacturers and their suppliers get the coverage they need.

WHY WORK WITH SCHECHNER LIFSON INSTEAD OF YOUR LOCAL INSURANCE AGENT

We know the carriers and we know your industry.

When a complex subject, like fireproofing or Kevlar vesting comes up, most local agents—and many insurance carriers—have difficulty providing coverage, because they don’t really understand the product and the risks associated with its use.

Schechner Lifson helps underwriters understand how uniform components relate to the overall potential risk for liability on the part of the manufacturer, making sure they recognize the difference between perceived versus actual risk. Educating carriers gives manufacturers more flexibility on how they promote and sell their products.

Schechner Lifson’s association and our relationship with the carriers allows us to get by that portion of it.  And it fits very nicely into the program that we’ve been using.

We make managing your insurance easier

Your business requires lots of different insurance coverage: property, liability, worker’s comp, auto and more. At Schechner Lifson, our team of experts will seamlessly work together to make sure you have the right coverage at the lowest overall price possible.  We can also provide personal lines of coverage and your employee benefits package as well, all under one roof, one phone call, one contact. We understand the uniform business.

IMPROVE YOUR CASH FLOW WITH OUR IMPROVED WORKER’S COMPENSATION PROGRAM

Recently, we’ve been able to offer our clients a pay-as-you-go worker’s comp program. Rather than paying your worker’s comp based on an estimated payroll with a year-end audit to make adjustments, this program allows you to make your actual worker’s comp when payroll hits.
Now you no longer have to lay the money out to the carrier and work it out at the end.  You can get the use of your cash throughout the year, manage your cash flow more and can keep your business growing.

CHALLENGES FACING UNIFORM MANUFACTURERS

The uniform industry, like all businesses, faces unique challenges. Since so much business is done with public entities–be it small townships, larger municipalities, police departments or government workers—budgets have been cut, in some cases drastically. Townships may only have enough budget to buy one uniform, where in the past they may have been able to get a winter uniform, summer uniform, formal uniforms, all with more options, and maybe even backups.

Now, purchasing additional uniforms winds up becoming the responsibility of the officers, who are forced to reach into their own pockets. Those officers are not able make up the income once provided by their departments, forcing manufacturers to figure out new ways to make up for the lost revenue.

Natural Stone Industry

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Natural Stone Industry

Schechner-Lifson literally fell into providing coverage for businesses in the natural stone industry when our President, Mark Rosenrantz, was remodeling his house. “As everything was happening, I kept asking for certificates of insurance from all the vendors and came across a local stone distributor who helped  me out. So, when the house was finished, I went back to them and said, “Let me see if we can help you.”

What Mark discovered was the distributor’s coverage was written inefficiently, costing them lots of money. From their, Mark led initiatives for Schechner-Lifson to become involved with the Ceramic Tile Distributors Associations, the Marble Institute of America , the National Tile Contractors Association and the Solid Surface Group, all groups working with natural stone and solid surface fabricators, installers and dealers.

Not only do we write the insurance for these associations, we stand on several committees for each one.  We support the association by providing customized education and training to members; through sponsorships of special educational workshops and through the creation of special training programs to help members lower the cost of their coverage.

As an example, Marble Institute has an accreditation program for shops and fabricators that utilize higher level safety standards in their operations, qualifying for lower insurance rates.

Ultimately, while we call everything in our office stone, but there is a significant difference between the fabricator, who takes the slab and slices and dices it, versus the person who is actually installing the countertop or floor, versus the retail or wholesaler that sells the product.

In many cases that can be three different people, or it can be one organization that does all component jobs: importing, cutting and installation.

SAFETY FIRST, LAST AND ALWAYS

Schechner-Lifson brings association members a significant advantage, particularly in the handling of marble slabs.  Many carriers now are very concerned about silicosis and it’s become a much more difficult class of business to write, particularly because of the risk for higher worker’s compensation claims. We have excellent partnerships that allow us to write that coverage.

The biggest potential for a claim– and the area were we see the largest frequency of claims—is in the slab handling.  With the technology that is now being used to move slabs, we’ve found that many employees they lose sight of the very serious dangers involved with handling a stone slab. We like to say, with all seriousness, that when it comes to man versus slabs, slabs are the undefeated heavyweight champion, quite literally. Workers really have to pay attention to detail because it’s always dangerous and a potentially life threatening situation. Every shop and business owner would sign today to lose two or three slabs to breakage than have an employee die in an accident. And there is not a year that goes by that there’s not a death within the stone industry.  That’s why Schechner-Lifson actively works with stone associations and members to support education and training on stone handling and safety within the workshop.

WHY USE SCHECHNER-LIFSON INSTEAD OF YOUR LOCAL AGENT

Underwriters’ perceptions of potential risks often don’t match with actual concerns. In the stone industry, an uneducated underwriter’s initial focus is drawn to the potential for lifting and back injuries. We explain that its a 600 pound slab which nobody tries to lift, so you’re not going to get a back injury because it’s just it’s just too heavy. And everyone is caught up now with silicosis and the effects of stone dust on worker’s health. These types of industry specific issues have not hit the general world of insurance yet, but with the way the legal system works, it’s just a matter of time before they will be.

Radon/Silica Update

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Radon/Silica Update

I want to make everyone aware of the current radon situation that has hit the world of granite. Below are links to two articles that make very broad statements.

Whether they are accurate or not (and we know they are not), is not the issue. The legal system today looks for situations like this, and with some mismanaged media, they create an atmosphere that may lead to potential law suits.

In anticipation, we have worked with a major insurance carrier and developed a contractor’s pollution liability policy that protects your business from this type of suit. It will provide defense costs as well as judgments up to the policy limits ($1,000,000 to $10,000,000 available).

In addition to radon, the policy will respond to any silica-related claim. Almost all general liability policies have an absolute pollution exclusion. These types of claims will most likely not be covered under a standard general liability policy.

The stand-alone pollution policy can be written for one to three years and has a minimum premium of $3,000 with a $5,000 deductible. You are now able to make a business decision as to whether to transfer the risk to an insurance company or retain the exposure in-house.

If you would like a premium indication, please complete the short Quote Request and fax to our office. If you would like additional information, please call me at 908-598-7813. I am available to discuss this or any other insurance-related issue.

Marc A. Rosenkrantz, CIC, AAI
President

New Insurance Coverage for Radon and Silica Offered through Schechner Lifson Corporation

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New Insurance Coverage for Radon and Silica Offered through Schechner Lifson Corporation

Summit, New Jersey – September 15, 2008, Schechner Lifson Corporation (SLC), a preferred provider of insurance and safety management services for the Stone Industry, in conjunction with an A+ rated insurer, has introduced a Pollution Liability Policy which includes coverage for Radon and Silica.
In the past months several articles have made very broad statements about Radon and Granite. Although there has been no confirmed litigation thus far, plantiff’s attorneys have been advertising on the Internet for potential clients. The combination of an aggressive legal system and media attention creates an atmosphere that may lead to potential law suits.

“A pollution policy designed by SLC is the first to offer coverage for Radon and Silica exposures” said Marc Rosenkrantz, President of Schechner Lifson Corporation. “This policy will enable fabricators, installers, and distributors to insure themselves and their businesses in the event of a suit or loss in cases involving Radon and Silica.”

Industry experts have declared this new pollution policy very important for the industry. Limits available for the pollution coverage range from $1,000,000 per occurrence, up to $10,000,000. Each policy has a $5,000 deductible. Premiums are as low as $3,000 per year with a three-year commitment. Preferred pricing is available for various associations, accredited fabricators and contractors.

For more information contact:

Marc Rosenkrantz, President
Schechner Lifson Corporation
(908)598-7813
marcr@slcinsure.com

How Common Insurance Causes Can Work To Your Detriment

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How Common Insurance Causes Can Work To Your Detriment

In this article we take a look at how some common insurance clauses and practices can work to your detriment – and how to avoid these problem areas.

Coinsurance Clause

Many insurance policies available today include a Coinsurance Clause. Essentially, a Coinsurance Clause will penalize an Insured if it turns out that they have not purchased a ‘satisfactory’ amount of coverage on either their inventory, building, or both.

Take an example where an Insured has property with a replacement value of $1,000,000, a Coinsurance Clause of 80%, and a policy limit of $650,000. In the event of a $500,000 loss, how much do you think the Insured would collect (before deductible):

A. $500,000
B. $650,000
C. $406,250

In this example, the Insured would only collect $406,250. The Coinsurance Clause mandated that the Insured carry a limit of at least 80% of the value of the property, which here would be $800,000. Any partial loss would be paid using the following equation:

(Limit carried / limit required) x amount of loss

Limit Required

Did the Insured make a conscious decision to buy a lower limit, hoping to save on premiums? Did the agent not determine the real replacement cost of the property, nor recommend an appropriate limit? All are possible, but in any event, the Insured is out of pocket almost $100,000.

The Solution – The Property Policy available through the Marble, Stone and Tile Insurance Connection doesn’t have a Coinsurance Clause – – so that if a conscious decision is made to buy a lower limit, or the property turns out to be worth more than thought, the Insured doesn’t get penalized.

This coverage is available for all inventory, and rented or owned buildings and equipment.

Valuation

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Valuation

Imagine the following – out in your warehouse, an ocean container with a shipment of new inventory just tipped over as the mis-operated gantry was preparing to strip-out. As a result, $100,000 of goods just sheared into chips, worthy perhaps for use in a nice terrazzo or mosaic application, or for sale to the local garden store as a ground cover.
Or, was that $250,000 in goods?

Why the discrepancy? Let’s assume that the $100,000 was your cost, but that the product could have been sold for $250,000. Had the loss happened during delivery, a typical ocean policy would provide CIF+10%, or $110,000. On land, most Property insurance policies pay replacement cost on inventory, which in this instance wouldn’t even give you the 10% provided by the Ocean policy.

Do your policies take your margins into consideration?

The Solution – The Property Policy available through the Marble, Stone and Tile Insurance Connection covers your goods at Sales Price – – so regardless of whether the damage happens on the ocean or in an accident while in your inventory, your business doesn’t suffer.

Audits

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Audits

PART I

Congratulations! You’ve just landed a major supply contract that will drive your sales up by 40% over last year! More congratulations from your insurance company! You’ve just caused your General Liability premiums to go up by 25%, because it’s rated on your gross annual sales!

Is this ‘fair’? We don’t think so. Chances are, the loss exposures haven’t increased all that dramatically. Why should success be penalized?

The Solution – premiums for the General Liability Policy available through the Marble, Stone and Tile Insurance Connection are rated on a fixed amount of property – – so even if your sales go up, your costs remain constant.

PART II

Many Ocean Marine policies require that you keep records of each shipment, and submit them to the insurance company each month so they can ‘track’ your activity and premium usage.

Do you have the time to keep and file such records? Even insurance companies don’t have the personnel to track and bill reports under this antiquated process.

The Solution – premiums for the available Ocean Marine Policy are rated against your gross sales – – an up-front deposit is based on estimated sales, and premiums are adjusted at the end of the year using your actual sales figure. The above examples are based on certain assumptions and are for reference only. However, don’t make assumptions when it comes to your business. Let mystic take the mystery out of your insurance program.

Some “Hard” Facts About Insurance

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Some “Hard” Facts About Insurance

Question: What is one of the hardest substances known?
Answer: Diamonds – created by great pressure; changed from coal into clarity.

Question: What is one of the hardest things to do?
Answer: Change – whether under great pressure or not, sometimes it’s hard to perceive benefits with clarity.

How can you get a ‘gem’ of an insurance policy, and pocket much more than spare ‘change’?

By making sure that your insurance premiums are working as hard as possible. The Marble, Stone and Tile Insurance Program was built for companies like yours. It can help protect all your assets through broader coverage with lower up-front costs, provide a better return on claims payments, and pay your sales prices, insuring your profits as well.

Don’t settle for a diamond in the rough. Have your policies appraised by the experts. For crystal-clear insight, call Marc Rosenkrantz of

Schechner Lifson Corp.
4 Chatham Road
Summit, NJ 07901
800-475-0826 in NJ or 800-279-9360 (everywhere else)

Turning Shavings Into Savings

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Turning Shavings Into Savings

“Sharpen your pencil”. Sometimes, that’s what buyers tell their insurance agents after receiving a better proposal from us. It’s tough being a benchmark, and we wonder why our prospects would want to work with someone who has to be told to do a better job.

When you get a quote under the Marble, Stone and Tile Insurance Connection, you can be assured that we’ve ‘taken the lead out’ of our pencils. We only refine our numbers if your exposures have changed.

The difference between ‘carved in stone’ and a ‘penciled-in job’

Make sure your insurance agent works as hard as you do. The Marble, Stone and Tile Insurance Program was built for companies like yours. It can help protect all your assets through broader coverage with lower up-front costs, provide a better return on claims payments, and pay your sales prices, insuring your profits as well.

Get more service from a service industry, without having to provide a hard target to your agent. Need assistance? Call Marc Rosenkrantz of

Schechner Lifson Corp.
4 Chatham Road
Summit, NJ 07901
800-475-0826 in NJ or 800-279-9360 (everywhere else)