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Monthly Archives

January 2013

Jan 01
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BUILDING THAT NEW HOME? WHAT ABOUT INSURANCE?

By Personal Perspective

As traffic increasingly approaches gridlock in urban areas, and higher housing costs cause workers to push their homes ever further from work, it’s no surprise that commuting times have lengthened considerably. Longer trips to work mean that more and more car-bound commuters are looking for ways to pass that seat time either productively or pleasantly. Hands-free cell phones, enhanced stereo systems, laptop computers, PDAs, and (hopefully only in the back seat) DVD players and video games are standard equipment in many vehicles.

Have you considered how your Personal Insurance coverage will cover losses to these often-expensive additions?

To determine how much coverage, if any, your Auto or Homeowners policy will provide for these tech “toys,” you’ll need to determine:

  • The value of the device.
  • Whether it’s “built-in” to the vehicle, or powered through an adapter.
  • The value of any media (such as CDs, DVDs, or game cartridges) used with the device.
  • Whether the device is for personal or business use, or both.

Be sure you have the coverage you want before a loss reveals a possible gap in your protection. Contact one of our Personal Insurance professionals today.

Jan 01
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SHOULD YOU DROP COLLISION COVERAGE ON YOUR OLD CAR?

By Personal Perspective

If you’re building a new home, congratulations! However, if you don’t insure your new residence during construction, you’re exposing yourself to a huge risk if a fire, theft, or other event damages or destroys your partially-completed home.

You can protect yourself by buying a standard homeowners policy on the new dwelling. This will cover you for any damage to the home as it’s being built, and might also provide some coverage for theft of building supplies (although the building contractor’s insurance should also cover this). The policy includes liability insurance, which would come in handy if one of your friends trips during a “tour” of your dream house and decides to sue you. However, homeowners insurance will not cover your personal property until the building is secure or “lockable.” Once construction reaches this point, you can add coverage for your personal property.

As an alternative, consider a dwelling and fire policy, which covers damage to the physical structure, but provides no theft coverage. This might be an appropriate choice if you’re living in your old house during construction, because the homeowners policy on this dwelling would cover theft of items from the construction site. Dwelling and fire insurance also provides liability coverage.

Once your new home is complete, it makes sense to re-evaluate your coverage. If you chose dwelling and fire coverage, you might want to replace it with a homeowners policy. If you have a standard homeowners policy, make sure that you have insured the home to its full value, especially if you have altered the original building plans (for example, by adding a room or upgrading building supplies).

If you have any questions about protecting your new home while it’s being built, just give our insurance professionals a call. We’re always here for you.

Jan 01
Love0

IDENTITY THEFT: IT’S A JUNGLE OUT THERE

By Personal Perspective

Despite the explosive growth of online identity theft, the great majority of personal information is stolen or lost in other ways, according to one recent study.

A nationwide survey of claims data by Travelers insurance company found that nearly three in four cases of identity fraud (73%) did not involve cyber-crime. According to Travelers, such stolen or misplaced items as wallets and pocketbooks were the most common known causes of these claims. The theft of drivers licenses, Social Security cards, or other forms of personal identification ranked second. Burglaries ranked third, followed by cyber breaches, including Internet scams and old-fashioned forgeries.

To protect yourself against all varieties of identity theft, experts recommend these guidelines:

  • Check your monthly financial statements to detect any suspicious activity (in case you find any discrepancy, contact the financial institution immediately).
  • Carry only essential credit cards
  • Keep critical documents in a secure place
  • Avoid scams by not disclosing personal information if you receive an unsolicited request
  • Shred old bills and financial statements
  • Store purses and wallets in a safe place
  • Never print account information on an outgoing mail envelope
  • Be careful about sharing personal information on social media
  • Ask for a free report annually from the national credit reporting agencies.

You might also consider purchasing Identity theft insurance. Many policies provide coverage for lost or stolen funds; long distance calls to resolve, report, or discuss the fraud; the cost of notarizing fraud affidavits, certified mail, or other documents needed to restore compromised credit; loan re-application fees due to incorrect credit information; and attorney fees (if pre-approved).

For more information, please get in touch with our agency.

Jan 01
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SPLITTING UP? KIDS, CUSTODY AND INSURANCE

By Personal Perspective

Divorce is a fact of life.

If you should find yourself needing to divvy up assets and liabilities during a divorce settlement, you’ll have to consider insurance coverage for your kids.

Determining how to deal with your teen’s auto insurance can create problems because there’s no set formula. The decision should be something that’s negotiated between both parents. If Mom has sole custody, the teen driver should be on her policy. However, if Mom and Dad share custody, both should include the teen under their coverage.

The premium you pay for your teen’s auto insurance will depend on where you live. When setting rates, insurance companies look at the claims history in the locale where the car is garaged. Premiums vary from city to city, and even among ZIP codes in the same city. So, if you’re moving from a rural to an urban area or from a low-crime neighborhood in a city to one where there are more vehicle thefts and auto burglaries, your premiums will increase.

Homeowner insurance is linked to ownership of the property and who is listed on the mortgage. If the home is in both parents’ names, coverage would also be under both names. In this case, you should have a written agreement dividing responsibly for mortgage and insurance payments.

If you move from the family home into an apartment, you’ll need renters insurance to cover your belongings, as well as your children’s personal items and additional liability protection – even if you’re still named on the homeowners policy.

To receive expert advice from our agency’s personal lines specialists during this difficult period, free of charge, please feel free to give us a call.

Jan 01
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SOCIAL MEDIA AS A HIRING TOOL – EMPLOYER BEWARE!

By Business Protection Bulletin

The spread of social media has revolutionized not only the way we connect with friends and family, but also how we conduct business. However, this asset can quickly turn into a liability if misused – for example, in recruiting your company’s most valuable asset – its employees.

Many employers begin the hiring process by using social-media outlets to screen applicants. LinkedIn and Facebook can provide a wealth of information about applicants’ education, their friends, and their personal behavior. Some companies reject candidates based on the content of their social-media pages. This might include anything from inappropriate photos or comments, discriminatory or slanderous statements, and references to alcohol and substance abuse, to sharing confidential information about their previous employers(s), displaying poor communication skills, or exaggerating their qualifications.

Although all of these indicators raise red flags, you could be risking a costly and annoying discrimination lawsuit if you access social-media sites which contain protected class information that’s not privileged in the normal hiring process.

To minimize this risk, it makes sense to:

    1. When hiring, use outside third parties such as background-verification companies and/or recruiters who document content from social-media sites in selecting candidates.
    2. Develop and enforce a comprehensive social-media usage policy.
    3. Purchase an Employment Practices Liability Insurance (EPLI) policy

For more information, please feel free to get in touch with our agency

Jan 01
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RENTAL EQUIPMENT INSURANCE, ANYONE?

By Business Protection Bulletin

The growth rate of the rental equipment industry in the U.S. is skyrocketing by 24% a year, as more and more companies use the tax and other financial advantages of renting over purchasing. Renting also allows businesses to get the exact machine they need when they need it at a low cost, rather than spending a lot more to buy a device that would spend most of the time gathering dust.

On the downside, if using a piece of equipment that you have rented causes damage or results in legal liability, you could be out thousands of dollars – unless you carry Rental Equipment insurance.

This policy often costs less than similar coverage offered under your Business Owners Policy or standard Commercial Property insurance. Rental Equipment insurance gives you what you need, when you need it: you can match the length of coverage to the term of the rental, rather than that of your Property policy, allowing you to save money. In most cases, it also offers lower (or zero deductibles) than standard policies.

The policy includes both Property coverage that protects the equipment from damage and Liability insurance to protect the renter from legal claims based on the use of the equipment. It also streamlines the process of providing the Certificate of Insurance that rental companies usually require before releasing their machines.

To learn more about how Rental Equipment coverage can help you protect your business – and save money – just get in touch with the insurance professionals at our agency.

Jan 01
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MOBILE DEVICES POSE DATA BREACH THREATS

By Business Protection Bulletin

The widespread use of smartphones and tablets in the workplace is exposing more and more businesses to liability for sensitive data being compromised if these devices are lost, stolen, or hacked. How can your company protect itself against this threat – and how much authority do you have over an employee’s personal device if it’s also used for work-related activities?

What’s more, because these gizmos are small and portable, it’s easy to misplace them. (The federal Transportation Safety Administration recently leased a warehouse just to store those misplaced or left behind at airports.)

Another emerging risk linked to these devices is a “bring your own” policy that many companies have adopted as a way to save costs by having employees spend their own money on smartphones and tablets that are constantly evolving and updated. This approach raises questions about separating company data from personal information on the device. For example, when an employee leaves, does a business have the authority to wipe the information from his or her smartphone? According to some authorities, if an employee connects a personal device to a company network, the company has inherited responsibility for the data stored on it.

To deal with this risk, you need to provide every employee who uses these devices with training, updated annually, on how to respond in case of loss or theft. To minimize potential liability for lawsuits by customers and clients, make sure that the individual responsible for the mishap informs management immediately. The compromised information might include everything from sensitive data (financial or medical) contacts, photos, call history, personal notes – you name it.

You can also use insurance to protect yourself against losses from data breaches. A policy will provide Liability coverage that deals with legal costs and third-party expertise (such as forensics firms to analyze a breach and call centers to provide information and public relations. Coverage might also include services such as access to tools to estimate costs, a checklist for your planned response to a data breach, and access to experts who can answer questions and review your company’s policies and procedures.

For more information, feel free to give us a call.

Jan 01
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TRADE CREDIT INSURANCE: COVER YOUR LARGEST ASSET

By Business Protection Bulletin

Most companies insure virtually every aspect of their business. Yet, believe it or not, fewer than l0% of American businesses protect their primary source of income: their outstanding invoices or accounts receivable (A/R) – even though losses from customers failing to pay invoices are more common than those caused by fire or theft and can be equally, if not more, devastating.

The solution: Trade Credit insurance, (also known as Accounts Receivable insurance) which guarantees payment, up to the amount under the policy, of A/R owed by customers whose receivables are past due, are unable to pay or refuse to do so, or who are in default, This coverage is essential if a significant percentage of your sales are credit based and/or you sell regularly to new customers.

  • By protecting you against losses from bad debts, it enables you to provide more credit to more customers – which means higher sales.
  • A Trade Credit policy protects your company against the financial impact of a customer going bankrupt because the insurance company must pre-approve all orders, carrying Trade Credit coverage provides you with valuable information on the financial stability of your customers. This enables you to offer more aggressive terms and/or solicit larger orders. Trade Credit insurance allows you to increase the size of your working capital. For example, banks might be willing to lend against 90% of your receivables rather than 80%. In today’s restricted financing environment, banks will be more likely to lend to you and to offer better terms.

What’s not to like?

Our insurance professionals would be happy to offer their advice on the Trade Credit policy that’s best for your business. Please feel free to get in touch with us at any time.

Jan 01
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INSURANCE: NO FREE LUNCH

By Construction Insurance Bulletin

Flimflam artists and the sad stories of their victims are the stuff of local newspapers and police blotters. However, as business headlines attest, all the con artists aren’t working the streets. Some are doing quite well in boardrooms and corporate offices.

Insurance is far from immune to these charlatans. Whether it’s a great deal on Construction Bonds, a scheme to lower your Workers Compensation costs, or a “new” concept in Health coverage, an old adage might apply best: There’s no such thing as a free lunch.

How can you tell the difference between a great deal and a scheme to pick your pocket? Before making any commitments, check out unknown entities with an organization that makes it their business to protect you from the fly-by-nights. These include your local Chambers of Commerce or Better Business Bureau. When it comes to insurance, your state insurance regulator is probably the best source of both valid information and enforcement when fraud is uncovered. To check out an insurance company, use such rating services as Standard & Poor’s and A.M. Best. These can usually be found at your local library or online.

Don’t forget one of the best ways to avoid being taken to the cleaners by a con game: Deal with reputable, professional insurance representatives, such as ourselves. We’re here for the long term, so you can trust us not to be interested in short-term scams at the cost of long-term loss of reputation and livelihood.

Call anytime – we’re here to help.

Jan 01
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RESIDENTIAL CONSTRUCTION: PROPER PROTECTION PAYS’

By Construction Insurance Bulletin

Using safety equipment that’s appropriate, well maintained, and in good shape can keep minor accidents in home construction from turning into serious – and costly – injuries. The National Association of Home Builders and the U.S. Occupational Safety and Health Administration offer these safety tips for residential builders:

Head Protection

  • Make sure that your workers wear hard hats when overhead, falling, or flying hazards exist, or when there’s a danger of electrical shock.
  • Inspect hard hats routinely for dents, cracks, or deterioration.
  • After a hard hat has taken a heavy blow or electrical shock, replace it even if you detect no visible damage.
  • Maintain hard hats in good condition. Don’t drill, clean with strong detergents or solvents, paint, or store hats in extreme temperatures.

Eye and Face

  • Workers must wear safety glasses or face shields for welding, cutting, nailing (including pneumatic), or when working with concrete and/or harmful chemicals.
  • Because eye and face protectors are designed for particular hazards, be sure to select the type that matches the danger.
  • Replace poorly fitting or damaged safety glasses.

Foot

  • Make sure that residential construction workers wear shoes or boots with slip-resistant and puncture-resistant soles (to prevent slipping and puncture wounds).
  • Require safety-toed shoes to prevent crushed toes when working with heavy rolling equipment or falling objects.

Hand

  • High-quality gloves can prevent injury.
  • Gloves should fit snugly.
  • Glove gauntlets should be taped for working with fiberglass materials.
  • Workers should always wear the right gloves for the job. For example, they’ll need heavy-duty rubber gloves for concrete work and welding gloves for welding.

Fall Protection

  • High-quality gloves can prevent injury.
  • Use a safety harness system for fall protection.
  • Use body belts only as positioning devices – not for fall protection.
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