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While dogs make great companions, playmates, and protectors, they also continue to be a problem for insurers. Nearly two million people are bitten by dogs each year with around 800,000 persons requiring professional medical treatment for their wounds. Each of these incidents is a potential lawsuit.
Have Teeth, Will Bite
Tens of millions ofU.S.households own dogs and biting incidents keep climbing. A key factor that contributes to these incidents is the failure of dog owners to supervise and train their pets. Another problem is that many persons, especially children, do not know how to behave around dogs. Bites may occur when:
- a person stares at a dog, which the animal perceives as a threat or challenge
- people attempt to handle dogs during sensitive moments (while a dog is trying to eat or while nursing puppies)
- trespassers or house guests invade a dog’s territory
- “rough-housing” with a dog escalates beyond playing.
An Issue Of Control
Insurance is still designed to handle accidents, and companies are at a severe disadvantage when policies are asked to respond to losses that are easily avoided. Dog bite claims involve the insured having control over areas such as:
- choosing to own a dog
- choosing the particular breed of dog
- raising the dog in a certain manner
- housing the dog in a certain manner
- exposing the animal to various social situations
- being knowledgeable about a dog’s temperament and inclination to bite or attack.
All of the above elements can contribute to lawsuits and to action from an insurer.
The “Policy” On Dogs
If you have homeowners insurance and you own a pet, the liability portion of your policy provides protection for losses arising from pet ownership. Not only are you and your household protected, but coverage even extends to persons who have custody of your pet. However, your policy won’t cover businesses that may have custody of your pet, such as kennels, obedience schools, groomers and professional sitters or walking services (they should carry their own coverage). Further, coverage could become problematic if dogs in a home are related with unreported, in-home business activity. Losses involving persons who are bitten while in a home for business reasons may not be covered.
Minimizing The Problem
Owners have a responsibility to raise and handle their dogs in a manner that reduces the chance for a loss. Steps to take include becoming knowledgeable about their breed of dog and about general principles of ownership and care. They should make certain that family members, social visitors, neighbors and strangers are protected from the owner’s pets. Owners should also take advantage of resources to help them, such as tips from animal shelters, dog ownership clubs, the AKC and a plethora of Internet sources.
It may not be the fairest set of circumstances, but more insurers are choosing not to give dogs the benefit of the doubt. It is becoming more common for companies to refuse to write coverage for persons who own certain breeds of dogs. Therefore, owners must fight this trend by not taking their pet ownership lightly….because insurers aren’t.
Insurance fraud makes victims out of insurance companies and their customers. In common terms, insurance fraud is lying to or deceiving an insurer in order to make money or to become insured. Some common fraud schemes include:
- “padding” (inflating the true amount of) a claim
- lying or hiding (concealing) important information when applying for insurance
- lying or hiding (concealing) important information when reporting a loss
- submitting false claims
- “staging” accidents
- Failing to report recovered property
- faking theft claims
- committing (home or vehicular) arson for profit
As a consumer, fraud should concern you since the cost is passed directly on to you in the form of higher insurance rates. You can play an important role in reducing fraud.
Fighting Auto Insurance Fraud
Persons attempting to commit insurance fraud often do so by deceiving innocent drivers during actual accidents or by involving innocent drivers in “staged” accidents. Do the following in order to minimize this risk:
- Drive defensively, keeping space between you and surrounding cars.
- When traffic slows, begin braking before the car in front of you does.
- Be careful when turning into a lane that allows two or more autos to turn left at the same time. Victims of insurance fraud are often people who float across the line when turning and then are intentionally sideswiped by a person who is “staging” an accident.
- If you are in an accident, write down license numbers of all cars involved in the accident, get the names and contact information of all persons involved and their insurers. Count the number of passengers in the other cars and get their names, addresses and any other pertinent information.
- Call the police and get a police report even if the damage is minimal. DO NOT let another driver talk you out of calling the police.
- Carry a disposable camera in your glove compartment or make use of a cell phones camera feature and take pictures of the damage to the vehicles and of all drivers and passengers in the cars.
Fighting Homeowners Insurance Fraud
It is far more difficult to involve an innocent party in homeowner fraud. However, a homeowner can help himself and help deter fraudulent claims by properly maintaining their home, and by removing or repairing items that could create tripping hazards to outside parties. Also, if someone is injured in your home, be certain that you get full information and be sure that an injured person gets any needed treatment. Carefully document any incident, including all impressions about likely injury. It may also be prudent to show healthy skepticism over any information on medical bills or claims.
Report suspicious actions such as a friend who asks you to store valuable property and you then find that they reported to his insurer that the property was stolen.
Think of insurance fraud as money out of your pocket-because it is. According to the US Chamber of Commerce, fraud adds 25% to property and casualty insurance rates.
If you are involved in an accident and you are suspicious that fraud may be involved, report it to the authorities and your insurer. Another helpful source for fraud information is the National Insurance Crime Bureau at 1-800-TEL-NICB (at the time of this writing, their Website was located at www.nicb.org).
Umbrella insurance only works properly when the primary (underlying) coverages are maintained. In fact, the obligation to make sure proper support remains in place is part of the umbrella insurance contract. It is found in the policy’s “Maintenance of Underlying Coverage” provision.
The provision typically refers to the policy’s schedule or declarations where all of the applicable underlying coverage is listed. The underlying (also called primary) coverage typically consists of:
- Personal automobile
- Homeowner’s
- Recreational Vehicle
- Miscellaneous Personal Liability
Besides listing the various policies, an umbrella policy requires that a specific limit of insurance be assigned to each underlying policy. The maintenance provision then acts as a contractual obligation. Via the provision, each listed coverage and each assigned insurance limit must be kept in force throughout the length of time that the umbrella coverage exists.
Of course, there are consequences when the insured person fails to comply with the provision, either by dropping or changing (lowering) listed coverage. Whenever a change in coverage occurs, the insured is also obligated to inform the umbrella insurer; though that only warns the insurer, but does not affect the consequences. In either case, the umbrella responds to a loss in the same manner as if the listed coverage still existed. Therefore, the insured bears the total financial obligation for a loss until the loss amount reaches beyond the level where the original coverage was supposed to apply. If it doesn’t affect the consequences, you may wonder why the insurer requests notification. For two good reasons: one, they can ask you to remedy the situation or face terminating your umbrella coverage; two, they will be warned to review any loss situations you report so they can monitor the situation and, perhaps, take steps to protect their interest.
If you have taken the step to buy extra coverage to protect yourself and your assets, be sure to comply with all that is required of you. If you have questions, discuss your situation with a professional insurance agent.
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A Commercial Umbrella Liability policy is a coverage option that should be seriously considered by businesses of all sizes. Liability claims and court decisions involving millions of dollars are no longer uncommon; any business can be found legally responsible for this type of judgment. A Commercial Umbrella Liability Policy increasingly referred to as an excess policy, can provide an additional layer of insurance protection to handle major losses.
The coverage form is still not standardized. They may vary significantly among companies and some jurisdictions may create unique coverage issues. Punitive damages are an example. Some states only permit responsible parties to pay punitive damages; others allow them to be paid by insurers. Commercial umbrellas can also differ widely on the exclusions they contain.
A business owner may consider an accident that does not involve a fatality to be one that can readily be handled by regular coverage. The reality is that such an accident may result in substantial medical care, lost income and other expenses. Can your business afford a payment that exceeds a million dollars? Think of accidents involving vehicles that, today, are much safer than even five years ago. That means that accidental deaths are less likely while the chance of severe injury has increased. Severe head trauma can send a claim’s cost soaring. It may take up to seven years to determine the ultimate extent of injury. Recovery is often slow and sporadic. These elements combine to make regular insurance coverage insufficient.
A business may have auto liability coverage but insurance limits of more than $500,000 are rare. This is because insurers are reluctant to offer higher coverage without sufficient premium. When the insurance coverage provided by a business auto policy is not enough to meet the amount of a loss, the business is responsible for the difference.
An Umbrella Liability policy could be the difference between bankruptcy and an on-going business. The Umbrella policy would take over where the business auto policy stopped, providing defense coverage and additional limits to pay large judgments.
There are no standard Umbrella Liability policy forms; each company has their own variation. Each form offers different options that can help tailor coverage to specific business needs. One thing to remember is that an Umbrella Liability policy will not cover everything; there are exclusions in this form as in any other contract of insurance. However it still represents an excellent method to help shield a business from catastrophic claims. Contact an insurance agent to discuss securing this valuable form of liability coverage. It could help preserve your business.
[clear]After making the effort to identify what you need to insure, what company you want to handle your protection, and working to understand the various policies that cover you and your possessions, isn’t the importance of telling your agent or insurance company about a loss obvious? Surprisingly, no, it isn’t.
The Notification Obligation
Fulfilling the coverage promise of an insurance policy is all about communication. An insurer makes a promise to protect you against certain types of loss, but it can’t follow-through unless it knows about a loss. Prompt notification is so important that it is a formal policy requirement. Your failing to meet this obligation could result in a claim being denied.
A policy typically requires you to do the following:
Contact the agent or insurer as quickly as practical – the practical requirement replaced the previous use of “possible,” since some companies unreasonably denied coverage because notification was not instantaneous. The difference between words may seem minor, but it gives you some flexibility for dealing with circumstances that could affect how quickly you contact your agent or insurer about a loss.
Identify Yourself – Perhaps one day your insurer will be able to recognize your voice over the phone and immediately pull up your file. Until then, be prepared to at least tell your insurer your full name (or, if different, the name the insurance policy is under) and the policy number.
Give adequate details – What, When Where, Why and How. It is important that the insurer has enough information to take proper action. This information allows an insurer to open a claim file, assign the loss to a claims person and begin investigation of your loss.
Give the insurer copies of any communications regarding a loss or possible loss (such as a threat of a lawsuit) – You should not guess about whether a legal notice or request to be paid for damages is important, even when an actual lawsuit has yet to be filed. Send a copy of the information to your insurer and let them decide.
Prompt Notification helps Everyone
Complete and quick communication about losses gives you the best chance to get needed coverage and gives your insurer an opportunity to handle a possible claim efficiently. It also allows the insurer to control issues that could let lawsuits get out of control, such as the ability to offer payment for medical expenses or to contact and question witnesses.
Don’t hesitate! Contact your agent or insurer and get your loss handled.
What Is An Attractive Nuisance?
This is a term originated by a judge to describe property that attracts youngsters and, because of their dangerous nature, creates a special obligation to property owners. Examples are:
- swimming pools
- trampolines
- empty buildings
- appliances kept outside
- excavations
- construction materials
All of these can lure children onto property and they all have the potential to cause serious injury. Why Do Attractive Nuisances Create A Special Obligation?
A special obligation exists because of such property’s child endangering nature. Children do not have the reasoning ability of adults. When an opportunity to have fun pops up, it’s a rare child who thinks about the chance of being injured. A property owner with an attractive nuisance on his property cannot escape liability because of a trespassing child. When an attractive nuisance is involved, adults have to make a special effort to protect children from their blind sense of adventure or face the consequences. How Do You Handle Attractive Nuisances?
The answer is…do whatever it takes to prevent a child’s access to the nuisance. Therefore, in order of their effectiveness:
1. Eliminate the nuisance:
Examples:
- have old appliances hauled to a junk yard
- tow old, non-running vehicles away
- get rid of construction materials immediately after a building project is complete
2. Secure the nuisance
Examples:
- take off doors or covers from large appliances awaiting garbage pickup
- keep sharp tools, especially power tools and equipment, locked away
- store construction materials in a garage or shed
3. Reduce the chance for injury from a nuisance
Examples:
- install a pool cover and have a locked fence to prevent access to pool
- do not allow younger children to use equipment such as trampolines
- make sure there’s adult supervision of children using play equipment
If you’re not certain about whether you have an attractive nuisance situation, discuss the situation with an insurance professional.
Courtesy of Insurance Publishing Plus
Most young people remember their high school prom as being a particularly important point in their lives. For many, it represents their first chance to participate in a formal event. It is also considered a chance to act as a full-fledged adult. The event involves arranging a complete evening of dining, dancing and socialization. However, not as much time is usually devoted to making the event as safe as possible.
It is almost inevitable that a prom will involve serious exposure to alcohol or other intoxicants. The evening also involves many young, inexperienced drivers who are excited about making their way to different destinations such as pre and post prom activities. Sadly, all of these factors have combined to make prom season a dangerous one. Serious traffic accidents often become the main feature of what should be a night of joy.
Potential prom-goers and their parents need to create a strategy to help make prom night both memorable and safe. Here are some tips:
- Parents should get the details of all activities, including dinner and pre and post prom events
- Confirm the night’s events with school officials and other parents
- Consider arranging a safe, group post-prom activity where participants can be supervised
- Clearly lay out your expectations to your son or daughter about acceptable behavior regarding their evening
- Discuss all details about transportation, whether they are drivers or passengers
- Be sure that communications are set up. If the child does not have a cell phone available, find out the numbers where he or she can be reached during different phases of the evening
- If practical, consider arranging for a third party to handle transportation (limo or taxi service)
- Consider an amnesty arrangement. In other words, let your child know that they can contact a parent for emergency transportation should something go wrong and, for that evening, they’ll be no lectures or punishments
Help your son or daughter make prom night a bright memory rather than a tragedy. Plan on making safety and fun everyone’s priority.
Courtesy of Insurance Publishing Plus
Business transactions frequently require insurance coverage. A Certificate of Insurance is a document that is often requested as proof that adequate insurance exists. A certificate is not the same as a policy and certificates do not affect the coverage provided by a particular insurance policy. Therefore, requests to “endorse the certificate of insurance” are inappropriate and misleading. A certificate is a separate document used to comply with a common contract requirement to verify certain types and amounts of insurance.
Certificate holders, the entity or party requiring the certificate, often demand that they appear as “additional insureds.” This requires an endorsement (change) to the policy and it gives them coverage for injury or damage resulting from the contract.
Example: Tenant A leases a building from Property Owner B. Property Owner B demands that the tenant changes its insurance policy to also show the property owner as an additional insured. If a tenant’s customer is injured on the premises and sues both the property owner and the tenant, the tenant’s liability policy would provide coverage for both parties.
Construction contracts require certain forms of insurance, certain insurance limits, a hold harmless agreement and additional insured requirements. A “hold harmless” agreement is a contract provision that states how much responsibility each party accepts for damages arising out of the agreement.
A Certificate of Insurance can confirm that the appropriate policies were issued and that the other requirements were also met. It is important to have a system for monitoring receipt of the Certificates of Insurance BEFORE any sub-contractors are allowed to begin work. If Certificates are not obtained or kept up-to-date, when the contractor’s Workers Compensation and General Liability policies are audited, the payroll for the sub-contractors without Certificates will be included with the contractor’s resulting in an additional premium charge.
Ask your insurance agent to help determine if you should be obtaining Certificates of Insurance from your business relationships. In addition, when you’re required to provide a Certificate, send your agent a copy of the contract. The contract allows the agent to assist you in determining what liabilities you are accepting and what can be done to modify your insurance program to best protect your financial well-being.
Courtesy of Insurance Publishing Plus