Grant Patten

Grant Patten - VP, Marketing

Recent Posts

Legal Expense Insurance

Posted by Grant Patten on Jan 13, 2020 8:26:34 AM

Legal Expense Insurance

Legal Expense Insurance

With legal expense insurance, your legal risks are well managed.

We know you’re busy. You’re running your business and working hard at it. But whenever you have an unforeseen legal issue, we know it means more time and work for you – and it takes you away from doing what you love.

Front Row Insurance and DAS have partnered to save you time and effort by offering the option of legal expense insurance (LEI) as a part of your Front Row policy.

How would LEI help you and your business?

A legal expense insurance policy:

  • provides you with financial coverage for a variety of potential legal events,
  • empowers you to pursue or defend your legal rights, and
  • provides you with unlimited access to a general Legal Helpline

Legal expense insurance saves you time and money by helping to:

Defend or pursue your legal rights, such as:

  • Employment Disputes: If you face legal action from an employee or ex-employee
  • Legal Defence: If your business faces criminal charges, a police investigation or an occupational health and safety investigation
  • Contract Disputes and Debt Recovery: If you face a dispute with a client or supplier in regards to a breach of contract or failure to pay an amount owed
  • Statutory Licence Protection: If your business faces a suspension, alteration or cancellation of its business licence
  • Property Protection: If there is trespass or legal nuisance to your business property
  • Bodily Injury: If you or one of your employees is injured on the job as a result of someone else’s negligence
  • Tax Protection: If you face an audit or wish to appeal a decision from the CRA

With policy limits of $100,000 per claim and $500,000 in total per policy year, DAS provides you the financial security to continue your legal action over time and against well-funded foes.

You also receive unlimited access to the DAS Legal Helpline

You will not need to search the internet or pay out of pocket for answers and assistance to your legal questions or issues. Legal information is provided, even if the issue or question is not covered by the policy. We make it easy for you as our Helpline lawyers are available:

  • 8:00 a.m. to midnight local time
  • 24/7 in an emergency situation

To learn more, please contact us.

Related Posts:


About: DAS Legal Protection Inc. is the Canadian market leader and managing general agent specializing exclusively in Legal Expense Insurance. Working with brokers and corporate partners, we create access to justice solutions so Canadian individuals, families, and business owners can exercise their rights, preserve their budget, and be confident when facing an unforeseen legal event. DAS Legal Expense Insurance policies are underwritten by Temple Insurance Company, and both companies are members of Munich Re (Group). To learn more, please visit www.das.ca.

Topics: Entertainment Insurance, Workers Compensation, workplace insurance, legal expense

Front Row’s Referral Marketing Program

Posted by Grant Patten on Nov 28, 2019 11:01:55 AM

Front Row’s Referral Marketing Program

Front Row Insurance referral program

You asked, we listened! In our September 2019 Customer Satisfaction Survey, we saw your requests for a referral marketing program and so we promptly set one up. A full 47% of our customers hear about us through word of mouth, and we'd like to start showing our appreciation for these referrals.

If you’re a Front Row customer: just complete the form on this landing page and we'll email your friend about our insurance products. Referring a friend to Front Row gives you the potential to win a $15 Amazon eGift Card OR be entered into a random draw to win a $99 Amazon eGift Card! (depending on your province/state)

provincial/state differences are as follows:

  • AB & BC: You'll get a $15 Amazon eGift Card IF the person you referred becomes a customer

  • ON: Simply by making a referral, you'll be entered into a random draw to win a $99 Amazon eGift Card. The draw will be quarterly (every three months)

  • All other provinces/territories: excluded (when/if insurance regulations change in these provinces, we’ll likely expand our referral program to include them also)

  • US: excluded

Refer a Friend

There is no upper limit—refer as many friends as you'd like!                          

Note: Front Row reserves the right to refuse to pay a referral reward.

How to choose between a DICE Insurance Policy and a DigiGear Policy?

Posted by Grant Patten on Nov 11, 2019 12:33:21 PM

HOW TO CHOOSE BETWEEN A DICE POLICY AND A DIGIGEAR POLICY?

DICE (docs, corporate videos, commercials, educational films, music videos)

The DICE Package Policy is intended to provide insurance for smaller budget documentaries, corporate videos, commercials, educational films, music videos and more. DICE is best suited for producers who are planning to produce projects other than feature films or TV series.

DICE can provide coverage for a full year for rented & owned equipment as well as Props, Sets and Wardrobe, Office Contents, Vehicle Physical Damage and more. Commercial General Liability coverage can also be purchased either together with the equipment coverage or on a standalone basis. If you would like more information or to request a free non-obligation quote, visit our DICE Policy website here. If you are a US based Producer, click here instead.

A DICE policy is available in ~4 hours by calling or emailing our office.

DigiGear (film equipment)

The DigiGear Policy is intended for owners of camera equipment, sound, lighting and other film equipment. All equipment is covered for: theft, damage, fire and loss of use. Like DICE, the DigiGear policy term is also for 12 months. A DigiGear policy is designed to cover owners/operators of production equipment whose operations or services fall within one of the below classifications:

  • Camera Operator
  • Director of Photography (DP) / Cinematographer
  • Videographer
  • Sound Recordist
  • Digital Imaging Technician
  • Grip

Unlike DICE, DigiGear is not a film production policy.

A DigiGear policy is available online in ~five minutes 24/7.
Note: coverage under DigiGear is only available to Canadian residents at this time.

For a visual overview of the two policies, view the infographic below:

DICE vs. DigiGear infographic

RELATED POST:

HOW TO CHOOSE BETWEEN A DICE POLICY AND A SHORT SHOOT POLICY*

 

Topics: Documentary Insurance, DICE Insurance, DigiGear, Film equipment rental insurance, corporate video insurance, music video insurance, Educational Film Insurance

Video: How do I add an additional insured to my policy?

Posted by Grant Patten on Oct 31, 2019 12:08:26 PM

How do I add an additional insured to my policy?


Instructions for issuing blank certificates.

If you’re applying for a permit to film or photograph on location, or host an event, you may have been asked to provide a certificate of insurance that adds an “additional insured” to your policy.

Adding additional insureds to your policy is actually really easy, especially with the tools that Front Row provides you.

First: I’m going to explain how to add an additional insured to your policy using Front Row’s blank certificate. If you just want to fill out the paperwork and get that permit, this is as far as you’ll need to watch. Second: I’ll explain what it means to add an additional insured to your policy.

How do you add an additional insured?

Most of the policies that you can buy through Front Row’s website come with something called a blank certificate of insurance. This is included along with the documents you receive by email when you purchase a policy with us. It’s sent to you as an attached PDF.

You will also receive a PDF with instructions on how to issue blank certificates. The blank certificate is a fillable form that you can use to issue your own certificates. If you open the blank certificate, you’ll see a fillable field at the top where you can add the Name and Address of the person or entity who you’re issuing the certificate to.

To add a person, company, city, or government agency as an additional insured to your policy, copy & paste their name and address into the fillable “issued to” field.

Then print a copy of the PDF so it can no longer be altered. Give the certificate holder or permitting office their copy, and send a copy to our office so we know who you’ve issued certificates to. Email the copy to: certificates@frontrowinsurance.com

That’s it! You’ve just added an additional insured to your policy. You don’t need to get our approval or wait for any confirmation on our end. Front Row’s blank certificates are quick and easy, giving you the freedom and flexibility to provide the insurance documents you need to secure location permits or rent out venues or equipment.

Now, I should add one caveat. The blank certificate form will work in most cases, but occasionally, you may have to contact our office to get a custom certificate prepared. Some organizations want to see specific wording on their certificates that doesn’t appear on the blanks. If you’re not sure if you will need custom wording, try the blank certificate form first. If they reject it, then contact our office.

Related Video:

What does it mean to add an additional insured to my policy?

Topics: Film Insurance, photography insurance, Additional Insured

The Sustainable Production Forum & Sustainability in the Film Industry

Posted by Grant Patten on Oct 17, 2019 6:18:03 AM

THE SUSTAINABLE PRODUCTION FORUM & SUSTAINABILITY IN THE FILM INDUSTRY

THE SUSTAINABLE PRODUCTION FORUM#greenproduction #greenfilm #sustainability #sustainablefilm #gogreen

“The average person generates about 7 tonnes of carbon a year. A single film technician typically generates 32 tonnes per year.”
Melanie Dicks, co-founder of Greenshoot

This post about sustainability in the film industry is a natural extension of the last two climate-related posts we wrote on carbon offsetting and the Global Climate Strike. As Front Row cares about the environment and improving sustainability in the entertainment industry, it only made sense to become a sponsor of the Sustainable Production Forum (SPF), which focuses on challenges and solutions to greening the motion picture and entertainment industry.

Sustainability Issues in the Film Industry

First, what do we mean by sustainability? The basic definition is “the ability to continue a defined behavior indefinitely.” But here, we’re talking more specifically about environmental sustainability, which is defined as “the rates of renewable resource harvest, pollution creation, and non-renewable resource depletion that can be continued indefinitely. If they cannot be continued indefinitely then they are not sustainable.” –Thwink.org

“Entertainment, as a sector, has always lagged behind in incorporating sustainability.” –Zena Harris, President, Green Spark Group

Mountains of plastic water bottles or landfill-bound sets are not uncommon for big-budget shoots. A single mid-sized TV series can consume up to 57,000 water bottles and 810,000 sheets of paper per season.

A large TV series or film feature can be expected to consume construction material (over 900 tonnes for a large feature; 3,000 tonnes for a blockbuster) and gasoline (up to 175,000 litres for a large TV series).

All these numbers add up to a significant environmental sustainability challenge for the entertainment industry.

Examples of Sustainable Production Programs & Initiatives

In BC, sustainable production dates back to the 2006 creation of Reel Green, which provides tools and information for companies wishing to produce motion pictures in an environmentally responsible manner.

NBC Universal launched their “Green is Universal” initiative in 2007 along with a Sustainable Production Program and Green Production Guide. Green is Universal is NBC’s ongoing green initiative dedicated to raising awareness, effecting positive change to the environment and substantially greening its own operations.

In 2009, Green Screen Toronto published Green Practices Handbook [PDF], one of the first industry reports to note cost savings due to sustainable practices on large feature films.

Sustainable Lockup logoKeep it Green Recycling and Green Spark Group created the Sustainable Lockup in May 2017; the initiative has redistributed “well over 100 tonnes of set materials” — including windows, doors and flats. Sustainable Lockup also has a program to get leftover food from on-set catering to people who need a meal.

The British Academy of Film and Television Arts (BAFTA) has been a leader in helping transition the UK’s entertainment industry to environmental sustainability.

The set of UK short film The Blue Door (2017) was designed and built using 100% recycled and reclaimed materials – even down to the screws. Once filming was over, all of the set was returned to the production designer’s prop centre, where it could be hired back into the industry and repurposed for future productions.

How Sustainability Benefits Industry & Society

The Amazing Spider-Man 2 employed an eco-manager who helped reduce bottled-water use. A typical 60-day film shoot can save upwards of $6,000 just by eliminating plastic water bottles. Similarly, Tomorrowland employed an environmental steward and achieved a 91% waste diversion rate from landfills by following a comprehensive zero waste initiative.

The Man in the High Castle’s third season reportedly saved over $50,000 by implementing sustainable production practices, including simply switching from single water bottles to larger ones and having people bring their own bottle.

Green Spark Group works with producers to establish and meet sustainability goals. On average, Green Spark claims to save producers it works with some $73,000. Working with Green Spark in 2015, The X-Files diverted more than 81% of its total waste from landfills, achieving US$41,000 in overall cost savings.

Zero-emission vehicles (ZEV)Environmental activists in the entertainment industry – including SPF – are pushing for the adoption of zero-emission vehicles (ZEV). The Government of Canada has even set ambitious federal targets for ZEV reaching 10% of light-duty vehicle sales per year by 2025. The use of ZEV instead of vehicles that emit exhaust gas of course benefits the industry and society as a whole through less pollution. In BC, 95% of electricity is generated from renewables – mainly hydro. It costs $2.10 to charge a Tesla Model 3 to drive 100 km. By comparison, it costs approximately $23 in gas to run a typical V6 sedan for 100 km. ZEV vans and light-duty trucks will save productions significant dollars in fuel costs.

Attend SPF (Sustainable Production Forum)

Interested in learning more about greening the film industry? The Sustainable Production Forum focuses on the pressing issue of sustainability within the motion picture and entertainment industry. Learn more at https://www.sustainableproductionforum.com/

As climate change becomes increasingly urgent, all industries need to take up the flag of sustainability and create collaborative solutions to reduce our collective footprint.

 

Citations:

Front Row Supports the Global Climate Strike

Posted by Grant Patten on Sep 24, 2019 1:09:42 PM

FRONT ROW SUPPORTS THE GLOBAL CLIMATE STRIKE

FRONT ROW SUPPORTS THE GLOBAL CLIMATE STRIKE

#unitedforclimate #greencircle

On Sept. 11, we posted about how we offset all carbon emissions created as a result of flights taken for our business. As an extension of that post, we would like to declare our support for the ongoing Global Climate Strike and we encourage all Front Row employees and customers to also support these strikes, as they are calling attention to one of the biggest issues of our time – climate change. Of course, we recognize that carbon offsetting is not a solution to climate change and stronger action is required from both public and private sectors.

The September 2019 Climate Strikes

The ongoing September 2019 climate strikes have likely been the largest climate strikes in world history. Organizers reported that over 4 million people have participated in strikes worldwide.

These strikes come out of the “School strike for climate” movement, an international movement of students participating in demonstrations to demand action to prevent further global warming. The movement began in 2015 when an independent group of students invited other students around the world to skip school on the first day of the 2015 United Nations Climate Change Conference in Paris and make the following demands:

  • 100% clean energy
  • Help “climate refugees” (people forced to leave their home due to sudden or long-term changes to their environment)

It was teenage environmental activist Greta Thunberg who brought the movement to global attention. On 20 August 2018, she protested by sitting outside the Riksdag during school hours with a sign that read "Skolstrejk för klimatet" ("school strike for the climate"). She has inspired students across the globe to take part in similar climate strikes.

Friday, September 27, 2019 – Global Strike for Climate Justice

This Friday, September 27, there will be a Global Strike for Climate Justice in many towns and cities across the world. View the interactive map on https://globalclimatestrike.net to find a climate strike happening near you and consider joining in. We have listed below a selection of climate strikes happening in some major Canadian cities:

Vancouver – General Strike! for Climate Action – Sept. 27, Vancouver City Hall, 1PM

Vancouver – General Strike! for Climate Action

 

Toronto – Global Strike for Climate Justice – Sept. 27, Queen’s Park, 11A

Toronto – Global Strike for Climate Justice

 

Montréal – Crise climatique, manifestation historique – Sept. 27, Mt. Royal Park, 12PM

Montréal – Crise climatique, manifestation historique

 

Halifax – K'jipuktuk – Sept. 27, Victoria Park, 11AM

Halifax – K'jipuktuk

 

Citations:

https://en.wikipedia.org/wiki/September_2019_climate_strikes
https://globalclimatestrike.net/

Front Row’s Carbon Offset Commitment

Posted by Grant Patten on Sep 11, 2019 10:24:55 AM

Front Row’s Carbon Offset Commitment

carbon offsets

“Canada declares national #ClimateEmergency. It’s great that more countries and regions are doing this. But remember: The fossil fuels must stay in the ground. Forget “climate neutral” and clever accounting. Our emissions must start their way to zero. Now.”
Greta Thunberg, teenage environmental activist | Twitter post (06.18.2019)

In this post, we’ll explain: the cost of a flight offset, corporate social responsibility (CSR) and carbon offsets, review some of the history of carbon offsetting, look at some examples of companies doing an effective job with CSR and conclude with a listing of some carbon offset vendors to consider.

What Does It Cost to Offset a Flight?

Front Row offsets all carbon emissions created as a result of flights taken for our business. The total emissions created for a flight from Vancouver to Toronto in economy is 1.294 tonnes. The cost for a gold offset is $32 per tonne, resulting in a reasonable cost of $41.42 each way.

The cost to offset your flight can be calculated in less than 30 seconds by using this link to Less Emissions.

Corporate Social Responsibility & Carbon Offsets

Corporate social responsibility (CSR): a type of international private business self-regulation. A company's sense of responsibility toward the community and environment (both ecological and social) in which it operates.

Carbon offset: an action intended to compensate for the emission of carbon dioxide into the atmosphere as a result of industrial or other human activity, especially when quantified and traded as part of a commercial program.

Front Row Insurance is an organization that takes CSR seriously. We demonstrate our commitment to CSR primarily through the implementation of a carbon offsets program: all flying that is done by Front Row has a carbon offset through Less Emissions Inc. Through Less, customers can calculate and purchase offsets to help mitigate the greenhouse gas emissions associated with air travel.

The History of Carbon Offsets

The carbon offsets idea likely originated with the Kyoto Protocol, signed in 1997 by many countries (and which Canada withdrew from in December 2012). The Kyoto Protocol has sanctioned offsets as a way for governments and private companies to earn “carbon credits” that can be traded on a marketplace.

In June 2019, The House of Commons passed a motion to declare a national climate emergency in Canada. A report from Environment and Climate Change Canada released in April found that Canada is warming up at twice the rate of the rest of the world; this situation requires that Canada commit to meeting its national emission target under the Paris Agreement.

Although Canada officially withdrew from Kyoto, there are many grassroots initiatives across the country focused on promoting the reduction of emissions, such as Montreal’s climate march on Sept. 27 2019, which has invited Greta Thunberg (the 16-year-old Swedish environmental activist) to participate. This event is part of Global Climate Week from Sept. 20-27.

Examples of Effective Corporate Social Responsibility

Well-known companies that seem to be doing a good job of CSR include:

  • Swiss Re: this reinsurance company charges its business divisions a fee based on their emissions, incentivizing them to reduce their carbon footprint while also raising funds that can then be reinvested in energy efficiency/used to purchase offsets.
  • Vancity: Vancouver City Savings Credit Union has increased its holdings of clean tech and renewable energy companies. The company has been integrating environmental, social and governance factors into its investment decisions.
  • Johnson & Johnson: this medical device company’s initiatives range from leveraging the power of wind to providing safe water to communities around the world.
  • Coca-Cola: they have invested in new alternatively fueled trucks and are intending to create a 25% reduction in their carbon footprint by 2020.
  • The Lego Group: in 2015, they announced plans to invest $150 million as part of an effort to make their iconic plastic building blocks better for the environment and make their packaging more sustainable (like cutting the size of packages).

Benefits of Carbon Offsets Program

There are benefits to both the general public and to companies when it comes to carbon offsets.

General public benefits:

  • Reduced pollution (in the future): the funds companies invest in offsetting normally go toward green technology projects that should, when completed, reduce the amount of greenhouse gases in the atmosphere, which obviously benefits the public at large.
  • Reputational benefits: people generally like having the reputation of being environmentally conscious and aware. People who buy offsets for their cars often receive a window decal to make others aware of their carbon neutrality, for example.

Company benefits:

  • Good PR & branding: offsetting carbon emissions engenders a certain amount of goodwill, both of the general public and certain investors; companies often like to take advantage of this opportunity to advertise their eco-friendliness in the marketplace.
  • Anticipation of regulation: companies can get “ahead of the curve” by proactively taking some measures to offset their carbon emissions and when government regulation inevitably comes, they will have something already to show regulators.
  • Tax deduction potential: if purchasing carbon offsets from a non-profit, under certain circumstances, the purchase could be considered a charitable donation and therefore tax deductible (depends on the carbon offset vendor).

How to Implement a Carbon Offsets Program

There are various carbon offsetting vendors that can be considered, including:

 

related:

FRONT ROW SUPPORTS THE GLOBAL CLIMATE STRIKE

 

Citations:

Disgrace Insurance in the Film Industry: A Growing Concern

Posted by Grant Patten on Aug 26, 2019 8:42:45 AM

Disgrace Insurance

Disgrace Insurance in the Film Industry

“You find out who your real friends are when you're involved in a scandal.”
Elizabeth Taylor

In this post, we’ll explain disgrace insurance and look at some of the interesting history behind this policy, we’ll review some infamous “disgrace events” and conclude with an overview of the main reasons why this policy should be considered.

What is Disgrace Insurance?

A standard Lloyd’s contract defines disgrace as “any criminal act, or any offence against public taste or decency … which degrades or brings that person into disrepute or provokes insult or shock to the community.”

Disgrace insurance compensates companies for the loss of irretrievable production costs or the expenses of altering a promotional campaign due to an unforeseen disgraceful act.

The History of Disgrace Insurance

Scandals in the film industry have been around since practically the start of the industry, of course, but in today’s digital era, they are compounded and often carry a significant financial toll on the companies involved. Stories about disgraced celebrities used to come out of one or two tabloid newspapers. Today, anything a star does is instantly on the Internet and spread through social media, so production companies and studios are rightly growing more concerned.

A little-known clause called “Death & Disgrace” was once a common feature of film insurance policies. This generally included protection for up to a year from the completion of filming in case of death or disgrace. But it is now uncommon for such a clause to be built into standard film insurance policies; this coverage would likely have to be purchased separately.

Under the old studio system (roughly, between the 1920s and ‘60s), film financiers were in control — their stars’ transgressions were therefore easier to cover up and their contracts easier to tear up.

Disgrace insurance arose in the 1980s alongside the popularity of the “celebrity endorsement”, which financially protects a celebrity’s employer in case he or she gets caught up in a scandal. Companies needed a way to shield themselves from financial losses should a star commit a crime or otherwise taint the reputation in which the brand had invested.

A subsidiary of insurance giant AIG began offering disgrace insurance in 1994, describing it as an extension of the entertainment insurance coverage the company had long been writing – mainly insuring bands performing at their concerts.

Examples of Disgrace Events

via GIPHY

  • 2019 college admissions bribery scandal: actress Felicity Huffman, among others, are in hot water after paying William Rick Singer, organizer of this scheme, to fraudulently inflate entrance exam test scores and bribe college officials to get their children into prestigious colleges. This scandal has negatively impacted Huffman’s film Otherhood.
  • Kevin Spacey’s erasure: due to the sexual assault allegations against Spacey, it was announced on November 8, 2017 that all of his footage from All the Money in the World would be excised, and that Christopher Plummer would replace him. The reshoots ended up costing $10 million.
  • #MeToo— Miramax’s implosion: in October 2017, more than a dozen women accused film producer Harvey Weinstein of sexually harassing, assaulting and/or raping them. These allegations had a negative brand impact on Weinstein’s company, Miramax, LLC, which as of August 2019 is in the bidding process to be sold to another company.
  • Ghomeshi's dismissal from Q: Jian Ghomeshi was fired from the CBC in October 2014, amidst mounting allegations from women that he had sexually assaulted them. The CBC had to scramble to find a new host of Q and auditioned many potential replacements over a number of months. The costs associated with this would be covered under a disgrace insurance policy.

Benefits of Disgrace Insurance

A well-placed disgrace insurance policy can:

  1. Cover the cost of reshoots: if the situation with a disgraced celebrity is deemed bad enough to warrant a full reshoot with a new actor, disgrace insurance would cover a significant portion of this reshoot cost.
  2. Protect a company’s investment revenue: companies often have millions tied up in endorsements or investments, so when the proverbial “hits the fan,” financiers stand to lose big time. Bad PR for the company brand = less investment from financiers.
  3. Protect a company’s brand: companies have all seen the negative effects that a disgraced celebrity can have on their revenue, but to recover and rebuild brand awareness could take many years. Disgrace insurance can cushion this blow.
  4. Protect a company’s marketing spend: disgrace insurance can help a company recover wasted expenditure on advertising and airtime costs in the event that a contracted celebrity falls from grace or dies. Netflix, for example, took a $39 million loss on deciding not to move forward with House of Cards and Gore after the aforementioned Spacey scandal, after marketing had been invested in both.

How to Buy Disgrace Insurance

We’re working on offering a disgrace insurance policy at Front Row in the near future. Please contact us if you’d like more information.

Related Blog Post:

SPOTTEDRISK DISGRACE INSURANCE

 

Citations:

Topics: disgrace insurance

Hard vs. Soft Insurance Markets Explained (with Video!)

Posted by Grant Patten on Aug 19, 2019 7:23:39 AM

Hard vs. Soft Insurance Markets Explained


FILM PRODUCTION INSURANCE
SHORT SHOOT INSURANCE FOR FILMMAKERS
EQUIPMENT INSURANCE FOR FILMMAKERS - DIGIGEAR

What exactly is the difference between a hard and soft insurance market?

A “hard” market is characterized by a high demand for insurance coverage and, therefore, a reduced supply. Payouts may have increased and profits may have declined. As a result, insurance companies are less inclined to take on new business. The requirements to obtain insurance are stricter and premiums are more expensive.

Classic characteristics of a hard market include:

  • Higher insurance premiums.
  • More stringent underwriting criteria.
  • Reduced capacity, which means insurance carriers offer less coverage or limits.
  • Reduced competition among insurance carriers.

During a “soft” market, there is much competition between companies. Premiums are stable, if not falling. It’s fairly easy to get coverage for all kinds of risks. As someone looking to buy insurance, you may have a variety of options from which to choose and underwriting rules are less stringent.

Classic characteristics of a soft market include:

  • Lower insurance premiums.
  • Relaxed underwriting criteria.
  • Increased capacity, which means insurance carriers write more policies and higher limits.
  • Increased competition among insurance carriers.

As of Summer 2019, a hard market is expected in Canada over at least the next 12 months. We’re already seeing rating increases, especially on commercial property. As an insurance customer, then, you may be wondering, what is the reason for such price increases? Well, the insurance market is inherently cyclical and has “corrections” that involve premium price increases. Prices are rising for a number of reasons, including an increase in weather-related claims and auto insurance claims. Low interest rates are also a contributing factor.

We’re in a data-driven hard market today. With all the easily accessible data now available, insurance companies can pivot faster than ever before. In commercial lines, for example, insurers are getting out of different lines of business faster than in prior years. Once they see losses growing in one area, they will quickly shift out of that line of business. This also contributes to a hard market.

In Canada, we had been in a soft market for, roughly, the past seven years. There had been virtually no rating increases (including simple inflationary increases) for many years. There has also been some capacity pulled out of the broader insurance market – eight Lloyd's of London syndicates shut down at the end of 2018, for example.

In a July 2019 Canadian Underwriter interview, speaking on reasons for these price increases, Albert Benmichol, CEO of AXIS Capital said, “We believe the industry is appropriately reacting to loss trends that have deteriorated over the last few years and have exacerbated the negative impact of several years of price declines. We believe that pricing action will continue into 2020 and perhaps longer.”

Nevertheless, even in a hard market, rest assured that at Front Row, we remain committed to offering customers the best price for the best coverage. Our size gives us leverage with the insurance companies that we use to benefit you.

 

References:

Auto Insurance vs. Wedding Insurance – Comparison and Contrast

Posted by Grant Patten on Aug 8, 2019 6:47:46 AM

Auto Insurance vs. Wedding Insurance – Comparison and Contrast

Auto Insurance vs. Wedding Insurance – Comparison and Contrast

“You wouldn't think of not insuring your car, so why wouldn't you insure your wedding?”

In this post, we’ll compare and contrast auto insurance to wedding insurance, making three points as to why anyone should consider purchasing both insurance policies. We’ve also designed an infographic to convey these points visually.

Point 1: The investments are comparable. So why not insure both?

The cost of a new car is, on average, approximately $37,000 according to data published by Kelley Blue Book. And the cost of auto insurance is approximately $2,500 a year.

According to the annually published Real Weddings Study from The Knot, the average cost of a wedding in the US has risen to $33,931. And the cost of wedding insurance is approximately $300. Given these similar capital costs but the much lower insurance cost for a wedding, it makes sense to go ahead and insure not just your car but also your wedding.

A wedding insurance policy can help protect couples against the most common wedding insurance claims, such as vendor problems, alcohol-fueled guest injuries, severe weather and property damage. In 2018, 41% of Travelers’ wedding claims were due to vendor issues and 22% were due to property damage caused by wedding day accidents. Severe weather events also factored into a significant amount (18%) of claims.

Point 2: One is legally mandated, the other isn’t, but laws and history can change…

Of course, you’re required to insure your car, but no one forces you to insure your big day. But this may not always be the case. Nowadays, we take auto insurance for granted – of course it’s legally required! But there was a time – pre-1930 – when the idea of legally requiring auto insurance was actually quite controversial and engendered much public debate.

Widespread use of the motor car began after WWI in urban areas. Cars were relatively fast and dangerous then, yet there was still no mandatory form of auto insurance anywhere in the world. This meant that injured victims seldom got any compensation in an accident and drivers faced considerable costs to repair their car. Finally, a mandatory auto insurance scheme was introduced and debated in the UK with the Road Traffic Act 1930; Germany followed up with similar legislation in 1939.

Similarly, we’ve seen more and more unfortunate incidents occurring at weddings around the world, including serious injuries to guests (often caused by alcohol-fueled parties) and significant financial losses to the couple due to event cancellation or wedding gift theft. Here are just some examples of such incidents:

  • In April 2019, a couple in St. Peters, Missouri had a gift card box with about $2,800 cash in it stolen from their wedding. Like many couples, they had included a gift table with a box on it for people to place cards and money inside.
  • In February 2019, KTLA reported that a well-dressed wedding crasher stole a card box filled with cash gifts worth an estimated $10,000 from a Monrovia, California-area wedding.
  • In December 2018, Daily Mail reported on a wedding in Ludhiana in Punjab, India, where alcohol was being served for free. The wedding day ended in a chaotic brawl (much of it caught on video), with many drunken guests throwing chairs and plates at each other.
  • In September 2018, a serial wedding-gift thief from Eugene, Oregon pleaded guilty to felony charges of aggravated first-degree theft. Brian Keith Starr stole $18,737 worth of items from five Oregon-area weddings that year.
  • In November 2014, ABC reported on a wedding in Hobart, Tasmania that ended with the bride in the hospital and the groom and best man under arrest because of an alcohol-fueled brawl at their wedding reception. It took six police units to bring the situation under control.

These examples all attest to the fact that – while obviously not as deadly as auto-related incidents – wedding-related incidents are nevertheless quite serious and have real negative impact on all involved. It is conceivable, then, that as such unfortunate incidents become more and more common, public sentiment will eventually turn toward making wedding insurance mandatory.

Point 3: Additional coverage can (and likely should) be added onto both policies.

When someone purchases auto insurance, their assumption is often that they’re covered under all circumstances. However, if they don’t have comprehensive insurance, their vehicle won’t necessarily be protected in situations like theft, vandalism and weather damage. It would be ideal to get comprehensive coverage to cover incidents beyond car crashes.

Similarly, a basic wedding insurance policy normally provides General Liability Coverage for damage to the wedding venue and injury to third parties. Additional wedding insurance coverage that should be considered includes (but is not limited to):

  • Rented Equipment
  • Wedding Cancellation Insurance
  • Honeymoon Cancellation Insurance
  • Wedding Cake, Flowers, Rings, Presents & Gifts
  • Wedding Photography and Videos
  • Failure of Wedding Suppliers

How to Buy Wedding Liability Insurance

Under Front Row’s Wedding Liability Insurance policy, coverage can be included for various risks under a custom Wedding Enhancement Package, including wedding gift theft, host liquor liability, damage to wedding attire including the bridal gown and damage to the wedding cake. Policies starting at $105 and the coverage can be purchased online in six minutes or less without having to talk to a broker.

Auto Insurance vs. Wedding Insurance – An Infographic

Auto-vs.-Wedding-infographic-forweb


Citations:

https://www.birchwoodcredit.com/blog/what-is-the-average-price-of-a-car-in-canada-in-2019/

https://www.insurancebusinessmag.com/us/news/breaking-news/2-become-1-avoiding-disaster-on-your-wedding-day-174358.aspx

https://en.wikipedia.org/wiki/Vehicle_insurance#History

https://jefferyandspence.com/blog/auto-insurance-fiction-or-fact/

Free eBook: https://www.frontrowinsurance.com/wedding-insurance-101