Big Changes Ahead for Massachusetts Auto Insurance

Field Eddy & Bulkley Inc. Curtis Hodskins & McKelligott Insurance Agency Meadows Insurance Agency Remillard Insurance Agency, Inc. Your Choice Insurance Agency Issue 1 | Volume 1 January 2008 InField Big Changes Ahead for Massachusetts Auto Insurance company that will give you the best deal. What’s more, it is very likely that your own current insurance carrier will provide the greatest bargain, because these companies don’t want to lose your business and are offering loyalty discounts and other benefits to their current customers – like you. In any case, you don’t even need to request that we perform this comparison – we assure you that, before your renewal, we will find the best auto insurance option available to recommend to you. What does it mean to you that Massachusetts auto insurance rates are no longer going to be state-mandated? As of April 1, 2008, Massachusetts will usher in a new system in which insurance companies establish their own rates based on individual policyholders’ driving records. It’s important for you to know that Field Eddy & Bulkley and its affiliated agencies can get you the best rates available. We work with more insurance companies than nearly any other independent agency in our region. This means we can choose the 91 Shaker Road, East Longmeadow, currently under construction, will house Field Eddy & Bulkley as well as other businesses. We’re Moving Our Headquarters to East Longmeadow! Field Eddy & Bulkley Will Move in April: Meadows Insurance Will Join Us After 159 years headquartered in Springfield, Field Eddy & Bulkley is moving to a newly built office at 91 Shaker Road in East Longmeadow. Starting in continued on page 4 What’s happening For thirty years, Massachusetts has been the only state in which auto insurance rates are set by regulators. This system has pushed insurers out of the state, leaving consumers with limited options and high prices. No competition between carriers was allowed, and prices were the same, no matter which carrier you selected. Because all auto insurance companies shared the losses associated with high-risk drivers, state-mandated rates remained high. This placed a continued on page 2 info you can use: 2 Considering Umbrella Insurance 3 Construction Site Thefts “massachusetts auto insurance” continued from page 1 burden on the state’s largest insurers and created higher rates for all Massachusetts drivers, even those with clean driving records. In a move that should lower rates for good drivers, expand policy benefits and potentially bring new competitors into the market, Massachusetts State Insurance Commissioner Nonnie S. Burnes has introduced what she’s calling “managed competition,” an approach that gives insurers more freedom in designing and pricing policies. Under the reformed system, consumers look for the best coverage and prices, which should encourage auto insurance companies to offer competitive rates. You Don’t Have to Be a Millionaire to Be Sued Like One: Considering Umbrella Insurance We believe that umbrella insurance is one of the best buys in the insurance industry. Umbrella insurance is a way to protect your assets in the event that you incur liability claims that exceed the limits of your other insurance policies. Lawsuits abound in today’s litigious culture, and the stakes are high. If you are found to be at fault in an unfortunate accident, the financial penalties can be stiffer than you may imagine. A guest could be badly injured on your property. An inexperienced driver in your household could be the cause of a car accident that damages expensive private or commercial property. Your beloved family dog could feel threatened by – and subsequently attack – a stranger on the street. Any of these incidents could result in multimillion dollar lawsuits, which are becoming more and more common. In cases like this, you can learn the hard way what isn’t adequately covered by standard auto and homeowner’s insurance – and if you don’t have the liability coverage needed to cover the damages, the injured party can go after your home or other assets. In some cases, a lawsuit can even result in heavily garnished wages, and may impede your ability to declare bankruptcy. Umbrella insurance doesn’t have to be prohibitively expensive. Just $300 can often provide you with $1 million or more in insurance to protect yourself and your assets against a potentially catastrophic lawsuit. Talk to us to see how you may benefit from umbrella coverage. The end result? Lowered costs for Massachusetts’ best drivers. So far, eighteen of nineteen Massachusetts’ current insurers have submitted changes to the Massachusetts Insurance Commission. These include significant rate reductions, added benefits and expanded discount programs. All approved changes will become effective April 1, 2008. The expected statewide average rate reduction is currently between 6 and 7.8%. It cannot be determined whether or not this is a higher or lower rate than would have been established by state regulators, but in the spirit of competition, various insurers are now offering increased benefits like enhanced towing and rental car benefits, and new-car replacement cost coverage; discounts for multi-car families or for students with good grades; and loyalty discounts for customers who stay with their current insurer. Burnes and industry officials also suggest that premiums should continue to drop as drivers shop for the lowest rates. Said Burnes, “At the end of the day, we think the story will be that this is a real success for consumers.” Q. How do I make sure I’m taking advantage of this change? Will my rates automatically go down? A. That’s where Field Eddy & Bulkley and its affiliated agencies come in! We will find the best rates for you. Because we represent more auto insurance carriers than most area independent agencies, we pledge to find you the best coverage at the best price. If it is possible to reduce your rates, you can be sure we will. 2 InField Construction Site Thefts Hit Home When it comes to new construction, commercial or residential, a contractor is typically concerned with staying on schedule and completing the project as promised. But in the last few years, sharp spikes in construction site theft have left contractors and homeowners, who may be acting as their own contractors, fearful that the project on which they’ve worked so hard could be stripped of expensive equipment, appliances and materials in a matter of hours. The phenomenon of theft and vandalism on construction sites is nothing new, but according to the National Association of Homebuilders, construction site theft and vandalism cost the building industry about five billion dollars last year, passing a 1.5% sales price increase on to homeowners. Some experts speculate that sharp increases in material costs such as copper have spurred this trend. Since April 2005, the price of copper pipe and tubing has risen nearly 71%. Thieves steal it and re-sell it to recycling centers and metal companies at a premium. What’s more, equipment theft – ranging anywhere from saws and hammers to full size excavators – can shut down a job temporarily and frequent instances of theft can damage a contractor’s reputation. What Can Contractors and Homeowners Do to Help Prevent Construction Site Theft? Since sites are most vulnerable on weekends, it’s important to begin by posting signs, such as ‘No Trespassing,’ ‘Security Cameras in Use, or ‘Private Property.’ Contractors should also consider the following tactics to help deter a potential thief: • Use reward program signs on buildings and reward stickers on equipment and job trailers • Communicate with your neighbors – they could be the witnesses of a future crime. Offer rewards to local citizens and employees or create a partnership with homeowners in a partially completed subdivision • Plan on just-in-time delivery of expensive (and potentially enticing) items such as appliances and metals for • Consider installing cost-effective surveillance cameras; installation at the end of the job some can be transferred from one job to the next • Speak with us to find out how to • Limit access; with so many different subcontractors limit your liability exposure and coming in and out of the site, it is wise to change protect your assets padlocks several times during construction. Also consider asking employees or subs to wear ID tags • Record inventory and update frequently. Take color photos and write down serial numbers • Mark equipment – weld, spray paint or otherwise identify tools and equipment with the last six digits of the product’s PIN or serial number. Consider doing this in both an obvious and hidden spot on the equipment InField 3 “we’re moving” continued from page 1 April, this new location will Springfield provide our clients with easy 91 access by car, ample parking Sumner Ave. and, for many, increased 2 Forest Park convenience. Longhill St. 1 83 In addition, Meadows Insurance will leave its current Converse St. East location, move in with Field Longmeadow Eddy & Bulkley and assume . le St Bliss Rd. Map Williams St. our name. This change will LEAHY FIELD 5 allow Meadows Insurance to Longmeadow offer all the advantages of Field Eddy & Bulkley’s strength in the industry, while assuring that current Meadows clients can continue to work with the team of people they now know and like. The move from Springfield comes with great nostalgia. It was a difficult decision for us to leave the home we’ve had in the South End for so long, and we will always maintain our strong bond with our Springfield clients. Dwight Rd. The Field Eddy & Bulkley Companies Field Eddy & Bulkley, Inc. 959 Main Street P.O. Box 2979 Springfield, MA 01101-2979 (800) 784-4873 or (413) 733-3131 Curtis Hodskins & McKelligott Insurance Agency P.O. Box 248 17 Palmer Road Monson, MA 01057 (800) 881-5536 or (413) 267-5536 ain th M Nor St. Shaker Rd . n Bento Meadows Insurance Agency 200 North Main Street East Longmeadow, MA 01028 (413) 525-1721 Dr. Remillard Insurance Agency, Inc. 79 Lyman Street South Hadley, MA 01075 (413) 538-7862 Your Choice Insurance Agency 120 East Street Ludlow, MA 01056 (413) 589-0192 959 Main Street • P.O. Box 2979 Springfield, MA 01101