Postby dognose » Mon Mar 28, 2022 4:30 am
In consequence of a fire that broke out in an adjoining building, the jewelry stock of the Mermod & Jaccard Jewelry Co., of St. Louis, was recently damaged by water to a large extent. The stock exposed was valued at $350,000, but was so protected that only a portion of it was injured. The loss was adjusted by the insurance companies at $15,000, which sum was paid. Now the companies are growling because they had not insisted upon the three-quarter clause being inserted in their policies, whereby the insured is made to stand one-quarter of any loss that may occur. The popular idea is that insurance companies are organized to pay losses by fire, and that they collect premiums from many to enable them to pay the losses of the few, but in actual practice, the insurance companies want a man to make his risk fire-proof, pay a big premium for his insurance and then stand the loss himself if one occurs. It behooves property owners in these days to look carefully after their insurance, for the companies have been carrying on business for so many years on a suicidal principle that some of them have become untrustworthy. The unusual number of large fires this year has inflicted heavy losses upon them, so that the surplus they showed in their annual reports on the first of the year has been materially encroached upon, and in some instances capital has been impaired. Two or three companies have already given up the fight and retired from business while there was a chance to return the stockholders their money, and others are now trembling on the verge of insolvency. Property owners who entrust their insurance to brokers should especially look to it that their policies are in good and trustworthy companies, for brokers are too frequently tempted by the high commissions offered by struggling companies to sacrifice the interests of their principals, and give them policies in companies that cannot be relied upon to pay losses promptly. A person who has met with a loss by fire does not wish to be forced into a long litigation to recover his insurance, and an inspection of his policies occasionally may save him a vast amount of trouble.
Source: The Jewelers' Circular and Horological Review - April 1888
Trev.