CLINE WOOD AGENCY IS MOVING
OFFICE CLOSED JUNE 12
Our office will be closed 8 a.m. CT on Friday, June 12, and reopening 8 a.m. CT on Monday, June 15, as we move to a new location just down the road.
In case of an emergency during the time we are closed, please call:
Transportation clients: (913) 909-8378
Agribusiness clients: (913) 620-7007
Please note our new address as of June 15, 2009:
Cline Wood Agency
4300 West 133rd Street
Leawood, KS 66209
All phone and fax numbers will remain the same.
Don’t Get Caught with Unexpected Out-of-Pocket Expenses
We are all adapting to meet the challenges of this difficult economy. Make sure the strategic changes you make don’t end up causing an unexpected out-of-pocket loss.
Many of our customers tell us that they have assets they are not using due to the slow economy. Our transportation clients have trucks and trailers that are not being utilized, and our agribusiness customers have facilities and equipment they are leaving idle. It’s bad enough that today’s economy requires so many of us to work harder to make less. You certainly don’t want to suffer out-of-pocket losses resulting from the adjustments you have had to make.
There are two main exposures that need to be addressed whenever you place assets on idle status. First, if you decide not to use a facility for a period of time you should talk to us about that so we can make sure your coverage will not be impaired. Many policies have provisions limiting coverage for vacant and/or unoccupied facilities. If we know your plans, we can recommend the best coverage options for you.
Second, when you idle equipment, you can end up with a large concentration of assets that are collectively subject to one occurrence. For example, if you park a number of tractors and trailers in one area, they may all be subject to damage if one of them catches on fire or if a tornado hits the area. While you may have physical damage on the units, you could have a deductible of $500, $1,000, $2,500 or more on each tractor and each trailer. A fire or tornado that damages 20 tractors and 30 trailers that are each subject to a $1,000 deductible could cost you a whopping $50,000 out-of-pocket! Once you are aware of the exposure, you can consider spreading the units out or adding a single deductible catastrophic physical damage policy to limit your exposure.
There are many other exposures that may result from strategic decisions you make in these challenging times. It’s important to consider the insurance consequences when you make changes in your organization and communicate effectively with your agent. That way you will have the opportunity to make the right moves to avoid unexpected out-of-pocket losses at a time when you are working extra hard to make a profit.
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