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topics of interest to you

commercial auto protection

Business vehicle risksWhether you own or lease a single business car or an entire fleet of commercial vehicles, you’ll need to purchase commercial auto insurance. Your insurance professional can help you weigh your risks and evaluate coverage options.

But even with insurance in place, you’ll want to take steps to prevent accidents and protect your employees and vehicles. Your business can reduce the chance of an accident by establishing and enforcing the following practices and policies.

Hard-and-fast driving rules

When it comes to the safety of employees and the protection of your vehicles, you should set certain firm driving rules that must be followed at all times, including:

  • Mandatory seat belt use - Nearly every state has a seat belt law. Seat belt use helps prevent deaths and limit the severity of injuries in vehicle accidents. There is no reasonable excuse for not using a seat belt.
  • Zero tolerance for intoxicants - Even one alcoholic beverage can impair a driver’s reaction time. Employees should never drink or use other intoxicants prior to using business vehicles.
  • No cellphone use - Distracted driving is a leading cause of accidents, and cellphone use while driving is banned in some states. Prohibit employees from taking calls or texting while driving.

Vehicle use guidelines

Other rules may be more flexible, but you should consider instituting policies and adhering to the following practices yourself as appropriate:

  • Limit non-business use of vehicles - While some employees use the same car for work and personal use, generally limit business vehicle use to work-related travel.
  • Slow down - Scheduling should allow sufficient travel time between meetings and assignments. Do not create such a frantic pace of work that employees are encouraged to speed. In addition to reducing the risk of accidents, driving the speed limit also will help control fuel costs.
  • Lock and secure vehicles - Employees should always lock vehicles when on the job. Whenever possible, vehicles should be parked in secure, well-lighted areas.

Employee-focused practices to reduce vehicle risk

  • Know your employees - Before hiring employees to drive company vehicles, check their driving record with the motor vehicle department for past infractions. Limit or ban driving by employees with a history of accidents or moving violations. Employees should also be required to report any accidents they have while not working. In addition, recognize that some personality traits—such as a bad temper—can raise the risk of auto accidents.
  • Provide training - Employees who regularly drive work vehicles—or are taking on a new assignment requiring vehicle use—should be provided with drivers training. This course may just be a refresher for some, but it should cover key safety practices such as following distances and proper backing techniques.
  • Recognize safe drivers - For businesses in which driving is central—such as a florist or a moving company—establish a program to recognize and reward safe drivers. You may also want to reward a department or the whole company for accident-free periods.

Responding to an accident

The above practices and policies can help minimize the risk to your business vehicles, but they cannot entirely prevent accidents from happening. If a business vehicle is involved in an accident, you’ll want to help your employee-driver respond appropriately and proceed with filing an insurance claim. The following practices and steps will help your business and the involved employee recover and get back to work.

  • Establish procedures in the event of an accident - Employees using company vehicles should be trained what to do if an accident occurs. This includes not leaving the scene of an accident, contacting the police, and collecting information (license plate numbers, contact information, insurance information, etc.) from the affected parties and any witnesses. The accident should also be reported to appropriate personnel at work. Consider using the incident as an opportunity to educate all employees who drive company vehicles about what to do if they are involved in an accident.
  • Contact your insurance professional and file a claim with your insurer - As soon as possible, contact your insurance professional to report the accident and begin the claims filing process. It’s especially important to work immediately with your insurance team if anyone has been injured in the accident. Follow the guidance of your insurer in a timely manner, such as getting estimates for repairs.

Remember too, that auto insurance claims are not limited to accidents. You may also need to file a claim if your vehicle is vandalized, stolen or damaged from an event other than an accident, such as fire or severe weather.

Source: Insurance Information Institute

lawsuit protection

Liability insurance is for everyone.

You don’t have to be a millionaire to be sued like one. The legal fees to defend yourself in a lawsuit can be financially crippling regardless of whether you’re ultimately found responsible or not. If found liable, you can’t predict what a judge or jury will award, but huge settlements are common especially when bodily injury is involved. In a serious accident the personal liability limits of an auto, home or renter policy may not be enough, which is why an umbrella policy is an important consideration.
 

lawsuit protectionWhat’s at risk? Your savings, your home, your future income, etc.

One reason given for purchased higher liability limits is, “I don’t have a lot of savings or other assets.” What this view fails to consider is your future income and earnings potential. If you think you’re struggling now to make ends meet, imagine what would happen if in addition to losing your savings and other assets that your wages were garnished. Regardless of your economic status, you have something to lose.
 

How can you improve your protection?

Increase the personal liability portions of your policies. Often the difference in premium is minimal compared to the additional protection you get. Here are some of the specific areas to consider.

Auto Insurance

  • Optional Bodily Injury to Others - pays for damages to people injured or killed in an accident if you are legally responsible for the accident.
  • Property Damage - pays for damages to someone else whose auto or other property is damaged in an accident if you are legally responsible.
  • Medical Payments - pays for reasonable expenses for necessary medical and funeral services to yourself and your passengers incurred as the result of an auto accident. 

Home, Condo or Renter Insurance

  • Personal Liability – pays if you are found responsible for unintentional injuries to another person or damage to property.
  • Medical Payments to Others - pays for claims and lawsuits as a result of someone getting hurt, and pays for the medical expenses incurred by that person

Umbrella

  • Provides an extra layer of protection over and above your auto, home or other policies also referred to as excess liability. Covers lawsuits, settlements and jury awards. Available in increments ranging from $1 million to $10 million.

To discuss improving your personal liability coverage or if you have questions, please give us a call. We’re glad to explain and provide a premium comparison.

No matter how responsible and safe you are, the risk exists that one day you or someone in your household could be sued for causing “injury” to someone due to an accident, negligence or some other liability situation. The news is filled with examples of what can happen if you’re in the wrong place at the wrong time.

questions to assess insurance needs

Family, Home, Career Status Should Be Reflected In Your Policy Coverage

Our insurance needs change as circumstances in our lives change, which is why we recommend doing an annual insurance review. When you’re reviewing your insurance coverage, these ten questions can help you figure out whether you may need to talk to your insurance professional about making a change to your coverage.

questions1. Have you gotten married or divorced?

If you have gotten married, you may qualify for a discount on your auto insurance. Couples may bring two cars into the relationship and two different auto insurance companies, so take the opportunity to review your existing coverage and see which company offers the best combination of price and service.

If you are merging two households, you may need to update your homeowners insurance. And you may want to consider increasing your insurance for any new valuables received, such as wedding gifts, and for jewelry, such as wedding and engagement rings.

After getting married, it is important to review your life insurance needs. If one spouse is not working, he or she might be dependent on the working spouse’s income; if so, reviewing life and disability insurance coverage is prudent. The spouse who is not working outside the home should also consider having a separate life insurance policy because, in the event of premature death, the services he or she provides for the household would need to be replaced, and that could prove costly to the surviving spouse. Moreover, even if both spouses are working, couples often make financial commitments based on both incomes so the loss of one spouse’s income due to death or disability could be financially devastating without adequate insurance.

In the other hand, if you got divorced over the past year, you will probably no longer be sharing a car with your former spouse and have likely moved to a different residence. If this is the case, you should inform your insurer as you will need to set up separate auto and homeowners policies.

2. Have you had a baby?

If you have recently added a child to your family, whether by birth or adoption, it is important to review your life insurance and disability income protection.

If you are planning for your life insurance to match your survivors’ expenses after your death, the new child will no doubt add to those expenses, requiring more life insurance to keep your family secure. If you plan to save for your child's college education, life insurance can assure completion of that plan. And if you keep your current life insurance policy, don’t forget to update the beneficiary designations to include the new child.

3. Did your teenager get a drivers license?

It is generally cheaper to add your teenagers to your auto insurance policy than for them to purchase their own. If they are going to be driving their own car, consider insuring it with your company so you can get a multi-car discount. And choose the car carefully—the type of car a young person drives can dramatically affect the price of insurance. You and your teens should choose a car that is easy to drive and would offer protection in the event of a crash.

Also, encourage your kids to get good grades and to take a driver training course. Most companies will give discounts for getting at least a “B” average in school and for taking recognized driving courses.

If your teenagers move at least 100 miles from home—for example, to go to college—you can get a discount for the time they are not around to drive the car (assuming they leave the car at home). 

4. Have you switched jobs or experienced a significant change in your income?

If you had life and disability insurance through your former employer, and your new employer does not provide equivalent protection, you can replace the “lost” coverage with individual policies.

In the case of an income increase, you may have taken on additional financial commitments that your survivors will depend on. Make sure to review your life and disability insurance to ensure it is adequate to maintain those commitments.

If your income decreased, you may want to cut your life insurance premiums. Term life insurance is a good option, as the premium rates are very reasonable. And if you already have two or more policies you might be able to replace both with a single policy at a lower rate because you may reach a “milestone” amount of insurance. (For example, at many life insurance companies, $500,000 of insurance costs less than $450,000 because of the milestone discount.) But don’t drop existing life insurance until after you have a new policy in place.

5. Have you done extensive renovations on your home?

If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don’t report the changes to your insurance company. An increase in the value of the structure of the home may require an increase to your homeowners insurance coverage limits.

And don’t overlook new structures outside of your home. If you built a gazebo, a new shed for your tools or installed a pool or hot tub, you should speak to your insurance professional.

If, as part of a renovation, you purchase furniture, exercise equipment or electronics, you may need to increase the amount of insurance you have on your personal possessions. Keep receipts and add any new items to your home inventory. To create a personal home inventory, try the I.I.I.’s free Know Your Stuff® Home Inventory Tool.

6. Have you decided to buy a second home?

If you are searching for a vacation home or a second home you might retire to, make sure you research the availability and cost of homeowners insurance before you commit to the purchase.

The very factors that make a vacation home seem ideal, whether it is a waterfront property or a mountain retreat, can often introduce risks that make it costly and difficult to insure, such as proximity to the coast and the likelihood that it will be vacant for long periods of time.

In the event you have already bought a vacation home, don’t skimp on the insurance. The risk of theft or disaster is just as significant, if not more so, in a second home as in your primary residence.

If your new property is close to the water, be sure to ask about flood insurance. Damage to your home or belongings resulting from flood is not covered under standard homeowners insurance policies. Flood insurance is available from the National Flood Insurance Program (NFIP), as well as some private insurers, and is generally sold though private agents and brokers. You can ask your insurance professional whether your home is at risk for flood, or enter your address on the NFIP website to find out whether your home is in a flood zone. If you have a very valuable home, some homeowners insurers offer excess flood coverage over and above that provided by the NFIP policies.

7. Have you acquired any new valuables such as jewelry, electronic equipment, fine art, antiques?

A standard homeowners policy offers only limited coverage for highly valuable items. If you have made purchases or received gifts that exceed these limits, you should consider supplementing your policy with a floater or endorsement, a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy, such as accidental loss. Before purchasing a floater, the items covered must be professionally appraised. Keep receipts and add the new items to your home inventory.

8. Have you signed a lease on a house or apartment?

If you are renting a home, your landlord is responsible for insuring the structure of the building, but not for insuring your possessions—that is up to you. If you want to be covered against losses from theft and catastrophes such as fire, lightning and windstorm damage, renters insurance is a good investment. Like homeowners insurance, renters insurance includes liability, which covers your responsibility to other people injured at your home, or elsewhere, by you and pays legal defense costs if you are taken to court.

Regardless of whether you are a renter or an owner, you will have the following options when it comes to insuring your possessions:

  • Actual cash value pays to replace your home or possessions minus a deduction for depreciation.
  • Replacement cost pays the cost of rebuilding or repairing your home or replacing your possessions without a deduction for depreciation. Replacement cost coverage is preferable and typically doesn't cost significantly more especially when you consider the additional value of the coverage.


Think carefully about what your financial position would be in the aftermath of a disaster, and make sure you have the type of policy that is right for you.

9. Have you joined a carpool?

If you are a frequent carpool driver, whether it is to work, or ferrying kids to school and other activities, your liability insurance should reflect the increased risk of additional passengers in the automobile. Check with your insurance professional to make sure your coverage is adequate.

10. Have you retired?

If you commuted regularly to your job, in retirement your mileage has likely plummeted. If so, you should report it to your auto insurer as it could significantly lower the cost of your auto insurance premiums. Furthermore, drivers over the age of 50-55 may get a discount, depending on the insurance company.

Source: Insurance Information Institute

home insurance

Use these guidelines to protect your home and your assets with adequate insurance coverage

If disaster strikes, you'll want enough homeowners insurance to rebuild the structure of your home, to help replace your belongings, to defray costs if you're unable to live in your home and to protect your financial assets in the event of liability to others. Use these guidelines to help determine the coverage and amounts you need.

Determine how much insurance you need for your home's structure

home insuranceStandard homeowners policies provide coverage for disasters such as damage due to fire, lightning, hail and explosions. Those who live in areas where there is risk of flood or earthquake will need coverage for those disasters, as well. In every case, you'll want the limits on your policy to be high enough to cover the cost of rebuilding your home.

The price you paid for your home—or the current market price—may be more or less than the cost to rebuild. And if the limit of your insurance policy is based on your mortgage (as some banks require), it may not adequately cover the cost of rebuilding.

While your insurer will provide a recommended coverage limit for the structure of your home, it’s a good idea to educate yourself as well. To make sure your home has the right amount of structural coverage, consider:

Major factors that will impact home rebuilding costs

  • Local construction costs
  • The square footage of the structure

For a quick estimate of the amount of insurance you need, multiply the total square footage of your home by local, per-square-foot building costs. (Note that the land is not factored into rebuilding estimates.) To find out construction costs in your community, call your local real estate agent, builders association or insurance agent.

Details that can impact home rebuilding costs

  • The type of exterior wall construction—frame, masonry (brick or stone) or veneer
  • The style of the house, for example, ranch or colonial
  • The number of bathrooms and other rooms
  • The type of roof and materials used
  • Other structures on the premises such as garages, sheds
  • Special features such as fireplaces, exterior trim or arched windows
  • Whether the house—or a part of it—was custom built
  • Improvements you've made that have added value to your home, such as the addition of second bathroom, or a kitchen renovation

Other considerations

Whether or not your home is up to code

Building codes are updated periodically and may have changed significantly since your home was built. In the event of damage, you may be required to rebuild your home to the new codes and homeowners insurance policies (even a guaranteed replacement cost policy—see below) generally won't pay for that extra expense. If you suspect that elements of your home are not up to current building codes, consider getting an endorsement to your policy called an Ordinance or Law, which pays a specified amount toward bringing a house up to code during a covered repair.

Whether your home is older with hard-to-replace features

Lovely, special features on older homes—like wall and ceiling moldings and carvings—are expensive to recreate and some insurance companies may not offer replacement policies for that reason.

If you own an older home, you may have to buy a modified replacement cost policy. This means that instead of repairing or replacing features typical of older homes—like plaster walls—with like materials, the policy will pay for repairs using today's standard building materials and construction techniques.

Allowing for possible increased cost of building materials

Inflation can impact rebuilding costs. If you plan on owning your home for a while, consider adding an inflation guard clause to your policy. An inflation guard automatically adjusts the dwelling limit to reflect current construction costs in your area when you renew your insurance.

After a major catastrophe such as a hurricane or tornado, construction costs may rise suddenly because the price of building materials and construction workers increase due to the widespread demand. This price bump may push rebuilding costs above your homeowners policy limits and leave you short. To protect against this possibility, a guaranteed replacement cost policy will pay whatever it costs to rebuild your home as it was before the disaster. Similarly, an extended replacement cost policy will pay an extra 20 percent above the limits (possibly more, depending on the insurance company).

Determine how much insurance you need for your possessions

Most homeowners insurance policies provide coverage for your belongings at about 50 to 70 percent of the insurance on your dwelling. However, that standard amount may or may not be enough. To learn if you have enough coverage:

Conduct a home inventory of your personal possessions

In order to accurately assess the value of what you own, it's highly advisable to conduct a home inventory. A detailed list of your belongings will not only help you figure out how much insurance you need, but it will also serve as a convenient record. In the event any or all of your stuff is stolen or damaged by a disaster an inventory will make filing a claim much easier.

There are several apps available to help you take a home inventory, and our article on how to create a home inventory can help, as well.

While you're reviewing your possessions, think about whether you want to insure them for actual cash value (where the policy would pay less money for older items than you paid for them new) or for replacement cost (which would cover to replace the items). The price of replacement cost coverage for homeowners is about 10 percent more but is generally a worthwhile investment in the long run. (Note that flood insurance for belongings is only available on an actual cash value basis.)

If you think you need more coverage, contact your insurance professional and ask about higher limits for your personal possessions.

Take stock of your expensive items

There are limits on how much a standard homeowners insurance policy will cover for items such as jewelry, silverware, collectibles and furs. For example, jewelry coverage may be limited to under $2,000. Some insurance companies may also place a limit on what they will pay for computers.

Check your policy (or ask your insurance professional) for the limits of your coverage for any expensive items. If your home inventory includes items for which the limits are too low, consider buying a special personal property floater or an endorsement. This will allow you to insure valuables individually or as a collection, with significantly higher coverage limits.

Determine how much additional living expense insurance you need

Additional Living Expenses (ALE) is a very important feature of a standard homeowners insurance policy. If you can't live in your home due to a fire, severe storm or other insured disaster, ALE pays the additional costs of temporarily living elsewhere. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt.

If you rent out part of your house, this coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.

Many policies provide coverage for about 20 percent of the insurance on your house. But ALE coverage limits vary from company to company. For example, there are policies that provide an unlimited amount of coverage, for a limited amount of time, while others may only set limits on the amount of coverage. In most cases, you can increase ALE coverage for an additional premium.

Determine how much liability insurance you need

The liability portion of homeowners insurance covers you against lawsuits for bodily injury or property damage that you or family members or pets cause to other people, as well as court costs incurred and damages awarded.

You should have enough liability insurance to protect your assets. Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage.

If you own property and or have investments and savings that are worth more than the liability limits in your policy, consider purchasing a separate excess liability or umbrella policy.

Consider an umbrella or excess liability policy

Umbrella or excess liability policies provide coverage over and above your standard home (or auto) liability policy limits. These policies start to pay after you have used up the liability insurance in your underlying policy. In addition to providing additional dollar amount coverage, umbrella or excess liability often offers broader coverage than standard policies.

The cost of an umbrella policy depends on how much underlying insurance you have and the kind of risk you represent. The greater the underlying liability coverage you have, the cheaper the umbrella or excess policy. To write an umbrella or excess policy, most companies will require a minimum of $300,000 underlying liability insurance on your standard homeowners policy.

Source: Insurance Information Institute

family life insurance

You’ve purchased life insurance as part of your estate planning efforts. You deserve to be commended for taking this step, and certainly there is a temptation to file away your policy and forget it.  However, there are a few key things you should do right away after buying life insurance to ensure that in the event of a tragedy, your loved ones will easily be able to receive the money you want them to have.

1. Discuss it

While life insurance is personal, it’s also something to discuss with your loved ones. Certainly use your discretion and judgement, as there may be individuals who you feel should not know. If you have an executor, he/she should be aware of your plans, and often the beneficiary is informed. Your loved ones can’t be protected if they don’t know the protection exists. 

Typically, beneficiaries, who will receive a life insurance payout, are asked in advance as part of your planning process.  If you haven’t previously discussed it, you should tell them now. By being open and clear about your plans, you can provide them with basic information so that they know how they are protected and where to locate documents in the event of your passing.

2. Safely store your documents

Keeping your life insurance and other end of life planning documents safe is critical.  Make copies of the originals in case they are lost or damaged. Be sure to store the original and copies in two or more different place, so if something happens that destroys copies in one location you have a backup elsewhere.

Life InsuranceStoring at home – At home there is always the risk of documents being destroyed by fire or other natural disaster. Keep documents in a fireproof/waterproof safe or chest.  Just be sure your executor has the key or combination in case they need access. But be sure to find a way to store documents off site, too.

Storing in safe deposit box – This is a traditional way that people have chosen to store documents and valuables off site; however, even if your executor has a key and is authorized, a bank may secure the box after your death and require a court order to open it.

Digital storage – Keeping digital copies can be a wise option.  Scan your policy and other documents and keep them on your computer. You may want to back up to an external thumb drive. Online storage resources like Dropbox , Google Drive and others provide offsite storage for important documents in case your computer fails or is damaged.  Just be sure that there is a way for your executor or other trusted person to also know how to access documents.

3. Leave instructions…leave a ‘paper’ trail

Leave written instructions about what to do in the event of your death.  Some refer to this as a “love letter” to your family and loved ones. Clearly outline with detail what steps need to be taken upon your death including:

  • where important paperwork is stored as well as how to access it if passwords or keys are required. 
  • describe the documents and what to do with them including details they will need.
  • provide contact information

If you need help preparing such a document, ask your insurance agent, accountant or legal advisor for assistance. Providing this guidance will help your executor/family to navigate more easily during an emotional time.  

Other future planning issues to think about include having an up to date will, health care proxy, power of attorney and other legal documents.  If you haven’t yet made such preparations and don't already have a provider you trust, please let us know.  We can provide you with a list of options.

4. Don’t just file and forget it

While you may be set for planning for the moment, your life is always changing.  If you change jobs, have a child, move to a new home, enter a different stage of life where kids are grown, etc., your needs can change requiring updates to your life insurance plan.  Issues to keep in mind:

Beneficiary changes – There are a variety of life events that can result in a decision to change your life insurance beneficiary. Your insurance company needs to know your intentions so that the loved one(s) you want to protect receive insurance funds.

Moving – Update your insurance agent with your current contact information.  This is important to ensure that premiums are paid on a timely basis so that your policy doesn’t lapse or if any other issues/opportunities arise.

Policy review  – Every 3 years or so, it’s smart to talk to your agent.  Together you can discuss anything that may have changed and review your needs to ensure your current policy is still the best fit for you. There might be different policy options to consider or perhaps you need to change coverage amounts. If you become disabled or have financial challenges, contact your agent as your policy may have options that can assist you depending upon how it is structured.

Taking the extra time every now and then to consider your plan helps ensure your loved ones stay properly protected. 

 

NEED TO PURCHASE OR REVIEW LIFE INSURANCE PROTECTION?

> Click to request a review or quote

 

create home inventory

Every homeowner, renter and college student should have an inventory of their possessions. Just imagine…if you had a fire or burglary, would you be able to remember everything you own and what it cost? Having an inventory can save you time, money and stress if you have to make a claim.

get started…a partial inventory is better than none

Set a time goal. Setting a deadline helps keep you on track.

Break it up into pieces. Don’t overwhelm yourself by trying to do it all at once. Go room by room. Start with your most valuable possessions. 

Get help. Have someone help you take the inventory and review it. 

home inventoryhow to tips 

create a list

Find a method that works for you. Using a computer, can make storage, duplication and updates of your inventory easy. If you don’t have a PC, paper works fine, too.  Click below for sample home inventory worksheets:

There is even a new iPhone app from the National Association of Insurance Commissioners myHOME Scr.APP.book app. The app will guide you through capturing images, descriptions, bar codes and serial numbers, and then storing them electronically for safekeeping. The app even creates a back-up file for e-mail sharing.

what to document

Describe all items noting make, model, where purchased and price paid as applicable. List serial numbers for expensive electronics and major appliances. Count up clothing items by category noting high value items. Keep receipts or appraisals with your list if you have them.

take photos or video

Take pictures and/or video of everything using the time stamp feature if available. Label all photos with descriptions. Digital photos are inexpensive and easy to store. Video is great to give verbal descriptions of items. You may want to do this step first to create a quick inventory.

document high value items  

Items worth over $500 should be described in detail and photographed. High value items may need to be insured separately since home policies have certain personal property limitations.

safely store your inventory

Keep a copy handy for yourself. But most importantly, store your inventory documentation away from your home in a safe deposit box or with some one you trust.  

keep it up to date!

Once you’re done, update your inventory when you make big purchases. It’s a good idea to review your list at least every couple years or when you move. When you’ve completed your inventory, talk with us to be sure that you have enough insurance to cover all your possessions.

diamond ring

Imagine how you’d feel if you looked down and saw the stone missing on your diamond ring? Would it be covered by your homeowners', condo owners' or renters' policy? Unless you have the ring "scheduled" on your policy, the answer is probably NO. 

Most home/condo/renter policies provide coverage only in specific situations (named perils) listed on your policy, i.e. fire, theft, etc.  In the the above situation, the stone simply fell out and was accidentally lost, which is not a covered situation by most standard policies.

Even if you're not worried about accidental loss and are comfortable with having coverage only for the name perils, you also need to consider that home/condo/renter policies generally limit coverage for jewelry losses in a theft situation to $1,000—$3,000 per incident depending on the policy. So, if your house is broken into and your jewelry is stolen you may not have coverage for the full value.

The best way to insure valuable jewelry and other items is to have them "scheduled" on your home/condo/renter policy, which provides broader coverage. Scheduling expands covered loss situations as well as increases your theft dollar amount limit for the listed items.

To discuss coverage options for your valuables and obtain a quote, take a moment to complete a scheduled valuables quote request.

 

NOTE: The information provided here is a general description and should not be relied upon as being complete, correct or accurate for every situation. All coverage information is subject to policy provisions, endorsements and may be subject to your meeting underwriting qualifications.

life insurance options

 

The decision to protect your loved ones is easy. Where people sometimes struggle is deciding whether they want term or permanent insurance. Your decision will be guided by what you want it to accomplish for those you’re protecting and will balance the factors of:

life insurance optionsCost – What you pay for the protection.

Time – How long you will be insured.

Face Value – How much money your beneficiaries receive upon your death.

Cash Value – How much money can be received by withdrawing, borrowing or cashing in the policy.

Your Murphy Insurance trusted associate will help you determine what makes the most sense based on your overall needs and budget. It may turn out that the best solution for you is a combination of the two types using term insurance to protect for short-term expenses and permanent insurance policy for long-term concerns. 

Term Life Insurance

  • Least expensive life insurance protection since there is no “cash value” component.
  • Best for filling a temporary obligation, i.e. mortgage, supporting children until they can become financially independent, college tuition, etc.
  • Available in 5, 10, 15, 20 or 30 year "terms". Get protection for exactly the time you need.
  • Level premiums guaranteed not to increase during term.
  • Generally flexible payment schedule monthly, quarterly, semi-annual or annual.
  • Can’t be cancelled as long as you pay your premiums.
  • Pays a death benefit to your beneficiaries, which is generally income tax free.
  • Can convert some term policies into a permanent policy so use it as a starter for getting the coverage you need now and later convert it so that you can build “cash value” for the future.
  • May have the option of guaranteed renewal, which allows you to extend coverage beyond the initial term. The rate may change, but this feature can be very important if you should be come uninsurable during the policy term.

Permanent Life Insurance

  • Doesn’t expire and offers lifetime protection.
  • Can build tax-deferred cash value depending on how you set up your policy.
  • Pays a death benefit to your beneficiaries, which is generally income tax free.
  • Ability to access cash value either through withdrawals or loans to help with education, emergencies or as retirement income supplement.
  • Can cancel at anytime and receive the current cash
  • Option of choosing a “universal life” policy which can provide additional flexibility allowing you to make withdrawals or skip payments as long as the cash value of your account is sufficient to cover the insurance costs. 

NOTE:  The above discussion does not address Variable Life Insurance products.  This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state.   For further information contact a Murphy Insurance Agency Associate.

Independent Contractors

 

Does your business use “independent contractors”? If so, are you in compliance with Massachusetts Independent Contractor Law (MICL)? (M.G.L. c. 149, §148B) Established in 1990, the law initially focused on the construction industry; however, changes in 2004 created a very strict “three prong test”, which expanded implications to many other types of businesses. As a result, many businesses that have used “independent contractors” can no longer classify these workers as such.

Three Prong Test

In order to be classified an “independent contractor”, a worker must meet ALL three of the following criteria:

  1. the worker is free from employer’s control and direction in performing the service, both under a contract and in fact;
  2. the service provided by the worker is outside the employer’s usual course of business; and
  3. the worker is customarily engaged in an independent trade, occupation, profession, or business of the same type.

What Should Businesses Do?

Companies using independent contractors need to re-evaluate these relationships to determine whether the worker classification is proper under the MICL. After the evaluation, it may become clear that certain workers are misclassified under the MICL test and should be treated as employees. If an employer identifies an issue but does nothing, they risk stiff penalties as noncompliance with the MICL is not taken lightly.

The Attorney General can issue civil citations and institute criminal prosecution for both intentional and unintentional violations of the MICL. Willful violations can result in substantial fines or possible imprisonment. In some instances, fines levied may be in triple damages.

Because of this law, many businesses may stop using certain (or all) independent contractors, or decide to change the status of these workers to employees. While independent contractors are important to many businesses, the MICL and three-prong test make improper classification a greater risk that Massachusetts businesses must address.

Get more information on the Massachusetts Independent Contractor Law.

 

cyber liability insurance

The Internet has changed the way most of us do business and has increased liability exposures. If any of the items listed below apply to your business, you most likely have Cyber Liability exposures.

  • you communicate by email
  • you provide information or services through a website
  • you conduct e-commerce
  • you store and use customer information electronically

why be concerned?

data breach insuranceWhile there are many publicized hacking attacks against large companies reported in the news, smaller companies face increasing computer liability risks, too.  Almost every business uses technology in some way, and your business can be held liabile if certain types of information are compromised.  It doesn't have to be a hacking attack; it could be the loss or theft of a smartphone or laptop that could expose your business to liability. Privacy and data security risks are constantly change and increasingly regulated by laws such as the Massachusetts Personal Information Privacy law, MA 201 CMR 17. In addition, given the number of people and businesses browsing the Internet, the possible pool of plaintiffs is immense. A single legal action could inflict significant financial damage, and traditional liability products do not address Internet exposures and the risks involved in Internet business activities.

Cyber liability risks are evolving rapidly with new risk scenarios emerging all the time.  Insurance experts regard cyber risks to be greater than risks related to fraud or theft.  Given this situation, your business can take a variety of steps to protect itself and limit exposure such as:

  • Installing, maintaining and updating security software and hardware
  • Developing, following and publicly posting a data privacy policy
  • Regularly backing up data at a secure offsite location
  • Hiring an IT security services vendor
  • Using cloud computing services
  • Obtaining cyber liability insurance

what are your cyber liability risks?

If your computer systems are hacked, or customer, partner or employee information is lost, stolen or compromised by a security failure or data breach, the costs of response and remediation can be significant. Here are some of the costs your business could incur:

  • Liability—Your business may be liable for costs incurred by customers and others that arise from a IT-related breach or cyber attack.
  • Notification expenses— Many states require your business to notify customers stored if a breach of personal private data occurs or is suspected.  The cost can be high especially if you have a many customers.
  • System recovery—The costs to repair/replace computer systems and lost data can be significant.  If a breach results in your company being unable to operate while your systems are down, you could incur additional losses.
  • Lawsuits—Class action lawsuits filed on behalf of customers whose data and privacy were compromised. The larger the breach; the larger the liability and associated costs.
  • Regulatory fines—Several federal and state regulations require businesses and organizations to protect consumer data. If a data breach results from your business’s failure to meet compliance requirements, you may incur substantial fines.
  • Reputation damage— Your business' reputation and customer trust may be significantly damaged.

what is Cyber Liability insurance?

Cyber Liability protection addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. The category of Cyber Liability includes security breaches; data theft; virus transmission; privacy issues; copyright, trademark and intellectual property infringement; libel or any other issues that first parties can pass to third parties via the Internet. Some of the types of claims that may occur include:

  • Accidental release of confidential customer information
  • Spreading a virus into a customer’s computer system
  • Theft of customer’s credit card or banking account numbers
  • Identity theft resulting from data breach
  • Derogatory comments made online about a competitor by an employee
  • Denial of service attack hacking
  • Electronic data extortion or destruction
  • Interruption of business operation due to system being down
  • Webmaster uses another site's content in site development

While the exposures outlined above are not all inclusive, and no policy covers every risk, Cyber Liability insurance is of growing importance if any of the above situations applies to your business. Contact us for more information about obtaining cyber liability coverage for your business.

Additional Resources

NetDiligence 2019 Cyber Claims Study (download pdf)

Top 5 Cyber Risks for Businesses

MA 201 CMR 17 Compliance

MA 201 CMR 17 FAQs (download pdf)

 

 

The information provided in these articles are only general descriptions and should not be relied upon as complete, correct or accurate for your specific situation. All coverage informaiton is subject to policy provisions, endorsements and may be  subject to your meeting underwriting qualifications. Murphy Insurance Agency is not engaged in rendering legal, accounting or other noninsurance professional services. Consult an appropriate professional for advice regarding your own situation.