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Bad Insurance News

Coronavirus – Does Your Insurance Cover You?

The disruption to business and everyday life caused by the coronavirus (COVID-19) pandemic is resulting in an economic impact for every business. With hourly announcements from health agencies calling for social distancing, school closings, business restrictions, and event cancellations, current news reports indicate the crisis will get worse before it gets better. Much of this disruption is likely not covered by insurance.

The two most asked questions we’ve received over the past two weeks have been:

– Where can I buy coverage for the COVID-19 viral pandemic?
– Does my insurance have coverage under my current policy?

We have consulted with specialists across the Property, Casualty and Professional Lines sectors and offer the following COVID-19 update. Please note this is not an interpretation of any policy language and we recommend that you inquire with counsel for specific interpretation and advice on your particular insurance policy.Read More »Coronavirus – Does Your Insurance Cover You?

Dog Bite Claims Awards Average $32,000

dog bites homeowners insurance

According to the Insurance Information Institute (I.I.I.) and State Farm, the nation’s largest writer of homeowners insurance, the cost of the average claim from dog bites and other injuries is on the rise.  I.I.I.’s analysis of homeowners insurance data found that the number of dog bite claims nationwide decreased 4.7 % in 2014. However, according to the Insurance Information Institute, the average cost per dog bite claim was up 100% to 64,555 in 2022, compared to $32,072 in 2014.

The average cost per claim nationally has risen more than 67% from 2003 to 2014, due to increased medical costs as well as the size of settlements, judgments, and jury awards given to plaintiffs, which are still on the upswing.

With 1,867 claims California continues to lead the list of states with the largest number of claims, followed by Ohio with 1,009 claims and New York with 965 claims, although NY state is leading with the highest average cost per claim in the country of $56,628.

The trend in higher costs per claim is attributable not simply to dog bites but also to dogs knocking down children, cyclists, and senior citizens —all of which I.I.I. says can result in fractures and other injuries that increase the severity of the losses. Experts say that even normally docile dogs may bite when they are frightened or when defending their puppies, owners, or food. The most dangerous dogs are those that suffer from poor training, irresponsible owners, and breeding practices that foster viciousness.

Read More »Dog Bite Claims Awards Average $32,000

Report: New Emerging Risks

Report New Emerging RisksSwiss Re has released a report – ”New emerging risk insights,” which is based on the reinsurer’s SONAR process, described as a “unique tool which uses Swiss Re’s internal risk management expertise to observe and evaluate new and emerging risks.”

Some of the other emerging risks examined in the SONAR report includes the following:

  • Cloud computing security
  • Contagious emerging market crisis
  • Eurozone crisis leading to deflation
  • Short-termism of macro-policy measures
  • Air pollution as mortality driver
  • Concussion crisis in sports
  • Democratisation of genetic testing
  • Digital slander
  • E-cigarettes
  • Financial consumer protection regulation
  • From closed to open business models
  • Food and water safety: trade-offs with growthRead More »Report: New Emerging Risks

2013 Hurricane Prediction

The Colorado State University team is predicting an above-average 2013 Atlantic basin hurricane season with 18 named storms and a 72 percent chance one will make landfall somewhere along the entire Eastern seaboard. Nine of those 18 named storms are expected to become hurricanes and four of those major hurricanes (Saffir/Simpson category 3-4-5) with sustained winds of 111 mph or greater. The activity will be due primarily to anomalous warming of the tropical Atlantic and expected lack of an El Nino event, the researchers said. The hurricane forecast team’s probabilities for a major hurricane making landfall on U.S. soil in… Read More »2013 Hurricane Prediction

Coming Soon: Assault Weapons Liability for Sellers and Owners

A 2005 federal law that protects gun makers and sellers from liability for crimes committed with their products. But Democratic Senate President John Morse said he crafted the legislation to avoid legal challenges by setting different standards of liability for shooters, gun makers and sellers. Liability would be stricter for a shooter because attorneys would not have to prove negligence, according to summary of the language that will be included in the bill. Individuals would also be held liable if they were negligent and an assault weapon they owned was used in a crime. Sellers and manufacturers would be liable… Read More »Coming Soon: Assault Weapons Liability for Sellers and Owners

The Danger of Distracted Walking

Okay, we have said enough about the distracted driving. The cell phone use laws being adopted by the U.S. states are describing how and when the mobile phones can be used while driving. But what about pedestrians distracted with their smartphones? Can we blame them for major increase of fatal accidents involving pedestrians? Apparently yes. According to a recent report from the U.S. Department of Transportation, 4,280 pedestrians were killed and an estimated 70,000 were injured in traffic crashes in the United States in 2010 — a 4% rise from the number reported in 2009. On average, a pedestrian was killed every two hours… Read More »The Danger of Distracted Walking

Increases for Liability Insurance for Construction Firms

The commercial general liability market for the U.S. construction industry continues to firm with underwriters seeking rate increases of up to 15 percent, according to a report published by Marsh. Construction firms with poor loss histories are experiencing even larger liability rate increases and in some cases receiving non-renewal notices from their underwriters. After nearly a decade of rate declines, insurers also are typically seeking to raise rates on umbrella and excess liability insurance of between 8 and 10 percent, according to Marsh’s August 2012 Construction Market Update. According to the report, rates for project-specific general liability, general liability wraps,… Read More »Increases for Liability Insurance for Construction Firms

Travelers Business Insurance Price Up 10%

Travelers Companies Inc.’s business insurance had renewal premium rate gains of 8% for the 4th quarter 2011 and 10% for December, said CEO Jay Fishman. Many of our insured have received notices of premium increase, some of the them seen as much as 35% or more. Paperless Insurance Services is dilegently working to ensure our clients receive accurate up-to-date and competitive proposals at each renewal. Our state of the art rating system allows us to approach more carriers at within a shorter time period, hence, our clients receive comprehensive proposals and market analysis with each renewal. Buy business insurance now.

Workers’ Comp Rate Increase in Florida is Approved

Employers in Florida will be paying more for workers’ compensation coverage next year following the state insurance chief’s approval of an 8.9 percent statewide average rate hike. Florida Insurance Commissioner Kevin McCarty said that he will approve the 8.9 percent rate bid filed by the insurers’ rating organization, the National Council on Compensation Insurance (NCCI). The new rates will apply to all new and renewal business, effective Jan. 1, 2012. In granting the rate request, McCarty noted that the state’s overall rate level has fallen significantly since lawmakers rewrote the state’s workers’ compensation law nearly a decade ago. Don’t wait… Read More »Workers’ Comp Rate Increase in Florida is Approved

Employment Benefits Become Less Affordable

Almost all employers admitt their employees need help in making benefits decisions and education to make changes in their benefits programs according to a survey taken at the recent Society for Human Resource Management conference. The survey, conducted by Colonial Insurance Company, also found that a little over half employers plan to increase employees’ share of health insurance premiums, while nearly half are increasing deductibles and co-payments in response to the rising cost of health care.