Earthquake Insurance Revisited

Map of Maine (Photo credit: Wikipedia)

We are reposting our earthquake blog after last night’s eartquake in Maine.

Recent natural disasters in both New Zealand and Japan have once again raised the issue of how vulnerable New England is to a similar occurrence. Here are a couple of facts for you to consider:
• Believe it or not, the Northeast US is earthquake country – while it does not have the high frequency of earthquakes of California, the Northeast has experienced damaging earthquakes in the past and they will occur again in the future.
• The Northeast has a long history of earthquakes. From when the Pilgrims felt their first earthquake in 1638 up through a pair of damaging earthquakes (magnitude) that occurred in 1940 near Ossipee, NH. And since 1975 moderate size earthquakes have occurred in Central New Brunswick, central NH, northern NY State and Quebec.

 

The bottom line is that this area is more susceptible to earthquakes than you might think. And from our standpoint, it is equally important that you know that a standard homeowner’s insurance policy does not provide earthquake coverage. You need a special policy rider to cover damage to your dwelling and possessions should an earthquake occur. If the events of the past few weeks(last night) have made you nervous and you would like to learn more about earthquake coverage options, please do not hesitate to give H&K a call at 800-890-5606.

Related articles

• 4.6 Magnitude Earthquake Felt In Boston Area (boston.cbslocal.com)
• Earthquake centered in Maine rocks Vermont (vttoday.com)
• Small quake in Maine felt all over New England (cbsnews.com)
• Maine Earthquake 2012: Quake Rattles New England, Felt In Boston And Other Cities (huffingtonpost.com)

Managing Losses

Insurance is basically the transfer of risk from one party to another, in other words, you are transferring your risk to the insurance company by means of your insurance contract. This is only one part of Loss Control or Managing Losses. The following article speaks to Loss Control another step that you can take to reduce your chances of sustaining a loss.

What Is Loss Control?

The process of identifying and acting upon situations that may lead to losses is called “loss control.” Loss control may involve both simple and complex ways to reduce the likelihood of facing a loss. Besides insurance, you can choose to use protective devices, oral or written contracts to shift the responsibility for a loss to someone else, avoid ownership of items that may cause a loss (such as large pets), avoid dangerous hobbies and activities, or change your environment. Let’s look at some areas where you might exercise loss control.

Loss Control – Automobile

• Use a bike or public transportation instead of owning your own car
• Borrow or rent a car only when needed
• Take a course on defensive or advanced driving skills
• Practice defensive driving
• Obey traffic laws
• Avoid driving distractions such as texting
• When appropriate, voluntarily yield right of way
• Adjust driving habits according to driving conditions
• Park or store your car where there is greater security
• Install security alarm and/or other anti-theft devices
• Properly maintain the car in good condition, especially safety devices such as brakes
• Purchase or use cars that have higher safety ratings
• Don’t lend your car to inexperienced or inconsiderate drivers
• Have an emergency kit available, including first aid

Loss Control – Home

• Keep your  home and surrounding access ways in good repair
• Carefully store flammable liquids and dangerous chemicals
• Install security alarm and/or other anti-theft devices
• Consider an apartment or condo which avoids certain risks of home ownership
• Warn visitors about any known hazards in your home
• Avoid running a business from your home
• Take precautions when your premises includes attractive nuisances such as play sets, trampolines, tree houses and swimming pools
• Keep dangerous objects out of the reach of children
• Carefully scrutinize activities that may create a bigger exposure to loss such as dangerous hobbies or highly visible activities (volunteer work for organizations that may create extra chances for losses)
• If you are involved in high risk hobbies or activities, get the training and/or take precautions to be sure that your participation is as safe and responsible as possible
• Take care with heating and electrical devices and systems (such as portable heaters, loads on electrical circuits, etc.)
• Keep first aid kit available
• Have a fire escape plan, including any needed safety devices (such as escape ladders from second floor exits)

Loss Control – Miscellaneous

• Store important papers in a secure, fire-resistance box or even in the corner of a freezer.
• Keep all the negatives of photos, so they can be reproduced
• Make digital recordings of personal property as documentation of your possessions
• Make copies of personal videos or digital property.
• Be sure to carefully read contracts or agreements before accepting them
• Arrange to exchange and keep important papers and mementos such as copies of videos and photos with friends so they’re easier to access and less expensive than storing in a safety deposit box

Of course the help of an expert is invaluable and your insurance agent is a very helpful source for reviewing any actions you’re considering to reduce your chances of facing a loss. So contact your agent for his or her expert assistance.

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COPYRIGHT: Insurance Publishing Plus, Inc. 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Personal Emergency Preparedness Plan

A graphic representation of the four phases in emergency management. (Photo credit: Wikipedia)

Do you pay attention to the headlines after natural disasters or large accidents occur? More specifically, are you aware of what is typically reported in the aftermath? Typically there are reports of persons stumbling around, seeking aid and at a lost for what to do.

Often there is little an individual can do to control a situation. But it is always better to make what plans one may. That is the simple philosophy behind the personal emergency preparedness plan (PEP) aka Family Disaster Plan

PEPs give individuals and families a plan of action when a natural disaster (such as flooding, earthquake, serious windstorms, tornadoes, etc.) is eminent or should a severe accident (home fire, structural collapse, utility line or pipe breakage, etc.) occur.

Generally a PEP should have the following objectives:

• Identify safe areas during an emergency – what are safe areas of the home during storm or earthquake? – What safety rules should be followed in event of a fire or flood?
• Escaping from area that is endangering family members – identify escape routes from every room (at least two)
• Establishing means for all family members to re-unite – Determine a safe meeting place immediately outside the home, or a neighborhood location – make sure to have access to working radio to access emergency information
• Ascertaining everyone’s safety – Check everyone for possible injury – apply first aid or contact emergency personnel as appropriate. Check residence for any dangers created by the emergency event, such as leaking utility lines, structural dangers, fire, etc
• Establish means to contact other family members and loved ones – have access to working phones, post emergency nos., training children on how and when to make emergency calls – make contact list of family members and emergency contacts (work and/or school numbers and e-mails)

Families should also consider issues that support a PEP, such as maintaining proper insurance, having an adequate first aid kit available and acquiring first aid training. Being aware of an area’s emergency plans and procedures as well as information on nearest emergency facilities are also helpful.

The above suggestions are merely a guide to considerations of an actual plan. Please seek out competent sources (such as city, state, hospital and similar websites) for information on creating a detailed PEP for you and your loved ones.

Related Links

http://www.fema.gov/plan/index.shtm

http://www.redcross.org/

http://www.ready.gov/

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COPYRIGHT: Insurance Publishing Plus, Inc. 2010

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Driver Safety Agreement

CU, man buckling seatbelt (Photo credit: Wikipedia)

Please use this agreement with your young drivers.

My Driver Safety Agreement

Driving is a privilege that I may lose by violating this agreement or may have suspended for other reasons such as (but not limited to) unsatisfactory school grades and violations of family trust.

I will obey any curfews or restrictions imposed by my driver’s license.

I will obey all traffic laws and speed limits.

I will not drink and drive, or use illegal drugs, or drive if I am taking ANY medication that may affect my driving.

I will not ride with anyone whom I know or suspect is under the influence of alcohol or drugs (legal, or illegal).

I will not permit any open or empty containers of alcohol, or transport anyone who I know or suspect may be carrying illegal drugs in any vehicle I operate.

I will not ride in any vehicle where I know there are empty or open containers of alcohol or where anyone who I know or suspect may be carrying illegal drugs.

I agree not to drive with or transport anyone who is in possession of any weapon.

I will always wear my seatbelt and shoulder harness. I will not ride in any vehicle in which there are more people than seat belts.

I will make certain that I can always hear emergency vehicles and traffic sounds.

I will drive defensively.

I will avoid being a distracted driver, particularly avoiding texting or operating a cell or smartphone

I will not transport passengers unless they are properly secured by a seatbelt.

I will always wear a helmet if I am driving or riding on a motorcycle. I will not transport a passenger unless he or she also wears a helmet.

I will drive in a manner that respects the safety of myself, my passengers, other drivers and pedestrians.

I will ignore peer pressure. While driving, I am in control. I can stop and ask others to leave my vehicle and, as a passenger, I can ask a driver to stop and let me out.

I will not drive unless I feel safe and certain of my ability.

I will be especially alert during dangerous conditions such as rain, snow, sleet, wind, heavy traffic, fog, unlit roads, construction zones, and accident scenes.

I will always lock every door and take the keys when I leave the vehicle. I will park in areas where I believe the vehicle will be safe from damage or theft.

I will obey the driving instructions of my parent(s) and of law enforcement officers.

Additional Conditions Required By My Parent(s):

________________________________________________________________

________________________________________________________________

I have read, understood and I will comply with this agreement.

Signed______________________ Witnessed_________________________

Date:_______________________

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COPYRIGHT: Insurance Publishing Plus, Inc. 1996, 1998, 1999, 2001, 2006

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Related website

http://driveincontrol.com/

Related articles

• Teen Driver Safety is Key to Lower Auto Insurance Costs (news.onlineautoinsurance.com)

Directors And Officers Coverage-Part 2

In Directors and Officers Coverage – Part 1, we talked about the need for a corporation’s board of directors to secure D&O insurance. Like any other type of insurance transaction, a business has to complete an application and this can cause problems that could affect possible coverage.

A business seeking D&O coverage has to provide comprehensive information about its operations, including details on future business plans (mergers/acquisitions), capital financing activities and involvement with professional services. Further, such applications require information on litigation (past and pending) on board members as well as on the nature of the legal disputes.

D&O coverage applies to a group of persons…the executive board. However, the application is typically completed by one or two key executives. Both the applicant board and the insurance carrier rely upon the accuracy of the information provided by the persons completing the application. A problem may arise from how an insurer relies on the information. Typically, the insurer treats the information given by one or two persons as though it were received by all of the persons on the board. Insurers often either deny coverage or deny claims when there is evidence that the information is inaccurate. In other words, fraud or errors caused by an individual officer or director could eliminate coverage for all other directors and officers.

When coverage is not available or if it is denied, a director or officer may face the financial nightmare of having to handle his or her own legal expenses and costs of an award. Therefore, it is very important to take care that a D&O policy provides the anticipated protection. It is also important that a board takes steps to oversee the application process and to make sure that the provided information is accurate. Another step may to look for D&O coverage that offers separate coverage to directors and officers so innocent parties do not have their protection stripped away due to the deliberate, false actions of others.

Persons who need D&O coverage are typically key, savvy decision-makers. A smart decision would be to find an equally savvy insurance professional to arrange for this critical insurance protection.

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COPYRIGHT: Insurance Publishing Plus, Inc., 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc

Directors And Officers Coverage-Part 1

If your business is incorporated, does it have a board of directors and corporate officers? Do you serve on a board of directors? If the answer is yes to either question, you could be exposed to lawsuits from shareholders. They may sue you, alleging that you committed acts that reduced the corporation’s value. Lawsuits may also arise out of employee practices, allegations of conflicting interests and from providing information to the investing public.

Decisions made by directors and officers impact the viability and value of a corporation. Issues of accounting practices, financial reporting and the use of corporate assets commonly create lawsuits filings against executive boards. Directors and Officers (D&O) coverage should be considered a necessity for corporate entities. D&O coverage supplements the protection provided by General Liability policies since the former responds to legal actions filed by shareholders, customers, scorned merger partners, and creditors.

Corporate directors must take steps to determine whether D&O coverage exists. If D&O coverage is in place, boards should also determine the amount of coverage available for handling defense costs. Any amounts paid for legal costs are subtracted from the overall policy limits and are not a separate coverage. Criminal acts are not covered by D&O Insurance. However, the cost of providing a legal defense until criminality is determined may be covered. In the past it was common for a director facing a lawsuit to have any related expenses handled by a corporation’s operating funds. Today such agreements have little value, especially for operations facing bankruptcy or those that cease operation.

The increase in shareholder lawsuits has created a much tighter market for this coverage. Today, corporations needing the protection must be willing to provide detailed financial and operating information to D&O insurers. This information is mandatory and businesses should not let their concern over protecting such data be a barrier to securing this coverage. The stakes are too high. However, sharing information with D&O carriers creates a different situation. See part two for more information which will be published on August 17, 2012.

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COPYRIGHT: Insurance Publishing Plus, Inc., 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc

 

Internet Liability – Part 2

Considerations For Your Web Site, Blog or Social Networking

If you or someone in your household operates or is building a Website, or is active with social media, you need to be aware that the site (or activity) could open you to legal situations. Here are some questions you should consider:

Who created the site or page?

Key consideration: depending upon the circumstances, a private party that created the site for you may share (or even own) the responsibility for damages caused by the site.

What is the purpose of your site or activity?

Key consideration: Is there ANY business activity or purpose? If so, you may have an immediate need to secure appropriate protection.

What content is found at your site or page?

Key consideration: Not only do you have to think about YOUR message, but you must think of other parties that appear at your site such as friends, companion businesses or even miscellaneous links.

Who do you intend to attract to the site and how do visitors use your page?

Key consideration: There’s a big difference in the type of people you’re targeting, such as inviting:

• relatives to see baby pictures or family newsletters
• customers to request product/service information or to place orders
• hobbyists to distribute or solicit stories or advice
• strangers to a forum for discussing sports, political or other topics

Is there anyone you would not want to see the site or page? Why?

Key consideration: Answering this question honestly is critical. It can identify prime sources for possible legal action against you. It may also suggest what precautions you may take, including the easiest action such as eliminating the reference to a person, group or organization.

Does Your Site or Activity Create An Insurance Need?

After examining the key concerns about your Website, you should be prepared to take precautions which may include:

• adding security features to your Website
• changing the content
• adding waivers or disclaimers about links or certain pages that appear on your site
• adding user agreements to your site
• creating guidelines on maintaining current and future content at the site
• changing your homeowner coverage
• buying additional or special personal or business liability insurance
• adding or eliminating a guest book (if you have a guest book, pay close attention to what visitors say)
• eliminating the Website

Once you’ve carefully examined your situation, a discussion with an insurance professional could be an excellent step to identify coverage needs which may include having to buy commercial coverage. The instant and widespread access represented by the Internet creates new perils for individuals. Don’t hesitate to seek the help of an insurance professional or even competent legal advice.

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COPYRIGHT: Insurance Publishing Plus, Inc. 2000, 2005, 2010

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.