Entries Tagged 'Sign Of The Times' ↓

The days of having one deductible for all property insurance claims are gone.

Insurance companies have introduced varied deductibles, depending on the type of claim.

Wind/hail deductibles are showing up more frequently on both personal and business insurance policies, thanks to the number of claims from windstorms, hailstorms and hurricanes in the last decade.

If you have any type of claim other than those listed above, you would pay your chosen standard deductible, perhaps $1,000.

When it comes to a wind or hail claim, the deductible is calculated a little differently. It is a percentage of your building limit.

The percentage can be from 2% to 5% of that building limit.

This means that if you have a $100,000 building with a 5% wind/hail deductible, your deductible becomes $5,000 rather than $1,000 for that claim.

A “named storm endorsement” is another option a carrier uses, depending on the hurricane proneness of the state. Here, the percentage deductible would apply for damage as a result of a named hurricane by the National Weather Service. In the event of wind or hail damage in a non-named storm, your deductible goes back to your standard deductible.

The cover or declaration page of your policy will list whether or not there is a separate wind/hail deductible and, if there is, the percentage. Have my office take the time to explain the deductibles on your policy and how they would affect you at the time of a claim.

Sending a child to college is never simple. After years have been spent planning for the children’s financial future, their leaving home for the first time marks a milestone for anxious parents and children alike.

Unfortunately, in the midst of all the planning and preparation, many parents forget one of the most important steps, and that is ensuring that their college-bound child is properly insured.

Following are some tips to make sure you’re all prepared to start the school year without fear:

Home Away From Home: Verify that your homeowner policy covers personal possessions taken to college. Remember, most policies protect valuables up to a percentage of your total possession coverage. It may be necessary to purchase additional coverage in the form of a rider, especially if your child engages in expensive hobbies. Before packing up, take time to clearly label all belongings and take photographs, as that action will provide important documentation should a problem arise.

Hit the Road: Adding your college student to your auto policy is something you may have done years ago, but be sure to update the policy to reflect the new location of the student … and the vehicle. If the family car is left at home, you might be happy to encounter a big discount. On the other hand, out-of-state college students might come out ahead by purchasing an individual auto policy, especially if they have good driving records. Encourage students to keep their grades up and avoid erratic driving behavior in order to qualify for the best possible rates.

Health Coverage: Under health care reforms, parents may be able to include students on their health insurance policies until they reach the age of 26. Be sure to review the providers available in the new location. For those seeking affordable individual coverage – especially for out-of-state students – check out the options provided by the college itself. Most provide free or very low-cost routine care via a health center with special prices for students. Be sure to review the options to determine which plan best suits the needs of your child and family budget.

My office swayed a few days ago; yes it was an aftershock. Shortly afterwords, my phone rang consistently. I knew what was coming. Do you have Earthquake Insurance? A short time after, this girl named Irene came up the East Coast. Again the ringing began. Do you have Flood Insurance?

The answer to both questions is yes. Now that we are all in clean up mode and the worst is behind us, it is time for everyone to consider reviewing their insurance coverage. Earthquakes can be covered on your existing Homeowners Policy by endorsement or as a separate policy. Flood Insurance is available. Reach out to my office to review the options. The next quake and Irene are coming; we just don’t know when. Be prepared. Remember, insurance is an investment.

Once considered a relatively exclusive form of insurance, errors and omissions (E&O) insurance is now believed to be one of the most important forms of coverage available to many busy professionals.

Who Needs E&O Insurance? E&O provides an additional layer of protection for lawyers, architects, financial consultants and other small-business owners who routinely provide services to others. In fact, nearly anyone who provides services or information to others may be at risk of a lawsuit. Rather than risk your financial future, E&O insurance provides the peace of mind in knowing you are protected in the event of a problem. By transferring risk to the underwriter, you have a powerful partner on your side in the event of a claim.

What’s Covered? E&O policies typically help defray the cost of defending against litigation arising from professional liability claims due to mistakes. Legal costs and damages are usually included up to the specified limit.

What’s Not Covered? Intentional, illegal or fraudulent activities are excluded, along with punitive damages. Specific limitations or restrictions may be included in your individual policy, so it is important to work closely with your insurance agent to select the right coverage options for your specific needs.

Is E&O Insurance Expensive? E&O insurance rates vary by the type of services provided, annual revenue generated, type of policy and prior claim history. In general, E&O can be structured to fit nearly any type of budget, depending upon selected options.

A pool party is a great way to entertain young and old alike, but it can also increase the risk of personal liability should anyone get injured. Following are seven swimming pool and insurance safety tips to keep you cool and safe this summer:

Verify Your Coverage: Call my office about the total amount of medical and liability coverage you have in the event of an accident or injury. An umbrella policy is an affordable way to provide an additional layer of protection without breaking the bank.

CPR and First Aid: Before hosting a pool party it’s always a good idea to make sure at least one person is properly trained in CPR/first aid.

Secure the Area: Pools should be properly secured with a high fence or enclosure that is locked when not in use. Adult supervision is a must when children are using the pool.

Child and Pet Proof: Installation of a pool alarm can more than pay for itself in reduced anxiety and decreased premiums, but be sure to select the right size and type for maximum protection.

Establish Rules: Pool parties are great fun, but be sure everyone understands what is and isn’t acceptable. Common causes of pool-related injuries include running, diving and intoxication.

Safety First: Keep emergency equipment within reach, including a floatation device and emergency-related phone numbers. Always ask whether people know how to swim, especially children.

Alternatives: Other water hazards include hot tubs, swim spas and even ponds. Maintain the common area and reduce direct access whenever possible to discourage children or pets from gaining access when you are away from home.

Once upon a time, general liability insurance was reserved for a select few business owners in high-risk industries. Today, all that has changed.

Lawsuits are a common threat for large- and small-business owners alike. As the cost of defending a claim continues to increase faster than the rate of inflation, even the most cautious business owners may face financial ruin – even if the case is eventually dismissed.

Fortunately, the solution – general liability insurance – is simple and cost-effective.

General liability insurance is simply a policy that provides additional protection against the assets of a business in the event of an accident, injury or other damage.

The policy typically covers the cost of legal representation and face value of a judgment in the event of a successful lawsuit.

It does not protect the personal assets of the business owner, just the company assets.

Purchasing general liability insurance is fairly straightforward, but it does require a bit of advance planning and preparation.

Following are some things to keep in mind:

For example, an insurance company will need a copy of your business name, industry classification, address and other pertinent information.

My office can help you find the policy that meets your needs, taking into account limitations and exclusions.

It may be more affordable to bundle general liability insurance with a business owner policy if the business requires only a minimal liability policy.

Professional employer organizations (PEOs) are a way for small business owners to outsource human resources, payroll, workers’ compensation and employee benefits for a fraction of the cost associated with hiring the same staff in-house. However, there are some pitfalls associated with PEOs to keep in mind. For example:

Workers’ Compensation Conflicts: When an employee is injured on the job, workers’ compensation coverage typically will provide medical benefits. However, determining whether the PEO or company is responsible isn’t quite so straightforward. Savvy small business owners should read the fine print and understand the limits of protection as well as possible areas of additional liability should an injury or accident take place.

Ratings: Most PEOs carry a master policy that then provides coverage for the PEO-leased workers. Experience modifiers, a way for the policy to rate the risk associated with each policy, can alter the rates fairly dramatically. Small business owners should do their due diligence to understand the experience modifier of the PEO company as well as the manner in which they are able to pass along savings to the small business owner.

Understand Obligations: A PEO can provide valuable services, but if the PEO fails to do its job correctly, that can also have ramifications for your business. A small business owner remains liable for injuries, ambiguities and other damages that arise from the hiring of a PEO, even if the PEO is at fault. Always verify that the PEO is paying payroll taxes and that it is audited annually and retains all state and federal requirements in place at all times. More important, speak with my office about the best way to structure the relationship.

Employment practices liability insurance (EPLI) helps protect small business owners from claims that arise from employees in relation to how the owners conduct their business.

For example, employees might file a claim for discrimination, wrongful termination, sexual harassment or wrongful discharge. With the average settlement for this type of claim now approaching $180,000 to $250,000, it is easy to understand why more small business owners than ever are taking steps to protect themselves from this growing threat.

Following is some information to help small business owners choose EPLI:

Determine Coverage: EPLI can provide coverage for employees, independent contractors and even leased employees as well as third-party providers such as salespersons. Coverage for off-site, remote and independent contractors is especially important, given the lack of direct supervision associated with performance.

Determine Deductible and Other Limitations: EPLI can be purchased in amounts ranging from $1 million to $25 million with corresponding deductible levels. Many policies will also include specific exclusions that limit or omit coverage during events such as a merger or major downsizing. Criminal conduct or other deliberate actions are also excluded.

Determine Your Small Business Risk: Every small business should have a written code of conduct as well as other pertinent personnel policies in place. My offfice may ask to review these before making a final determination on the cost of the policy, so be sure to keep them up to date and reflective of the day-to-day operations and expected conduct of employees. Nonprofit organizations are also at risk.

Determine Effective Dates: Policies are written on a “claims made” basis, and a policy must be in effect before a claim will be considered. Retroactive claims are available only as a special policy addendum and are most frequently used in combination with an acquisition or other unique event.

Annual Review: EPLI may be part of a comprehensive directors and officers policy or a stand-alone policy. It is important to do an annual review. Be sure your insurance changes with the company, including new situations, growth or downsizing, or other unique needs and demands. Call my office to coordinate each form of insurance so they complement rather than compete with one another.

Prevention is Still the Best Policy: The very best plan of action is to try to prevent this type of litigation from occurring in the first place. In a perfect world that may be possible, but today even the most diligent business owners face financial ruin from an unfounded lawsuit. According to the Society for Human Resource Management, 57% of respondents to a survey indicated their organization had faced an employment-related lawsuit in the prior five-year period. Even if a business owner wins, though, the owner may still be on the losing side simply due to the cost of defending the company. In fact, it’s not uncommon for employers to settle out of court in an attempt to cap out-of-control costs. By working with a knowledgeable agent, it is possible to develop a plan of action and human resource guide that reduce the bad behavior and unanticipated outcomes that could result in an employee-related lawsuit.

Have you been watching the rising price of gold, gems, and other precious metals? Since 2000, the price of gold has nearly quintupled. People have enjoyed an increasing asset, even through these hard economic times. Along with this added wealth comes increased risk.

Most homeowner policies have a sublimit for jewelry, goldware, silverware, etc. for the exposure of theft. If these items were to be stolen, you would only receive a portion of their true value, or nothing at all depending on the total dollar amount you own. For those who were wise enough to schedule their jewelry, now would be a good time to revisit the appraisals, and be certain  the coverage limit is adequate should you have a claim. Appraisals should be reviewed every three to five years, and as with all personal property, you should keep photos or videos of the property in a safe place.

For those who have not scheduled their jewelry, now is the time to do so. This is especially true for the items you felt were not worth the value to insure. They may be worth it now.

Numerous adjustments are already being made to the new health care reforms, and with these come questions about how and when all the changes will go into effect. One of the most hotly debated topics having to do with the new laws is how pre-existing health conditions will be handled.

While many feel the ideas behind President Barack Obama’s plan are good, the number of Americans locked out of obtaining health insurance due to pre-existing conditions may not be as bad as originally indicated. Only about 8,000 people have taken advantage of health insurance options offered to high-risk individuals. Because of that low number, the government has now cut premiums for these high-risk pools and expanded some of the benefit options to entice new applicants.

The truth is, though, that many people with pre-existing health conditions may not even need to rely on the government’s program.

In fact, although there may be some restrictions in coverage, a number of insurance companies will provide health insurance to people with pre-existing conditions.

Oftentimes, applicants will be required to pay higher premiums for coverage, or they may need to undergo waiting periods – sometimes between 12 and 24 months – before having their pre-existing conditions covered. But, before assuming that the options in the health care reforms are the only choice, it is a good idea to check with a good health insurance broker regarding insurance for those with a pre-existing condition.