Umbrella insurance: a business necessity

By: Mike Mirizzi
The Cincinnati Insurance Companies

There is a misconception that only large companies or corporations need umbrella insurance, that the coverage is expensive and may be unnecessary.  On the contrary, an umbrella policy is a vital piece of coverage that can protect you and your business from losses that exceed your primary policy limits.

The truth is you don't have to have a million dollars to be sued for a million dollars.  It can happen quickly, and your livelihood could be greatly affected.

Costs for an automobile accident with property damage or serious injuries to multiple people could easily exceed a standard insurance policy limit, leaving you or your business to pay out of pocket if you are found to be legally liable.  Injuries due to work you performed or because of a product you distributed or manufactured also could result in lawsuits that could put your business in jeopardy and potentially your personal assets as well.

An umbrella policy provides limits in excess of your primary liability policies and adds that extra layer of protection and peace of mind.  The value in this "extra" layer of protection does not stop there.  Not all umbrella policies are the same.  Ask your independent insurance agent to place your insurance with a company whose policy provides:

• No self-insured retention (similar to a deductible).  Some insurance companies may require you to retain liability and pay the first $10,000, $15,000 or sometimes $25,000 for specific claims covered by the umbrella that were not covered by the primary liability policies.  Ask your agent for a policy that eliminates this requirement.
  
  
• Unlimited defense payments.  Some umbrella policies offer you true unlimited defense payments when your primary liability policy limits have been exhausted.
  
  
• Coverage for items not covered in your underlying policy.  Some umbrellas will provide "first dollar drop down" coverages for specific situations, meaning that if your underlying primary policies do not cover a loss, your umbrella might. 

Look for an insurer that can provide an umbrella policy with your commercial insurance package.  Having all your insurance with one company, in one package, is easier to manage.

Additionally, an umbrella policy may help your company have a competitive advantage when bidding on a contract as you will already have the required "extra" insurance in place.

Managing these liability exposures makes financial sense, no matter how big or small your business.

Not all umbrella policies are the same.  Please contact us today to explore coverages and options available to you.

The bottom line on homeowners insurance and rates

 Do you know why insurance premiums are rising? Insurance companies use past events to predict future risk, and risk is shared. What that means is whether disaster strikes in Ohio or another state, insurers use pooled premiums to pay claims that help customers recover. In essence, the catastrophic damage caused by more frequent severe weather in recent years has caught up with us.

 What you can do

Understanding what coverage you have and why will help you control costs. The right coverage will mean the difference between devastation and recovery. Call us for clarity and ask how these tips might apply to you.

Ways to help control your rates

·         You could opt for higher deductibles, but do so only if you can easily pay that amount if you need to file a claim.

·         Consider the impact of replacement cost insurance versus actual cash value. Replacement insurance, while more expensive, covers the full cost of replacement. Actual cash value coverage (standard on most policies) pays the depreciated cost of the insured items.

·         Carefully decide whether to submit a claim. If you will only get a couple hundred back after the deductible is met, you may want to pay out of pocket. Filing a claim may affect your premium.

·         Regularly review your policy with us to ensure you get the discounts you are entitled to and that you have the right endorsements.

·         Understand that your credit score, claims history, and age/condition of your home will impact your rates.

 

How to reduce the potential for a homeowners claim

·             Perform regular maintenance to your home and make improvements

·             Use working smoke detectors

·             Clean your gutters and trim tree limbs away from your home

·             When going out of town, turn off your water line

·             Inspect your sump pump, and clear debris near external drains

·             Replace the hoses on your washing machines every five years

 

What’s not covered by homeowners’ insurance?

Policies differ, but typical exclusions include damage from:

·         Earthquakes

·         Flooding or water damage caused by sewer backup or basement leak

·         Power failure originating off your premises

·         Collapse

 

With homeowners rates rising, it’s important to have a policy that fits your needs. Call us to ask questions, make adjustments and gain peace of mind.

This information brought to you by Dostal & Kirk, Inc., a proud member of Professional Independent Agents Association of Ohio, Inc.

 

What to know before you shop for a car

What “options” are you legally required to buy?

Confused about what is and isn’t required when buying or leasing a vehicle? Ohio law requires drivers to meet financial responsibility requirements, which can be done by purchasing liability insurance. In addition, when leasing or financing a vehicle, those contracts require you to have physical damage insurance coverage.   

Beyond that, here are answers to common questions asked about dealer options.* 

Is my “new” car automatically covered by my current auto insurance policy?

Usually yes, but the length of time coverage is provided on a newly acquired auto (typically 4 to 14 days**) varies based on the types of coverage and whether the vehicle is a replacement or additional vehicle. To be safe, call us about your policy.  

A newly acquired auto will receive the broadest coverage provided for vehicles already on the policy. However, if your current policy does not have Collision or Other Than Collision coverage, the automatic extension of these coverages to the new auto is usually limited to 4 days.** Though not legally required, you may want to take your insurance policy or ID card with you.

What about loan/lease GAP insurance?

In an accident, your auto policy pays you the current market value of the car, but you could still owe much more to the finance company. That gap, or amount you still owe, is covered by loan lease Guaranteed Auto Protection (GAP) insurance. Though not legally required, some new car leases have GAP coverage built into the contract. Ask the dealer if you have the option of deleting the coverage from the lease and purchasing it as an endorsement to your existing auto insurance. Doing so could save you a few dollars to a couple hundred dollars. We can get you estimates now.

 

Is an extended warranty mandatory?

No, and you don’t have to buy an extended warranty before you leave the dealer. A warranty may not be necessary for you, so call us. But if you are intent on getting a warranty, know that purchasing from the dealer is not your only option.  

 

What about credit life and disability?

Credit life and disability policies sold by auto dealers are not required. They protect the lender if you cannot make monthly payments due to death or disability. You are insuring the unpaid balance of the loan. If that’s all you need, the dealer’s policy will suffice. However, it may be wiser to use that money to increase coverage on your own life or disability policy instead of tying it to the lease or purchase of a vehicle.

 

Our advice

Before you car shop, call us. We’ll help you get prepared and informed so you don’t end up paying extra for something you neither want nor need.  

*    Many of these same principles apply for purchasing a boat, RV, travel trailer or motorcycle.

** Information from Insurance Services Office, Personal Auto Policy, 2005 edition.

 

 

This information brought to you by Dostal & Kirk, Inc., a proud member of Professional Independent Agents Association of Ohio, Inc.

 

How ‘spending 15 minutes or less’ on insurance can HURT you

Almost 60 percent of consumers who purchased insurance through a direct insurer (promising lower prices) 10 years ago or more said they switched back to an independent insurance agent, according to a 2013 study conducted by InsightExpress, an independent marketing research firm.

Why? They wanted:

-Someone to guide them through the insurance purchasing process

-One point of contact

-Personal advice from an experienced insurance professional.

What these consumers described is what independent insurance agents do. We are business professionals who have access to multiple insurance companies but represent you. We know different insurers’ underwriting styles and the nuances of their different policies. This broad background helps us give you sound advice specific to your situation.

Managing your risks is key

Insurance is all about managing your risks. We believe insurance should protect you and all your assets, so we look at the big picture. We ask questions, explain different kinds of coverage and how having or not having them could affect you.

What you choose for one type of coverage, like auto insurance, can impact all your assets – so we shop around for the best prices and coverage to offer you a complete package.

What can go wrong?

Some competitors are only interested in one piece of the puzzle. They entice you with a lower rate on a single type of insurance, but less coverage.

Looking at it piecemeal instead of as an entire solution can lead to disaster. For example, imagine you purchased lesser coverage through a company that took only 15 minutes to save you money on auto insurance. When you signed up, the rep didn’t ask about the value of your home or tell you that your level of coverage should involve looking at the value of your assets.

Later, you cause a horrible car accident. Your auto insurer writes a check that doesn’t cover the victim’s expenses, and that ends the insurer’s obligation to you.  The injured victim sues you for $1 million. If your home is your biggest asset, you’ll face losing it and your savings.

How an independent agent could have helped

In that scenario, you didn’t have all the facts up front. We could have suggested umbrella coverage. But with a telephone or online quote, this probably wasn’t an option.

Our competitors are at a disadvantage because they sell for a single insurance company and are limited to the options offered by their employer.

We don’t have those constraints. And we’re here for you throughout the life of your policy. We answer questions, handle issues and adjust coverage as needed. To file a claim, you call us, not an 800 number. We are with you throughout the process.

Bottom line, when making insurance decisions, turn to the source you can trust. Turn to an independent agent.

This information is brought to you by a proud member of Professional Independent Agents Association of Ohio, Inc.

Be Alert for Skimmers and Scammers! 

By: Mike Dockery & Matt Johnson

The Cincinnati Insurance Company 

Before you swipe your bank card or credit card to make a payment or complete a bank transaction, be alert for skimmer devices attached inside or over the real card reader. Criminals use skimmers to capture the information from the magnetic strip on credit or debit cards, gaining unauthorized access to consumer accounts. 

Skimmers have become increasingly prevalent as they are easy to put in place. The skimmer device fits right over or inside the real card reader. When the card is swiped, it passes through the skimmer before going into the real reader. Skimmers have popped up at bank drive-through ATMs, gas stations and other businesses, especially in remote locations or places that are difficult to monitor.

There are a few things you can do to make sure your account information stays safe.

Look before you swipe  

Look for signs of tampering or bulkiness of the card reader you are about to use. If it looks too thick, damaged, loose or just does not look right, report it to the bank or business and use a different machine. Consumers have even reported parts of skimmers coming off the ATM. The FBI offers additional tips and illustrations of what to look for. If you see someone tampering with or hanging around an ATM machine, report this information as soon as possible to law enforcement or the bank or related business hosting the machine. Sometimes criminals hang around machines to collect information via a Bluetooth connection or wait for an opportunity to add a skimmer or make changes to a machine.

Protect your chipped card  

Many newer credit cards have radio frequency identification (RFID) chips. The chips use a wireless, electromagnetic field to transmit information across short distances. Criminals use small remote skimmers that can be concealed in a pocket to collect information from the RFID chip. With these skimmers, the card need not be physically swiped to compromise the information. The electronic pickpocket need only walk a few feet away from you to collect information from the chip.

To prevent information theft, use a card carrier with a lined casing to shield the signal from the card. The Massachusetts Office of Consumer Affairs and Business Regulation put out a Consumer Alert describing additional measures you can take, such as stacking several RFID-equipped cards together.

What to do if you're hacked  

If you do fall victim to a skimmer or RFID scam, immediately report it to law enforcement, providing as many details as possible. Contact the security department of your bank or the retailer whose card was compromised. Close the account and put a fraud alert on your credit file. Find additional information to protect your accounts on our identity theft prevention site and from the Federal Trade Commission.

Insuring a rental vehicle: what do I really need?

Car rental insurance is something many of us don’t think about until we get to the rental counter. There we often just guess, wondering if we really need the coverage they offer.

Don’t leave your decisions to guesswork. The truth is you probably don’t need everything they’re selling. Here’s our advice.

Step 1. What coverage do you have?

Your first step is easy. Call us to clarify what your auto insurance covers and whether it extends to a rental car, truck or trailer. Just as important, ask what your policy doesn’t cover.

Tell us if you plan to rent a vehicle for vacation, business or moving things. Your existing coverage might be adequate. Some personal auto policies don’t cover vacation rentals but do cover rentals if your car is being repaired due to an accident. If you’re renting for business, your employer’s policy might already cover you.

If you rent vehicles frequently, consider a rental car endorsement. This could save you money over time.

Step 2. Know what to expect at the rental counter

Whether you’re renting a car, truck or trailer, most rental companies will offer you a Collision Damage Waiver (CDW) to cover collision damage to the rented vehicle.

CDW isn’t insurance. It’s a waiver stating the rental company will waive the rental contract provision that makes you liable for:

·      Losing or damaging the vehicle while you are renting it, whether or not it’s your fault

·      The cost to repair or replace the vehicle

·      The loss of income to the rental company while the rental vehicle is being repaired

If you say yes to CDW, the rental company takes on your liability. The waiver can be voided under some circumstances. Find out what they are.

If your personal comprehensive and collision insurance cover a rental vehicle, the coverage handles only the cost of damage or replacing the vehicle. It does not cover the income the rental company lost while the vehicle was being repaired – a cost you’d be expected to pay. When in doubt, ODI  suggests you pay for CDW.

Some credit card companies offer CDW-like coverage if you pay with their card. We advise calling the credit card company for details, as offers vary and can be complex.

 

Other types of insurance

The rental clerk will also offer these coverages: 

Liability or Supplemental Liability Insurance. Your personal auto policy probably covers liability while driving a rental. Check with us. Ask if your liability insurance applies if another family member drives the rental.

Personal Effects Insurance. PEI covers damages to or loss of personal belongings in your rental car. Homeowners insurance might cover part of this, but find out the amount covered, what belongings are excluded, and the deductible. Then you can decide if you need PEI. 

Personal Accident Insurance. This covers medical and ambulatory costs related to accidental injury or accidental death while renting the vehicle.

For each type of insurance, ODI requires the rental company to give you a factual brochure that explains the insurer’s coverage, exclusions, limitations, provisions, how to file a claim and more. Read this brochure before you decide.

Gather these facts now, and you’ll be able to step up to the rental counter with confidence.

This information is brought to you by Dostal & Kirk, Inc., a proud member of the Professional Independent Agents Association of Ohio, Inc.

Benefits of Safe Driving on Your Car Insurance Rates

Most of us recognize unsafe driving. Texting while driving is not safe. Eating while driving is not safe. Reading, applying makeup, shaving are not safe behind the wheel. Turning around and talking to the kids in the back seat is definitely not safe. Drinking while driving is not only unsafe, it’s against the law.

Committing to save driving habits can save your life and the lives of your friends and loved ones. And there are many other benefits to safe driving too.

Driving Safe Deductible Auto Insurance Discounts

Many insurance companies offer discounts to drivers who they consider “safe drivers.” These incentives for driving safe may be a vanishing deductible discount. Depending on your driving record, this discount may mean that for every year you do not file a car accident insurance claim, your deductible is discounted. Let’s say you have a $500 deductible. If you file no claims for five years and have no accidents, your deductible could be discounted to zero.

Save Driving Courses Save Money and Lives

Taking a safe driving course can help you learn how to improve your driving skills, save your life and help you obtain a discount on your insurance premium. In some states if you take a defensive driving or safe driver course, you could get up to 10% off your insurance rates for three to five years. While safe driving courses do vary, they do teach students how to:

·         Make informed decisions on the road

·         Anticipate potential dangerous situations while driving

·         Have insight into potential problems in their own driving techniques and make needed changes

·         Handle road rage

·         Deal with dangerous weather and road conditions

You may take safe driving courses online, in the classroom or also receive behind the wheel training.

Shave Points off Driver’s Record

Safe driving courses can help you shave points off your driving record after you have received a ticket for a driving violation. If you have received a moving violation ticket, taking a safe driver course may excuse you from having to appear in court. Often, taking the safe driving course may keep your insurance rates from rising after you have had a moving violation.

When you drive safely, additional benefits include:

·         You save money on gas. Your car can achieve peak efficiency when you avoid rapid acceleration and lots of quick stops.

·         Your tires last longer. Safe drivers do not tailgate, except in football parking lots. Because safe driving includes braking gently and not zooming from zero to 80 in 10 seconds, there is less tread wear on your tires.

·         Your engine is happy. Because you are not doing a lot of quick starts, accelerations and rapid stops, your car’s engine can function more efficiently, and thus last longer.

·         You live longer. While you cannot control what other drivers on the road are doing, you will have more awareness of the road and have the ability to be proactive when you sense danger coming. This can result in fewer accidents.

Questions about Driving Safe Benefits You May Qualify For?

Our agents can give you more information about the types of options involving safe driving courses or safe driver discounts that may be available to you in your region. Find out more by contacting Dostal & Kirk Insurance & Financial Services at (877) 562-6801 or info@dostalkirk.com. We return all phone calls and emails promptly.