Abstract:  If you retire, did you know that you can still be sued if you sold a defective product or performed faulty work and someone or their property is injured or damaged because of it? If you don’t renew your liability insurance when you retire, what are you to do?

 As a homebuilder, you spent your life making sure the work you did was safe and sufficient. Every year you purchased a commercial general liability (CGL) policy just in case. You made it many years with no claims and want to reward your good work with a much deserved and overdue retirement in where else?  Florida.

 Understanding that coverage under the CGL policies you have purchased is triggered by an “occurrence,” thus solidifying coverage “forever into the future,” you decide not to renew your policy. After all, who wants to keep paying for insurance on a business they no longer work in, especially knowing that if a claim were to arise from past work you’re covered anyway?

 Basking in the sun next to your cellular phone, you are surprised to receive a call from a familiar voice from your past. It’s your insurance agent, informing you that a deck you installed on a home two years ago collapsed during a party.  No one was killed, but several of the 35 folks on the deck were injured. A claim is being filed against you for the injuries and damage to the home resulting from the accident.  Your agent then informs you that you have no insurance to cover the claim. 

How could this be? After all, you always purchased “occurrence” CGL policies, including the policy in force two years ago when you built the deck. And since “occurrence” coverage goes forever into the future, why is there no insurance coverage for this recent accident? 

The concept of an “occurrence” policy is one of the most misunderstood in liability insurance. It is true that an “occurrence” policy could provide coverage for accidents that happen well after the policy has been in force. However, the agreement in the policy says that for insurance to apply the “bodily injury” (in this case to the folks rudely introduced to the ground below the deck) and/or “property damage” must occur during the policy period. 

To simplify, some refer to an “occurrence” policy as “boom” coverage. Specifically, when did it go “boom?” In this case, while the negligently constructed deck was installed two years earlier, the “boom” happened when the deck actually collapsed; this was the accident that caused the bodily injury and property damage. The only liability coverage that would cover this claim would be a policy that was in place when the deck actually went “boom.” 

You can leave a business behind, but liability can follow you forever. Anyone in a business that provides products or services is susceptible to this fact. To address the risk of the unknown, insurance companies have developed insurance called discontinued operations liability. This policy will continue to provide liability insurance to you even after your interest in a business ceases. Call us about discontinued operations liability insurance and how it will help you enjoy the future even if the past gets in the way. 

Copyright 2008 by the Independent Insurance Agents & Brokers of America, Inc. All rights reserved

Wisconsin residents, if you would like additional information, please contact us.

1. Painting: Do you have any painted exterior wood trim, decking or siding that is beginning to peel? Exterior paint on doors, moldings, trim, window frames should be touched up. Inspect & treat exterior wood for splintering, decay & insect damage because the temperatures are especially favorable for painting in the spring.
2. Water: Do you have any water seeping into your basement? Usually it’s due to an exterior issue which may or may not be simple to resolve and it should be looked into immediately.
3. Roof: Look for warping, aging, leaks, moss and missing shingles. Arrange for any needed repairs early; roofing contractors are harder to find during summer.
4. Gutters: The fall leaves could be clogging up your rain gutters so the gutters should be cleaned and downspouts inspected. Cleaning your gutters is probably a chore you don’t want to actually do but it is easier than cleaning up water damage. If you find small amounts of sand near your downspouts this could mean your shingles are wearing out!
5. Windows & Doors: Are any of your windows cracked? Is there any air leakage around the casing or joints? Are any of them in need of replacing?
6. Decks and Porches: Do you have any wood decking which may need to be replaced or refinished? Are there any cracks in any paved or cemented areas which should be taken care of before they get worse?
7. Siding: Is there any chance that there is moisture building up behind your siding which could cause rotting or damage to your home?
8. Power Washing: Is there any dirt build up on your home’s exterior? How about debris built up in the crevices of your porches or walk ways? Power washing is a snappy way to clean up those outdoor surfaces!
9. Electrical Outlets: Are your outdoor power sources free and clear of debris and you have enough outlets for your summer barbecuing needs?

Wisconsin residents, contact Kori Cumley for more tips of what to look this spring or to review your current policy and get a free quote.

WSJ explains that 7% of smart phone owners became identity fraud victims in 2011! Why? Because smart phones are mini computers that store your personal information. Many people aren’t protecting the information the same way they would their personal computers!

How to avoid identity theft:

• Pay attention to security breach notifications.
• Watch your credit cards and bank accounts.
• Don’t give out your social security number unless it’s a must!
• Keep your anti-virus software up to date on all devices –don’t forget your phone!
• Put a password on your phone & computer and make it a strong one. Mix up the letters and numbers and make it difficult! It may be inconvenient initally but it takes victims about 30 hours and $500 to resolve identity fraud.
• Be careful what you’re telling your “friends” on social media websites and who the information is available to! Scammers could be reading when you’re going on vacation or collecting your personal data (dates of births, mother’s maiden names, addresses etc.) We suggest using a different birth year that your real one, if its necessary on the site.
• Be careful what personal information you store on your devices and if you can — don’t store it.
• Leave your un-needed credit cards, social security card, birth certificate, and passport at home.
• Make sure you know who is on the other end of a call when you’re giving out your personal information before you give it out.
• Where there’s smoke – there’s fire; if something sounds too good to be true, it probably is a scam.

We have a desire to be a part of these social media sites, it’s the place to be and we throw caution to the wind to get there. Always remind yourself about protecting your personal indentifiable information, and if you can, teach someone younger than yourself the same thing.

Wisconsin residents, if you would like more information on protecting yourself from identity theft, please contact knowledgebroker Kori Cumley.

Weather is hard to predict, even with new technologies and smarter computers, insurance companies have to rely on historical data to predict the future. And if they are using recent history, that future doesn’t look so bright for the cost of home insurance. (In 2010, more natural disasters hit in a single year than any other over the past 60 years! Source: FEMA) (The chart to the right shows a county-level map of federally-declared weather-related disasters between 2006 – 2011. Tornadoes and severe thunderstorms in the Midwest, and heavy rains and snows from Nor’easters, hurricanes, and other storms in the Northeast gave those two regions the most disaster declarations.)

We also understand that an unexpected emergency can quickly uproot everything you’ve worked so hard to acquire.  With that in mind, we want to help you plan for protecting the people you love, the things you love and the things you need as quickly and easily as possible should disaster strike.  If you were sitting in your living room and suddenly heard the tornado siren,what would you do?  How can you keep your family and possessions safe in the event of a disaster?  Here are a few tips from the NOAA:

1. Learn your community’s warning signals and evacuation plans for all types of disasters that could affect your area
2. Meet with your family to create a plan.  Pick two places to meet:  a spot outside your home for an emergency, such as a fire, and a place away from your neighborhood in case you can’t return home.  Discuss what you would do if advised to evacuate.  Consider under what circumstances you would instantly locate and safeguard the vital information, documents and keepsakes that you’ll need to have access to.  Determine what those items should be.
3. Implement your plan. 
4. (1)  Post emergency telephone numbers by home phones, or add them to your cell phone contacts 
   (2)  Install safety features in your house, such as smoke detectors and fire extinguishers 
   (3)  Create and safeguard an inventory of your personal property 
   (4)  Have your family learn basic safety measures, such as first aid
   (5)  Teach children how and when to call 911 
   (6)  Keep disaster supply kits in your home and vehicle.  Be sure these kits include access to your insurance documents and contact names for your home, cars and other property. 
5. Practice and maintain your plan.  Ask questions to make sure your family remembers meeting places, phone numbers and safety rules.  Conduct drills.  Test your smoke detectors monthly.  Test and recharge your fire extinguisher(s) according to manufacturer’s instructions.

Here are a few tornado safety rules it never hurts to review:

1. In a home or building, move to a pre-designated shelter, such as a basement
2. If an underground shelter is not available, move to a small interior room or hallway on the lowest floor and get under a sturdy piece of furniture.  Put as many walls as possible between you and the outside.
3. Stay away from windows.
4. Get out of automobiles.  Do not try to outrun a tornado in your car; instead, leave it immediately for safe shelter.
5. If caught outside or in a vehicle, lie flat in a nearby ditch or depression and cover your head with your hands.
6. Be aware of flying debris.  Flying debris from tornadoes cause most fatalities and injuries.

 Please share your storm stories with us on this post, or on our Facebook Wall!

What is a Dependent Property?
There are four types of entities that qualify as eligible dependent properties:

1. Suppliers: 
   ISO refers to these as “Contributing Locations” - Contributing locations supply the insured with the parts, materials, or services necessary to manufacture its product or provide its service.
2. Buyers:
   ISO’s terminology for a buyer is a “Recipient Location” - A recipient location buys/accepts the products, goods, or services of the insured.  This may be the insured’s sole buyer or one that buys a majority of the insured’s output.
3. Providers:
   ISO’s terminology for a provider location is a “manufacturing location” - A manufacturing location as used in this endorsement, is not a location owned by the insured and part of the insured’s supply chain.  
4. Drivers:
   Also known as a “Leader Location”  – these can include anchor stores (Sears, Kohl’s, Wal-Mart, Boston Store, Target, Macy’s, etc.), sports and entertainment venues, and other such operations or entities that draw customers to the area.

For more information about business income from dependent properties, business continuation, business income worksheets or property insurance, contact knowledgebroker Scott Brookes.

About Scott
Scott has over 25 years of risk management, risk control, underwriting and leadership roles with insurance carriers.  He has detailed experience in large accounts, large property exposures including fire protection engineering, property valuation including building, business personal property, business income, and acting as a risk manager for insured’s.  In addition, Scott has written and taught a number of property training classes, property valuation classes, and business income valuation classes.

There are two parts to property coverage - Direct Damage and Business Income.  

Property Coverage – Direct Damage:
Protects the insured against loss or damage to the property itself.  Direct Damage Coverage (loss to tangible property) is only one piece of the total property protection you should have. 

Business Income/Extra Expense:
Responds to the resulting financial loss and  the additional expenses necessary to maintain the business, employees, and customers. 

These two parts of the property coverage would cover these basic adverse financial results that could happen as a result of a loss:

1. The cost to repair or replace the damaged property itself.
2. The additional cost to use substitute property and other resources. 
3. The lost opportunity to use the damaged property to generate income/profit and pay expenses.
4. Loss of customers and/or loss of goodwill.

For more information about business income from dependent properties, business continuation, business income worksheets or property insurance, contact knowledgebroker Scott Brookes.

About Scott
Scott has over 25 years of risk management, risk control, underwriting and leadership roles with insurance carriers.  He has detailed experience in large accounts, large property exposures including fire protection engineering, property valuation including building, business personal property, business income, and acting as a risk manager for insured’s.  In addition, Scott has written and taught a number of property training classes, property valuation classes, and business income valuation classes.

Business owners must also protect themselves against financial loss due to a slowdown or shutdown of their operations that can result from the damage or destruction to their property. 

Some common questions as you start the discussion:

• How do I protect my business with business income coverage?
• Where do I start?
• How do I set a limit?
• What should I include in the business income limit?
• What is excluded in the business income limit?
• What type of coverage should I go with?
• What do I take into account?

Business owners need to ask and evaluate how long will it take to:

• Obtain necessary permits & comply with building ordinances/codes
• Repair/reconstruct building or obtain new facility
• Obtain and install equipment / assembly lines
• Re-assemble work force
• Get production back to “pre-loss” levels
• Get sales to the level that would have been achieved had there not been a loss
• Identify the longest possible interruption.  “Worst Case”
• Consider peak seasons.
• Consider employment market conditions and training of new employees or loss of key employees.
• Identify and analyze other situations that could affect repairs & the restoration of a business.

The Business Income (BI) worksheet is a great tool for walking through this thought process.  The worksheet helps the business owner assess loss potential and determine proper coverage/limits.

Coupled with the above analysis is the development of a business continuation plan.

For more information about business income from dependent properties, business continuation, business income worksheets or property insurnace, contact knowledgebroker Scott Brookes.

About Scott
Scott has over 25 years of risk management, risk control, underwriting and leadership roles with insurance carriers.  He has detailed experience in large accounts, large property exposures including fire protection engineering, property valuation including bduilding, business personal property, business income, and acting as a risk manager for insured’s.  In addition, Scott has written and taught a number of property training classes, property valuation classes, and business income valuation classes.

We can all think about a personal experience where fatigue has impacted one or more of our performance behaviors resulting from insufficient quality or inadequate sleep.  Research clearly documents mental overexertion can lead to any number of the following:

• memory lapses
• delayed judgment
• diminished reaction time
• lapses in attention or inability to stay focused
• ineffective communication
• irritability
• lack of motivation

For years Department of Transportation has implemented requirements on the hours of service for specific commercial driver classifications.  In 2007 and 2009 Joint Commission released studies that revealed impact effect of fatigue and patient care.  The hyperlink also offers a link to these studies.

Joint Commission offers several evidence based actions healthcare organizations can use to help mitigate the risks of fatigue and promote quality of care.  Contact R&R Insurance if you would like additional information for your risk management department, human resource department, safety committee or quality improvement committee on this or other employee safety concerns.

What do you considered an “at risk” activity that staff is required to perform when working extended shifts?