Wednesday, August 31, 2011

Hired and Non-Owned Business Auto Exposures

Are You Protecting Your Business Properly?


In today’s litigious society, accident claimants will often seek recovery from as many sources as


can be found. It’s not difficult to imagine scenarios wherein any company with employees (and


possibly not even operating from a physical location) can still be sued based on non-owned auto


liability in the aftermath of a motor vehicle accident.



The classic example exists of an employee using their personal vehicle for a work errand. At the

accident site, the employee mentions, “I was just on an errand for XYZ Company,” and XYZ

Company ends up being named in an ensuing lawsuit, particularly if the employee doesn’t have

sufficient liability limits on his personal auto policy.


Or what if the owner of a company—still with “no owned autos”—is involved in a serious accident

and the claimant realizes the owner has most of his personal wealth in his company? The

claimant will likely include the company in his lawsuit, and without specific coverage for nonowned

auto liability, the insurance program would not protect the insured in these instances.


Hired auto exposures arise differently, but again, it’s not difficult to anticipate situations where

an employee or officer of a company may suddenly need to travel and rent an auto, and if it’s in

the course of business, to assume it’s covered by the company’s insurance. Hired auto physical

damage exposure occurs here as well, but again, without specific coverage in place prior to an

accident, a company may be looking at an uninsured claim.


Almost every operating business entity has liability exposures from hired and non-owned auto liability, and frequently for hired physical damage as well, whether or not the business owns any autos.
A good commercial agent, like JASON SHROOT knows that not only do their clients need this coverage, the lack of the coverage can lead to a real nighmare to any business owner who chooses to ignore this risk exposure.


Please Contact Jason Shroot directly by calling 714-988-3325 and learn more about your commercial insurance policy's risk management pratices.  Also reach Diversified Insurance Quotes by emailing Jason at jason@diversifiedinsurancequotes.com or visiting www.diversifiedinsurancequotes.com





 

Friday, August 26, 2011

5 Tips For Protecting Your Home !

Here Are Some Great Tips For Protecing Your Beautiful California Home!


From Our Friends at Chubb Insurance

If you own a house that is located along the ocean, bay or within a coastal county, your home may be vulnerable to wind damage caused by a hurricane or Nor' Easter. It is important to take preventative measures to help protect your family, home and possessions. Here are some things you can do.



Protect Personal Belongings & Important Documents:
Jewelry & Collectibles. Valuables should be inventoried and stored in a secure location (such as an inland bank safety deposit box). If off-site storage is not possible, then place these items in a waterproof container and store in an interior closet.

Personal Documents. Keep all important papers such as legal papers, birth certificates, marriage license, financial papers, and insurance policy information in a bank safe deposit box or other off-site storage, or in waterproof containers.

Damage Prevention Steps When a Storm Approaches:

Clear loose objects. Bring outside patio and lawn furniture, potted plants, and outdoor bicycles and toys indoors. Help your neighbor bring in their backyard items as well so these items do not become flying objects that impact your home. Be sure all awnings are closed and secured. Tie down any other loose items that may become projectiles in a high wind.

Reinforce windows & doors. If your windows and doors are not wind and impact resistant, plywood can be used as last minute protection. However, be sure it is strongly secured.

Reinforce your garage door. If you do not have a storm bar or other garage door reinforcement, you may want to back up your car against the inside of your garage door to help prevent it from "twisting" due to high winds.

Move furniture and household fixtures. Move them away from exterior door and window openings. If possible, elevate these items and cover them with plastic.

Secure household appliances. Appliances, including personal computers, should be unplugged and stored away in cabinets or interior closets.

Test and refuel your backup generator. If you've installed a gas-powered generator as a backup power supply in your home, regularly test it to ensure that it is operational at the time you need it. When a storm approaches, run another quick test and make sure that plenty of fuel is available.

Preparing an Emergency Supply Kit


Assemble and maintain an emergency supply kit throughout the hurricane season. Items should be stored in a watertight container.
Water-minimum 1 gallon per day, per person for one week is needed. Two quarts are for drinking and 2 quarts are for food preparation or sanitation. When a storm approaches, fill empty containers and a bathtub with water as an additional emergency supply.

Food-a one-week supply of non-perishable food. Remember a non-electric can opener, cooking tools, camping stove, paper plates, and plastic utensils. Remember special dietary needs for infants, the elderly or pets.

Clothing -rain gear, sturdy shoes.

First aid kit - painkillers such as aspirin or ibuprofen, an assortment of bandages and gauze pads, antiseptic, latex gloves, first aid cream, scissors, tweezers, and a thermometer. Also include a two-week supply of prescription drugs.

Flashlights and batteries - using candles for light can pose a fire hazard.

Battery-operated radio - to help you stay informed of severe weather updates.

Cash

Bleach & antibacterial soap

Toilet paper and personal hygiene items

Plastic bags and tarps

Matches

Pillows and blankets

Store your kit in a place commonly known to all family members. Replace and/or refresh items in your kit every six months.
Prepare an "Action Plan" in the Event of an Evacuation

Become familiar with your community's disaster preparedness plan and know your evacuation route. Check with The American Civil Defense Association for the safest escape route in the event of a flood warning.

Have a predetermined destination in mind so you can quickly relocate to a shelter or relative's house. Select a common meeting place or single point of contact for all family members in case you are separated through the evacuation process.

All vehicles should be fueled well in advance of evacuation. Gas will be hard to come by. Power failures will render gas pumps inoperable.

Make sure your cell phone has a full charge, and bring along the charger.

Always stay informed of approaching storms by monitoring local television and radio stations for severe weather updates.

If You Are Unable to Evacuate

Identify a "shelter" room in your home. This enclosed area should be on the first floor, in the central part of the house and with no windows. When the storm gets bad, go there. Avoid all unprotected windows and doors until the storm passes.

Remain in contact with neighbors. Others who are riding out a storm may need your help and you may need theirs.

Use your emergency supply of water or boil any water before drinking, until official word is given that the water is safe.

After the storm passes, beware of loose or dangling power lines and report them immediately to the proper authorities.

Understand Your Insurance Coverage


Review your homeowners policy with your agent or broker so you understand the amount you will receive in the event of a covered loss and if it will be adequate to rebuild your home. Also know the amount of your deductible and any special provisions in your policy such as wind exclusions.

Know your responsibilities such as installing shutters, making arrangements to have your home secured if you are away, and verifying that emergency generators and sump pumps are functioning.

Homeowner's policies usually do not cover loss due to flooding. However, coverage can be purchased from the federal government. Ask your agent about the details or contact the National Flood Insurance Program at 1-800-427-4661.


For More Great Risk Management Tips From Your Local Insurance Agent Jason Shroot Please Contact
714-988-3325 or
  
 

Saturday, August 20, 2011

►► Cyber Attacks - Got Insurance To Protect Your Business?

In the 21st century, preparing for cybercrime is just part of the cost of doing business. As governments around the world scramble to protect their own IT assets against "cyberwars" (and sometimes initiate similar offensive measures), business leaders in the private sector are worrying about legions of unaffiliated hackers who can attack from the comfort of their living rooms.

Threats can come from individual "rogue operators," employees, independent contractors or anyone with access to company data. The treasure? Networks, servers and hardware assets, as well as another kind of "modern gold" -- client data. Because many businesses keep their customers' financial information in databases, the technology costumers take security for granted can allow their credit card numbers and other sensitive information to end up in the wrong hands.

One type of business insurance addresses these concerns: network security and privacy liability coverage.

Such policies are available from AIG, Chubb and a variety of specialty insurers, and coverage usually be added as a rider to an existing business insurance policy. According to Small Business Review, annual premiums typically are $3,500 for $1 million in coverage (with a $5,000 deductible).

Cyber Security Insurance May Protect:


• Costs from lost business or downtime.
• Costs of replacing hardware or reinstalling software.
• Cyber extortion costs (payments to hackers demanding money to stop an attack).
• Costs of regulatory actions after a security breach.
• Crisis management costs.
• Costs related to the investigation of cyberattacks.
• "Denial of service" attack or Internet disruption coverage.


Business insurance provider Chartis offers a policy called netAdvantage, which covers many of the costly
details associated with the aftermath of an Internet security breach. In addition to covering the cost of
alerting customers to the fact that their information has been compromised, it also pays for providing creditmonitoring services to affected customers.

Whether it's a stolen laptop or a compromised server, an unhappy worker or an outside hacker, cyberattacks can cost companies boatloads of money from lost business, interruption of operations and regulatory actions, as well as class-action suits when customers sue for identity theft damages.

To Get Your Free Business Insurance Quotes Today Please Contact:
 
Jason Shroot
www.jasonsellsinsurance.com
714-988-3325
jason@diversifiedinsurancequotes.com
 
 
 

Wednesday, August 17, 2011

Understanding Legal Liability for Condominium Association and Unit Owners

Understanding Legal Liability for Condominium Association and Unit Owners
Christopher J. Boggs, CPCU, ARM, ALCM On August 09, 2011

http://www.mynewmarkets.com/articles/180950/understanding-legal-liability-for-condomin


Legal liability is liability imposed by the courts or by statute on any person or entity responsible for the

financial injury or damage suffered by another person, group, or entity. Legal obligations, or legal
liability, can arise from intentional acts, unintentional acts, or contracts.
When the potentially liable parties are mutual beneficiaries and users/occupiers of the same location,
the need for each party to be properly insured is of paramount importance. Residential condominium
associations and individual unit owners are prime examples of this need to close all gaps in liability
protection.

Essentially there are three legal liability possibilities following bodily injury or property damage at a
residential condominium property. Legal liability is placed on: 1) the condominium association; 2) the
unit owner; or 3) jointly on the association and the unit owner.

When legal liability is assigned to only one party, whether it be the association or the unit owner,
defining coverage is easy. The cost of the bodily injury or property damage is covered, subject to
policy limits, by the at-fault party's insurance policy:

The association's commercial general liability (CGL) coverage pays if the association is found
to be solely negligent; or

•The unit owner's HO-6 pays if legal liability is solely placed on the owner.

The unit owner's liability coverage (most commonly provided by the HO-6) is generally first dollar
protection. Likewise, the association's CGL may be written providing first dollar protection; however,
many associations utilize a deductible or self-insured retention (SIR). If the association's deductible is
high, or there are several liability claims against the association, the unit owner(s) may suffer an out-of
-pocket expense because of the association's decision to use a deductible or SIR.

Unit Owner Assessments

When the association is subject to a deductible or SIR, it generally collects the resulting out-of-pocket
expense by assessing all the unit owners a share of the deductible/SIR (however such division is
calculated). The unendorsed HO-6 provides the insured with $1,000 for such assessment with two
main requirements:

1. The loss must be one that would have been covered under the HO-6; and $1,000 is all the policy will pay for assessment in aggregate (regardless of the number of assessments for losses occurring during that policy period).

2. Obviously, the association's choice of a deductible/SIR can be detrimental to the unit owner. But, the
unit owner does have the opportunity to increase the coverage for assessment by purchase of the HO
04 35 (Supplemental Loss Assessment Coverage). However, the attachment of this endorsement may
not solve the unit owner's deductible/SIR assessment problem – depending on the endorsement's
edition date approved and used in the unit owner's state.
 
 Attaching Insurance Services Office's (ISO's) HO 04 35 allows the insured unit owner to incrementally

increase the loss assessment limit up to $50,000 (relatively inexpensively). But the limit of coverage
for an assessment related to the association's use of a deductible/SIR has been historically limited to
$1,000 – even when the HO 04 35 endorsement was attached. This limitation was removed in ISO's
05/11 edition of the endorsement. The HO 04 35 05 11 extends the full amount of loss assessment
coverage purchased to all assessments, including those resulting from the association's use of a
deductible/SIR.

However, the new endorsement may not yet be approved in the insured unit owner's state (and may
not be for some time), or the insurance carrier providing coverage may not be using the new wording
(depending on the rules of the state). Agents cannot make assumptions, the insured's policy must be
reviewed to confirm which loss assessment wording is in use or available. The difference between the
old and new endorsement language can mean hundreds or even thousands of dollars to the properly
insured unit owner's bank account.

Joint Liability

If both the association and unit owner are held jointly liable for the injury or damage, court involvement
will likely be required. The first problem to be addressed is the amount of liability assignable to each
party. Once liability has been assigned, the second question to be considered is - what happens when
liability limits differ (which they most likely will)?

Both questions can and might be governed by the legal concept of joint-and-several liability, along
with how each state applies this concept. Losses are shared equally or unequally among tortfeasors
based on the facts of the case, each tortfeasor's level of "fault," and statute. The concept of joint-andseveral
liability is designed to assure that the victim is fully compensated for their injury or loss.
Joint means that any one tortfeasor can be held responsible for the entire amount (each tortfeasor is
responsible for all others). Several means that each is responsible only for its share of the fault. Each
state applies the joint-and-several liability differently:
Nine states apply pure joint-and-several laws: Each defendant is responsible for the entire
amount regardless of its amount of fault;

27 states utilize modified joint-and-several laws: One specific tortfeasor is potentially
responsible for the entire only if they are judged at-fault beyond a specific level or amount.
Additionally some of these states bar recovery if the injured party is found to be a certain
percentage liable; and 14 states employ pure several laws: Each party shares the financial consequences based on its amount of fault.

Generally, there is a wide gap between the association's CGL limits and the unit owner's HO-6 liability
limits; maybe as much as $900,000 ($1 million in the CGL vs. $100,000 in the HO-6). Because of this
gap, the association may be called upon to cover more than their share of damages in pure and
modified joint-and-several liability states. To avoid this potential gap, the association may decide to
require each unit owner to carry relatively high limits of liability coverage (maybe even an umbrella).
Many state laws related to condominium ownership prevent an association from subrogating against
the unit owner if the unit owner's negligence leads to a liability loss. Again, this could be very costly for
the association from an insurance perspective; and it's even more costly if the association does not
have enough protection to cover the cost of the injury or damage.

Deciding Which Party is Legally Liable

Disclaimer: This section shall not and cannot be construed as legal advice. Any ruling of negligence
and legal liability must be made in a court of competent jurisdiction. The following is simply a guideline
that may be useful in determining which party and therefore policy may be called upon to cover the
cost of injury or damage suffered by a third party.

Where did the Injury/Damage Occur?

Arriving at the more correct answer to the question: which party (the association or the unit owner)
may be ultimately responsible for paying the cost of injury or damage suffered by a third party?
Knowing where the injury occurred provides clues as to who is most likely going to be held financially

responsible.

Like analysis of the property coverage, analysis of the liability coverage requires knowledge of and a
deep understanding of three definitions: common elements, limited common elements, and unit
property. The definition of each indicates which party (the association or the unit owner) is responsible
for the care and upkeep of the property; and also who is responsible for any injury or damage suffered
on the property.

Common elements are owned by and benefit, to some extent, all members of the association.

Land (including trees, shrubs, plants, etc.), parking lots, association roads, and the building's
structural foundations and load-bearing walls are examples of common elements. Also included
in this definition are club houses, pool houses, pools, fences, gates, playground equipment,
tennis courts, and other property owned by and allocated to all unit owners.

Limited common elements are beneficial to more than one but fewer than all unit owners.
Common hallways or corridors providing access to several units, walls and columns containing
electrical wiring or sprinkler piping serving or protecting multiple units, or a plenum enclosure
providing heating and cooling to multiple units are examples. Doorsteps, stoops, decks,
porches, balconies, patios, exterior doors and windows, or other fixtures designed to serve a
single unit but located outside the unit's boundaries are often categorized as limited common
elements because the appearance and safety of these fixtures directly affects multiple unit
owners although connected to just one unit.

Unit property is defined by the association's declarations or statute and is limited to and
benefits only the unit owner. The inside of the exterior walls, interior partition walls, counter
tops, cabinetry, plumbing fixtures, appliances, and any other real property confined to the unit
are examples. The definition of unit property can vary widely with no universal designation.

Injury or Damage on or Caused by a 'Common Element'

Because a common element benefits all unit owners, the association is nearly always going to be
ultimately responsible for covering the cost of any bodily injury or property damage that occurs in or
on a common element. This is true even if a unit owner in some way contributed to the injury or
damage.

When written correctly, and depending on the state, condominium liability policies generally include
unit owners as insureds or name them as additional insureds using the CG 20 04 (Additional Insured
– Condominium Unit Owners). This endorsement grants all unit owners additional insured status for
liability arising out of any portion of the premises not reserved for the unit owner's exclusive use or
occupancy. This means that the unit owner is an insured for any injury or damage on or caused by a
common element. Further, as an insured, the insurance carrier cannot seek recovery from the unit
owner if he/she is somehow responsible for causing the injury or damage on the common element.

Injury or Damage on or Caused by a 'Limited Common Element'

Assigning financial responsibility for an injury or accident occurring on a limited common element is a
little more complicated. Largely, the rules that apply to common elements apply to limited common
elements (meaning the association will most commonly be held financially responsible); however,
there are gray areas.

Of particular interest and problem are those defined limited common elements that benefit only one
unit owner, such as stairs, stoops, balconies, decks, etc. Although these elements benefit one unit
owner, often the association is responsible for the care and maintenance of these features. Might
there be joint negligence or liability assignable to both parties?
Picture a unit owner and his guests sitting on the deck enjoying the evening. They decide to move the
party inside nearer the food. As one of the guests crosses the threshold from the deck into the unit he
trips on "something" and breaks his arm in the fall. Which party will be held responsible?
The injury occurred leaving a limited common element and moving into unit property. Based on
statute, the associations bylaws, and policy wording, who knows? Some situations may require court
involvement.

As stated previously, most situations involving limited common elements will follow the rules for

common elements. But some may end up in a court of competent jurisdiction to decide if one or both
parties will be held responsible for the injury or damage.

Injury or Damage on or Caused by Unit Property

Like assigning responsibility for injuries that occur on or caused by common elements, it is pretty
simple to assign financial responsibility for injury occurring within a unit or caused by unit property.
The unit owner will be held responsible and his HO-6 will be called upon to pay for any injury or
damage within the unit or caused by defined unit property.

Concluding Points

When working with a residential condominium association or the unit owner, each party's potential
legal liability must be considered, not just the property exposure. As detailed in this article, the agent
mustreview certain key points when considering liability protection, such as:
Where did the injury or damage occur?

Coverage limits:

Does the association require unit owners to carry relatively high limits of liability coverage?

How great is the difference between the association's and unit owner's liability limits?
Does the unit owner carry additional loss assessment coverage? What version of the
endorsement is being used?

How does the state in which the association is located apply the concept of joint and several
liability?

For  More Information on Your Condo Insurance
Please Contact Jason Shroot at 714-988-3325
Jason@diversifiedinsurancequotes.com
http://www.jasonsellsinsurance.com/


For The Complete Article By:
Christopher J. Boggs, CPCU, ARM, ALCM  On August 09, 2011 Please Visit: 

Jason Shroot 
714-988-3325
Jason@diversifiedinsurancequotes.com



For More Information on Your Insurance Please Contact:
http://www.mynewmarkets.com/articles/180950/understanding-legal-liability-for-condomin


Monday, August 15, 2011

How To Avoid Sticker Shock From Rising Auto Insurance Rates

The cost to insure your car jumped 33 percent from 2000 to 2011, according to the Insurance Information Institute. That means the average driver coughed up an extra $205 per vehicle for auto insurance during that 10-year span. By most accounts, auto insurance premiums will climb again in 2012.

“Auto rates look to be up an average 3 to 5 percent in 2011,” says Robert Hartwig, president of the Insurance Information Institute. Higher administrative costs and a higher number of claims lead the pack of reasons for the anticipated rise in rates.

“I wouldn’t be surprised if rates go up in 2012,” says Jack Taylor, professor of retail and insurance at Birmingham-Southern College in Alabama. ”Rates typically depend on the region where you live, so a carrier will have two different rates for those living in Chicago versus those living in Birmingham.”

One expert predicts auto insurance premiums will rise 3 percent to 5 percent in 2012.

Whether you’re in Chicago, Birmingham or some other locale, you can put the brakes on sticker shock from ever-increasing auto insurance premiums.

One way To Rein In Spiking Premiums Is Comparison Shopping.
“Too many consumers automatically pay a renewal without looking around to see if they can get a better deal for auto insurance,” says Eric Poe, chief operating officer of CURE Auto Insurance, a nonprofit insurance company based in Princeton, N.J.
To ensure successful comparison shopping, Poe suggests reviewing your current policy. Keep your policy on hand to compare “apples to apples” coverage. Then start shopping. Check with insurance websites and insurance agents or brokers for quotes.
Knowing the market value of your car helps when you’re shopping. “Auto insurers generally only pay claims equal to a car’s actual cash or market value,” Poe says. That means comprehensive and collision coverage may not be worth keeping on an older car that has declined in value. “But few agents will mention that,” he says.
Before committing to a carrier, obtain rate quotes from at least five insurance companies, experts say. “One major mistake people make is not exploring enough options,” Taylor says.
Failing to shop around — online or elsewhere — for a better deal when your auto insurance policy is up for renewal can be a costly mistake, according to one insurance executive.

One option you should explore, Poe says, is asking for several variations of an auto insurance quote based on a range of deductibles amounts for collision coverage. That’s because the lower your deductible, the more likely insurers think you’ll be to file a claim. So they hike up rates — in some cases as much as 15 percent to 30 percent — to reflect that increased likelihood.
Also, don’t be shy about asking for auto insurance discounts or telling your agent you’re looking at changing companies.
“If you have a good payment history and driving record, the carrier might maintain your 2010 rates to retain you as a customer,” says Ashley Hunter, an insurance broker and consultant in Austin, Texas, who was a claims supervisor at State Farm.
Update Your Lifestyle Changes
Keep your agent up to date on information about your life because certain lifestyle changes — such as getting married, buying a home or changing jobs — can be reflected positively in your rate when your auto policy is renewed. “Lifestyles send signals about your level of responsibility behind the wheel and factors into the likelihood you’ll file a claim,” says Hunter, the insurance broker and consultant.
Bottom line: the least expensive premium isn’t always your best bet. Customer service and dependability when processing a claim are vital as well. He suggests talking to auto mechanics or other businesses that deal regularly with auto insurance agents and companies. “They’ll be able to tell you quickly which companies are good to work with and which ones are a hassle,” Taylor says.
 
 
For a Competitive Auto Insurance Quote Please Contact Jason Shroot at www.jasonsellsinsurance.com
 
Please Call Jason Shroot @ 714-988-3325