Shopping for protection in a soft market

Article Abstract:

The insurance industry market has grown 'soft', relieving pressures on buyers in the form of premium cuts upon renewal and more availability of most types of coverage. This follows three years of premium hikes in which rates for commercial insurance rose over 80%. The insurance business is now bringing in over 200% more general liability insurance premium money and over 100% more in commercial multi-peril and commercial automobile dollars. Reasons for the recent moderation in the insurance cycle include: the severity of the last cycle forced the insolvency of about 100 insurance firms, interest rates are substantially lower than in the early 1980s, and tax changes are causing insurance companies to discount deductions for claims reserves.

Insurance agents, brokers, & service, Planning, Services, Prices and rates, Insurance industry, Insurance, Business insurance

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Messy business

Article Abstract:

Investors who want to infuse capital into financially-strapped companies should avoid taking on management duties because this could open them to environmental liabilities once companies go bankrupt. A case study showing the potential liabilities which investors of failing companies may incur is presented. The study involves two investors who infused capital and took up management responsibilities at Appletex. After the textile company closed down, the two investors were made liable for environmental damages under Sections 17, 18 and 43 of the Ontario Environmental Protection Act.

Administration of Air and Water Resource and Solid Waste Management Programs, Environmental Programs, Analysis, Laws, regulations and rules, Liability for environmental damages, Investors, Environmental policy

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