There is no question that the ownership and use of our autos present us with the greatest personal liability exposure. But our normal daily activities can expose us to the potential of a large liability claim that could threaten our personal assets. One of the best ways to understand the need for a personal umbrella policy (PUP) is to review actual claim examples. Listed below are actual personal liability claims that illustrate the need for higher personal liability limits.

Loss #1
A couple hosted a pool party for their teenage children. They did not provide any alcohol, but it was brought by some of the guests and was available. After leaving the party, one of the guests was severely injured in an auto accident, and the injury was attributed to his consumption of alcohol. This case went to the Wisconsin Supreme Court which decided that anyone who sells or furnishes alcohol to a minor is responsible for the minor’s injuries as well as any injuries caused by the minor. The opinion of the court was that the homeowners should have prevented the consumption of alcohol by minors on their premises. Both the homeowners’ and personal umbrella policies responded to this claim.

Loss #2:
The insured hosted a party at his home. Among the guests was a family friend, who was also the insured’s financial advisor. The friend brought his wife, their 2-year-old child and their baby to the party. The insured gave them a jug of spring water to mix formula for the baby. The 2-year-old child also had a drink of the water. Shortly thereafter, both children became ill. The family left the party and took the children to the hospital. The hospital confiscated the water jug which was found to contain arsenic. An old label was found wrapped around the handle with the words “weed killer” printed on it. The insured had mistakenly given the jug, which was similar to the ones containing spring water, to the family. The baby died and the 2 year old survived after being in critical condition several days. The personal umbrella liability limit was paid.

Loss #3:
The insured’s 18-year-old son was driving his parents’ car to the store with his 19-year-old girlfriend. He left the roadway and hit a tree. The son told the police that another car cut him off, but there were no witnesses, and the girlfriend had no recollection of the accident. She was hospitalized for over a month with multiple fractures and internal injuries and received extensive physical therapy. The personal umbrella insurer settled with the girlfriend for the policy limit.

Loss #4:
An 18-year-old college student was struck by a fraternity paddle during initiation. He sustained facial fractures and blindness in his left eye. The fellow fraternity members and their families were sued. The court awarded $1,300,000.

Loss #5:
A 28-year-old engineer dove into a friend’s above-ground swimming pool, struck his head on the bottom and, as a result, became a quadriplegic. He sued both the homeowner and the pool manufacturer. The court found the homeowner to be 60 percent responsible and the pool manufacturer to be 40 percent responsible, and awarded $10,000,000.

Loss #6:
A babysitter left a 5-month-old infant unattended in a walker. The infant toppled the walker, struck her head on the floor and suffered brain damage. The parents of the infant sued the teenage babysitter and her parents. The court awarded the parents $11,000,000.
The above losses show the consequences of situations that can quickly exhaust the liability limits of the underlying policies.

For less than the cost of a cup of coffee a day, most folks can purchase a personal umbrella policy with a limit of $1,000,000, possibly $2,000,000 or even $5,000,000.
Jerry Milton, CIC, contributed this resource. The legal profession recognizes him as an expert on insurance coverages. He is also an education consultant for IA&B, working with CISR, CIC and on-demand CE programs.

The data risk management experts cited in the Post’s report recommend that small-business owners consider cyber liability coverage in addition to beefed-up security. These owners must determine whether they’re doing enough to protect sensitive information and whether their standard liability policies would cover first- or third-party losses and damages should a data breach occur.

Read the Washing Post Article Below…

http://www.washingtonpost.com/blogs/on-small-business/post/cybersecurity-insurance-what-small-businesses-need-to-know/2011/12/28/gIQAYlL5MP_blog.html

Insurance is available for all trades, including roofers, electricians, mechanical contractors, HVAC professionals, plumbers and other contractors. When you enter someone else’s premises or property, you can be held liable for any damage that occurs. This can be accidental damage, damage due to faulty equipment or damage due to negligence.

Carrying contractors insurance is a good way to obtain work. Many individuals and businesses will refuse to hire a contractor who does not carry their own insurance. Use your insurance coverage as a selling point when seeking new business. Accidents happen even under the best of circumstances. To work without adequate insurance is just asking for troublesome lawsuits. The cost is very reasonable and would be tax deductible as a business expense.

Visit www.rhhinsurance.com today to receive details regarding contractors insurance that you need. Their insurance professionals can explain what coverage you should have and why you need it. They will look at your particular area of expertise and have the experience to pinpoint the coverage you should have immediately. A checklist of coverages needed for your type of contracting work will be created to ensure that you do have all the coverage you should have in order to conduct business successfully.

Contractors insurance is very helpful and frequently required as a prudent measure to protect the business you are contracting out to. Most business professionals required that subcontractors and contractors carry their own business liabilty insurance. This type of insurance assures protection to clients also, against non-performance and other problems that commonly occur when using contractors.

There are numerous types of restaurant insurance policies you can choose from. It is best to understand the laws in your locale prior to picking a policy. There is no need to opt for coverage you may not need in your situation. Consider the type of business you will be running before you choose a policy. It is a good idea to work with an insurer who can provide protection that is specific to your needs.

The most essential types of coverage are general liability, workers’ compensation and property insurance. General liability protects you from lawsuits should anyone get injured or sick in your restaurant. Workers’ compensation provides a similar type of protection for your employees. Property insurance safeguards the building and property in the event of a fire or other disaster.

There are many other types of protection you can use to augment your insurance policy. If you sell alcohol in your restaurant, most states will require you to purchase liquor liability insurance. This protects you if a customer becomes injured after drinking at your establishment. Insurance to cover food contamination due to loss of power is also a good investment. Additionally, specific peril insurance will protect your business from natural disasters.

Restaurant insurance will cover anything from liability issues to faulty equipment. As a restaurant owner, you are obliged by the law to protect your business with insurance coverage. For added protection, consider obtaining a life insurance policy to protect your loved ones from financial obligation. Before you open for business, it is important to determine what type of policy you should commit to. Procuring an insurance policy will safeguard your livelihood so you can reap the rewards of running a profitable business.

Restaurant insurance will help to protect the owners from damages and losses associated with unforeseen events. Not only is it important to mitigate monetary damages, but it can also be required both by state law and by some financing agencies in order to operate and secure financing.

Like most insurance types, there are a variety of different options available. Property insurance is crucial to a business because it will cover the costs of rebuilding should a fire or other incident occur. Being secure that the building will survive most events can help to reassure investors. Unfortunately, most property insurance does not cover weather related damages which are covered mainly by a different policy option.

General liability is insurance against events that may happen to patrons inside of the restaurant. This includes cases such as food poisoning or slip and falls. Having general liability can save a business from a bad series of events that could end in an expensive settlement.

Workers compensation is another type of insurance that may be required. This insurance will cover the costs of medical and other bills should an employee of the restaurant be injured while on the job. Without this insurance, then those bills would have to be paid out of pocket.

There are a number of different options that can be included in a restaurant insurance policy. There are insurance policies for nearly every situation. There are even policies that can cover the failure of the business, liquor liability for the actions of intoxicated customers, and automobile liability if your restaurant uses delivery vehicles.

Whatever the need, there are restaurant insurance policies available to help protect the business. They can help to make sure that the business runs smoothly over the years and help to increase profits even when unexpected events occur.

• Have you gotten married or divorced?
• Have you had a baby?
• Did your teenager get a driver’s license?
• Have you switched jobs or experienced a significant change in your income?
• Have you done extensive renovations on your home?
• Have you decided to buy a vacation or potential retirement home?
• Have you acquired any new valuables such as jewelry, electronic equipment, fine art, antiques?
• Have you signed a lease on a house or apartment?
• Have you joined a carpool?

If you answer yes to any of these questions, give us a call to update your policy. (410) 504-1002

This reference note addresses slip, trip, and fall hazards, and describes interventions, including outdoor walkway design and maintenance, visible warnings, and snow/ ice removal strategies. Walkway surfaces include sidewalks, curbs, parking areas, curb ramps, and entrances. Stairway design is not addressed in this reference note. See LP 5158, Controlling Falls on Stairways, for guidelines on stairway fall prevention.

Trip Hazards

A trip occurs when the foot strikes a near-ground obstacle that abruptly arrests the movement of the food when the body’s center of gravity is in motion.  This causes the center of gravity to rapidly move out of the area of the body’s support base (the planted foot), resulting in a fall.  A trip most often results in the person falling forward, while a slip most often results in the person falling backward.

Most state, local, and federal codes and standards describe changes in level of ¼ inch or higher in the course of travel as a trip hazard.  The obstacle should be eliminated through facility design or maintenance, if at all possible.  However, if elimination is not possible, other options include:

•    For changes of level ¼ inch to ½ inch (6mm to 13mm), bevel the edge with a slope no greater than 1:2.

•    Slope is the angle of incline usually given as a ratio of the rise (or vertical height) to the run (or horizontal length).  The larger the run, the more gentle the incline angle.

•    For level changes greater than ½ inch (13mm), install a ramp with maximum slope 1:12.

•    A third, but less desirable option, is to make the hazard visually noticeable through appropriate detectable warnings.

Sidewalks, Curbs and Parking Lots

A business owner may not be responsible for injuries resulting from a fall on a public sidewalk located outside his or her property.  However, some courts may impose liability for injuries on a sidewalk used exclusively by customers coming to and from the business.  Consult with your legal counsel if you have questions on liability.

A parking lot owner, however, can be responsible for maintaining the parking lot in a manner such that it is reasonably safe for people using it.

This includes:

•    Filling and patching cracks and holes

•    Repairing and eliminating raised areas due to tree roots, settling, cold weather (frost heaves), and ordinary wear and tear.

•    Reducing surface water by directing roof drainage away from sidewalks and parking areas.

•    Clearing sidewalk/parking areas of snow/ice before employees and guests arrive.

•    Centering and securing parking stoppers.

•    Painting or staining parking stoppers near entrances Safety Yellow to improve visibility.

Curb Ramps and Handicap Ramps

State, local and national codes specify guidelines/requirements for curb ramps and handicap ramp design.  For example, ramp slopes 1:15 minimum to 1:12 maximum with “slip-resistant” surfaces is often cited.  There are no specific guidelines as to what “slip-resistant” means, but some codes specify grooving or other alternations of the curb ramp to improve slip-resistance.  Check with your state and local codes for requirements on ramp slip-resistance guidelines.  Handicap ramps and curbs are colored Safety Yellow (see section on Color, Contrast, and Visible Warnings).

Entrances

Entrances represent unique slip and fall issues and are addressed in LP 5408, Preventing Slips and Falls: Selecting the Right Matting System.  For outdoor walkways at entrances exposed to the elements, consider installing a canopy to reduce snow, ice and water from being tracked into the building.

Color, Contrast and Visible Warnings

Recent U.S. Access Board Research recommends Safety Yellow as the preferred color for persons having very low vision.  Yellow or yellow-orange warning surfaces are preferred over black warning surfaces.  Safety Yellow, therefore, is a color standardized for use as a warning in the pedestrian/highway environment.

Ice, Snow, Water

Slips and falls from snow, rain, and ice are common in northern climates.  Falls can be caused by inadvertent accumulation of ice and snow due to misapplication.  Misapplication can be caused by selecting less efficient deicing chemical(s) and friction additives (sand), and inadequately managing application schedules.  Effective ice removal often occurs during the day with full sun.  But, full sun will melt adjacent snow or ice, placing water on the de-iced walking surface.  This will dilute the solution and tend to refreeze at night.  With the dropping temperatures, ice can re-form with the falls occurring first thing in the morning.

Selection of ice melting chemicals

•    Rock salt (Sodium Chloride) is the least expensive but is somewhat corrosive and can damage concrete, interior surfaces, and vegetation.  It may need a wetting agent for application at low temperature.

•    Calcium Chloride and Magnesium Chloride are more effective than Rock Salt, and most effective at lower temperatures.  Magnesium Chloride is somewhat less corrosive than Calcium Chloride, which is about as corrosive as Rock Salt.

•    Calcium Magnesium Acetate is the most environmentally friendly, but is more expensive and is least effective at lower temperatures.

•    The following are guidelines for managing slips and falls from snow, ice and water:

•    Plow, shovel, and use deicing, salting, or ice melting chemicals to remove ice and snow.

•    Pre-apply deicing chemicals before a storm, followed by snow/ice removal during and after the storm.  Use plenty of deicing materials, as using “barely enough” will leave patches of ice.

•    Check the surface regularly.  For parking areas, this can be time consuming, but it is well worth the effort.

•    Aim for evaporation.  If the water can drain (e.g. drains aren’t blocked) and there is full sun, or even reasonable wind, the water (even ice) will evaporate.  A dry pavement is a clear indication there is no ice.

•    Use a friction additive.  Sand is the most popular because it’s cheap.  Use a lot of it.  Make certain that anyone walking on the surface has a lot of traction.  You can clean up the mess once the bad weather is over.

•    Check and treat surfaces every morning, especially around snow piles where melting may have created new problem areas.  Reevaluate during the day and re-treat as needed.

•    Remember that a clean-looking surface is only “safe” if it’s dry.  A wet surface can contain ice, and can also turn to ice in the shade or overnight.

•    Hold facility managers, custodians, grounds maintenance staff, and contracted snow removal personnel responsible for snow and ice removal.

•    Train those responsible in procedures for safely maintaining walkway surfaces, including the location of equipment and supplies.

Outdoor lighting

Inadequate lighting may also lead to accidents involving falls in parking lots, trips over curbing, falls on a step or stairs from a parking lot to a store, and trips and falls due to holes, cracks, and uneven surfaces.

Recommended outdoor lighting levels for general parking, ramps and corners, pedestrian areas, and entrances are giving in LP 628, Lighting for Safety and Performance.

Holidays can be fun times filled with office and private parties, but they can also be deadly with increased drunk driving this time of year. Anyone hosting a holiday party should take steps to limit their liquor liability and make sure they have the proper insurance, according to the Insurance Information Institute (I.I.I.).

Social host liability laws vary widely from state to state. Some states do not impose any liability on social hosts. Others limit liability to injuries that occur on the host’s premises. Some extend the host’s liability if the person who was provided the alcohol is killed or injured, or kills or injures another person. Many states have laws that pertain specifically to furnishing alcohol to minors.

“Most people are aware that serving alcohol to minors is illegal, yet a survey of young people shows that the most common sources of alcohol are from their own home or from persons over the age of 21 who purchase alcohol for them,” said Loretta Worters, vice president with the I.I.I. “Depending on the jurisdiction, violations of social host laws can lead to civil or criminal fines, imprisonment and monetary damages awards.”

Worters also pointed out if you are throwing a party where alcohol is served, it is your responsibility to make sure that your guests are capable of driving safely. “You don’t want to allow anyone who has been drinking to drive home and possibly kill or injure themselves or others on the road.”

HOW TO PROTECT YOURSELF—AND YOUR ASSETS

If you plan to host a holiday party and serve alcohol, the I.I.I. offers the following tips on how to have a successful and safe party:

• Consider hiring a professional bartender or reliable friend to serve drinks. This will discourage your friends from mixing their own drinks and help to keep track of the size and number of drinks they consume. Most bartenders are trained to recognize signs of intoxication and will limit consumption by partygoers who have had too much.
• Be a responsible host. Limiting your own alcohol intake will allow you to better determine if a guest is sober enough to drive at the end of the night.
• Serve non-alcoholic beverages. Always have soft drinks, juices and other non-alcoholic beverages available for those guests who are driving or choose not to drink.
• Don’t serve alcohol to minors. Period. The legal drinking age in every state is 21 and, as a host, it is your responsibility to abide by it.
• Don’t force drinks on your guests or rush to refill their glasses when empty. Be a smart host; push the food, not the alcohol on your guests.
• Always serve food with alcohol. It is proven that food can help counter the effects of alcohol.
• Don’t admit individuals into your home who are already intoxicated. Access to more alcohol will likely create negative outcomes that you could be held liable for, such as fighting, alcohol poisoning and drunk driving.
• Stop serving alcohol at least one hour before the party ends. Serve only coffee, tea and non-alcoholic beverages toward the end of your party. As the host or hostess, it is your responsibility to help your guests get home safely, so limit the amount of alcohol served toward the end of the party as guests prepare to go home.
• Speak to each of your guests before they leave the party. If you think someone is unable to drive, call a cab and pay for it yourself, arrange a ride with a sober friend, drive your guest home, or encourage that person to stay over. This will protect your guest as well as other drivers on the road.
• Encourage all your guests to wear seatbelts as they drive home. Studies show that seatbelts do safe lives.

“Talk with your insurance agent about your liability insurance coverage and any exclusions, conditions or limitations your policy might have for this kind of risk,” advised Worters. “Appropriate liability insurance coverage is necessary, but your insurance may not be enough to cover a judgment against you as a social host. If you are also charged criminally, then it is possible that your policy will not cover the civil judgment.”

Worters noted that party hosts should do their part to help reduce the number of DUI-related crashes by taking the necessary steps to help promote responsible hospitality over the holiday season. “It’s not just about the risk; it’s also about the responsibility. Nobody wants to feel responsible for someone else’s injury or death.”

The I.I.I. is a nonprofit, communications organization supported by the property/casualty insurance industry.