Batchelder Bros. Insurance Has Acquired Ronel J. Dubois Insurance Agency

We are pleased to announce the merge of Ronel J. Dubois Insurance Agency to Batchelder Bros. Insurance Agency. Both agencies are 3rd generation family-owned businesses with deep roots in the Sanford-Springvale Community. Ronel J. Dubois Insurance Agency will be merging into Batchelder Bros.’ office, located across the street at 851 Main St, Sanford. Batchelder Bros. Insurance has been operating as an independent Property & Casualty insurance agency since 1874, marking 150 years in business this year. This acquisition was made possible by the loyalty and dedication of the Greater Sanford-Springvale community by supporting local business and allowing them to thrive. Greg & Andrew Thayer succeeded their father, Alden Thayer, in 2021 and look forward to continuing to service the community for years to come.

Types of Liability Insurance

The Wall Street Journal summarizes liability insurance. A quick and concise guide.

What Does Liability Insurance Cover? - Buy Side from WSJ

“No one expects to be responsible for a catastrophic event that injures someone else or their property, but it happens. And it can be expensive.

That’s where liability insurance comes in. Instead of dipping into your own savings or paychecks to cover someone’s medical expenses or repairs, your insurance company takes care of it.

“It’s really about taking a small amount out of your pocket to shift the risk to somebody with a much bigger pocket, an insurance company,” says Damon Winter, a Lake Oswego, Ore.-based financial advisor. Liability coverage is baked into homeowners and car insurance policies, but there are other areas you may need coverage in too.

Here’s what you should know about the different types of liability insurance, what each covers and how much it costs to be fully protected.

Types of liability insurance

Liability insurance can be split into three categories: personal, professional and business.

1. Personal liability insurance

If you own a home or drive a car, you already have some liability insurance. A standard part of homeowners and auto policies, liability coverage saves you from paying for someone else’s injuries or property damage when there’s an accident. Sometimes the insurance company will even pay when it’s not your fault. 

Take homeowners insurance, for example. If a visitor gets hurt on your property, whether it’s in the pool, during a party or because your dog bit them, you could be responsible for their medical bills. But since you pay for insurance, the insurer covers it. 

Liability coverage within a homeowners policy is broad. It also typically pays for legal defense costs if you’re sued by the injured person, as well as their wages if they’re unable to work, court-awarded damages for pain and suffering or funeral costs if the injury led to death. It can also cover legal costs if you’re sued for defaming someone’s character, whether or not it happens at your house.

With car insurance liability coverage, your insurer pays for the victim’s medical expenses, lost wages, court-award settlements or property damage when an accident is your fault. But depending on the type of car and severity of the injuries, that can add up fast. You’re responsible for paying any expenses beyond your coverage limit.

2. Professional liability insurance

Professional liability insurance covers small businesses or individuals who offer advice or services, such as accountants, financial advisors, doctors and lawyers. Otherwise known as errors and omissions insurance, it covers legal defense fees when a professional is sued by a client or patient, and settlement costs if they’re found liable.

“Basically, it protects you from unsatisfied clients,” says Mark Friedlander, a spokesman for the Insurance Information Institute. 

3. Business liability insurance

There are several forms of business liability insurance. It generally protects the financial interests of a business and its owner from claims of physical injury and property damage from employees, contractors or patrons. Manufacturers often have product liability insurance, for example, which pays legal defense costs and any court-awarded settlements if a product has a defect that causes bodily harm or property damage. 

How much coverage do I need?

Personal insurance policies come with a minimum level of liability coverage, but you can—and often should—buy more, Winter says. Increasing your limits will usually lead to a higher monthly payment, but one bad liability claim could “crush you” financially, he says, so the protection is worth the added cost.

Car liability insurance

States set minimum car insurance liability requirements for drivers, which are divided into three parts: 

• Bodily injury limit, per person: How much the insurer will pay for a single person’s medical bills when they’re injured in an accident caused by the policyholder. Also includes legal fees if the policyholder is sued by the victim. According to data from insurance-comparison site The Zebra, state minimums range from $15,000 to $50,000.

• Bodily injury limit, per accident: The combined amount the insurer will pay for medical bills for multiple injured people in an at-fault accident. State minimums range from $30,000 to $100,000.

• Property damage limit: How much the insurer will pay for replacements or repairs for other cars or physical property (a light pole or fence, for example) that are damaged in an at-fault accident. State minimums range from $5,000 to $25,000.

Friedlander says most insurance professionals recommend drivers have annual auto liability coverages of 100/300/100, meaning $100,000 in bodily injury coverage per victim, $300,000 in bodily injury coverage per accident and $100,000 in property damage coverage. 

It’s possible to get liability-only car insurance, but that means you don’t have coverage for damage to your own car in an accident. A liability-only policy with coverages of 100/300/100 can cost anywhere from $42 to $84 a month for a single, 30-year old male driving a Honda Accord, according to estimates from The Zebra. 

Keep in mind that those prices are samples; your individual driving record and location, among other things, determine how much you pay. Plus, adding comprehensive and collision coverage—the portion of your policy that pays for damage to your own car—will increase your monthly payment. 

Homeowners liability insurance

A standard homeowners or renters policy provides at least $100,000 worth of liability insurance. That covers medical bills for visitors if an accident occurs on the property, plus legal fees and settlement costs if the visitor sues you.

It also covers actions by the homeowner, family members who live with them or pets—anywhere in the world. If you wreak havoc on a hotel room, for example, causing thousands of dollars in damages, your insurer will step in and cover the bill up to your policy limit. (That doesn’t mean you have free rein—insurers can increase your monthly payment if there’s a claim like that). Most home insurers’ liability coverage maxes out at $500,000.

Figuring out how much coverage you need, Winter says, comes down to one question: “What do you have to lose? That’s really a big factor.” Even if you don’t think the odds of something bad happening are high, he says, you have to consider what the financial impact would be if something did. For many people, the potential loss is great.

According to ValuePenguin, an insurance comparison marketplace, a typical homeowner can increase their liability coverage without much of an impact on their monthly payment. For instance, upping coverage from $300,000 to $500,000 costs only $10 more per month, based on a sample homeowner profile. In general, prices will vary based on your home’s location and other factors.”

Are Christiano Ronaldo's Legs Really Insured?

When one hears a headline that Jennifer Lopez's gluteus maximus or David Beckham's face is insured for tens-of-millions of dollars skepticism naturally arises.  How does someone value that? And can insurance companies actually insure for these things?

There are a few key tenets that need apply in order for insurance to be written.  

• It cannot be a speculative risk, meaning that a risk has both the possibility of a gain and a loss such as a game of blackjack.  It must be a pure risk which involve only the possibility of a loss.
• It must be unexpected. 
• The loss must be calculable

According to a 2013 report, Chritiano Ronoldo had his legs insured for 103 million Euros.  This insurance policy qualifies because there is pure risk, the worth of his legs are directly tied to his contract and an injury would be clearly unexpected.  In the event of a catastrophic accident while playing soccer he would be covered under a workers compensation policy.  If the career ending injury were to happen off the field, its hard saying if his legs would be covered.  Inferring on this article- http://www.insidespanishfootball.com/88696/cristiano-ronaldo-has-his-legs-insured-for-e103-million/ it is likely that this is a workers compensation policy since the policy is through the club.  It's doubtful that he would be payed 103,000,000 Euros if it happened in a car accident or shark attack, but without seeing the insurance policy we can't be too sure.

As for J-Lo's backside...doubtful. 

Medical Marijuana Insurance

Maine is one of 25 states that allows medical use of marijuana and looks likely that it will pass this autumn's ballot initiative for legalized recreational use.  Nationally, sales reached $5.4 billion in 2015 and are expected to hit $6.7 billion in sales for 2016.  Maine's sales were nearly $24 million in 2015.  With adult use legalization looming, sales are expected to explode in Maine as it will usher in marijuana tourism that is sure to attract a lot of out-of-staters and bring the state's black market into the fold. 

Where full legalization has gone into effect, the outcome has been deemed successful.  There has been virtually no negative unforeseen consequences and has raised a substantial amount of state revenues.  As for the medical sector, science continues to support marijuana's use for a myriad of medical complications.  All of this is helping normalize the public's perception of marijuana and its stigma is fading.  

One of the ongoing issues nationwide has been that, despite states' legalization efforts, marijuana possession is still illegal at the federal level.  Former Attorney General Eric Holder issued federal agencies not to enforce the law in states where marijuana has been legalized, but until it becomes law the situation remains precarious because that decision could be overturned with a single decree.  This has made banks weary of lending and doing business in this sector. Hence why transactions within the industry are mostly in cash.

Although technically insurance is part of the financial sector it is not constrained like banks are. Now that some form of legalization has been in place for years a number of insurance companies have had the time to look at risk data and have tailored products for growers, dispensaries, and others in the marijuana supply chain.  They offer everything from general liability to crop insurance.  For example, one insurance carrier we broker offers different coverages depending on crop maturity.  One can insure the crop at seeds, immature seedlings, vegetative plants, flowering plants, harvested plants, and finished stock.  

Without getting into the weeds about the ins and outs of insurance for the marijuana industry, what is important to know is that there is insurance out there for your business that covers everything regardless of the grey area the industry may be in due to federal regulations. Between growing equipment and the value of the marijuana itself, taking a loss would be catastrophic to an uninsured grower.  Make sure you are adequately covered.  There are lots of good options out there for you.  

Insurable Value vs. Market Value

A common reaction we receive when issuing a homeowners' policy is one of bewilderment when the insured looks at the replacement cost for their home after having just gone into contract for a home they are about to purchase.  One of two scenarios happen: 1) we most often run into situations where someone just bought a home for the market value of $600,000, but their insurable value is $350,000.  And 2) the opposite situation when someone buys a home for $300,000, but the insurable value is $550,000.  Many people are quick to think that they either overpaid for their home, or that they are over insured and are being ripped off.  Neither is likely the case.

Insurable value for a home is the replacement cost in the event of a total loss.  For instance, take the first scenario- Someone purchases a newly built 2,800 sq. ft. home on a 1.5 acre plot near the coast with ocean views for $750,000.  Now take that exact 2,800 sq. ft. newly built home on 1.5 acres and move it inland 15 miles to the next town over to a less wealthy area.  This home was purchased for $350,000.  Now assume that both of those homes burn to the ground and need to be rebuilt.  In this situation, the replacement cost would be identical regardless of paying a market value of $750,000 or $350,000.  The same contractor would be buying the same materials at the same location and charging the same rates to rebuild.  Market value takes into account a number of factors, where insurable value only looks at what it would cost to rebuild the structure only (and its contents).  Land value and location are not factors in this equation.   

Conversely, we have situations where homeowners have put more into their home than they could possibly sell it for in a particular town, or area of town.  They may put their home on the market for $400,000 because that is the predicted maximum price they will be able to receive (market value).  This home's insurable value may exceed what it can get on the market, meaning that in the event of a total loss the structure's insurable value may exceed $650,000 regardless of what it could sell for.  Again, market value is affected by a number of factors- ultimately driven by supply and demand.   

How Independent Insurance Agents Quote

As independent insurance agents we have access to both direct writers (i.e. Progressive, Travelers) and insurers that work exclusively through agents (i.e. Cambridge Mutual, Vermont Mutual).  Getting insurance through an agency will give you more options, therefore making each insurance company more competitive for your business.  When someone is seeking insurance each insurance company examines the risk levels and gives a quote based on risk and value assessment.  In order for insurers to move the process along to ensure coverage as quickly as possible the initial assessment and quote given is based on the information given directly by the person seeking insurance.  Once someone agrees to a policy the insurance companies will take a deeper look at value assessments provided by the insured via tax records and any other available public records.  Insurance companies make their final value assessments based on public records. So on occasion you will see an increase or decrease in your coverage which will be reflected in a change in premium due from the original quote.  

Why an Independent Insurance Agency?

What sets an independent insurance agency apart from direct writers such as Geico, Farmers, Allstate, State Farm, Progressive, and Nationwide? As independent agents we take the time to understand exactly what you need and make sure you are covered appropriately. We have long standing relationships with each of the insurance carriers we represent so we have a thorough understanding of the varying coverages each of our Insurers provide. Insurance companies that utilize the agency channel to provide insurance coverage know that they need to compete for your business. They are not spending millions of dollars on advertising.  The money that is saved on advertising costs often times results in reduced premiums.  Direct writers will also tout that they can give you a quote in 15 minutes, but it would be wise to call a few different direct writers if you really want the best deal.  All that time begins adding up... Let a local independent insurance do that for you a no additional cost.