Our
newsletters are intended to keep you up to date on
pertinent industry news and offer more in-depth insight
into various types of coverage and endorsements.
We publish our newsletters at least once each
quarter. We hope you enjoy it.
Unfortunately,
over the years it's gotten bigger and bigger, making it
impractical to mail a hard copy. We're also trying
to make it more interactive, incorporating more pictures
and video, as well as link directly to other
articles. So publishing it via email makes more
sense.
If you're
not already, please sign up to receive our newsletter on
our website, www.bretdixonins.com.
In the meantime, enjoy this copy of our most recent
issue, from September.
Thank you for
your patronage!
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Central.
Surveillance Cameras Clear Bar In Dunn
Crash
We've
written it before, and we'll
surely write it again, but having a security
camera system in your establishment can mean more
than just an insurance discount. Sometimes,
you may really need the footage those cameras
record to clear you from liability.
Back
in June, "Jackass" star Ryan Dunn was out drinking
at a bar just outside Philadelphia. He left
the establishment and wrecked his Porsche while
travelling as fast as 140 mph, killing himself and a passenger in
the process.
The
bar said they had served him two beers and six
shots over a four hour period and each time he was
served he exhibited no signs of being
intoxicated. However, when the toxicology
report was returned, it was learned his BAC at the
time of the wreck was 0.196, and things seemed to
be shaping up as "his word vs. theirs" type
argument.
However,
the Pennsylvania State Police Bureau of Liquor
Enforcement investigated the matter and found
insufficient evidence to hold the establishment
accountable. How was the bar cleared?
By their own security camera system.
"He
spoke clearly. He walked clearly. He
came in hop, skip, jumping and he left hop, skip,
jumping," said general manager Frank Herron.
Liquor Enforcement agreed, finding that Dunn did
not appear intoxicated.
Additionally,
the footage showed that Dunn wasn't eating as he
drank (meaning the liquor he did consume was
absorbed into his bloodstream more quickly), and
in fact, toward the end of his visit, some fans
gave him a final round of drinks, not the
bar.
It's
a sad, unfortunate incident, one that can provide
valuable lessons to many people. To you
businessowners, one to take away from it is this:
security cameras can save your butt.
Discounts
for having a security camera system vary based on
many characteristics. If you're looking into
getting a camera system or upgrading your current
one, consider the following:
Ideally,
it's better to have cameras covering public
and private areas of your
premises - not just the areas open to patrons,
try to have camera coverage of your back areas
as well - stockrooms, kitchens, garages,
employee lounges, etc... - where only employees
have access.
It's
also ideal to have cameras covering the exterior
of your premises - the entrances and parking
lots, where patrons may claim to slip, trip or
fall.
Don't
just use your system for live monitoring, get a
system that records the activity as well.
Consider
a system with a larger harddrive for more
memory. The longer you can backup or
maintain footage, the better.
Any
time an incident occurs from which a claim could
arise, try to make a manual backup of that
event, should you need the footage long after
it's been discarded or overwritten by your
system. Copy it off onto a CD or DVD disc,
or back it up to an external harddrive.
Use BDI's Classifieds To Buy or Sell
Your Equipment
Our website
recently
underwent a redesign in
order to freshen up the look, streamline a few
things and make it easier to navigate. One
feature that's been resurrected was the 'Classifieds' pages. At
one time several years ago, we had a fair amount
of equipment listed there. But as other
parts of the site were updated, expanded and
tweaked, the Classifieds got pushed aside and
neglected.
We
still think it's a useful tool for our
insureds to have access to, and best of all it's
FREE. We don't want a
listing fee and we don't want a commission on any
sales. We just want you to have a place to
move some old stuff you no longer need or shop for
some items you'd rather not have to buy new.
Since we insure so many restaurants and taverns,
two industries with fairly high turnover and lots
of specialized equipment, it only makes sense to
bring back our Classifieds pages.
We've updated
this portion of our website to include items from
other businesses we insure - garages, office
equipment, etc... So if you have something
you no longer need,
try selling it rather than
pitching it. And if you're on the lookout to
upgrade some of your businesses tools or
equipment, bookmark the page and check back every
few weeks.
Spotlight On: Business Auto
Coverage
Your business may face several different
liability exposures arising out of the use of
automobiles. You may have an exposure even
if your business does not own any
automobiles. Yet, many businessowners don't
realize the risk they face in such a
scenario.
Hired & Non-Owned Auto
Liability
Hired Auto Liability coverage will pay for
damages to a third party, on behalf of your
company, if you or an employee cause an accident
or an injury to someone while you are driving a
rented or "non-owned" vehicle for
business. In such a situation, the
injured person will sue your company for the
damages. Without this coverage, your company
likely has no defense for such a claim.
The same scenario applies if you have an
employee run an errand, make a delivery, or visit
a client or customer in his or her own
car. When the employee causes the accident,
the injured party is going to look to your
business for damages since the employee was using
the car on company time. This could occur
even if you casually ask a friend to pick up
supplies for you the next time they go to a store
and are involved in an accident.
If your business doesn't own any automobiles
and the exposure is limited to you and your
employees using personally-owned vehicles, then an
endorsement for Hired & Non-Owned Auto
Liability can be added to your General Liability
policy or the General Liability section of your
Businessowners or Package policy. If you
don't deliver products, it's usually very
inexpensive. If you do deliver, your insurer
will want to know how many employees you have
delivering, their delivery radius, and will want
Motor Vehicle Records (MVRs) on your drivers to
ensure they're legally licensed and judge how
"clean" their driving record is.
Business Auto Policies
If your company owns any autos, you need
a Business Automobile Policy (BAP), and Hired
& Non-Owned Auto Liability would be included
under that policy. Additionally, you'll need
more coverage which the Business Auto Policy
can afford.
A Business Auto Policy provides coverage
for automobiles used by a business when a
liability judgment arises out of the use of the
automobile or the auto is subject to damage or
destruction. The business can select
coverage for any auto in use, whether a business
auto, personal auto, a hired auto or borrowed
auto. The typical Business Auto policy is
organized into several sections, as follows:
Section
I - identifies vehicles that are covered,
assigning them "Symbols".
Section
II - outlines liability coverage in the
event the business' negligent acts or omissions
result in bodily harm or property damage to a
third party as a result of owning or operating
the covered vehicles.
Section
III - covers physical damage coverage for
property damage to the business' covered
vehicles under three classifications:
Comprehensive - pays for
all physical damage to the business' vehicles
regardless of cause with the exception of
collision with another object or in the event
the vehicle overturns.
Collision - pays for
physical damage to the business' vehicle
resulting from contact with another object, or
if the vehicle overturns.
Specified Causes of Loss
Coverage - pays for physical damage to
the business' vehicle only resulting from fire,
lightning, explosion, theft, windstorm, hail,
earthquake, flood, mischief, or
vandalism
Section
IV - details the conditions that the
insured must observe in the event of a loss,
such as give prompt notice to the company,
submit proof of the loss, submit to an
inspection of damaged property by the company,
and cooperate with the company in the event of a
liability suit. Also describes the
company's obligations if a loss should occur.
Section
V - defines the terminology in the
vehicle form, such as the meanings of "auto",
"accident", "bodily injury", and "property
damage".
Prepare For Winter -
Safeguarding Your
Property
Cold weather can shine a light on an often
overlooked indoor risk: heating systems.
Furnaces, fireplaces and space heaters need
regular attention and maintenance to work
effectively and safely. Carbon monoxide,
fire and smoke are three dangerous, but
preventable, risks in the winter.
What To Do:
Check heating equipment regularly, at least
once per year.
Keep exterior vents clear of snow, shrubbery
and other debris
Schedule professional cleaning for flues and
chimneys once a year
Install at least one carbon monoxide
detector in your home or building, near bedrooms
if you have any. Additional detectors on
every level provide extra
protection.
Fire and Smoke
Space heaters and fireplaces that are
improperly operated or maintained pose significant
fire and smoke risks.
What You Can Do:
Turn off space heaters when you leave a room
or get ready to sleep.
Keep space heaters at least 3 feet away from
walls and flammable objects.
Make sure your electric space heaters cord
isn't damaged or frayed. Never use extension
cords with space heaters.
Never leave a fire in a fireplace
unattended.
Clean and inspect dampers and flues.
Install smoke detectors per the
manufacturer's instructions. Check them
monthly and change the batteries at least
annually.
Freezing Temperatures & Your
Plumbing
Cold weather freeze-ups can cause vital
plumbing or fire protection systems to
malfunction. Cold temperatures can also
cause sprinkler piping to burst, which may result
in major water damage to buildings, contents, and
equipment. Pipes bursting can also impair
automatic sprinkler systems and leave a major
portion of your facility without fire
protection. A fire during this situation my
result in a major interruption to your business
and a huge loss. Because of this, building
temperature should be maintained at 40 degrees or
higher, monitored and documented. Even if
your property is vacant or rarely used, you have a
duty to make minimal safety efforts, such as
maintaining the heat, to ensure pipes won't freeze
and burst.
In the interest of maintaining sprinkler
protection in your property, building owners and
tenants must be aware of cold weather and freezing
temperatures. All key personnel should be
aware of freeze protection and emergency
preparedness procedures. Create and utilize
a Winter Weather Preparation Checklist to ensure
you're ready for sub-freezing
temperatures.
Water Supplies
Tanks should be leak-free and pressure
should be checked.
Water temperature should remain at 42
degrees or above.
Fire hydrants should be checked for proper
drainage by outside contractors or water
department.
Buried sprinkler control valves and valve
pits should be marked in the event of heavy
snowfall.
Fire pump room should not drop below 70
degrees.
Post indicator valve, OS&Y valve, and
test header to pump inspected
regularly.
Wet Pipe Sprinkler
Systems
All areas of building with sprinkler systems
should maintain temperature above 40 degrees or
above.
Cold weather valves should be closed while
all others should remain open.
Windows, skylights and doors should be in
good condition and sealed tightly.
Check temperatures with
thermometer.
Dry Pipe Systems
Dry lines should be checked for proper
drainage as trapped water can freeze and cause
breakage.
Check drains located in cold places for
freezing.
Dry-valve clapper should be properly set
with temperature maintained at 40 degrees or
higher.
Low air pressure alarms should be provided,
calibrated and connected to constantly attended
location.
Low pressure switches should be set at 5
PSI, which is above trip point of dry pipe
valve.
Air pressure checked regularly with records
maintained to indicate normal pressure.
Air drying equipment available to supply air
to system as designed.
** Never attempt to thaw piping using blow
torch or open flame**
Reviewing Replacement Cost
Last issue, we ran a brief
article on why the "value" of your home may
be down, but your homeowners policy isn't any
cheaper. The culprit is that you should
insure your home for "Replacement Cost," which is
often more than your home is worth on the market
due to building materials and labor prices
staying high.
Replacement Cost is something some
people just have trouble grasping, whether we're
talking homeowners or owners of commercial
property. So this is a topic that warrants
some expansion.
Without fail, the biggest inequality we see
in homeowner quotes we generate is that our
current RC Estimate is higher than the
limit a homeowner already has. This article recently
pegged 68% of American homes as being
underinsured, and by an average of 18%. In
our experiences, that 68% number may be a bit
low. There could be many reasons for
your Dwelling Coverage (also called "Coverage A")
to be low - you haven't reviewed your limit in
years, you didn't tell your agent about a
home addition or renovation, your agent
guessed at your limit, or simply chopped it down
to suppress your premium and keep your
business.
Why's This Limit So High?
That's the question that invariably gets
asked, followed by something along the lines of,
"What can I do to make this cheaper?" Quite
frankly, there isn't much we can do to modify your
replacement cost. The replacement cost is
the replacement cost. You can try running
one of your own at a website like this one.
More and more insurers are realizing the
problem they have with so many under-insured
policy holders, and are tightening their
requirements. As such, we have to insure
homeowners to 100% of the Replacement Cost of
their home. Not all companies have taken
such measures yet, or, if they have, unscrupulous
agents may circumvent that by fudging the
estimate, which may make two different quotes you
receive for the same home as comparable as apples
and oranges.
You could go underinsured for years and never
know or care. But when you have a
catastrophic claim you'll find out why
Replacement Cost matters, but by then, it's
too late to do anything about
it.
BDI Teams Up with
AFLAC
We
recently signed a contract with AFLAC to offer
their disability products.
There
are some who don't understand what disability
insurance is. It is not major medical health
coverage. You need health insurance. It
doesn't cover you for on-the-job injuries.
Your employer's workers compensation should
provide benefits for work-related injuries.
Aflac provides supplemental income to cover your
ongoing expenses if you suffer an injury in your
personal time.
If
you are inured or become sick, your health
insurance will help you pay for your medical
bills. That's it, just medical bills,
nothing more. But if you're laid up in the
hospital and can't work, you or your family
are still going to have rent or mortgage
bills, grocery bills, transportation costs, child
care and all kinds of daily expenses.
It's for all these other ongoing expenses for
which you and your family has no safety net other
than your personal savings.
Contact us today to learn more
information about Aflac's disability
insurance.
Aflac Dancing Duck TV Commercial
Be sure to add our email address to your
contact book to ensure that you continue receiving
industry updates, informative articles and tasty
tidbits.
According to the
Department of Transportation, traffic accidents
happened at that rate in 2008 (the most recent
stats we could find). Are your personal
auto limits up to par, or are you carrying
low-limit, cut-rate coverage?
We offer a
full-line of
personal lines coverages for your home, auto, boats,
motorcycles, RVs, and more. Give us a shot
at your next renewal to see how we
compete.
We will have our booth at the
Illinois Licensed Beverage Association's annual
convention & trade show again this year.
Come by and see us Monday, September 12th, at the
Hilton Garden Inn in Effingham from
Noon-4pm.
Carrier
Corner
We
represent over 15 insurance carriers and have
access to many more via brokers, but you may only
know one or two that we deal with. Each
issue, we'll highlight one of our valued
partners in
this space.
AFLAC Insurance
AFLAC is an A+
("Excellent") rated company based in
Nebraska, and the newest addition to our stable of
insurance companies. They have a fairly
narrow appetite, specializing in disability
insurance for individuals and
families.
