Always Be Prepared With The Proper Insurance Coverage
Posted: March 30, 2012 Filed under: Personal Lines | Tags: apocalypse, personal lines, prepping, sia group, SIA Group insurance Leave a comment »
With the end of the world as we know it rapidly approaching—December 21, 2012 people!—a new sub-culture of our society has emerged. “Preppers”, as they prefer to be dubbed, are people who prep for the end of days in a variety of different ways. Industries everywhere are cashing in on this phenomenon from CostCo to reality TV—seriously, if you haven’t watched “Doomsday Preppers” on The National Geographic Channel, treat yourself to that gem of a show. One such prepper recently featured on the show constructed a 9-story condominium building underground to protect himself and other condo unit owners from a nuclear fall-out or zombie-like apocalypse. Price tags on a unit range from a cool $1 million to $3 million, but the place has everything—including several interested buyers.
Other preppers featured stock pile their living rooms full of guns & ammunition, their pools full of tilapia or assemble elaborate systems for purifying polluted water. “I look at prepping as kind of like insurance,” one prepper quipped, “call it, apocalypse insurance.” Surely the last thing on these preppers minds is actually homeowner’s insurance, because let’s be honest, if a catastrophic event did happen, insurance would become obsolete. But let’s say the sun rises December 22, 2012 not to an apocalyptic wasteland, but to your underground condo being completed flooded or your entire stock of “apocalypse insurance” weapons stolen; would you be covered? Here’s a rundown of the different coverage forms and a few oddities you might not have realized.
For the prepper who welcomes the end of the world in style in a luxury low-rise condominium, you’ll require a Unit Owners Form (HO -6).
- HO–6 insures your contents and personal property as well as providing $1,000 flat amount of structure coverage to cover any improvements or betterments you make to customize your condo. Higher limits for the structure coverage are available and often recommended—especially if you’ve installed an end of the world Jacuzzi.
Riding out the apocalypse in the comfort of your own home? You should already have a Broad Form (HO-2), Special Form (HO-3) or Comprehensive Form (HO-5) and be quite familiar with your limits of insurance.
- HO-2 is named peril coverage, meaning that covered perils are scheduled on your policy.
- HO-3 policy has open peril coverage on your home and other structures, but named peril coverage on your contents.
- The most extensive policy would be the HO-5 which has open-peril coverage on your home, other structures and personal contents. Open peril contents means everything is covered unless otherwise scheduled on the policy. In other words, if Marvin the Martian’s spaceship crashed into your house, you’d be covered under an HO-5 because it’s unlikely the agent excluded that from coverage and scheduled it on your policy. The HO-5 policy also broadened the definition of theft to include mysterious disappearance.
Now, for all you preppers out there that have spent millions of dollars stocking up on supplies, food, guns, ammunition, etc, it is important to become familiar on what contents coverage you currently have. The theft of jewelry and guns is covered, but only to a certain limit.
- If your entire stock of guns, rifles, canons, AK-47’s and associated ammunition is stolen, on the standard homeowner’s policy the most you could recover is $10,000.
- For the theft of jewelry, watches, furs, precious stones the most one could recover is $1,500.
- Adding a scheduled personal property endorsement (personal articles inland marine floater) to the HO policy provides scheduled, open-peril coverage for specified property on a worldwide basis.
The end of the world should not be the only trigger for reviewing your homeowner’s policy: a major alteration to your home, buying or receiving and expensive gift (jewelry, TV etc.) or installing a trampoline to the backyard are all important reasons to update your policy. But making sure your home and personal property has sufficient insurance coverage should also be a periodic exercise. If you have any questions regarding your current policy, please feel free to contact SIA Group at 910-455-7576 and ask to speak to someone in personal lines.
Photo Credit: Flickr User archer10 (Dennis) OFF
Things Contractors Should Know Before Bidding A Job
Posted: March 29, 2012 Filed under: Bonds, Construction | Tags: bonds, construction, contracting, sia group, SIA Group insurance Leave a comment »
In today’s economy, contractors have been hit hard when it comes to finding enough work. When the contractor does discover a job opportunity, he or she has to enter into a bidding war with more contractors than he has ever had to face previously. Oftentimes the contractor is so happy to be able just to bid that the insurance requirements are overlooked, and this could result in a very costly mistake.
It is always a good decision to let your insurance agent review the insurance requirements before a bid is placed, in order to see if they can be met with your current insurance program or if you will have to incur additional costs to be compliant. There are several things a contractor can keep in mind when bidding a job and know that this will incur an additional cost, including the following:
1) Railroad Protective Policy – If the job is near or by a railroad, this policy will be requested in order to indemnify the railroad. Work within 50 feet of a railroad is excluded from the General Liability policy. Therefore you will have to purchase this policy in the name of the Railroad, which usually start around $2,500.
2) Owners Contractors Protective Policy– This protects the interest of the job owner and is purchased for a specific job. These policies start around $250.
3) Pollution Policy– This covers sudden and accidental discharges of hazardous materials at the job site. Excluded from a standard General Liability policy, these can be purchased for a specific project or blanket projects. They can start at $5,000 or higher.
4) Professional Liability– This policy covers professional services rendered for certain types of contractors and is excluded from a standard General Liability policy. These policies can start at $2,500 or higher depending on the type of work done.
5) Additional Insured Endorsements– These are endorsements that may be required on the General Liability & Auto policies that name another party as additionally insured under your policies. Some policies automatically include some types of these endorsements, but depending on what type of additional insured endorsement is requested, there may be a separate charge to add the correct one.
6) Waiver of Subrogation– These are endorsements that may be required on your General Liability, Automobile Liability and Employers Liability policies. This endorsement waives your insurance carrier’s rights to help reduce the claim amount (which helps reduce your loss history). These endorsements have to be specifically requested by your agent, and the insurance carrier has to approve and may charge for this.
If you need help with insurance terms and definitions – try the following website: http://www.irmi.com/.
These policies can eat up the costs of any job. I had a contractor that won a job with a low bid of $10,000. This job was within 50 feet of a railroad, so a Railroad Protective policy was required, as were special Additional Insured endorsements that were not currently on his policies. He had to pay a total of $6,000 in insurance for this job in order to be compliant and get paid for his work. When all was said and done, he lost quite a bit of money on this job.
This shows the utmost importance for contractors to review the insurance requirements in jobs they intend to bid before placing the actual bid. Your insurance agent can help you review your contracts and advise of any additional costs. It is also a good idea to have your legal representative review any contracts you enter, because more contractors are having to assume more risk on a job than in the past.
If you have any questions about contractor bonding and insurance, call Beverly Mabee, CISR, CRIS at (910) 455-7576 or email b_mabee@siagroup.net.
Photo Credit: Giulio Menna
Cyber Liability – What Does It Cover?
Posted: March 26, 2012 Filed under: General Commercial | Tags: cyber liability, liability coverage, sia group, SIA Group insurance Leave a comment »
The rise of Internet-related activities caught part of the insurance industry off guard, and it has recognized some of its shortcomings. For example, loss of computer data was not covered by property insurance because property as defined in insurance policies must be tangible to qualify to be covered. Only a few insurers offered cyber policies to address these concerns for many years.
However, recently more carriers have followed suit and produced their own cyber liability insurance policies. Standard business policies may address this liability in the future, but for now, you must purchase a cyber insurance policy separate from your other coverage for your business as you evaluate your overall corporate risk.
What Does Cyber Liability Cover?
- Data Loss and System Damage – While your current property policy covers damage to the computer itself, it likely does not cover the data stored on them.
- Business Interruption – This includes loss of revenue from downtime after a hack, denial of service, a viral attack … anything that causes a temporary or long-term shutdown in your operations.
- Notification Expenses – Almost every state has notification requirements – your company must disclose any breach to parties whose private information was, or is reasonably believed to have been, acquired by a person without valid authorization. You may also have to provide ongoing credit monitoring. This requirement could generate significant expenses to your organization.
- PR/Crisis Management – Say you’ve experienced a security breach, been out of business for a week, and notified thousands of clients, vendors, etc. of the breach. You must hire a PR firm and do some marketing and public relations to minimize the damage to your brand as well if you want to stay competitive.
- Content Liability – This covers anything associated with the content of your website, blog or other web presence, from copyright and other intellectual property claims to slander to invasion of privacy.
- Third and First Party Liability – These consist of the following:
- First Party Protection, with Loss of Digital Assets coverage, Non-Physical Business Interruption, Extra Expense, Extortion, Cyber Terrorism and, Security Event Costs
- Third Party Protection with Network Security and Privacy Liability, Employee Privacy Liability and Electronic Media Liability
A reputable business insurance agency will provide you with an overview of what cyber liability covers and your responsibilities in case terms of the policy go into effect. He or she will explain that while such provisions may appear intimidating, it will be far more harmful for your business if it lacks adequate cyber liability coverage in today’s Information Age.
If you have any questions about cyber liability coverage, contact Mark Ellington at mellington@siagroup.net or call (910) 455-7576.
Photo Credit: TCProject.net
Obesity is the New Tobacco
Posted: March 16, 2012 Filed under: Employee Benefits | Tags: employee benefits, health insurance, obesity, sia group, SIA Group insurance Leave a comment »
Growing up, my mother made sure to talk to me about the dangers of becoming addicted to cigarettes. Lung cancer, mouth cancer, and an untimely death were surely in my future if I so much as sniffed one! Although she cared a great deal about me and wanted me to be as happy and healthy as possible, I can’t remember a single conversation about the negative effects of a poor diet. The problem was her lack of education regarding healthy eating habits. According to recent studies, my mother was not alone.
Over one in every four North Carolinians are classified as obese (adults with a BMI of 30 or higher). Thirty-six percent of adults in the state are in the almost equally dangerous class of “overweight” (adults with a BMI between 25 and 29.9). With such beautiful mountains and beaches to venture, you may ask yourself “How did we get here?”
It is very likely that most overweight and obese adults learned poor health habits at a young age and were never educated on the benefits of healthier choices. If we fail to make serious changes in our behavior, the future of our nation is likely to worsen.
An unprecedented amount of children are heavier than they should be. The excess body mass is drastically increasing the risk for a wide range of health problems. These problems include, but are not limited to, diabetes, asthma and heart disease, as well as the mental and emotional health issues that can arise from being teased about the extra weight.
Former Surgeon General Richard Carmona released a statement encouraging Americans to focus on three major factors to fight obesity in our country. They are:
- Increased physical activity
- Healthier eating habits
- Improved health literacy
By implementing these practices into our daily lives and passing on healthier habits to our children, we are doing everyone an immense favor. We will not only be improving our quality of life and life expectancy, but lowering our health insurance rates as well – major studies have shown that obesity causes significant increases in medical costs overall.
If you are stressed about how to get started, most health insurance carriers offer a plethora of helpful sites and materials to get you on the road to a healthier lifestyle. You might be surprised to find that some carriers offer free pedometers, nutritional counseling and even free merchandise just for logging in and tracking your healthy habits online.
Contact your Benefits Constultant broker at SIA Group today and ask for more information on ways to improve your health and that of your employees. The changes can make a marked difference in your bottom line as well as your waistline. For more information, email Lisa Jolley at ljolley@siagroup.net or call (910) 455-7576.
ADA Alert
Posted: March 13, 2012 Filed under: Hospitality | Tags: ADA, Americans with Disabilities Act, hospitality, hospitality insurance, hotels, sia group, SIA Group insurance Leave a comment »There are five reasons that all hotel members in the United States need to comply with all the new Americans with Disabilities Act (ADA) requirements before the March 15, 2012 deadline. By acting now, you can save your business countless productive working hours and thousands of dollars in penalties.
1. The March 15, 2012 deadline is the effective date for the most sweeping changes to the ADA in 20 years.
2. These changes directly affect every hotel owner and operator in the United States.
3. Experts expect that a tidal wave of private lawsuits and U.S. Department of Justice (DOJ) enforcement actions will start the day after the deadline, on March 16, 2012, and that it will dwarf the approximately 12,000 lawsuits filed over the past five or six years under the original ADA.
4. Owners and operators are each jointly and separately liable for violations of the ADA, and they both will likely be sued. Most ADA claims are not covered by insurance, but most management agreements will require owners to pay or indemnify operators for such claims.
5. It is much cheaper to prevent lawsuits than to fight them. You can pay a little now to avoid the problem, or you can pay a lot more later to deal with it.
Why act now? It is the law. It is the right thing to do. It is much more cost-effective to prevent lawsuits than to fight them.
If you wait and get sued or investigated by the DOJ, in addition to the cost of making the property fully compliant, you may get hit with fines, plaintiff’s attorneys’ fees and costs. Some states can award damages as well. In addition, the DOJ can fine hotels up to $55,000 for the first ADA offense and $110,000 for each subsequent offense.
Your general liability insurance carrier will not pay for any of these costs either. The best action to take as a business owner is to hire an ADA expert to analyze your hotel operations and determine deficiencies so you can fix them before there is a problem.
SIA Group can provide you with an insurance policy that provides your hotel with coverage in the event that your hotel is sued for not being ADA compliant, and the cost is very inexpensive, especially considering the possibility of facing fines and lawsuits without having it. Contact Bradley Carroll at bcarroll@siagroup.net or Cliff Patterson at cpatterson@siagroup.net or call and ask for either person at 1-800-682-7741 for more information.
Security Breach Policies Becoming Popular With Businesses
Posted: March 5, 2012 Filed under: Hospitality | Tags: bonds, security breach, security policies, sia group, SIA Group insurance Leave a comment »
In 2011 security professionals experienced more hackers causing data breaches so widespread that the diversity in the types of businesses targeted in the past year showed that no single sector of business is truly safe. Some industries experienced truly large attacks, such as a 32 percent increase in the health care industry alone.
Online criminals have multiple ways of disrupting a business. They access computers to send viruses or release sensitive customer data, and they launch attacks on computer systems to transfer money or credit card information, or shut down operations totally.
The results of such activity are devastating to businesses affected by them. A recent study found that from 2010 to 2011, the time and money required to respond to security breaches has been increasing, with the median cost of data breaches increasing by 56 percent and costing companies an average of $6 million per year.
Given these circumstances, businesses should take adequate precautions by working with an experienced insurance agency to discuss and install policies that cover possible losses from security breaches. These policies should address all types of security breaches, including total denial of service for the business, as online attacks into businesses are occurring more frequently and with more severity.
If you have any questions about security breach policies, contact Bradley Carroll at bcarroll@siagroup.net or Cliff Patterson at cpatterson@siagroup.net or call (910) 455-7576 and ask for Bradley or Cliff.
Photo Credit: Flickr user Kiwithing
A Leap Into New Blogging
Posted: February 29, 2012 Filed under: Bonds, Construction, Employee Benefits, General Commercial, Hospitality, Personal Lines | Tags: commercial insurance, personal insurance, SIA blog, sia group, SIA Group insurance Leave a comment »
(From Don Mills)
Happy Leap Day! Since an occasion like this comes around only once every four years, I thought this would be a great time to let you know about some unique changes to our blog!
We will be expanding our blog to include a broader range of topics, as well as give a glimpse of what it is like to be part of the SIA Group family. In future days and weeks, look for blog changes from SIA Group team members that will include the following:
- A broader range of topics coverage – we will discuss personal lines of insurance as much as our commercial ones and other topics.
- Entries from team members sharing their own experiences in personal and commercial insurance lines.
- Insight into our community involvement throughout North Carolina and the other markets that SIA Group serves – we as a company are committed and involved in making these cities a better place for people to live and work.
As always, we plan to give you timely and informative news on personal and commercial insurance. These changes will help you know SIA Group a little better, as well as what we do in and beyond the insurance industry.
Feel free to use the comments section to give your thoughts on our posts, as well as ask any questions you might have. These changes are occurring to serve you better, so we want to know what you think. Thank you!
If you have any questions about personal or commercial insurance, our team at SIA Group is here to meet your needs. Give us a call at (910) 455-7576 and we will be happy to help.
OSHA Offers Employers Information On Responsibilities For Winter Storms
Posted: February 16, 2012 Filed under: Construction | Tags: construction, employee rights, sia group, SIA Group insurance, winter storms Leave a comment »
Recently OSHA added to its website a page on employer responsibilities and employees’ rights regarding winter storms. This information is vital to know at this time of year, particularly for employers who own company vehicles.
As the page notes, according to the National Weather Service, about 70 percent of injuries during winter storms result from vehicle accidents, and about 25 percent of injuries result from being caught out in the storm.
These seasonal hazards can include, but are not limited to, the following:
- Being struck by falling objects such as icicles, tree limbs, and utility poles;
- Driving accidents due to slippery roadways;
- Carbon monoxide poisoning;
- Dehydration, hypothermia and frostbite;
- Exhaustion from strenuous activity;
- Back injuries or heart attack while removing snow;
- Slips and falls due to slippery walkways;
- Electrocution from downed power lines and downed objects in contact with power lines;
- Burns from fires caused by energized line contact or equipment failure;
- Falls from snow removal on roofs or while working in aerial lifts or on ladders;
- Roof collapse under weight of snow (or melting snow if drains are clogged); and
- Lacerations or amputations from unguarded or improperly operated chain saws and power tools, and improperly attempting to clear jams in snow blowers.
Employers who want to avoid being held liable for injuries sustained from these circumstances should contact an insurance agency with experience in identifying such exposures to loss and helping clients control these loss exposures. With appropriate coverage and steps taken to avoid risks, complying with OSHA’s rules regarding winter storms for your employees can be accomplished smoothly and effectively without costing your company penalties and fines.
If you have any questions about OSHA regulations, contact Clifton Waters at cwaters@siagroup.net or call (252) 560-8778.
Photo Credit: Flickr User pingnews.com
Watch for These Initiatives for Health Care Reform in 2012
Posted: February 1, 2012 Filed under: Employee Benefits | Tags: employee benefits, health care, health care reform, sia group, SIA Group insurance Leave a comment »
Many of the programs and initiatives promised by the health care reform signed into law by President Obama in 2010, also known as the Patient Protection and Affordable Care Act (ACA), will take effect this year. One program where businesses will notice significant changes will be with Medicare, in particular Medicare Advantage programs handled by private employers.
The government will reduce rebates for Medicare Advantage programs but will provide bonus payments for MA plans judged to be high-quality ones. The overall score for grading the quality of those services will remain as before the ACA became law, with 36 different topics in five categories for plans covering health services, 17 different topics in four categories for plans covering drug services and all 53 topics for plans covering both health and drug services.
Beyond Medicare, other ACA initiatives in effect this year involve the launch of the Consumer Operated and Oriented Plan (CO-OP) Program, which will foster the creation of qualified nonprofit health insurance issuers to offer competitive health plans in the individual and small group markets (businesses with less than 1,000 employees). This new offering is meant to spur more options for health care among these areas. For large employers, there will be more incentives to subsidize medical coverage and requirements to improve insurance plans by eliminating exclusions, as well as new tax reporting obligations on W-2 forms.
An informed insurance provider will assist business owners and operators with updated information on how they can accommodate all of these changes and respond to them in a cost-efficient manner. Although the results of the 2012 election can affect how long these provisions remain in place, they apply to businesses and individuals at present, and compliance is necessary by businesses in order to avoid large fines for violating the terms of the ACA.
If you have any questions about health care reform, contact Lisa Jolly at ljolley@siagroup.net or call (910) 478-3379.
Photo Credit: Focus Laser Vision
What Contractors Need To Know When Working With Bonding/Insurance Companies For The First Time
Posted: January 31, 2012 Filed under: Bonds | Tags: bonds, contractor bonding, contractor insurance, sia group, SIA Group insurance, surety bonding 1 Comment »
Many newcomers to the construction industry have expressed anxiety about securing commercial liability insurance and/or a construction bond, also known as a surety bond, as part of their work. For those without a strong financial background in particular, they worry that either will be a too cumbersome and confusing of a process to handle while running the business. More knowledge about what is involved can ease those fears.
Contractors should know first the difference between insurance and bonds. Insurance policies are written with the understanding that some claims will be made, while surety bonds are written to prevent fraud and other potential problems in the hope of avoiding claims.
With a bond, you guarantee that your business complies with the terms of its license on file. If the bonded business, known as the principal, cannot do so, then the obligee – the entity requiring the bond – can file a claim to recoup losses incurred. As surety providers (the agencies that issues the bond to the principal) want to make sure they are guaranteeing the work of a reputable contractor to an obligee, they must have as much background information on the principal’s financial condition. This is why credit checks, upfront collateral and payment of issuance fees are part of the bonding process.
Insurance and bonding may sound like an inconvenience at first, but many companies and individuals refuse to hire any contractors lacking them. Contractor insurance will prevent your business from going bankrupt in case of an accident on site by covering the workers and the property involved, and bonding will indicate your business has secured money that is available in case a consumer files a claim against the company. Both are wise preventive measures to take, and are required in most states.
The various levels of contractor insurance and bonding to choose from can be confusing, so consult with an insurance and bonding company that can explain what plans best meet your needs. An experienced agent will be able to provide you with the specific guidance you want about what you will be expected to contribute to approving insurance and bonding for your contracting business.
If you have any questions about bonding, contact Luann Cole at lcole@siagroup.net or call (910) 478-3363. For other insurance questions, contact SIA Group at (910) 455-7576 or (800) 682-7741.
Photo Credit: Flickr user Ed Yourdon
