News You Can Use ...
Hints For Condo/Homeowner's Associations
Actively Manage Your Insurance Program. Managing your associations insurance program should be a priority obligation for your board of directors, especially since such a large portion of monthly dues goes toward insurance premiums. Failure to do so could be construed as fiduciary neglect.
Be sure your coverage is adequate. There are regulations which spell out the amount and types of coverage required for Condo/Homeowner's Associations. The minimum requirement for liability coverage is $1,000,000 - not very much in today's litigious society. Therefore, an Umbrella, which is additional liability purchased at a much lower premium, is extremely important in the case of a large claim against the Association.
Review the amounts of your deductibles. Consider changing your deductibles bearing in mind that while higher deductibles may lower your premiums, they will also increase your out-of-pocket exposure.
Ordinance or Law Coverage. This is important coverage, especially for buildings completed prior to 2001. This additional coverage can help pay for increased costs associated with bringing older developments up to current building codes.
Worker's Compensation Coverage is sometimes overlooked because most associations do not have paid employees. However, this policy will cover the Association if a hired contractor fails to maintain proper coverage for his workers. Of course, the Association has a duty to obtain proof of coverage for every contracted company before any work can begin.
Want a better understanding of Worker's Compensation Insurance and how it benefits you and your employees? Visit The Hartford's Worker's Compensation E-Learning Guide.
Risk management is problem prevention. Boards should be proactive in mitigating any risks. Your insurance agent can help you identify exposures and find ways to reduce premiums.
Host Liquor Liability Clause. Is the Association responsible for damages or injuries incurred during a party at which liquor is served? If the Association is sponsoring a party for its members, the Association has coverage under the master General Liability Policy and 'host liquor liability clause'. If the 'Clubhouse' is rented to a unit owner for a personal party, then the unit owner must endorse their Homeowner's Policy for a special event and provide the Association with proof of coverage.
Hints For Contractors And Developers
Be aware of exclusions. All insurance policies have exclusions. Be certain that you understand all exclusions noted in your policies, as they can significantly effect your coverages. For instance, most claims against developers and general contractors are made after the work is performed, often years after completion. If you change or renew your general liability coverage and it has a 'Prior Acts' exclusion, work you performed prior to the policy's effective date will not be covered. There are many different types of exclusions and your agent can help you to understand how they can affect your business.
Review your coverage on a regular basis. It is recommended that contractors and developers review their insurance policies on an annual basis if not per project basis. Changes in coverage requirements, types of services offered, and levels of exposure can change as your company grows and it is imperative that your insurance coverage reflect these changes.
Be mindful of sub-contractor coverages. Require that all sub-contractors provide you with Certificates of Insurance prior to retaining their services and make certain that their coverage is at least as good as yours. A sub-contractor without adequate coverage exposes your company to unnecessary risk.
Insure your tools and equipment. Be aware that your property insurance policy may be limited to specific locations, such as your home or place of business. If you own tools and equipment that are moved between job sites, consider adding an Equipment Floater to your policy to protect these assets.
Assess your exposure on each and every project. Different builders, developers, and contracting agencies have varied policies with regard to the amount of risk they are willing to assume. As a contractor or developer it is vital that you understand what risks you are assuming when taking on a given project. For instance, who will be responsible for insuring the structure as it is being built? Or for replacement costs of building materials left on site?
Hints For Business Owners
Want a better understanding of Worker's Compensation Insurance and how it benefits you and your employees? Visit The Hartford's Worker's Compensation E-Learning Guide.
Talk to an agent and carefully assess your insurance needs before purchasing insurance. While it may sound like a 'no-brainer', many business owners fail to properly insure their business. It is important to consider all aspects of your business when placing a policy. For instance, will you employ workers? If so, you will need to purchase a Worker's Compensation Policy. If employees are expected to manage financial transactions you may want to consider bonding those employees. What liabilities might be associated with the products or services your company sells? Will you be sub-contracting work? Are there company vehicles to consider? Talking with an experienced insurance agent can help a great deal when considering what policies and coverages are right for your company.
Review your policies and coverages on a regular basis. It is recommended that business owners review their policies and coverages on an annual basis. Also, be certain to consider how changes your business undergoes can affect your insurance needs. Consult your insurance agent regarding any major changes your company is considering to determine how such changes might affect your coverage. These might include major purchases, new services offered, expansion, or significant changes in company policies.
Consider purchasing a Business Owner's Policy. A Business Owners Policy is a packaged insurance product which typically combines property and liability coverages in a single policy, and may be more cost-effective than purchasing separate coverages. Ask your insurance agent if this might be the case for your business.
Think in terms of mitigating risks and reducing exposure when developing company policy. Developing strong worker safety and employee training programs, for instance, can help reduce risk and improve productivity. Your policies regarding disaster preparedness, employment practices, and human resource intervention can also significantly reduce exposure for you and your enterprise.
Consider purchasing Business Interruption coverage. Small businesses are particularly vulnerable to business interruptions and typically less able financially to absorb the losses interruptions can cause. A Business Interruption Policy can protect your businesses income should disaster strike and interrupt your daily operations.
Hints For Homeowner's
Don't confuse what you paid for your house with the cost to re-build. The land upon which your home is built is not covered under a Homeowner's Policy and its value should not be included in the replacement cost value.
Your deductible. Theoretically, the higher the deductible, the lower the premium. However, one must calculate the savings in premium vs. the out-of pocket exposure to determine if a higher deductible is feasible. Bear in mind, coastal areas and barrier islands might require the insured to have two or three different policies for Wind/Hurricane and Flood; all of these will have separate deductibles.
Make your home more disaster-proof. Talk to your insurance agent to find out what steps you can take to make your home more resistant to natural disasters and how making such improvements can lower your premiums. Adding hurricane shutters or upgrading plumbing or electrical systems not only improves your home's resale value, but may lower your insurance premiums as well.
Review your homeowner's policy on a regular basis. We recommend a yearly review, especially if you have made any changes to the property or the ownership. You may want to increase values, change from rental to owner occupied, account for paying off your mortgage, etc. Every three years would be the maximum amount of time between reviews.
Hints For Drivers
How much is enough? State mandated minimum requirements are just that: minimum requirements. If you can afford to, increase your coverages to better protect yourself in the event of a serious accident. The more significant your assets or income, the more important the amount of coverage. Many insurers recommend coverages of $100,000 per person, $300,000 per accident, and $50,000 property damage if you own significant assets, such as a home or business. You may also consider a personal liability umbrella, which can be issued in conjunction with your homeowner's policy.
Consider the cost of insurance when buying a car. It is important to take the cost of insurance into account when purchasing a new vehicle. Insurance costs can vary depending on the type of vehicle, standard and optional safety equipment, cost of repair or replacement, and a variety of other factors. In fact, even a vehicles propensity to theft can affect the cost of insuring it.
Seriously consider Uninsured Motorist Protection. This will protect you and your family in the case of an accident with a motorist who has no insurance to cover your injuries and/or damages. You should purchase Uninsured Motorist Coverage in the same amounts as your primary coverage.
Get a copy of your driving record. Your driving record is a major factor in determining how much it will cost to insure the vehicles you drive. It is a good idea to obtain a copy of your driving record to insure there are no errors and to manage your expectations when shopping for coverage.
