Helpful Hints For Friends And Clients

Dog Bite Claims Topped $400 Million in 2009: 
Dog bites accounted for more than one-third of all homeowners insurance liability claims
 paid out in 2009, costing $412 million and up 6.4 percent from 2008 according to the
 Insurance Information Institute (III).  An analysis of homeowners insurance data by the
 I.I.I. found that the average cost of dog bite claims was$24,840 in 2009, up slightly from $24,461 in 2008. In fact, over the six-year period since 2003, the cost of these claims has
 risen nearly 30 percent. Additionally, the number of claims increased by 4.8 percent to
16,586 in 2009 from 15,823 in 2008.
“Most dogs are friendly, loving members of the family,” said Loretta Worters, vice president
 at the I.I.I.  “But even normally docile dogs may bite when they are frightened or when protecting their puppies, owners or food. Ultimately, the responsibility for properly training
 and controlling a dog rests with the owner.”

Know Your Liquor Liability Exposures

The National Highway Traffic Safety Administration estimates that nearly 13,000 people per year (about 35 per day) are killed in alcohol-impaired driving crashes.
 Many of these tragic accidents happen after an inebriated person leaves a party.  Did you know that the host of the party can be held liable for injuries and deaths?  Host liquor liability may be covered under your homeowners insurance policy if you, as the host, are held legally responsible for such a terrible accident.
Here are some tips to consider if you occasionally host social events involving alcohol:
Limit the amount of alcohol at your event.
 If alcohol is served at your party, make sure there is plenty of food.  Eating slows down alcohol absorption.
Do not “push” alcohol on your guests.
 Encourage designated drivers and provide nonalcoholic drinks for these guests.
Look for signs of intoxication.  An intoxicated person often has trouble walking or has slurred or loud speech.  This is not, however, a foolproof method of determining whether someone is intoxicated.     Consider hiring trained bartenders.  These individuals are trained to recognize and deal with intoxication.  Using professional bartenders can significantly reduce the risk and may help in defending a claim should there be one.
 Surveys of youth indicate that the most common source of alcohol is the young person’s home.  Thus, closely monitor any social event your child hosts to make sure there is no drinking allowed, particularly underage drinking.
Do not allow an intoxicated guest to drive away from the event.  Offer to drive them home or provide a free cab ride.
 Following these tips can greatly reduce or eliminate your host liquor liability exposure.  Please contact our agency to review your coverage before you host your next party where alcohol may be served.

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Key reasons to increase auto or home liability insurance limits.

·          High liability insurance limits are part of smart financial planning.  They preserve your assets for retirement – if you are ever held financially liable for a serious injury or property damage.

·          Inflation impacts the cost of medical services and property repairs.  For better protection in these inflationary times, increase your liability limits.
Auto liability limits. 
        Car accidents are stressful enough.  To avoid additional post-accident stress, protect yourself now by increasing your auto liability limits.  Higher limits cost far less than you might think.  For instance, doubling or tripling your auto liability coverage doesn’t cost anywhere near double or triple your policy premium.  The cost is equal to only a few tankfuls of gas.

  •   If you carpool to save gas, you need higher liability limits.  You may be held responsible for injuries to your passengers if you are determined to be at-fault in an accident.  

·          When you have young family members at home, driving cars that you own, it’s a wise precaution to increase your auto liability limits.

·          If you use your car in volunteer work and are involved in an accident, your insurance may need to cover you and the volunteer organization, so carry high enough liability limits for both.

·          If you hit an expensive car, cause a chain reaction pile up, or damage other valuable property, your current property damage liability may not be enough to pay for it all.

         Trade in: Increase your physical damage deductibles.  Invest the resulting savings (plus a bit more) in higher liability limits.

Homeowners liability limits.

·          If a guest or a delivery person is hurt on your property due to your negligence, you could be sued for any damages that result.

·          Homeowners liability protection applies even when you travel.  It isn’t just limited to your premises.  It follows you and your family around – almost anywhere.

·          If you own a swimming pool, trampoline, small boat, golf cart, or even a dog, higher limits or an umbrella policy are imperative.

·          Trade in: Increase your HO deductible.  Invest the savings in higher personal liability limits.

Umbrella Liability

·          A personal umbrella adds at least $1,000,000 of protection over and above your current auto and HO liability.  
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Insurance Matters

(NAPS)—Understanding insurance can often be like trying to learn a foreign language. Many find it confusing and intimidating.

Fortunately, there’s help. Here is a quick reference designed to help you understand some of the most common kinds of coverages. The reference was put together by The Progressive Group of Insurance Companies.

Liability covers bodily injury and property damage (BI/PD). This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory.

Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If your policy covers you in the event you’re sued after an accident, your insurance company will pay for a lawyer to defend you.

Liability limits generally appear as three numbers, for example, 500/500/100. The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person. The second number is the maximum that would be paid out for bodily injury per claim and the third number represents the maximum amount your insurance company is obligated to pay for property damage you cause.

Collision. When you buy collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you select when you purchase your policy. This amount is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim.

Comprehensive covers damage caused by events other than a car collision—such as fire, theft, vandalism, hail or flood. It also covers damage caused by your vehicle colliding with an animal. And if your car is stolen, it will cover the cost of a rental, subject to a daily limit. Like collision coverage, a deductible usually applies.

Medical Coverage. Depending on the state in which you live, you may have available to you Medical Payments coverage or Personal Injury Protection (PIP) coverage. While these both work differently, they provide coverage for medical care provided to you as a result of a car accident.

Did You Know? 
Liability insurance is for bodily injury and property damage. This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory.