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Do your clients need a PUP?

Six good reasons to have a personal umbrella policy‏

WC THAT WORKS
Workers’ Comp Market Option enhancements for 2012
Members enrolled in IA&B’s mono-line WC program through ARI have access to:
–specialized coverages
–online class codes
–pay-as-you–go premium options
Read about easy enrollment

The Changing Landscape of Personal and Commercial Insurance
This year’s William T Hold Seminar is coming to a town near you:
Ft. Washington–Jan. 25
Bethlehem–Feb. 14
York–Feb. 15
Monroeville–Feb. 29
Mechanicsburg–Mar. 28
This annual update option will provide advanced training needed to stay sharp and retain the CISR designation.
Read more and register

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Featuring key topics that impact agency operations and delivering solutions for IA&B members.
January 24, 2012

How does life expose thee? Let us count the ways

Six good reasons to have a personal umbrella

There is no question that the ownership and use of our autos present us with the greatest personal liability exposure. But our normal daily activities can expose us to the potential of a large liability claim that could threaten our personal assets.

One of the best ways to understand the need for a personal umbrella policy (PUP) is to review actual claim examples. Listed below are actual personal liability claims that illustrate the need for higher personal liability limits.

Loss #1

A couple hosted a pool party for their teenage children. They did not provide any alcohol, but it was brought by some of the guests and was available. After leaving the party, one of the guests was severely injured in an auto accident, and the injury was attributed to his consumption of alcohol. This case went to the Wisconsin Supreme Court which decided that anyone who sells or furnishes alcohol to a minor is responsible for the minor’s injuries as well as any injuries caused by the minor. The opinion of the court was that the homeowners should have prevented the consumption of alcohol by minors on their premises. Both the homeowners’ and personal umbrella policies responded to this claim.

Loss #2:

The insured hosted a party at his home. Among the guests was a family friend, who was also the insured’s financial advisor. The friend brought his wife, their 2-year-old child and their baby to the party. The insured gave them a jug of spring water to mix formula for the baby. The 2-year-old child also had a drink of the water. Shortly thereafter, both children became ill. The family left the party and took the children to the hospital. The hospital confiscated the water jug which was found to contain arsenic. An old label was found wrapped around the handle with the words “weed killer” printed on it. The insured had mistakenly given the jug, which was similar to the ones containing spring water, to the family. The baby died and the 2 year old survived after being in critical condition several days. The personal umbrella liability limit was paid.

Loss #3:

The insured’s 18-year-old son was driving his parents’ car to the store with his 19-year-old girlfriend. He left the roadway and hit a tree. The son told the police that another car cut him off, but there were no witnesses, and the girlfriend had no recollection of the accident. She was hospitalized for over a month with multiple fractures and internal injuries and received extensive physical therapy. The personal umbrella insurer settled with the girlfriend for the policy limit.

Loss #4:

An 18-year-old college student was struck by a fraternity paddle during initiation. He sustained facial fractures and blindness in his left eye. The fellow fraternity members and their families were sued. The court awarded $1,300,000.

Loss #5:

A 28-year-old engineer dove into a friend’s above-ground swimming pool, struck his head on the bottom and, as a result, became a quadriplegic. He sued both the homeowner and the pool manufacturer. The court found the homeowner to be 60 percent responsible and the pool manufacturer to be 40 percent responsible, and awarded $10,000,000.

Loss #6:

A babysitter left a 5-month-old infant unattended in a walker. The infant toppled the walker, struck her head on the floor and suffered brain damage. The parents of the infant sued the teenage babysitter and her parents. The court awarded the parents $11,000,000.

The above losses show the consequences of situations that can quickly exhaust the liability limits of the underlying policies.

For less than the cost of a cup of coffee a day, most folks can purchase a personal umbrella policy with a limit of $1,000,000, possibly $2,000,000 or even $5,000,000.

Jerry Milton, CIC, contributed this resource. The legal profession recognizes him as an expert on insurance coverages. He is also an education consultant for IA&B, working with CISR, CIC and on-demand CE programs.


Seize opportunities with personal umbrellas

When Nichole Leibensperger took advantage of IA&B members’ access to RLI Personal Umbrella, part of the Market Option Program, sales took off. Within a matter of months, she became the organization’s highest policy-count producer.

“The RLI rates are fabulous, and the product is great,” says Leibensperger, owner of Sinking Spring, Pa.-based Chase Insurance Associates. She also touts the product’s stand-alone aspect – which allows insureds to maintain their homeowners’ and auto coverage with their current carrier(s) – and its ability to insure multiple investment properties.

Chase Insurance Associates has zoned in on real estate investment clients, and RLI – along with IA&B service – have proved an ideal match.

“The staff has been excellent, and the product sells itself,” shares Leibensperger. “Business has exploded.”

Read more and take advantage of this member benefit



The information in the article above is not a legal opinion and should not be relied upon as such. The intent of this information is to provide a general background regarding the topic discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with responds to the topic. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this information, nor any errors or omissions regarding any statues, regulations, court rules, and/or any other government documents cited in this document.

Sprinkler Systems

Preventing Winter Losses

During the winter season, many businesses slow down and as a result, lower the heat in their facilities to conserve money. Sprinkler fire suppresion systems are especially vulnerable to these cold temperatures, and a burst pipe can lead to extensive water damage and downtime.

Download the below PDF article to learn more about Protecting your Sprinkler Systems

Winter Weather Checklist

Prior to and periodically after the onset of cold weather, an inspection of all fire protection equipment should be undertaken. Download the below PDF form to help guide your inspection and record your findings.

New Rules for Driver Learners Permit

Driver Learners Permit Changes

Governor Tom Corbett signed into law a new bill that mandates the following for teen drivers ages 16 1/2 to 18:

Passenger Restrictions:
For the first 6 months after receiving a junior license, the teen driver will not be permitted to have more than 1 passenger under age 18 who is not an immediate family member, unless they are accompanied by a parent or guardian. After 6 months, they may have up to 3 passengers under age 18, provided they haven’t received any violations or been responsible for an accident (partially or fully). These restrictions apply until the teen driver turns 18.

Behind-The-Wheel Training:
Increased from 50 to 65 hours of supervised, behind-the-wheel training required for permit-holders under age 18. 10 of the added hours are for nighttime driving and 5 are for poor weather conditions.

Seatbelt Requirements:
For teen drivers and passengers under age 18, the lack of wearing a seatbelt is now a primary offense. This means the driver can be solely pulled over for that violation. The fine for conviction is $75.00.

The bill is known as “Lacey’s Law”. It is named after Lacey Gallagher, 18, from the Philadelphia Area, who was killed in a car crash on April 28, 2007. She was a passenger in an SUV with six other teens. All of the other teens were injured; none wore seat belts.

Parking Lot Perils for Truck Drivers

Although most of a trucker’s route will be spent on the open road, most minor accidents will occur in the parking lot, including backing accidents and falls from vehicles. Here are some ways to avoid parking lot perils.
• Minimize distractions. Parking lots are the most common places for minor accidents because drivers (and pedestrians) are distracted and juggling many different tasks. To minimize distractions, stay off your radio, turn off the music and don’t pick up your phone.
• Focus. Particularly when backing, it is important that drivers maintain a sharp focus on conditions. It’s best to get out of the cab and check behind and above the truck for obstructions before backing. Even if you are using spotters, remember that you are ultimately responsible for the operation of your rig.
• Plan. Visualize how you will complete a parking lot maneuver before you do it. If possible, choose parking spots that allow you to pull through both in park and to leave.
• See and be seen. Make your intentions clear to other drivers. Try to anticipate what other drivers are going to do, and, if in doubt, wait a few seconds until you are absolutely sure that it is safe to maneuver.
• Maintain positive contact. Maintain “three-point contact” with your hands and feet when climbing up to or down from the cab. Use handholds and do not jump down.
• Assess conditions. Make sure your footwear is dry, clean and secure. Be aware of hazards such as slippery steps and cluttered docks.
These practices take only a little extra time, but wave a lot of time compared to being laid up with an injury or off the road due to an accident.

5 Fuel-Saving Tips for Truck Drivers

Five Fuel-Saving Tips for Truck Trivers

Here are five tips for increasing your mpg that you might not have considered.
1. Keep up the pressure. Underinflated tires not only contribute to blowouts but decrease fuel efficiency. A truck tire can run five degrees hotter for every psi it is underinflated and every 10 psi that a tire is underinflated reduces fuel economy by 1 percent.
2. Get in shape. According to Kenworth, approximately half the energy of a truck traveling 55 mph is used to simply move the air around that truck and at 65 mph that increases to two-thirds. For highway driving, every 2 percent reduction in aerodynamic drag gains a 1 percent improvement in fuel economy. Weigh the cost of adding aerodynamic treatments on top of the roof or under the trailer against the fuel savings you will gain.
3. Play it straight. Tires that are misaligned pull sideways, resulting in lower fuel economy. A tire that is misaligned only one-quarter degree from straight will try and travel 10-15 feet sideways for each mile. Keep all axles – drive and steer – aligned.
4. Take it easy. In general, shifting at the low end of the rpm range decreases fuel consumption, particularly in lower gears. Each engine is different, so be sure to read your owner and driver manuals to achieve the best performance.
5. Thick and thin. Oil thickens at low temperatures, causing increased fuel consumption. Run synthetic oil, which is less affected by temperature, particularly as cool weather approaches.

Preventing Frozen Water Pipes

Frozen Water Pipes Prevention

Colder weather increases the chance that your water pipes might freeze, especially you have the gas service disconnected at vacation home over the winter. Here are some tips to help you avoid or deal with problem:

For normal precautions:

• Insulate exposed pipes with heat tape, newspapers or rags.
• Place a 60-watt light bulb close to the water meter to keep it from freezing.
• If pipes are close to an exposed outside wall, open the cabinet door to let room heat in.
• Use a hair dryer or turn up the heat in home to 75 degrees to thaw a pipe; do use a torch.
• If a pipe bursts, shut off the main valve, usually located near the meter.
• Be aware that leaks sometimes don’t show up until a pipe thaws, when they can cause extensive damage to plaster walls.

If you’ll be away for the winter:

• Drain pipes completely.
• Pour a cup of antifreeze into the draintraps, toilet bowls and tanks.
• Make sure the main shut-off valve is turned off.
• Open all faucets.
• Drain the hot water tank.

Source: Columbia Gas of Ohio

Deer-Related Accidents

Put the Brakes on Deer-Related Accidents

According to the National Highway Traffic Safety Administration (NHTSA), there are approximately 1.5 million car accidents with deer each year that result in $1 billion in vehicle damage, 150 human fatalities, and over 10,000 personal injuries. The NHTSA suspects that the actual numbers are higher as there are no standards for reporting deer accidents. Accidents involving deer can happen any time of the year, but there are more deer near roads during the animal’s mating season in October, November, and December. Using the following tips can help to avoid a vehicle-deer collision:

1. Drive at a safe speed. Driving more slowly will give you more time to avoid an animal if you spot it.
2. Deer often travel single file in groups. If one deer crosses the road, a second or third may be right behind.
3. Slow down when you see a deer near the roadside. Deer may bolt or change direction at the last minute.
4. Use extreme caution when driving at dawn and dusk. This is when driver visibility is poor and the deer are most active.
5. Do not swerve to avoid hitting a deer; keep your car headed straight even if it means hitting the deer. Many accidents are not due to colliding with the deer but are the result of driving into another car, truck, tree, etc. while trying to avoid the animal.
6. Use flashers or headlight signals to warn other drivers when deer are spotted on or near the road. Slow down when you see other drivers making these signals and be prepared to stop.
7. Do not count on deer whistles or fences to deter deer from crossing roads in front of you. Whistles have not proven to be effective.
8. Watch for the reflection of deer eyes and for deer silhouettes on the shoulder of the road. If anything looks suspicious, slow down.
9. Honk your horn when you see a deer near the road. This is the most effective way for deer to know where the car is coming from and where they are headed. Their instincts should do the rest.
10. Stay alert and keep it slow!

Winter Driving Tips

Driving Tips for Winter

Winter Driving Tips

Winter brings out two distinct types of drivers. One driver treats the ice and snow with gentleness, and the other doesn’t distinguish between winter and
summer driving. There really is no trick to being a good winter driver if you and your car are prepared.
• Make sure your car is ready for winter by having the engine tuned and proper tires mounted before snow arrives;

• Even a well-maintained car can break down under severe driving conditions, so carry emergency equipment in your vehicle, including a snow shovel, battery jumper cables, bag of sand or traction pads, a towing cable, flares, a complete set of warm clothing and boots, and blankets and candles to keep you warm if the engine will not start;

• To get your vehicle moving if it is stuck in snow or on ice, rock it back and forth gently;

• Ice forms first and melts last on bridges and overpasses, where cold air gets underneath, causing the temperature to drop faster than anywhere else;

• Clean all the windows of your vehicle before starting a trip;

• Keep your car’s windshield washer fluid tank full. Winter slush can temporarily blind you, especially when you are following other vehicles.

Source: Safety Sense Enterprises, Inc., Ottawa, Ontario, Canada

Texting While driving illegal as of March 8, 2012

Texting while driving

Add Pennsylvania to the list of states that have banned texting behind the wheel. Gov. Tom Corbett this week signed a bill, which mandates the following:
• Drivers may not use any interactive wireless communications device to send, read or write a text-based communication while the vehicle is in motion. A text-based communication can be a text, instant message, e-mail or other written communication.
• Texting is a primary offense, meaning you can be pulled over and ticketed up to $50 for this infraction alone. Violations will not result in the accumulation of points on the driver’s record, and the cell phone cannot be confiscated.
• Dialing a phone number and talking on the phone is a secondary offense (exception made for calling 911).

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