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Even soaring gas prices and a sluggish economy won’t slow down the American road warrior. After all, we like to travel whether it’s a vacation, family reunion or simply a road trip. Which means time for car rentals.

The rental car company’s collision damage waiver/loss damage waiver (CDW/LDW) could save more than your financial stability. First and foremost, educate yourself. Know what’s covered by those seemingly steep fees.

A few of the many unknown facts follow:

Loss valuation
The personal auto policy doesn’t cover reimbursement for the full value of a car, which many rental car agreements demand. You could end up with coverage of the actual cash value or repair costs (the lesser of the two wins out), which – more often than not – is a far cry from the full value.

Diminution of value
For third-party claims, the Personal Auto Policy could cover claims of diminished value under the “expenses for which you become legally responsible” clause. However, there is a cap on the payout, and many states have approved the endorsement PP 13 01, which excludes claims of diminished value.

Use of vehicles
While older editions of the Personal Auto Policy don’t cover physical damage of certain non-owned vehicles – including vans and pick-up trucks – used for business purposes, the rental companies policy doesn’t carry those exclusions.

Coverage area
The Personal Auto Policy doesn’t cover an insured who travels beyond the United States, Puerto Rico or Canada.

Types of vehicles
Physical damage coverage for motorcycles, pick-up trucks, vans, motor homes and other non-autos isn’t covered under the Personal Auto Policy.

Loss settlement
Certain Personal Auto Policy editions stipulate that an insurer has an opportunity to appraise the vehicle before it is repaired. If an ambitious rental company makes immediate repairs, the insured may lose coverage by default.

Indirect losses
The rental car company will probably hold the driver responsible for its loss of rental income. Certain Personal Auto Policy editions only cover loss of income for a theft; others have daily and maximum indirect-loss caps.

Administrative expenses
The Personal Auto Policy usually doesn’t cover loss-related fees for appraisal, storage, towing, etc. Rental car companies are known to tack on exorbitant expenses and lump them under “administrative expenses.”

The next time you ask for advice about renting a vehicle, weigh the risks and benefits of purchasing coverage from the rental company. The extra $20 per day doesn’t seem nearly as ugly when compared to hefty expenses from coverage gaps.

By: Gallen Insurance

NEW YORK, February 16, 2012 — Being an informed consumer means not only reading your homeowners insurance policy closely but also asking experts what constitutes the right type, and amount, of coverage you need for your home, according to the Insurance Information Institute (I.I.I.).

“Besides knowing the basics of what a standard homeowners insurance policy covers, consumers should ask a series of questions, and receive satisfactory answers to each of them, before buying a new policy, or renewing an existing one,” said Michael Barry, vice president, Media Relations, I.I.I.

A qualified insurance agent or insurance company representative can guide you in your choices. Here are six basic questions everyone should ask before buying or renewing a homeowners insurance policy:

1. How much would it cost to rebuild my home in its current location in the event of a total loss? Your homeowners insurance policy should cover the cost of building a new home from scratch. Your insurance agent or insurance company representative will have knowledge of your neighborhood, and familiarity with the construction materials used when your home was originally built and can accurately calculate this cost. In general, homeowners policies cover partial or total damages caused by fire, hurricane, hail, lightning or any other disaster listed in your policy. Flood and earthquake-related losses must be insured separately because both perils are excluded in standard homeowners insurance policies.

2. How much is the personal property in my home worth in the event of a total loss? Your homeowners insurance policy should cover the cost of replacing all personal property (furniture, appliances, clothing) should it be stolen or destroyed by fire, hurricane or another insured disaster. Most companies provide personal property coverage equal to about 50 to 70 percent of the amount of insurance you have on the structure of your dwelling. So if you have $100,000 worth of dwelling protection, most insurers would recommend $50,000 to $70,000 worth of personal property coverage. The best way to determine if this recommendation is appropriate for your specific situation is to conduct a home inventory. To make creating your inventory as easy as possible, the I.I.I. provides free Web-based home inventory software, Know Your Stuff®. The software includes secure online storage so you can access your inventory anywhere, anytime. If you have an iPhone, you can also download the new Know Your Stuff® – Home Inventory app in the iTunes App Store (or search for “iii inventory”).

3. How much liability protection do I need? Liability covers you against lawsuits for bodily injury or property damage that you, or your family members, cause to other people. It also pays for damage caused by your pets. The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit of your policy. You are also covered not just in your home, but anywhere in the world. Liability limits generally start at about $100,000. Most insurance agents and company representatives recommend that you purchase at least $300,000 worth of liability protection. If you have significant assets and need more liability protection than is offered under the standard homeowners policy limits, ask your agent about umbrella liability.

4. What level of additional living expense coverage do I need? The Additional Living Expenses (ALE) provision is found in standard homeowners insurance policies. It pays for the costs of living away from home if you cannot reside there due to damage from an insured disaster. ALE covers hotel bills, meals and other expenses over and above your customary living expenses. ALE coverage differs from company to company. Many policies provide coverage equal to about 20 percent of your dwelling protection. For example, if the structure of your home is insured for $100,000, you would have $20,000 of ALE coverage. Some companies impose a time limitation, such as 12 to 24 months.

5. Should I buy a separate flood and/or earthquake insurance policy? There were numerous flooding events and earthquakes in the U.S. in 2011 but relatively few Americans had coverage for either type of natural disaster because these perils are excluded from standard homeowners insurance policies. Check with your insurance agent or insurance company representative to see whether you might need specialized coverage beyond your standard homeowners insurance policy. Flood coverage for homeowners is available from the federal government’s National Flood Insurance Program (NFIP) and from a few private insurers. Earthquake coverage is usually available in the form of a supplemental policy from your insurance company, or, in California, from theCalifornia Earthquake Authority. Fire and water damage due to burst gas and water pipes following an earthquake is covered under standard homeowners policies in most states.

6. Do I qualify for any discounts? If you have smoke detectors, burglar alarms and/or dead-bolt locks in your home, you can often get a premium rate discount. Sophisticated sprinkler systems and alarms that ring at monitoring stations often reduce your homeowners insurance premium, too. Ask your agent or company representative about discounts available to you. If you are at least 55 years old and retired, for instance, you may qualify for a discount of up to 10 percent at some companies. If you have completely modernized your plumbing or electrical system recently, a few companies may provide a price break.

The I.I.I. also advises homeowners to take the time to review and understand their coverage choices by taking an annual homeowners checkup.

RELATED LINKS

Issues Update: Catastrophes: Insurance Issues; Flood Insurance

Facts and Statistics: Homeowners and Renters Insurance

Consumer: Homeowners and Renters Insurance; Am I Covered?

Video: Homeowners and Renters Insurance

New York Press Office: (212) 346-5500;media@iii.org

The first of the year is not only the start of tax season it is also the start of insurance audit season for many businesses.  A large amount of businesses have their insurance policies follow the federal fiscal year as a lot of the same information is used.  Just like taxes, audits take some planning in order to make things go as smooth as possible and eliminate additional premium surprises.  Before the auditor calls or arrives take a few minutes for the following, gather gross payroll records for all current and past employees carefully noting their job description as well as gather gross receipt information per your line of business. Once that is assembled take a look at any certificates of insurance you received from vendors and or sub contractors to make sure that you can show continuous coverage as two policy terms may apply.  The auditor will be looking at the certificates and concentrating on two areas, first the limits which should mirror your policy and second if any required coverage is missing from the certificate.

If a sub contractor owes you a certificate, now is the time to get it before the auditor arrives. With talk of the commercial insurance market tightening up many auditors that would let things slide in the past will be under strict orders to go by the book.  In my practice I have noticed that most conflicts arise in the construction area.  If you hire a one man operation to perform a service on your behalf make sure that the certificate shows workers compensation even though there are no employees. Individuals with no employees can purchase workers compensation.  By rule the sub labor cost is added to your payroll on the workers compensation policy if the sub has no policy in effect.  This can quickly add substantial additional premium to your audit. This also holds true for subs that bring their subs to your job sites or premise.

Auditors with most if not all companies will give you a copy of what they are going to report to the carrier. This is a very important document so make sure that you keep a copy as this will be the basis if there any disputes.  The bottom line is to be prepared. A little preparation pre audit can eliminate a lot of post audit headaches.

By: K. Scott Burns, CIC – Account Executive

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.

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

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.

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.

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.

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!

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).