Here’s a warning as the holiday season approaches: Wrapped presents don’t just excite kids – they tantalize burglars. And this comes with a big price tag; the average amount of property stolen in a home burglary is $2,119.

Here are some tips on preventing burglaries that are specially designed to prevent Grinch visits and on making claims:

Be prepared:

• Don’t advertise your winter holiday on Facebook.
• Risk is high before, during and after the holidays. Most burglaries occur when daytime routines return to normal.
• Use classic “burglar prevention” techniques: light timers, holding subscriptions and mail, etc.
• Recipients may not see the gifts you sneak in, but burglars might. Bring gifts home disguised and after dark.
• Don’t pile empty boxes on trash day. It’s too obvious.
• After a burglary, the chances of being burglarized again increase. Burglars know you’ll replace stolen items.

Only 21 percent of stolen property is recovered. Insurance is the best way of compensating for a loss. When choosing coverage and making claims, remember:

• Avoid actual cash value (ACV) coverage, which considers depreciation. ACV covers cost at time of loss, meaning you won’t receive the full value of the item. Replacement cost coverage doesn’t consider depreciation, so that if someone steals your TV set, with replacement cost coverage, you would receive a TV set of like value.
• You usually need proof of ownership of stolen items. This could include receipts, videos, photos and model numbers.
• Usually premiums increase after claims, especially thefts. If policyholders become categorized as high risk, insurers can cancel or not renew policies after theft or fire claims.

It’s far better to prevent thefts as best you can than pay the emotional and financial costs of being a theft victim.

Many employers don’t have a clear understanding of what reserves refer to in Workers’ Compensation issues. Reserves are funds allocated by your insurance carrier or claims administrator to pay your claims. If your employee is injured, an adjuster, in addition to managing the medical care, must estimate the total cost to pay the claim from initial treatment through settlement.

If the injury impairs an employee’s future capacity to work, adjusters must also estimate the amount to pay for this impairment early in the life of the claim, as well as the cost of investigating, defending and managing the injury. If vocational rehabilitation is required in your state, your adjuster must assess these costs, as well.

The reserve system includes: medical costs, which pay for doctor visits, prescriptions, and physical therapy; wage replacement costs, which replace wages temporarily, or permanently in cases of partial or total disability; and loss adjustment expenses, which assist in evaluating and defending claims. Vocational rehabilitation, may be included, depending on the jurisdiction of the injury.

Because reserves established on your company’s claims greatly impact your experience modification factor, they should be closely monitored. Review loss runs at least quarterly to watch reserve development. As the client, you should monitor and question the progress of claims.

The reserve system can work for you if you understand how it works, ensure you monitor loss runs on a regular basis, and move claims forward. Talk to your adjuster regularly and make a point of asking questions.

Fall is deer hunting season, meaning it’s time to hit the brakes for Bambi, and also review your auto insurance.

From September to December, deer migrate and mate, increasing chances of collisions. According to the Insurance Information Institute (III), the top month for deer-vehicle collisions is November, with October second.

Many are serious: An estimated 200 people die in deer-vehicle crashes annually. But even minor collisions will cause costly damage. One large insurer’s claim history indicates that deer hit over one million vehicles in a 12-month period – that’s one million reasons to double check your current policy to be sure you have adequate coverage.

Insurance Hunting

III says the average cost of a deer collision claim totals $2,800. Typically, animal-related damage is covered under comprehensive coverage, not collision, but only if you hit the animal. If you swerve to miss Bambi and hit another car, it becomes a collision claim.

Although the damage would still be covered under your collision coverage, collision claims are rated the same as at-fault accidents by insurers, which likely means an increase in your premiums. Comprehensive claims – unless several claims are filed around the same time period – won’t generate an increase.

If you have both coverage types, review your deductibles. Raising deductibles is a popular way to save money, but are you ready to pay $1,500 towards deer damage? Even if you answered “yes,” it’s easier to save money by avoiding deer altogether, which you can try to do by following these tips:

Fall Driving Tips

Keep your eyes open between sunset and midnight, and early morning when deer are most active.

If you see one deer, more are likely to follow.

Slow down at deer-crossing sites.

If you have no choice, hit the deer, not another vehicle or object.

Following these tips will help protect you…and hopefully, Bambi.

Managing contractual insurance requirements from your vendors and subcontractors is rarely straightforward, but it is an integral part of risk management.

Insurance requirements under any contract can be difficult to administer, because the more complicated the project or service, the more sophisticated vendors’ and subs’ insurance programs may be.

When evaluating deductibles, self-insured retentions (SIRs) or available insurance limits, your organization can take a variety of approaches.

How you approach insurance requirements should depend on at least these four considerations:

• How critical the services the vendor furnishes are to your organization’s mission.
• The size and scope of the contract, including the exposure (what can go wrong that can cost you money or goodwill) your organization faces from the proposed project or service.
• The financial stability of the vendor or supplier, and the financial rating of its insurance carrier.
• Your history with that vendor. A new vendor requires more scrutiny than one you have utilized for years.

Since the vendor or supplier has to pay premiums and will want to pay for less insurance rather than more, deductibles, limits and scope of coverage are all bargaining chips to the vendor. For example, a small contractor who performs routine maintenance at your facility may balk at furnishing $1 million in general liability coverage. For a small project, you may agree to lower that limit.

However, in one particular case that occurred in a Hawaiian hospital, a contractor cut the power to an oxygen line to premature babies. Hospital maintenance responded quickly; however, $1 million in coverage would never have settled this accident if the incident had not ended so well.

SIRs are the loss portion that the insured absorbs before insurance coverage pays. Accepting an SIR requires additional deliberation.

Deductibles are generally paid by the insurance company, which then recovers that amount from its insured. In the event of a loss with an SIR, in most case you will negotiate directly with your contractor to obtain the SIR amount.

The larger the company, the more likely they are to have an SIR as opposed to a deductible. SIRs usually pertain to liability policies, and may apply both to damage payments and expense amounts paid to handle the claim, or only to the damage amounts.

This difference can be tricky, because SIR provisions vary. Reviewing policy provisions and endorsements before a loss occurs is the only sure way to determine how a claim will be handled. You will be more comfortable accepting an SIR in lieu of a deductible, knowing that the vendor’s insurance company would not write coverage with an SIR if the company’s operations, loss history or loss funding were unstable.

Like everything in life, insurance coverage is negotiable. If you have questions on the insurance requirements your company should request, we are here to assist.

Even savvy car insurance customers might not be aware of all the little-known facts about car insurance claims and coverage.

1. Your insurance policy will probably cover you while you are in Canada. Driving in Canada is rarely discussed when purchasing auto insurance. Thankfully though, most insurance companies extend your same policy’s coverage while north of the border. Contact your insurer well in advance so they can give you a Canadian insurance card that complies with their regulations.
2. Your insurance policy will probably NOT cover you in Mexico. However, some companies will allow your policy to cover you up to a certain number of miles even after venturing beyond the border, but you definitely need to check first as this varies from insurer to insurer. Additionally, if you need to drive into Mexico more than your insurance company will allow, often companies will have an endorsement you can add to do so.
3. Rear-end accidents are not automatically charged to the person in back. Many people believe when a ‘back-end’ or rear accident happens, it’s always the fault of the person in the back. While this might be true in the majority of cases, it’s not always true. What if there were a person backing up in the street and hit the front end of someone who was parked or completely stopped?

When it comes to insurance, ignorance certainly isn’t bliss. In situations like these, you’ll often realize the implications of your insurance choices or lack of knowledge about your auto insurance far too late and only after something happens.

Many insurance experts recommend insuring your home at replacement cost value rather than actual cash value. And many home owners (and renters) believe it also makes sense to insure their contents at replacement cost value; your personal property is worth it, and so is your peace of mind.

To understand both forms of coverage, let’s look at their differences:

Actual Cash Value (ACV)

When you insure your home and personal belongings at ACV, your coverage reflects the current fair market value. If your home is currently valued at $300,000, then that is the amount you’d receive in a total loss claim. But, while the low premiums for ACV are attractive, rebuilding a home typically costs more than fair market value. You may be hit with penalties for being underinsured. Note that insuring your home for less than 80 percent of its value will reduce your claim benefits because your coverage is based on a depreciated market value.

Replacement Cost Value (RCV)

To avoid unexpected penalties and out-of-pocket expenses, insure your home for 100 percent of its replacement value. The premium will be more expensive, but if your home is totally or partially damaged, you’ll have peace of mind and, as important, an intact savings account as compensation.

Consider RCV for your personal belongings as well. Insurance companies will require that you actually replace the damaged items, but after your deductible, you’ll receive the full replacement value. If you have expensive personal property, consider scheduling it separately. Experts recommend you choose coverage at 200 percent of the total value of your personal property.

To determine RCV of your home, consult my office or consider conducting a professional appraisal. To make sure you’re covered no matter what, opt for Extended RCV coverage. There are requirements to meet, but when it comes to everything you own, it’s always better to safe than sorry.

While your teenager is dreaming of the open road; you’re just plain scared. But when D(rive) day arrives, nothing is more important than keeping your teen safe.

The Centers for Disease Control and Prevention report that the top cause of all teen deaths is vehicle crashes: Teens 16 to 19 years old are three times more likely to be involved in a fatal accident than someone 20 or older. These days, one of the main causes of accidents is distracted driving, thanks to cell phones and other devices. According to online magazine Laptop, research shows that “texters-and-drivers” are 23 times more likely to be involved in a crash. And teens are particularly vulnerable to the lure of the smartphone.

Thank goodness you can keep your teen safe and paying attention while driving. These apps make it easy…and fun. BTW, don’t miss the Gas Buddy app, for forgetful teens (and their parents) who are always running out of gas.

Drive Scribe

While in motion, this app stops texts, calls, Internet use and keeps track of vehicle speed. To delight your teen, safe driving will earn him or her points, which can be used to buy gift cards.

DriveSafe.ly Pro

This clever app reads text and emails out loud so your teen can keep both hands on the wheel. An option is available to handle replies, which are sent automatically while driving. The DriveSafe.ly Pro feature that is especially popular with teen drivers is its ability to read text message shorthand. LOL

Your belief that “my organization is immune to fraud” may cost you thousands of dollars, or even destroy your business.

Fraud is a global problem. According to the Association of Certified Fraud Examiners’ (ACFE) 2012 Report to the Nations, the typical organization loses 5 percent of its revenues to fraud annually. In global terms, that’s $3.5 trillion in 2011 – the most recent information available. The median loss of cases reported to ACFE was $140,000, but more than one-fifth of reported cases had losses exceeding $1 million.

At the top of the list of those companies most affected by occupational fraud is small business, which, according to the report, suffers the highest median losses. Almost half of the companies who fell victim to fraud in 2011 didn’t recover any of their losses caused by fraud.

What the report doesn’t highlight is the feelings of betrayal on the part of employers who have discovered that a trusted employee has bilked them of their hard-won revenue.

Employees likely to steal

So how can you spot a fraudster in your midst?

They are usually in high-level positions, and the vast majority of those fraudsters known to ACFE worked in the accounting, operations, sales, executive/upper management, customer service, and purchasing departments. More than 80 percent were first-time offenders, and on average, the fraudulent behavior went on for a year-and-a-half or longer.

What contributes to fraud? According to ACFE, most of the companies, particularly small businesses, lacked anti-fraud measures. Those who had 16 of the most effective anti-fraud measures in place had reduced losses from fraud.

Here are several tips to help your organization combat fraud:

Institute a fraud-reporting hotline. Tips from employees, vendors, and customers accounted for 50 percent of detected frauds in 2011.

Don’t expect internal audits to catch every fraud. Only some 16 percent of frauds were identified by audits.

Don’t be lulled by background checks. Fewer than 6 percent had previous fraud convictions, and that number has shrunk over the years.

Watch for lifestyle indicators. The two most common are employees who are experiencing financial difficulties and those living beyond their means. In 36 percent of the study cases, employees were living a lifestyle far above their salaries. Employees who steal are often “control freaks.” They often refuse to allow oversight. Watch for that “Do not question me” attitude or for employees who refuse to take vacations. If you suspect substance abuse or other personal problems, heighten internal controls. Refer such workers to employee assistance programs if your organization offers this benefit.

Prohibit and monitor employees’ vendor relationships. Almost 20 percent of fraudsters had unusually close relationships with vendors or customers. Kickback-type losses can be costly.

Never assume. Don’t think your employees are too loyal or that you treat them too well for them to steal. Most employees are trustworthy. However, one worker with personal problems or a grudge can devastate your business. The best way to prevent fraud is to be aware. Most importantly, bulletproof your business with insurance coverage designed to protect against these types of losses.

So you’re going on vacation. Great! But don’t forget, if you’re renting a car, you still need insurance protection. Don’t wait to get to the checkout counter to think about coverage; you may be pressured into purchasing unnecessary rental insurance.

If you have comprehensive auto insurance, you might already have car rental coverage, but there could be stipulations. Play it safe; check your personal policy first.

Insurance companies may provide rental coverage only up to a certain amount. If the rental car is totaled, your policy may only reimburse the rental company for actual cash value. Many rental car contracts state that reimbursement should be for the full retail value.

While you’re reviewing contracts, ask your insurance agent if possible loss of use is covered. If your insurance policy includes a Use of Non-Owned Cars endorsement, you should be covered, but it’s important to know the coverage limits. If the rental company makes a claim for diminished value, your personal policy will not cover this.

Driver coverage is an important consideration, especially if you’re traveling out of town. Anyone listed on your policy should be covered, but for others be sure to check first.

If you’re traveling abroad and don’t have a comprehensive policy or a high deductible plan, you may need additional coverage. Many agencies require a credit card for purchase and, depending on the card, your rental may be covered. If not, bite the bullet and purchase the rental insurance.

It’s better to be safe than sorry, especially on vacation.

The recent popularity in do-it-yourself repairs and renovations has many homeowners rolling up their sleeves and getting to work. Replacing a faucet may be easy, but installing a roof or dishwasher can be daunting.

These larger projects are better left to the professionals, but hiring a contractor can be a job in itself. Protect yourself from less-than-honest contractors by watching for these telltale signs of fraud.

A knock on the front door

One prevalent scam occurs when a “contractor” not known to you offers to conduct a free inspection of your home. The contractor then “finds” serious problems. Of course, you want it fixed. And not only do you have to pay the scammer, you may have to make a claim on your homeowners insurance. Seniors and people without much repair knowledge can be susceptible to this scam.

The negotiator

If a contractor offers to negotiate your insurance claims, walk away. A contractor cannot ensure that your claim will be approved and no amount of negotiating will change this.

A reputable contractor lets you handle the insurance company.

A work in progress

If a contractor is in the process of repairing your home and asks you to file another claim, you may want to get a second opinion. Many contractors will agree to fix repairs cheaply and then intentionally cause more damage. If you agree, you may be participating in insurance fraud.

Make sure you aren’t duped into making unnecessary homeowners claims; do your research before hiring a contractor.

Successful businesses don’t go door to door. Check your insurance company’s recommended contractor list and the Better Business Bureau. Ensure your contractor has proper licensing.

Avoid being scammed, and that kitchen repair that was done properly and came in on time and on budget will make you happy every time you look at it.