Posted on Fri, Jan 27, 2012 @ 08:10 AM
Pollara, an independent public opinion and market research firm, recently conducted a survey of 451 for-profit companies in the United States. 90% of these companies had annual revenues of less than $25 million.
About 50% of the executives surveyed felt their firms would be adding jobs soon. More than 10% said they anticipated a major acquisition in the near future.
When asked about what they thought were the events that could cause the most financial impact on their operations, 36% of respondents believed that an employment practices liability (EPL) lawsuit (wrongful termination, demotion, negative evaluation, discrimination, etc...) would cause their respective company the greatest financial damage. 16% of the respondents believed an EPL charge would be levied against their companies in the next year. 21% had experienced such an event in the last five years totaling as much as $750,000.
Of the executives surveyed, 54% felt that employees would steal company funds or other company assets. This represents an increase of 24% over a similar study conducted just five years earlier.
These are real fears expressed by companies that aren’t huge by industry standards. These are everyday companies, many not unlike your own company. These threats are real and should be addressed by every business with employees. The exposures detailed in this article can be covered with the proper insurance policy - whether it's employment practices liability insurance or employee dishonesty coverage for a rogue staff member that’s skimming your bank account. If you’re concerned, please give us a call. We’re here to help!
Posted on Thu, Jan 05, 2012 @ 10:47 AM
Dog bites are a serious business - not just for the poor victim, but also for the pet owners who might be every bit as innocent as the victim but find themselves facing both anger and potentially, an expensive lawsuit. According to the Insurance Information Institute, dog-bite compensation claims in 2009 exceeded $400 million, with the average bite (if there is such a thing) costing around $25,000.
More than 4.5 million of us get bitten every year, of which about 8% end up in the emergency room. Tragically, around 15 or 16 people die each year from bites (the vast majority from male dogs). Half of all dog-bite victims are children under 12 years old, so if you’re a parent, educating your kids about how to behave with animals is an important part of accident prevention. You can get more information on how to do this from the American Humane Society.
How to avoid dog bites
The aim is to avoid the dog becoming excited. Simply don’t approach dogs you don’t know. Don’t try to pet them, and avoid them if they are preoccupied with toys, puppies or another dog. If you talk to them, use a low, quiet voice. If a dog jumps at you, stay still and keep calm.
What to do when someone gets bitten
If a dog bites you or someone you’re with, it’s a serious incident. You should seek medical advice if:
- You don’t know anything about the animal and its immunization
- The bite is deep, or on your hands, feet or head.
- You already have a serious illness or disease.
- The wound becomes red, infected or swollen.
- You have not had a tetanus shot in the past five years.
Advice for owners
Claims are mostly covered by homeowners insurance liability policies, although some insurers won’t cover specific breeds - those with a bad reputation for biting. In some cases, it’s possible to buy separate coverage. Make the effort to teach your dog discipline and control, and consider spaying or neutering to improve your dog’s temperament.
A word about cat bites
In some cases, cat bites can be more serious than dog bites. They’re more likely to cause infection, so, again, you should seek medical advice if bitten.
Posted on Mon, Dec 05, 2011 @ 01:42 PM
A common situation many of us find ourselves in today is the personal use of a company vehicle. When you are furnished a company vehicle, you are generally provided coverage to use that vehicle through your employer’s auto insurance policy. But your employer’s policy usually does not cover you if you then borrow or rent a vehicle to be used personally.
If you also own a personal automobile, and have that auto covered by a personal automobile policy, you probably already have this coverage. But, if you do not own a personal vehicle, you definitely have a gap in coverage. Some employers will endorse their business auto policy to provide you with this coverage, however, it may be at your expense. The coverage is badly needed if you either rent autos, or borrow automobiles.
A second very important exposure you face is injury to a co-worker. The majority of business auto policies exclude coverage for you if you injure a co-worker riding with you in your company vehicle. In most cases, the worker would be covered by workers’ compensation, but some states allow an injured employee to sue the negligent party in addition to filing a claim.
In some cases, you can add extended non-owned auto coverage to your personal auto policy. Also available, in some instances, is coverage that can be picked up through the personal umbrella policy. The trend in umbrella coverage is away from extending this coverage, but some will fill the gap for liability from injuries and property damage you cause operating a non-owned vehicle.
In any case, if you are furnished a company vehicle and therefore, don’t have your own personal auto policy, you really need to discuss your situation with your professional insurance advisor. You have unique needs that require careful consideration to ensure you’re properly protected.
Posted on Fri, Oct 28, 2011 @ 02:18 PM
2011 has certainly been a turbulent year when it comes to the number of severe weather events we’ve experienced. Consider the number of tornadoes in the United States from January 1, 2011 through October 20, 2011: it stands at 1,820. Tragically, these tornadoes have killed more than 537 people – mostly in Tuscaloosa, Alabama and Joplin, Missouri.
The map to the right shows the location (in red) of each reported tornado in the United States so far this year. Ohio doesn’t look too bad in comparison to the many of the southern states.
The results are even worse when looking at the number of reports for large hail storms over the same period of time: 9,317. These storms have caused extensive damage to homes, businesses and vehicles.
The map to the left pinpoints (in green) the locations for the reported hail storms, as determined by the NOAA Storm Prediction Center.
Unfortunately, Ohio has been hit very hard by these hail storms causing millions of dollars of insured losses. Combine this with several consecutive years where many insurance companies have been unprofitable and the only logical conclusion is that home and other property rates will be increasing.
Perhaps one of the most surprising statistics is the number of severe wind storms that have caused serious losses for many home and business owners. The number of wind damage reports through October 20, 2011 is 18,356.
The map to the right shows the reported wind claims in blue.
These windstorms have been so frequent that nearly the entire State of Ohio has been impacted, again, causing millions of dollars in insured claims.
Adding it all up, there have been 29,493 severe weather reports through October 20, 2011. The map to the left, perhaps, tells the story best. This depiction shows all the reported tornadoes, large hail storms and severe wind damage storms through October 20, 2011. With the exception of a small area in Southern Florida, the entire Midwest and Eastern part of the United States has been hit by severe weather related losses.
You might be wondering, how will this impact me? My homeowners insurance? What I’m paying? Keep in mind, the whole idea of insurance is to spread the risk of loss over a large number of people. If everyone pays a small amount (the premium) for a significant amount of coverage (the replacement value of your house, for example) then when a small number of people experience a loss, they can be made whole again.
What is unique about 2011 is that such a huge number of people have been hit with some type of weather related claim. Through June of 2011, there have been more than $17.3 BILLION in claims associated with catastrophe losses. This number exceeds the amount for the entire 2010 year. With so many claims being filed, insurance companies have no alternative but to begin increasing the premiums they charge.
What You Can Do:
While you can’t control the weather, there are steps you can take to help prepare for the inevitable changes. No homeowner should leave their insurance renewal to chance. There are simple, proven strategies you can use to make sure you’re ready for your home insurance renewal.
If you would like to receive my report 7 Steps to Prepare for Your Home Insurance Renewal, simply click below. This report, a $97 value, is offered to clients of H&H at no cost.
Posted on Thu, Oct 20, 2011 @ 12:42 PM
Have you contacted anyone about your life insurance or long-term care insurance? The purpose of these policies is to provide you and your family a safety net should you become incapacitated or worse, should you die. It’s not pleasant to think about one’s mortality or incapacity, but it is a reality.
Refusing to confront, or procrastinating about, the need for long-term care insurance or life insurance isn’t all that unusual, but is a big mistake. The consequences of either can be financially devastating. It is natural to fear such events, but dealing later with these situations will be easier if the proper financial steps have been taken in advance.
Another cause for failing to act on this need is confusion. Most people find these financial insurance products hard to understand. It can also be confusing to search through the numerous companies offering these products. What are the best products? Am I getting a fair price? Is it a good company? Once you sit down with us, you will find that understanding these products is easier than you think.
We understand people have certain hang-ups about dealing with these issues. What you DON’T have to do is deal with this on your own. We do the work for you, and will carefully explain these products in understandable terms.
It is up to you to embrace your denial and fear about an unplanned future by just picking up the phone and telling us your situation and letting us show you how we can help you make this a much less confusing process.
Posted on Fri, Sep 23, 2011 @ 12:34 PM
You can't see it. You can't smell it. You can't taste it. But radon gas is pretty much everywhere. That's not a problem in the open air, but high concentrations in your home spell trouble.
Radon is a radioactive gas that occurs naturally from the breakdown of uranium in soil and rocks. If your home happens to be sitting on top of such a concentration, it can seriously affect your health, especially if you also are a cigarette smoker. According to the US Environmental Protection Agency (EPA), radon is the second-most leading cause of lung cancer. The EPA says about 1 in every 15 homes have elevated amounts of the gas and that all homes below the third floor level should be tested for it.
The good news is that it's easy to test for and it's relatively straightforward to fix – reducing levels by up to 99%. Test kits usually cost less than $20 and can be bought from multiple retailers like Sears or Target, as well as online. Some states offer low-cost or free kits. Because radon levels may vary from day to day, the kits, which contain absorbent materials like charcoal, have to be left in place for several days and sometimes up to 90 days, though they only take a few minutes to set up. Just follow the instructions that come with the kit. You can also buy kits that run for longer thereby giving you a more accurate reading.
The kit will produce a figure in a measurement that's abbreviated as pCi/L. If this figure is more than 4.0 (average is 1.3), you need to take action, which normally involves installation of a vent pipe system and fan, which draws the gas away from below the building. You need a specialist radon contractor to do this or recommend other measures, like sealing foundation cracks.
Find more information including how to find local help and a contractor at http://www.epa.gov/radon. And if you're in the process of buying a home, remember to ask the sellers if it's been radon tested.
Posted on Fri, Sep 02, 2011 @ 01:55 PM
For years, homeowners and businesses in Ohio haven’t been too worried about the damaging effects caused by an earthquake. After all, most earthquakes that occur in Ohio aren’t even felt. But the magnitude 5.8 earthquake that hit Virginia last week is a wake-up call for many to reconsider their beliefs about earthquake coverage.
The fact is, damage caused by an earthquake is NOT covered on the standard homeowners policy or the standard property policy protecting most businesses. Unless you added earthquake coverage to your policy, you’re on your own when it comes to paying for the damages.
Most people believe they can’t afford to add earthquake coverage to their homeowners or business insurance policy, but the fact is, the coverage is very affordable mostly because earthquakes rarely strike Ohio hard enough to cause significant damage. For example, the cost to add earthquake coverage to a house insured for $350,000 can be as little as $50 per year. Not too bad considering the extensive damage that can be caused by the shaking & cracking of an earthquake.
According to Jeanne M. Salvatore, senior vice president of Public Affairs and consumer spokesperson for the Insurance Information Institute, “Everyone, no matter where they live, should contact their agent or company representative to make sure that they have the right type and amount of insurance. All Americans also need to have an up-to-date home inventory; an evacuation plan; and to protect their home from the disasters that pose a risk to their personal safety and property.”
While you might not be concerned about an earthquake hitting Ohio in the near future, it’s still a good idea to look into the cost to add this coverage to your policy. Even if you decide the price is too high, at least you will have made an informed decision. We certainly don’t want an earthquake to damage your house or your business and have you learn after the fact that there’s no coverage.
If you have questions or concerns about earthquake insurance, we stand ready to help guide you through your options.
Posted on Fri, Aug 26, 2011 @ 12:22 PM
When business owners are asked the question, what makes your business successful, a recurring theme begins to appear in their answers… to some degree, most comments sound something like “it’s our people.”
That’s no surprise. For nearly all products and services delivered, the quality and value we receive is largely determined by the people responsible for providing these products and services to us. But what happens if your biggest asset becomes your worst nightmare?
Thefts committed by employees account for more than half of all commercial crime-related losses. In many cases, losses are large enough that the employer does not have the ability to absorb the loss. In fact, some experts believe that as much as 30% of business failures involve some element of employee theft or embezzlement.
The employee dishonesty exposure is more significant than most managers realize, yet only about 25% of mercantile businesses protect themselves with this coverage. These losses total billions of dollars each year.
Loss control techniques can go a long way to reducing employee theft. Regardless of the fact that there is or isn’t insurance coverage, loss control is imperative. A business should establish careful financial controls for handling of its funds. A retail establishment may have a policy of balancing cash registers twice a day, or may go as far as installing video surveillance equipment. Bookkeepers and financial clerks should always operate in a world of checks and balances, and no single employee should ever have total control of a business’s finances.
In today’s digital world, it’s no longer just a matter of safeguarding your physical cash on hand. It’s become increasing problematic for business to protect their “electronic funds” which has caused numerous business owners to supplement their insurance program with an element of employee dishonesty coverage. This coverage can help minimize the financial impact to the business if an employee is embezzling funds.
If you feel like this type of fidelity coverage might be needed in your operation, give us a call.
Posted on Thu, Aug 11, 2011 @ 02:01 PM
Last year, theMidwest saw catastrophic weather that continued through October, and the insurance industry saw a marked increase in declared catastrophes. So far, this year has also been extreme with insurance companies reporting millions in losses in Ohio.
Across the county by the end of May, there had been more than 1,200 tornadoes, including some of the most powerful and deadly ever recorded. The United States generally sees that many tornadoes in an entire year, according to the National Oceanic and Atmospheric Administration.
Now might be a good time to consider whether you have replacement cost coverage on your home. While it’s true that the market price of many homes has declined, the cost of nearly all building materials continues to rise which means, so has the cost of construction.
According to Marshall & Swift, more than half of all homes are underinsured by more than 20%, in part because updates to coverage aren’t made after homeowners make improvements to their homes.
In addition to updates to your coverage, here are several preventative measures that you can take to help keep the things you value the most, safe:
- Use a fire-proof and water-proof safe to protect important paper documents
- Back up important electronic documents with an offsite data storage company to ensure documents can be retrieved if your home computer and storage media are damaged or destroyed
- Have a battery-operated radio, flashlight and fresh batteries in your emergency kit
- Keep extra cash on hand in case ATMs are affected by extended power outages
- Move items in boxes off basement floors and store in plastic tubs to protect against moisture
- Perform regular maintenance such as making sure gutters and drains are clear to keep water away from the foundation of your house
- Avoid using candles during an emergency because of the fire hazard
- Have plenty of fresh water on hand – about 1 gallon per person per day, and don’t forget to have some for you pets
- Use surge protectors to protect electronic devices from electrical storms
- Check sump pumps to make sure they function properly to avoid backups
- Ensure smoke/fire/carbon monoxide detectors are working and they have fresh batteries
- Keep a camera handy to take pictures of damage
Based on weather patterns the past few years, it certainly appears major storms are becoming more frequent. We hope you never experience a catastrophe, but if you do, we want to make sure you’re as prepared as possible.
Posted on Thu, Jul 28, 2011 @ 02:25 PM
Merriam-Webster defines a bailee as the person to whom personal property is bailed. The next question might be, what does “bailed” mean? Well, the classic example is your dry cleaner. You drop off your clothes that need cleaning (your personal property) to the dry cleaner (the bailee) and then pick up 
your clothes when done. Seems fairly straightforward, right? Well what happens if your clothes are somehow damaged while at the dry cleaners? Should you have to make a claim on your policy or should the dry cleaner have insurance coverage in place to reimburse you for your loss? For purposes of this article, we’re addressing this somewhat confusing type of claim which is common among many types of businesses – not just dry cleaners.
To begin, let’s review some frequently used language in the typical business insurance policy:
No Benefit to Bailee
One of the conditions in the commercial property policy is that there is no insurance under the policy for the benefit of others who may have their property entrusted to you. For instance, if you have equipment at a vendor for repair and it is damaged, the vendor cannot seek recovery under your commercial property policy. Your insurance company could settle with you, and using the rights of subrogation, proceed against the guilty party for reimbursement.
Liability of Bailees
What types of businesses, other than your dry cleaner, have bailment exposures? Some good examples would include jewelers and television repair businesses. A bailment is a legal relationship that arises when one person (the bailor) turns over possession of personal property to another person (the bailee) under an agreement where the bailee is under a duty to return identical property to the bailor.
When a bailment involves the transfer of property where no compensation is involved, it is referred to as a “gratuitous bailment.” An example would be when a neighboring business asks if they can store property temporarily on your property. If the bailment is for the mutual benefit of both parties, the bailee is referred to as a “bailee for hire” or commercial bailment.
In most cases, commercial bailments are for the mutual benefit of the bailee and the bailor. The degree required in a commercial bailment requires the bailee to use only the degree of care that an ordinarily prudent person would use in handling his or her own property. As a result of this standard, the bailee’s liability is usually limited to loss or damage that results from the bailee’s negligence. If the bailor’s property was destroyed in a fire, the bailee would not be liable for damage unless the bailee’s negligence caused the fire.
Give our office a call if you have more questions regarding bailee coverages and whether you have this exposure.