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Monthly Archives

July 2012

COVER YOURSELF WITH AN UMBRELLA

By Personal Perspective

In today’s “litigation culture,” with million-dollar legal settlements all too common, anyone – including you and your family – could easily face ruin from a lawsuit, whether serious or frivolous. Even if you won, you’d be out thousands of dollars in defense costs.

A Personal Liability Umbrella can help ensure financial peace of mind by providing coverage up to an amount you’ve selected over and above the Liability limits under your Auto or Homeowners policy. Insurance companies often set minimum limits for Umbrella coverage. If you’re sued, the bulk of the settlement will come from your HO or Auto policy, with the Umbrella picking up the rest. Bear in mind that many insurers will only offer this coverage if they write both your HO and Auto insurance.

An Umbrella policy also extends coverage for you (and your family and pets) beyond basic bodily injury and property damage to personal injury, property damage, or bodily injury from a variety of exposures ranging from false arrest and defamation to invasion of privacy and wrongful entry. For example, Umbrella coverage would make sense if you own a dog that might snap or bite, or have one or more “attractive nuisances” (such as a hot tub, swimming pool, or swing set), and like to invite guests on a regular basis.

Depending on your situation, you might consider alternatives to an Umbrella policy, such as increasing Liability limits or raising your deductible under your HO or Auto policies. Also remember that Umbrella coverages vary from state to state. For example, many policies won’t cover claims for punitive damages, intentional acts, or activities related to business.

To make the best choice and make sure that you understand Umbrella coverage and any loopholes and exclusions, be sure to check with our insurance professionals.

DOG-BITES-MAN COSTS INSURERS BIG BUCKS

By Personal Perspective

Insurance companies shelled out $479 million to pay for dog bites last year, up from $413 million in 2010.

One company alone, State Farm, paid more than $109 million in Homeowner claims related to bites. California – which has more people and dogs than any other state – led the nation with 527 State Farm claims costing more than $20 million, followed by Illinois, Texas, and Ohio. The nationwide average claim was $28,800.

Dogs bite some 4.7 million Americans a year, nearly half of them children, Nearly 400,000 of these bites require medical treatment – and an average of 16 result in death.

Children age 5 to 9 are the group most likely to be bitten. The ASPCA predicts that one of every two children in the U.S. will suffer a dog bite before he or she turns 12, in most cases by their own dog or a pooch owned by a friend or neighbor. Seniors are the next most vulnerable group, followed by mail carriers. Dogs bit some 5,600 USPS carriers in each of each of the past two years, costing the Postal Service more than $1 million worth of medical bills in 2011.

Heredity, socialization, training, physical condition, and activities of humans can all affect the animal’s propensity to bite. Because children are by far the group most vulnerable to dog bites (a child is 900 times more likely to be attacked than a letter carrier) the ASPCA recommends that youngsters should never:

  • Maintain eye contact with a dog
  • Go near a chained canine
  • Approach or touch a dog who is eating, sleeping, or off-leash
  • Scream or run if an off-leash dog approaches
  • Pet a dog without asking its caregiver for permission (it’s wise to have the animal sniff your closed hand first – many dogs perceive an open hand as threatening)
  • Approach a dog from above its eye level

DO YOU HAVE THE RV INSURANCE YOU NEED?

By Personal Perspective

Your motor-home is your pride and joy – whether you live in it year round or just take it out a few times a year for those on-the-road getaways. It also represents a significant investment that needs protection against damage or financial risk.

Depending on your needs, you can buy coverage on your RV either as an add-on to your standard Personal Auto insurance or as a separate Recreational Vehicle policy. Either way, since the vehicle is also a home on wheels, it faces a variety of exposures:

  • Damage to the vehicle from fire or collision
  • Theft
  • Liability for injury to third parties from an accident Loss of or damage to possessions inside the vehicle (for example, an expensive sound system, laptops or tablet, flat screen TV or other portable valuables). To estimate this exposure, you should take an inventory of these expensive items and list their replacement cost.
  • Loss or damage to such external elements as satellite dishes or antennas (some insurers might require separate coverage “riders” on these).

Also, bear in mind that some RV policies have an annual mileage limit, which probably won’t be a concern if you only use your vehicle a few times each summer. However, if you’re on the road year round, you’ll need to consider the impact of this limitation.

If you have any questions on the amount and type of RV insurance you’ll need, feel free to get in touch with us.

THE USE — AND MISUSE — OF SOCIAL MEDIA: HIRING, MANAGING, AND FIRING

By Business Protection Bulletin

The “Social Media Revolution” is transforming how Americans connect with their families and friends – and the ways in which companies hire, manage, and fire their most valuable asset: Their workers.

However, failure to provide effective management of social media as an employee relations tool can pose serious financial risks to your business. Read on.

Hiring
More and more employers begin the hiring process by using Facebook or LinkedIn to garner information about an applicant’s background, associates, and social behavior. Some companies reject candidates based on such behavior as inappropriate photos, references to substance abuse, slanderous comments or opinions, or trashing a previous employer.

‘These activities raise legitimate concerns and companies have an obligation to hire responsibly. However, if you access social media sites that have “protected class” information not usually privileged in the hiring process, you could be putting your business at risk for a discrimination claim. To avoid this problem, outsource hiring to third parties (such as background-verification companies and/or recruiters who document content from social-media sites during the selection process).

Managing
Be sure to create, and enforce, a comprehensive social-media policy for employees that: 1) Defines inappropriate use of social media in the workplace (including personal use during work hours, type of content posted, and defamatory statements about the company, managers, and fellow employees; 2) sets penalties for disclosing trade secrets outside the company; and 3) imposes disciplinary action (including termination) for violating the social media policy.

Use caution in developing these guidelines. It’s not uncommon for employees to claim that a company’s social media rules are overly restrictive. To make sure that your policy is in compliance with the National Labor Relations Board standards for protected behavior, consider consulting an attorney with expertise in employment practices law.

Firing: The EPLI Factor
Before you fire an employee for misusing social media on the job, make sure that you have strong documentation for your action.

To help protect your business against losses stemming from allegations of employment discrimination or wrongful termination, it makes sense to buy Employment-Practices Liability Insurance coverage (EPLI). For a relatively small premium, an EPLI policy can save you from litigation expenses that can top six figures — not to mention the danger of financial devastation from an adverse judgment. For more information, please contact us.

BUSINESS INTERRUPTION: ASSESSING YOUR NEEDS

By Business Protection Bulletin

Do you have the information you need to make an informed decision on buying Business Interruption (BI) insurance?

Unfortunately, some companies only discover that they don’t have enough BI coverage to stay in business after they suffer a major loss. On the other hand, other firms over-insure, shelling out excessive premiums for protection they might not need. We’d recommend that you review your Business Interruption policy. Check out the insured or reported values for your coverage, as well as the extensions that apply to the specific needs and operations of your business. For example, you might consider adding:

  • Claims Preparation Fees
  • Contingent Business Interruption
  • Expediting Expense
  • Extended Period of Indemnity
  • Ingress/Egress
  • Ordinary Payroll Coverage
  • Selling Price of Finished Goods Inventory
  • Service Interruption Power Outage

To help make sure that you’re getting the Business Interruption protection you need at the right price, we’d be happy to do a comprehensive evaluation of your coverage. Just give us a call.

COMMERCIAL AUTO INSURANCE: ALL POLICIES ARE NOT CREATED EQUAL!

By Business Protection Bulletin

To help you make sure make sure that your business has the right Commercial Auto policy at the right price, we’d recommend following these guidelines:

Make sure to cover all vehicles that your employees drive on company business. This could include vehicles that employees own, lease, or rent – as well as those that the company owns.

Determine whether you need Personal or Commercial Auto insurance. You might be able to save money by covering vehicles with a less expensive Personal Auto policy in some situations — for example, by registering title to a vehicle in your name. However, if the company owns the vehicle, you’ll need Commercial Auto coverage. Bear in mind that a Personal Auto policy should include the contents of the vehicle, as well as medical costs if a driver suffers an injury on company business.

Be sure to comparison shop. Because every insurance company sets Commercial Auto premiums and coverages in its own way, prices (and values) can vary significantly. Because we represent a variety of companies, we can offer professional advice on finding a policy that’s tailored to your needs — and pocketbook. Just give us a call.

TAKE AN ‘INSURANCE TOUR’ OF NEW EQUIPMENT BEFORE YOU BUY

By Construction Insurance Bulletin

If you’re planning to buy new construction equipment, do you feel the need to “kick the tires” before you make a decision? Let the Internet help save you time and money. Go to http://www.constructionequipmentguide.com/pages/newproducts/ to take a virtual equipment tour that includes illustrations, pricing, and a text description of each item that you can print or download.

However, this site won’t provide informed guidance on buying the insurance you’ll need for your new equipment. Here’s where our agency comes in. Before you make a final decision, we can offer our professional opinion on how the purchase will affect your coverage and pricing options. For example, if you’re choosing between two pieces of equipment, we can estimate the cost for insuring each (a factor you might consider in making your choice). We can also let you know in advance that it might be hard — or even impossible — to provide the right coverage on a piece of equipment at a cost you can afford.

The higher the value of your planned purchase, the more we can help by getting involved in the decision-making process in advance. Feel free to get in touch with us.

As online and other methods make your business purchasing increasingly easy, don’t let the simplicity of the process lead you to skip the steps needed to make a wise decision.

WHY IT MAKES SENSE TO REPORT EVERY CLAIM

By Construction Insurance Bulletin

You might be tempted to handle a minor damage claim yourself, without bothering to file it with your insurance company. For one thing, paying up won’t cost you much. What’s more, you might feel that reporting too many claims could drive up your premiums — and even risk the cancellation, or non-renewal, of your policy.

However, before you dig into your pocket to pay that nickel-and-dime claim, bear in mind that your Commercial General Liability policy probably has language like this:

No insured will, except at that insured’s own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent.”

In other words, if anything goes wrong with this claim, don’t expect your policy to help. Let’s say a visitor to your worksite suffers a “minor” injury after stepping on a nail – and you agree to pick up the tab for them to go to the ER, without reporting the incident to the insurance company. A week later, the victim’s attorney lets you know that the wound has turned into a serious infection that will require a long and costly hospital stay. If you turn to the insurance company to pay the claim, you might well be out of luck — and thousands of dollars out of pocket! Even if the company does pay the claim, you’ve taken an unnecessary risk.

The solution: Inform your insurer about every claim, no matter how “minor” as soon as possible. This meets the terms of your policy. If you pay the loss yourself, well and good! If not, the company will step in — saving you the time, expense, and hassle of dealing with it.

CONSTRUCTION IS A RISKY BUSINESS!

By Construction Insurance Bulletin

Anyone who works in construction knows the dangers — and costs — involved.

Accidents are expensive. For starters, a mishap will increase your General Liability and Workers Compensation premiums, as well as expenses for lawyers and other personnel brought in to investigate the incident. Other costs include reduced productivity and diminished morale, disruption of project work schedules, and other fees (such as OSHA fines). What’s more, you might well come under media scrutiny, leading to a loss of reputation that can be difficult — if not impossible — to repair.

On an industry-wide basis, workplace accidents make it harder to attract and keep new workers to meet current and projected needs. Although worker attrition is problematic throughout the economy, it’s a particular concern in construction. The industry historically has had trouble attracting and retaining good workers, due partly to its negative image as a dirty and dangerous occupation. Ironically, the high attrition rate — which is closely linked to unsafe working conditions — perpetuates itself because newer workers on a job site are more susceptible to accidents.

Reducing your risk of loss from accident is a two-part process. For starters, you’ll need a comprehensive insurance program that offers the best protection at the best price. Just as important, make sure that you develop, update, and enforce job site safety programs, with incentives to get your workforce involved.

Our insurance professionals stand ready to help you keep your workers safe — and your costs under control. Just give us a call.

MOBILE WORKERS’ OFF-THE JOB INJURIES CAN BOOST COMP PREMIUMS

By Workplace Safety

The more your employees use mobile devices on company business, the more likely they are to suffer injuries – and the greater your exposure to Workers Compensation losses – even if the incident occurs off the clock or away from the workplace!

We’re no longer living in a Monday-Friday, 9-to-5 business world. Millions of workers rely on smart phones, laptops, and tablets for company business outside the office, posing a challenge to traditional definitions of work-related claims. Some 35 million Americans are working from homes, cars, airports, subways, the local wireless cafe — even at the beach during vacations! One survey found that nearly three in five respondents (59%) check their office e-mail when on vacation, while 79% pack their laptop along with their swimsuit or skis.

A combination of factors are contributing to the explosive growth of this “cyberworkalohic” behavior: Job insecurity in today’s uncertain economy, pressure (real or perceived) from peers or managers, the demands of working in today’s global, 24-7 business environment — and the blurring of distinctions between office and home environments among younger, tech-savvy workers.

Consider these scenarios:

  • An employee on her evening jog is using her cell phone to check on office e-mails when she stumbles on the curb, falls, and breaks her arm.
  • While stuck in traffic on his way home from work, a man receives a work-related text message that’s so upsetting he rear-ends another car, injuring his back.

What happens if these workers file Workers Comp claims for job-related injuries? That depends. The growth in employees’ work-related use of mobile devices away from the job is so recent that courts haven’t yet ruled on whether such claims are compensable.

To reduce exposing your business to this increasingly widespread risk — which could drive up your Comp premiums — it makes sense to set and enforce clear and comprehensive rules for using mobile devices on company business outside the work environment. The goal of this “best practice” approach is to create a corporate culture that maintains a balance between increasing productivity and keeping your workers as safe, and injury free, as possible — on and off the job.

For advice on designing guidelines for employee use of mobile devices, just get in touch with us.