Who Do You Have Working For You? Employment Practice Liability Insurance (EPLI)

Employment Practices Liability Insurance (EPLI) covers businesses against claims by their current employees, past employees, or job applicants that feel their legal rights may have been violated.
Several Examples of possible claims include but are not limed to the following:

Sexual harassment

Discrimination

Wrongful termination

Wrongful discipline

Failure to employ or promote

EPLI can pay for the liability award damages and defense costs brought against a company. Employment practices claims have been on the rise over the last several years.

Nearly 50% of employment practice charges are against small businesses. Even groundless charges require legal defense and those cost can be significant. No matter how operationally sound a business may be; an employee can allege anything they want. Guilt or innocence becomes immaterial when a claim is brought against an employer. They have to defend themselves and the defense costs will either come from an EPLI policy or the business owners’ pockets. Businesses need to protect themselves even against claims without merit.

When you consider generally low levels of workplace morale, the state of the economy and our overly litigious society, businesses have a higher susceptibility to employment claims now more than ever. Make sure your business is protected from this exposure. Review your policy and talk with your insurance agent today.

-Heather Basdekis

De-Mystifying Certificates of Insurance for the Business Client

A certificate of Insurance is simply a document that states who an insured is, where they are located, what insurance company they have their insurance with, the policy number, effective dates of the policy, possibly a description of the insured’s operations, and the limits of insurance. A certificate of insurance is not a contractual agreement nor does it guarantee that there will be coverage in place at the time of a claim.

There are several questions that need to be considered when requesting a certificate of insurance from your insurance agent.  Who wants the certificate?  Why are they asking for it? Are they asking for any special wording? What does that wording do for them specifically? Am I giving up anything by providing a certificate with the special wording?  If there is special wording put on the certificate, can my policy actually provide that specific coverage? Are they asking for the special wording because I have signed a contract indicating I can provide the things they are asking for?

Following are some common asked for wording and what they mean:

1.       Additional Insured-is a person or organization that enjoys the benefits of being an insured under and insurance policy, in addition to whomever originally purchased the insurance policy. For example, general contractors will often require subcontractors to name them as additional insured on the subcontractor’s policy. In this case, if the general contractor is sued due to an incident arising from the work preformed, the subcontractor’s insurance will protect the general contractor. 

2.       Waiver of Subrogation-is the right of one party to assume the rights of a second party to bring a claim and collect damages from a third party. In other words, an insurance company has a right to take legal action against a third party that was responsible for a loss. When a waiver has been added to an insurance policy, the subrogation rights of the insurance carrier are waived and the policy may have to pay no matter if their insured was at fault or not. 

3.       Primary and non-contributory-is an attempt to stipulate the order in which multiple policies triggered by the same loss are to respond. In a loss situation, this not only means that your policy will pay first, but it will pay the full amount of the claim up to your policy limits without anyone else contributing to the loss with their own insurance. 

4.       Hold Harmless and indemnification Clause-is an agreement to hold the other party harmless in the event of a loss and to indemnify them for any damages/payments that may arise from that loss. For example, a hold harmless is usually provided by the subcontractor to the contractor insuring against all work being done by the subcontractor. This minimizes the risk of the contractor being brought into litigation in the event that there is an injury or loss sustained by the subcontractor.

- Amy McBride-Frobish

Words of Wisdom From A Groundhog...Well Kinda!

Punxsutawney Phil tells us to prepare for 6 more weeks of winter! So what do you do if you are driving in your vehicle during a winter emergency?

With the winter driving season upon us we would like to remind everyone to drive safely and to take all the necessary precautions to keep you and your family safe!

Always use the necessary precautions to protect yourself and your loved ones:

·         Remember to always wear your seat belt!

·         Do not text or engage in other activities that may distract you while driving.

·         Thick jackets may keep your child warm but they also may interfere with the proper harness fit for your child in a car seat. Try using a lighter jacket and placing blankets around your child after the harness is snug and secure.

·         NEVER leave your child unattended in or around your vehicle.

·         Slow it down! If you find yourself in a skid, ease off the brakes and gently reapply pressure.

·         Give more space to the other cars. A general rule of thumb is to remain 3-4 seconds behind a car in front of you. In bad weather that space needs to be increased to 8-10 seconds.

If you are stopped or stalled in wintry weather, follow these safety rules:

·         Stay with your car and don’t overwork yourself.

·         Put bright markers on the antenna or windows and keep your dome light on

·         To avoid over exposure to carbon monoxide poisoning, don’t run your car for long periods of time with the windows up. If you must run it make sure your exhaust pipe is clear from snow and run it just long enough to stay warm.

·         Be prepared! Make sure you have extra blankets, flashlight and warm clothing in case you are in an accident and need to wait for help.

-Amanda Ray

4 “Surprises” of your Homeowner’s Insurance

4 “Surprises” of your Homeowner’s Insurance
Chances are you when you purchased your home you never took the time to look at what your homeowner’s insurance covers. In fact, most people don’t pay attention to those thick packets they get from their insurance company when their policies begin or renew. Most people know what is covered until they have a loss. Today we are going to discuss 5 common coverage’s homeowner’s think are included on their standard homeowner’s policy but may not be….automatically that is.

1.       Flood
A study done by the National Association of Insurance Commissioners states that 33% of homeowner’s believe Flood is covered under their policy. Flood insurance is available for purchase as a separate policy through the National Flood Insurance Program (NFIP). If you have a mortgage on your home and are in a designated “HIGH RISK” flood zone (the zone defines your varying flood risk based on your property’s vicinity to water) your mortgage company will require you to have insurance. Your rate is determined by your zone risk factor. Homeowner’s not located in a “HIGH RISK” flood zone may be able to purchase a flood policy for as little as $200-$300/yr. 

2.       Termites
Termites are considered preventable according to insurance. Insurance covers the sudden and accidental. That being said, Termites have some company, or lack thereof. Damage by rats, bats, birds and other vermin are usually not covered under your homeowner’s policy either. Do your job as a homeowner and get regular pest prevention methods in and around your home to prevent a loss like this from occurring. There is no endorsement currently offered to cover these losses.

3.       Renovations

It’s coming up on the tail end of the winter season and spring fever is about to set in. With the flowers and sunshine coming through many homeowners make renovations to their home. Let’s say you add a deck to the back of your house so you can have cookouts with friends. Or add a nice in ground pool in the backyard. What if you add an extra room on due to an unexpected soon-to-be arrival? With all the excitement, you probably haven’t thought to contact your homeowner’s insurance agent. Renovations are not automatically covered under your policy. Other structures coverage is 10% of your Dwelling coverage (that’s $10,000 for a $100,000 home) but can be increased if necessary due to adding that sweet in ground pool in your backyard. Make sure if you add on any additional heated or attached square footage you get a new cost estimator completed so your dwelling coverage matches your dwelling. Your insurance agent can help you with this process.

4.       Actual Cash Value vs. replacement cost value

Although most standard home policies do offer replacement cost for your property and contents coverage, it’s important to know the difference between replacement and actual cash value.

Actual Cash Value is equal to the replacement cost minus any depreciation (ACV=RC-depreciation). It represents the amount you would expect to receive if you sold your item in the marketplace.

Ex: You have a home that was built in 1999. You have ACV coverage on the home. The home is valued at $100,000. In 2012, the house burns to the ground. Your insurance company is going to take your replacement cost ($100,000) and take away for depreciation based on the age and condition of the home so let’s say based on that information the ACV is $80,000. That is what they are going to pay for you to rebuild your home. So where does that other $20,000 come from? That’s right. Your pocket.

That’s where replacement coverage comes into the picture. Replacement cost does just what it says. It replaces. So in the same scenario above your homeowner’s insurance will pay you $100,000 to replace your home.

So although an ACV policy may have a lower premium, in the long run having the better coverage may save you from paying out of pocket in the future.

-Caroline Miranda

How To Properly Insure Your Home!

Most homeowners have insurance in force.  If you have a mortgage the mortgage company requires you to carry property coverage to protect their interest in the home.  If you don’t carry coverage the mortgage company will place “forced placed” insurance on the dwelling that will cover the amount remaining on your mortgage.  Forced placed coverage can be as much as double the cost of homeowners insurance and doesn’t cover your equity in the home. 

How then, do you properly insure your home?  Many people look at the tax valuation of their home.  Many look at the market value (the amount they could sell the home for).  Neither of these numbers would put you back in the condition you were in prior to a loss.  You would need to insure your home for the amount it would take to rebuild the home, at your current location with current cost of materials and labor.  The cost of building materials – copper, steel, lumber, concrete – have all gone up drastically in the last few years. 

You should consider four elements  in deciding how much coverage you need:

1.        The cost to rebuild the structure.

2.       The cost to replace your contents.

3.       Additional living expenses if you are required to move out of the home while the repairs are made (accommodations and food).

4.       Your liability to others who might be hurt or injured on your property. 

Your agent will usually have a computerized estimator to help you estimate the replacement cost.  If you have had a recent  appraisal the appraisal usually has an estimated replacement cost .  You can ask a local builder to give you an estimate.  Whatever method you use get qualified help in coming up with the number.   

Your contents amount of coverage is usually based on a percentage of the dwelling replacement cost amount.  This could range from 50% to 70% based on actual cash value or replacement cost coverage.   If you have a contents loss you are responsible for providing an itemized list of possessions to the insurance company, along with proof of ownership.  If you own a movie camera it is a good idea to shoot a movie of your home (stand in the middle of each room and complete a 360 degree sweep).   If you have a regular camera or cell phone camera take pictures of every room in a similar fashion.  Keep your movie tape or your pictures at another location, such as a safety deposit box or at a relative or friends home.

If you are looking for ways to cut your insurance cost ask your agent for advice.  You can raise deductibles, add an alarm system, check to make  sure you are receiving all of the discounts (home and auto, 55 and over, etc.).  Don’t be pound wise and penny foolish by underinsuring your property!      

-Ron Darden

Umbrella Insurance - What Is It & Why Do I Need It?

Most people have insurance to protect their most important assets (your home, your vehicles, etc.) but do you have enough coverage to protect yourself from a catastrophic liability claim (a lawsuit)?

Umbrella policies provide you with an additional layer of liability protection over the limits provided by your home, auto, or business insurance. A single claim could hit you harder than you may expect. Owning a swimming pool, trampoline, dog or even having an inexperienced driver in your household could put you at a higher risk. Why? Because all these things not only increase the possibility a claim could occur they also increase the severity and expense of the claim when it does.

Accidents happen every day. For example - A driver in a rush on their way to work or late to pick up a child weaves around slower traffic and quickly switches lanes. Not realizing there was a vehicle in their blind spot they collide with the other vehicle causing severe damage to the car and breaking the hand of the other party involved who is a surgeon and now cannot work due to their injuries. The driver is held liable (financially responsible) and is required to not only pay the medical bills and vehicle repairs but also the lost wages (current and future) and pain and suffering of the injured individual. When you consider the most coverage the average person carries on their auto policy is between $50,000 to $100,000 this would easily exceed their auto insurance liability limits. So where does the money come from to pay the rest of the judgment? If you don’t have an umbrella then you guessed it. Out of your pocket!

An umbrella policy would also protect you from someone being injured on your property. For example - A guest at your Childs pool party dives unknowingly into the shallow end of your pool and suffers severe injuries. You are sued and held responsible. Only having $300,000 in liability coverage afforded under homeowners insurance may not be enough for legal representation and the settlement. You want to take a guess where the money comes from after the insurance runs out? Without an umbrella you guessed right again. Out of your pocket!

Having this additional liability coverage could protect you from life’s unexpected accidents. The peace of mind knowing you are protected is well worth the inexpensive premiums of umbrella insurance. Typically umbrella policies cost as little as $125 to $200 a year at most. Contact an agent today to discuss your risk and how affordable it is to have this valuable protection.

Renting A Car? What You DON'T Know Can Hurt You!

Do I really need rental car insurance?  What does my current policy cover?

These are two of the more frequently asked questions I receive from my auto insurance clients. Probably because properly insuring a rental car can be confusing and frustrating at times.  Many rental agencies offer “damage waivers” for anywhere from $15-$25 a day (selling peace of mind along with extended coverage’s). Here are a few tips about Collision Damage Waiver(s) also known as Loss Damage Waivers to make your experience a little easier and less costly:

·         A Collision/Loss Damage Waiver is NOT an insurance product; however it “waives” the renter of financial responsibility if the rental car is damaged or stolen. So in other words, if you chose not to select this option you (the customer) must pay the rental company the full cost of repair, lost revenue, plus administrative charges.  

·         In most cases waivers provide coverage for administrative fees such as “loss of use” (the cost/money the rental car company loses by not being able to rent a damaged vehicle while it’s being repaired) and “diminished value” (the amount a rental vehicle’s resale value goes down/diminishes due to a damage caused by you). DEPENDING ON THE INSURANCE COMPANY INSURING YOUR VEHICLE YOU MAY HAVE ONE, BOTH OR NEITHER OF THESE COVERAGE’S AS PART OF YOUR POLICY OR YOU MAY BE ABLE TO HAVE THEM ADDED BUT YOU WON’T KNOW UNLESS YOU CALL. 

·         Often time’s waivers become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. This could leave you (the customer) being completely, financially responsible.

BEFORE renting a car please make sure you make at least two very important calls!

1.  CALL YOUR INSURANCE AGENT - to verify you are not duplicating coverage. Your current liability coverage, collision and comprehensive deductibles may apply when renting a car. However, you may still have some gaps so it is always best to call your agent.
2. CALL THE CREDIT CARD COMPANY you will be using to rent the car. Insurance benefits offered by a credit card company differ by the company, the level of credit card being used, as well as a host of other possible criteria.  Credit card companies may cover only damage or loss of a rented car, not for other vehicles involved or personal belongings or may not provide any coverage at all.

If you plan on renting a car in another country, contact your insurance agent and your travel agent to find out what you need to do to be properly insured.  If you are renting a car abroad, you may also need an international driver’s license.

As with all insurance products it’s better to be safe than sorry and to know how you’re covered BEFORE a loss occurs. That’s another valuable reason to find an independent agent today. We’re here when you call!

-Amanda Ray