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Hastings Office

Phone: (402) 463-2461
Fax:(402) 463-2469
2203 Osborne Drive
Hastings, NE 68901 

Omaha Office

Phone: (402) 884-1320
Fax: (402) 884-1833
4331 North 156th Street
Omaha, NE 68116 

Kearney Office

Phone: (308) 698-0114
Fax: (308) 698-0118

4004 6th Avenue
Kearney, NE 68845

Lincoln Office

Phone: (402) 470-0337
Fax: (402)327-8483

7120 Stephanie Lane, Ste 200
Lincoln, NE 68516

Blog Index
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Changes in Captive Insurance Company requirements will effect many businesses.

Many businesses are exploring the idea of, or have already joined or created, a Captive Insurance Company as one option to transfer their organizational risk. A recent change in the requirements of these Captives who elect to take the 831(b) tax election was passed and will effect each of these captives. The premium maximum that can be allocated to the Captive Insurance Company was raised to $2.2 Million and a requirement to meet one of two diversification tests was put into place.

These two diversification tests could effect many of the businesses that already have a Captive Insurance Company in place.  The two tests consist of 1) No insurer within a Captive can pay more than 20% of the premium from any one policy holder. 2) When related family members are involved in a Captive any one family member has to own the same percentage or less in the Captive as they own in the parent company. 

For more examples and more detailed explanation see the article written by Donna Mahoney from Business Insurance located here:|60|73|302


Omaha Company a victim of Cyber Fraud

Scoular Co. in Omaha, NE has unfortunately become the victim of a very scary type of online crime - Cyber Fraud.  Over the course of three wire transfers an executive of the 800-employee company wired $17.2 Million to a bank in China.  These types of online “phishing” crimes have been around for a while but this particular incident was very sophisticated and targeted. 

The insurance market has grown into providing many different insurance products for Cyber Crime.  These products can provide coverage for data breach, hacking, third-party liability due to Cyber Crime and a myriad of other coverages for clients.  The above scenario with Scoular company is unique in that the criminals didn’t hack into the companies account and steal the money.  All Cyber crime policies are unique and many would not include coverage for such an incident, which is why it is important to consult a qualified insurance professional on the program.

For more information on the article referenced above you can visit the Omaha World Herald website at:


Elliot Bassett, AIP

Ellerbrock-Norris Insurance

4331 N 156th St.  |  Omaha, NE  68116  |

phone 402.884.1320  |  fax 402.884.1833  |         



Control through Understanding: Coinsurance

It occurred to me that one of the reasons that people get frustrated with insurance is that they don’t understand things like coinsurance.  I was recently speaking with a prospect following the settlement of a claim.  He thought his out of pocket expenses would be limited to his $1000 deductible, but found his expenses climbed far higher when he shared in the loss because of a substantive coinsurance penalty.

Anybody who owns a building should find an explanation of coinsurance and an example helpful.  Basically, a “coinsurance” clause, determines what percentage of the value of your property must be insured in order to be fully reimbursed for a loss.  The idea is to make sure property owners aren’t underestimating or “lowballing” their property values, and then expecting to have claims settled at full price.

If you insure the property owned by your company for less than the actual replacement cost the underwriting company imposes a “coinsurance penalty” if a claim is filed. 80% coinsurance means that you must be within 80% of replacement cost, while 90% means that you must be within 90% replacement cost.  

A 100% of coinsurance clause means that you must have the building insured for 100% of the replacement cost in order to avoid a penalty!

As you would imagine; the higher the percentage of coinsurance, the lower the property rate and premium.

In other words, if you insure your building for half of what an adjuster determines it would cost to replace it, the underwriting company assumes that they are insuring half, and your company  is insuring half.  If a tornado takes out 50% of the building, they expect to kick in for the half they insure, and they expect you to pick up the other half. (I’ve tried telling adjusters the tornado took out their half, and our half is fine, but it doesn’t work)

Here is an example for a company I’ll call Pseudo Co 

Let’s say the Pseudo Co. building has an estimated replacement cost of $1,000,000 and their policy has a coinsurance value of 80%.  So, they insure the building for $800,000 thinking they have fulfilled the coinsurance clause by coming within 80% of the replacement cost. 

A fire causes $600,000 worth of damage so they submit a claim. The claims adjuster for the underwriting company subsequently determines that the replacement cost of the entire building is actually $1,500,000.  They should have insured for 80% of $1,500,000. 

To determine how much to pay on the claim, the claims adjuster divides the amount of insurance Pseudo Co. purchased (80% of $1,000,000, or $800,000) by the amount they should have purchased (80% of $1,500,000 or $1,200,000). Their $800,000 is two thirds of the $1,200,000 they needed in place to be fully insured.

The result (two-thirds, or $400,000) is the amount of that claim the insurer will pay! Then Pseudo Co. will be on the hook for the rest.  If the building had been insured for at least $1,200,000, the insurer would have reimbursed them for the full amount of the loss.  

Like many aspects of insurance, once you understand coinsurance, it isn’t as tricky.  But you can certainly see how not keeping up on these values could end up costing a building owner an incredible amount of money.  We work with our clients, before a claim, to make sure that the coinsurance clauses and property values on the policies will provide adequate coverage.

While competitive premiums are an important factor in buying insurance, it is important to understand what coverage you do, and do not, carry.

At Ellerbrock-Norris Insurance Agency this is a conversation we would all prefer to have prior to a claim situation. 





Motor Vehicle Crashes have $871 Billion Economic and Societal Impact says NHTSA

A recent study released by the National Highway Traffic Safety Administration reveals the staggering cost of motor vehicle crashes in the U.S. The $871 billion impact stems from $277 billion in economic costs and $594 billion from loss of life and the pain and decreased quality of life due to injuries. 

The main causes of these accidents were boiled down to 5 main contributors: drunk driving, speeding, distraction, pedestrians and bicyclists and seatbelts. 

This post is a brief summary of an article posted on the NHTSA website.  To read the full article click here:$871-billion-impact-on-U.S.-economy,-society


Protecting your Business from Employment Related Lawsuits

Lawsuits for Employement Related Practices are on the rise.  This increasing exposure for business owners can be very time consuming and very costly.  These claims have increased by 18% in just the past 10 years.  The good news is that business owners can protect themselves with an Employment Practices Liability Insurance (EPLI) Policy. 

The above statistics were taken from the Cincinnati Insurance Blog.  For more information and to read the full post please click here:

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