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Cyber Liability Coverage for Non-Profits

News of cyber-crime and instances of massive data breaches are increasing each year. The headlines have been grabbed by major data breaches at discount retail chains, restaurant chains, financial institutions, video game developers, health care providers, government agencies and more. The Pew Research Center estimated this year that 18 percent of adults who engage in online activities have been the victims of stolen information, including Social Security numbers, addresses, or banking information – an increase from 11 percent in 2013.

And with each instance comes increased awareness of the need for cyber liability coverage, a painful but important lesson in the ways 21st century crime can infiltrate a business – and its customers’ wallets. These infringements are happening with increasing regularity, breeding mistrust among consumers and wreaking havoc with companies that are left scrambling to pick up the pieces from these financial (and public relations) disasters. As a result, some estimates indicate that cyber liability insurance sales will double in 2014 from $1 billion just last year.Read More »Cyber Liability Coverage for Non-Profits

Hallmark pulls Hanukkah wrapping paper covered in swastikas

If your product is decorated with swastikas, will it be covered? This is a good question for a product liability carrier that provides coverage to Hallmark. http://nypost.com/2014/12/09/hallmark-pulls-hanukkah-wrapping-paper-covered-in-swastika/ Every holiday season, there is at least one store that beats it all with the most “innovative” product of all. This year, the “Grammy” goes to the Hallmark store. They have managed to manufacture and sell Hanukkah wrapping paper covered … in swastikas. I would not buy it. Those who do and feel offended by it, why not file a product liability claim against Hallmark? Their policy, like many other product liability policies,… Read More »Hallmark pulls Hanukkah wrapping paper covered in swastikas

Product Liability Insurance for UAV (drone)

What is the one thing you expect to see the least in a restaurant? A flying drone! But not in NYC. A drone was flying in TGI Friday’s restaurant last week and cut someone’s face open. Was it a simple accident or product failure? If product failure, is there a product liability insurance in place? Sure many insurance companies provide product liability insurance for drones. If you are maker, seller, manufacture, distributor or an importer of the UAV (an unmanned aerial vehicle (an aircraft piloted by remote control or onboard computers) product – get your product liability insurance in place.… Read More »Product Liability Insurance for UAV (drone)

Insurance During the Course of Construction

Construction FireThis morning, downtown Los Angeles is on a massive fire.

The apartment tower that was under construction is burnt down to ashes. Other buildings surrounding it are heavily damaged.
When the fire department is finished, who is going to pay for damages?

First, the damage to the building under construction worth at least the cost of all the materials that are now gone. These are tens of thousands of dollars that the building owner has lost, UNLESS he had Builders Risk Policy in place. Builders risk policy, which is sometimes called Course of Construction policy will pay for the cost of materials lost due to the fire.

Second, what about the neighbor buildings that are damaged too? What if there are people injured (hopefully not)? This is the liability of the apartment building owner which could be tens of thousands of dollar too, UNLESS he had Owners and Contractor’s Protective liability Policy. This is a liability policy which pays for property damage (buildings burnt, roads and street lights damaged) and bodily injury (people injured or dead) that results because of owner-builder’s liability during the construction.Read More »Insurance During the Course of Construction

Attic Storage Hazards for Homeowners

Picture by Roger Mommaerts (flickr.com)
Picture by Roger Mommaerts (flickr)

Homeowners who don’t pay attention to what’s going on in their attics can face costly damage that can spread throughout their entire home. Internet is full of videos made with wireless ip video surveillance cameras which capture critters such as mice, squirrels, bats and bees living in people’s attics; meanwhile, one in 10 homeowners have never even seen their attics.

Rodents in the attic can be a nuisance at best, and if they are not eradicated quickly, they can become home wreckers, as squirrels and rats have been known to chew through electrical wires in attics. While this almost always ends badly for the animals, sparks from their gnawing can set the house on fire.

Many attics also house mechanical equipment, such as central air conditioning systems, exhaust fans, electrical junction boxes and plumbing. Homeowners should regularly make sure that any system that is connected to an electrical or water source in their attic is in good working condition, as a burst pipe or a clogged drain in the attic could lead to widespread water damage on the floors below.
Read More »Attic Storage Hazards for Homeowners

Bright ideas: Holiday lighting safety tips

2015 holiday lights decoration safetyDecorating is an essential part of the holiday season in many homes across the country. Unfortunately, those decorations can increase your chances of a fire. Nearly 400 home fires a year are caused by holiday lights and decorations, according to the U.S. Fire Administration, resulting in more than $25 million in property damage. By following a few simple steps, you can keep your home and family safe all season long.

Maintain holiday lights. Inspect holiday lights each year for frayed wires, broken sockets or other signs of wear. Test each light string before hanging it on a tree or other flammable surface. Only use lights approved by a nationally recognized testing laboratory, such as Underwriter’s Laboratory (UL).Read More »Bright ideas: Holiday lighting safety tips

Everything you need to know about Accident Insurance

Accident InsuranceOver the past few years, voluntary benefits have emerged as a way for employers to enhance their overall benefits package in an efficient and cost-effective manner. Most people are familiar with offerings such as dental, vision, life and disability insurance, but accident insurance is now emerging as one of the more popular voluntary benefits in the marketplace, primarily due to the increasing costs of medical expenses and employers’ need to shift more of that cost to the employee.

WHAT IS ACCIDENT INSURANCE?

This product is designed to pay a lump sum benefit directly to the insured for an accidental injury. Accidental injuries include dislocations, fractures, loss of limbs, burns, and disabilities or deaths due to accidents. The lump sum payment can be used to help defray the cost of out-of-pocket medical expenses associated with an accidental injury, such as doctor fees, copayments, deductibles, X-rays, crutches, wheelchairs, blood plasma, stitches and other emergency services. Accident insurance can cover an insured’s spouse and/or children. This offering is supplemental to any medical coverage, meaning that it is separate from any other coverage the insured has. As such, accident insurance can be purchased on its own or to fill a gap left by other coverage. The bi-weekly premium is about $8 for single coverage.Read More »Everything you need to know about Accident Insurance

Do I Need Wedding Insurance

Wedding insurance, similar to a special event insurance, becomes very popular in the U.S. Common causes of payouts include the venue or caterers going bust after having taken a big deposit. Extreme weather, a spouse being deployed by the armed forces and an absent priest can all trigger payouts. Most policies will pay to re-stage the photos if the snapper fails to turn up or disappears with the pictures. Read this short article by Economist about wedding insurance in the U.S.

Top 5 Ways for Homeowners to Prepare for Winter

Top 5 recommendations to homeowners to prepare for winterRoof is the largest single surface and the first line of defense in protecting your home. Insurance carriers tend to see a lot of damage to roofs in those instances where they also have structural claims. Obviously certain portions of the country get very different climate and different winter weather. The northern states will have heavier snow and ice, where the south may get more rain.

Here are top 5 recommendations to homeowners to prepare for winter:

    • Do a visual inspection of your roof to look for maintenance issues or things that could make it more susceptible to hail or wind or other damage — like missing or damaged shingles or tiles on sloped roofs. Or if it’s a flat roof, look for surface bubbles in the membrane material or missing gravel.
    • Look at flashing along the roof to make sure it’s in place and in good condition. The flashing is where you transition between vertical places and the horizontal roof — things like around skylights, vents or chimneys. Anywhere where you have a change in roof elevation, you’ve got flashing there and that’s a typical source or place for water to penetrate into the roof covering.

Read More »Top 5 Ways for Homeowners to Prepare for Winter

Additional Insured Endorsements – After the Work is Done

Additional_Insured_Endorsements_–_After_the_Work_is_DoneAdditional Insured – Completed Operations
How often the general contractor denies “blanket” additional insured, or CG 20 38 Additional Insured-Owners, Lessees or Contractors – Automatic Status for Other Parties When Required in a Written Construction Agreement? The problem is that in the construction contract between the general contractor and subcontractor, the subcontractor may be required to include the general contractor as an additional insured for completed operations coverage for a period of six years after the subcontractor’s work is finished. While the current “blanket” additional insured endorsement CG 20 38 does meet a portion of the insurance requirements – to protect the additional insured for certain bodily injury or property damage claims that take place during the project – the CG 20 38 specifically excludes any bodily injury or property damage that takes place after her customer’s work is finished.

And why in the world would a general contractor want to be an additional insured six years after the subs work is finished? Let’s review an example that shows the rationale behind completed operations coverage for an additional insured.

Example: A general contractor has been hired to remodel a building. Much of the work, such as HVAC, electrical, plumbing, and site preparation, is completed by trade subcontractors hired by the general contractor. Eight months after the building has been completed by the general contractor and put to use as an office space, a small fire breaks out in the mechanical room, injuring two workers of the office. When it is determined that the fire was the result of sloppy electrical work, the general contractor is sued by the injured people for bodily injury.

Additional Insured – Completed Operations CG2037
On the other hand, if the electrical subcontractor had listed the general contractor as an additional insured on its policy using CG2037 – Additional Insured – Owners, Lessees or Contractors – Completed Operations, the general contractor would have been covered as an additional insured by the electrical contractor’s CGL policy, provided the electrical contractor’s acts or omissions, at least in part, caused the bodily injury to the workers.Read More »Additional Insured Endorsements – After the Work is Done