| It’s time for a teen to get their driver’s license. Who is more nervous – the teenager or the parent? Parent anxiety during this rite of passage is understandable. According to the Insurance Information Institute, motor vehicle accidents are the number one cause of death among those age 15 to 20. Fortunately, teens and parents can take steps to improve safety on the road. If you have a teen behind the wheel, try these best practices. Choose a safe car: Sure, your teen will probably prefer to drive that sporty convertible, but giving a teenager the keys to a sleek, fast car will only encourage speeding and other unsafe driving habits. For a teen’s first vehicle, choose a car that is easy to drive and offers solid protection during an accident. Avoid small cars and SUVs, which are prone to rollovers. Limit their risk: Consider following a graduated driver’s license (GDL) program. These are in place in some states, and parents can institute similar policies in areas where they aren’t required. Under these programs, teens’ driving privileges are restricted until the teen has gained experience behind the wheel. Restrictions may prohibit driving at night or with teen passengers. Emphasize safe habits: Talk with teens about risky driving behaviors. Explain the dangers involved with distracted driving caused by phone use, radio use, or conversations with passengers. Stress the importance of remaining focused while driving. Additionally, certain practices, such as enrolling teens in a safe driver program or using electronic devices to monitor their driving, may qualify you for insurance discounts. Contact our office to discuss what programs are available in your area. |
Reduce Their Risk: Safety Tips for Teen Drivers
August 16th, 2019 — Personal Insurance, Sign Of The Times
Cybersecurity Glossary: What You Need to Know
July 9th, 2019 — General Insurance, Sign Of The Times
| According to information from Cybersecurity Ventures, cyberattacks are the fastest-growing crime in the world. Yet PricewaterhouseCoopers reports that less than half of companies are sufficiently prepared for one of these attacks. Is yours? A good first step to protect your company from cybercrime is education. Learn the language of the world of cybercrime to increase awareness. Use the following list of basic cybercrime terms to get started. Access control: This involves permitting or prohibiting access to information or physical locations. Proper monitoring and limitation of this access is essential to maintain company security. Cyber insurance: This coverage protects your business from damage that results from electronic threats to your operations, including liability and recovery costs. Cybersecurity: This encompasses all policies, standards, and strategies relating to the security of company operations that occur in cyberspace. Encryption: This is the process of converting data from basic format into one that can’t be easily interpreted by those who are unauthorized to access it. Hacker: A hacker is someone who attempts to gain access to a system in an unauthorized manner. Incident response: When a cyberattack occurs, the activities that occur to address its effects are referred to as an “incident response.” This involves responding to the crisis, mitigating potential threats, preserving property and information, and analyzing response activities for optimal results. Intrusion detection: These processes analyze information from security systems to determine whether a security breach has occurred. Keylogger: This software tracks keystrokes to monitor a user’s actions. Macro virus: A macro virus can replicate and spread itself by attaching to documents and using the macro capabilities of an application. Malware: This software performs unauthorized processes that compromise the integrity of a system. Passive attack: With these types of attacks, the perpetrator doesn’t try to alter the system but simply makes use of it to obtain information. Phishing: This refers to attempts to deceive people into providing sensitive information. Redundancy: These are additional systems or subsystems that are operated to maintain functionality if another system should fail. Spoofing: This involves impersonating an email address to gain unauthorized entry to a system. Ticket: In relation to access control, a ticket is the data that authenticates someone, as a credential for that person to gain access. Trojan horse: This type of computer program appears to be useful, but has a hidden function that circumvents security and accesses confidential information or otherwise negatively affects the system. Worm: This program is self-contained and self-replicating and uses networking mechanisms to spread itself. Would you like to learn more about cybercrime, cyber insurance, and what coverage is available to protect your business from cyberattacks? Contact our office to review your current policies and determine what coverage is appropriate for your company. |
Who Should Consider Contractor’s Insurance?
July 9th, 2019 — Commercial Insurance
As a business owner, you need to have all your bases covered to protect your company. When it comes to insurance, this might mean establishing a contractor’s insurance policy. Here are the FAQs to help you determine whether this coverage is right for you.
What is contractor’s insurance? This coverage protects your business from obligations resulting from work-related incidents. If your business is threatened by lawsuits or other liabilities, contractor’s insurance can shelter you from these costs.
What is provided by contractor’s insurance? Basic business liability, worker’s compensation, and commercial automotive coverage may be included with contractor’s insurance. Typically, these policies can also be tailored to meet the unique needs of your business. You may need coverage for mobile equipment, personal property, materials that are being installed, or post-project claims.
Who needs contractor’s insurance? A wide range of professionals can benefit from contractor’s insurance. These include independent tradesmen, subcontractors, and contractors. Trades that most often need contractor’s insurance include construction, plumbing, carpentry, landscaping, painting, electrical, HVAC, masonry, and flooring.
How much does contractor’s insurance cost? Premiums for contractor’s insurance vary by policy. The type of work that you do and the risks you encounter determine the rate. It’s important to customize your coverage to match your specific business. Reach out to our office to review the needs of your business and receive a personalized quote.
Whatever your industry, the cost of not having contractor’s insurance can easily outweigh the cost of coverage.
Why You Should Read Your Loss History Report
June 14th, 2019 — General Insurance
| Did you know homes and cars have report cards? Do you know what grade your property deserves? If you haven’t checked your report, you might want to look into it. This statement is called a Loss History Report. It provides a record of the insurance claims and losses that are associated with a particular property or car. The report typically covers the previous seven years of claims history. The information is gathered by the Comprehensive Loss Underwriting Exchange (C.L.U.E.). When insurers underwrite a policy, they typically refer to this report. The history helps define the risk level and determine the rates for future insurance. As a consumer, you can check your Loss History Report to ensure accuracy for auto claims. Since errors on the report could result in higher premiums, it’s good to verify that all information is correct. You can obtain one free report per year. If you discover any mistakes, you can contact LexisNexis, which will look into the claim. Depending on the situation, you may be able to add an explanation to the information that will be included in future reports. Consumers can also make use of a Loss History Report for real estate transactions. If you are considering a home for purchase, you can request a copy from the sellers. (The owner of the property has to make the request directly to C.L.U.E.) A review of this report will shed light on any previous damage to the house, which you can then follow up on to verify any repairs before you purchase the home. |
Rented and Personal Vehicles: Are Your Risks Covered?
June 14th, 2019 — Commercial Insurance, Personal Insurance
| Are you familiar with hired and non-owned auto (HNOA) insurance? If your business involves vehicle use in any way, this coverage could be crucial for your operations. Here are the FAQs. What is HNOA insurance? Hired and non-owned auto insurance provides coverage if an employee uses a personal or rented vehicle for business purposes. If an employee in these circumstances is in an accident, the company for which they were driving could be held liable for damages. HNOA insurance covers this liability. Who needs HNOA insurance? Business owners may assume that if their employees don’t use company vehicles, they don’t have to worry about insurance coverage. This isn’t necessarily true. The employee’s personal insurance may not always cover the full liability, in which case the litigators may go after the business for which the employee was driving at the time. This makes it important for any business with exposure to this risk to maintain HNOA insurance. While HNOA insurance is most commonly associated with food delivery tasks, the need for HNOA goes beyond pizza and sandwich delivery. Home health care providers, consultants, contractors, and anyone else who uses their own vehicles or rented vehicles for business-related tasks or travel have HNOA exposure. Of course, a company with a fleet of inexperienced teens delivering dinners will have a higher risk than a small business with two professionals who attend occasional client meetings. Still, the risk is there, and it should be addressed. What can business owners do to reduce HNOA exposure? To reduce their risk, business owners can take several steps. First, they can conduct motor vehicle record checks on employees. This task can be completed twice a year to monitor employee driving. Second, business owners can establish guidelines for who is considered an acceptable driver. The employer can use driving experience, age, and driving records as parameters to set these guidelines. Modern technology allows for a third method that could be worthwhile for some businesses. This solution is telematics. Using this technology, an employer can monitor the activity of a vehicle and the driver’s performance. The data will reveal whether drivers speed, how they brake, and other information that can be helpful in determining risk. Because they are being monitored, employees may make greater effort to drive safely. Employers can also create reward programs based on telematics data to further incentivize safe driving among employees. Is HNOA coverage provided by a standard commercial auto insurance policy? Business owners who have a commercial auto insurance policy may or may not be covered for HNOA situations. Previously, this coverage was often a standard part of commercial auto policies, but the rising frequency and cost of litigation have forced many providers to make it a separate policy. Business owners should check with their carriers to see what coverage is included and what is available. What’s the next step? If you’re unsure about your HNOA exposure and insurance needs, contact our office. We can provide a quick review of your policies and risks and make sure you have appropriate coverage. |
What Is Gap Insurance, and Do I Need It?
May 13th, 2019 — Personal Insurance
| Have you ever purchased a brand-new car? It had that new-car smell. The odometer readout was near zero. The paint was bright and shiny. You were excited to drive off the lot and put the first miles on your untainted vehicle. Guess what else happened as you drove off that lot? The vehicle started depreciating. According to Kelley Blue Book, most cars lose about 20% of their value in the first year. This rapid depreciation could pose a problem for insurance claims. If your initial deposit on the car was small, the loan amount that you owe may be higher than the value of the car. If your vehicle suffers extensive damage or is totaled in its early years (before you have paid down that loan), your insurance coverage may not provide enough to pay off the vehicle. Why? A standard auto policy typically covers the depreciated value of the car. In other words, it will pay what the car is currently worth on the market when you make your claim. If this amount is less than what you owe on the car, gap insurance comes into play. It will cover this difference (the gap). This extra coverage can be helpful in several circumstances. Long-term financing: If you financed a vehicle for 60 months or longer, you might need gap insurance to provide adequate coverage. Leasing: If you lease a vehicle, gap insurance is often required as part of the lease agreement. Lost value: Some cars depreciate faster than others. If your model depreciates faster than average, gap insurance could prove useful. Low down payment: If you put less than 20% down on the vehicle, this insurance will help cover the gap between the value and the balance of your loan that will most likely exist for a while. Are you unsure whether you need gap insurance? Contact our office to review your current auto policy and determine whether this coverage makes sense for you and your vehicle. |
Animal Invasion: Are you covered?
April 16th, 2019 — Personal Insurance
Your dog ate your couch. Birds destroyed your gutter. A family of raccoons overran your garage.
Will your homeowners insurance cover these animal invasions?
Yes and no. Here’s the scoop:
Infestation: If your home suffers damage at the hands (or legs) of insects, rodents, or vermin, the cost probably won’t be covered by your homeowners insurance. Whatever damage these unwanted guests cause, including nesting and infestation, is not usually covered. However, this varies by policy, so be sure to check with your insurance agent to confirm.
Destruction: If your personal property is destroyed by an animal, this usually does not fall under your homeowners policy coverage. If the animal damages the property itself, this is probably covered. So, if a bear breaks into your garage and mauls your tools, you might be on your own to replace your saw, but the damage Mr. Grizzly caused to the garage door should be covered.
Liability: Coverage for damages caused by pets varies based on where the damage occurs. If your cute kitten ruins your new loveseat, you’ll have to hold Fluffy responsible. Your insurance company probably won’t pay for that. But if you bring Fido to your friends’ house and he eats their loveseat, the liability portion of your policy will kick in and cover this damage.
Do you have concerns about potential animal-related damages? Let us help you review your policies and determine what specific coverage is best for you and available in your area.
Annuities: One Leg of a Three-Legged Stool
March 15th, 2019 — Annuities, General Insurance
Financial planners often use a simple analogy to explain retirement income: a three-legged stool. The three legs symbolize Social Security, pensions, and personal savings.
But where do annuities fit?
On one hand, an annuity is a self-created pension plan. On the other hand, an annuity is created from personal savings. But it may be best considered as a different leg that replaces pensions.
Why? Pensions are quickly becoming a thing of the past. They are nearly a relic of a bygone era.
At one time, 88% of private-sector workers with a workplace retirement plan had a pension. That number is now closer to 33%, according to the Center for Retirement Research at Boston College. And as pensions have gradually disappeared, annuities have taken their place, given their similarities. Both provide a guaranteed stream of income for life.
Regardless of where you place an annuity in a retirement plan, however, an annuity can play an important role in assembling a nest egg that can keep you comfortable throughout your golden years.
As evidence, consider a recent study from Global Atlantic Financial Group, which found that retirees who collect income from annuities can sustain much higher expenses than those who do not collect income from annuities. How much higher? The average retiree with an annuity spends 37% more than the average retiree without one ($2,545 per month versus $1,850 per month).
Moreover, retirees who had annuities were considerably less likely to have regrets about their retirement-planning choices than those who did not have annuities (42% of those with annuities had regrets, while 58% of those without annuities did.)
The key takeaway: As pensions have declined, uncertainty around Social Security has grown, and personal savings have often proven inadequate, the three-legged stool needs a replacement leg as another source of income for retirees.
An annuity can fill that role very well.
Top 10 Small-Business Insurance Claims
February 17th, 2019 — Commercial Insurance
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General Liability vs. Professional Liability: The Difference?
January 16th, 2019 — Commercial Insurance
Business professionals bear the burden of responsibility in two distinct arenas: general liability and professional liability. Both types of coverage are necessary to secure sufficient protection for your business. Here’s the difference:
General liability offers protection against costs associated with property damage, medical expenses, settlements, and slander.
For example, if a customer comes into your store, slips, falls, and sues your business for his medical costs, your general liability insurance will pay for these expenses. Another general liability situation would be a contractor who causes damage to a client’s home and is sued for repair costs.
Professional liability protects your business against claims that you did not do your job properly. In other words, any time you offer a professional opinion or perform a duty, you are professionally liable for the results and are vulnerable to lawsuits.
For example, an accountant who offers tax advice might be sued by a client who loses money after taking that advice. Another company might be sued after failing to file important documents appropriately.
Professional liability insurance is also called Malpractice Insurance and Errors and Omissions Insurance. When business owners hear these terms, they may assume this coverage is necessary only for doctors and similar professions. However, even an honest clerical mistake can be considered an error in professional services and result in a lawsuit.
To fully protect your business, consider holding both types of policies. My office can help you determine the coverage that is best for your operations.
