Tag Archives: Ellicott City

Dundalk water-main break triggers coverage questions | RHH Insurance

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The extensive damage caused by the water-main break in Dundalk last week has lead to many coverage questions and potentially erroneous interpretations.
Normally this type of loss should be considered a flood, and in order for there to be coverage there must be a Flood Policy in effect.  This was confirmed by the Maryland Insurance Administration.  Some insurance companies, however, have indicated they might cover the claims under homeowners’ or other property policies.  This will depend on the wording of the individuals’ policy, specifically the water-damage exclusion, coverage for burst pipes and/or backup of sewer and drains coverage.
Here are the MIA’s official guidelines concerning this incident:
•    People who have flood insurance can file under their flood policy
•    People who don’t have flood insurance should file a claim with their property  insurer and get any denial in writing; and
•    The MIA will handle any complaints they get and look at the specifics at that time.

Floods can happen anywhere and everyone is at risk, as demonstrated by the Dundalk water-main break.  This is a perfect example of why even if you don’t live near the water you still need a Flood Insurance Policy!

Funds Transfer Fraud and Computer Fraud

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-A company’s payroll supervisor logged on to the payroll account and noticed three payments totaling $704,632 had been wired from their account. The supervisor immediately reported the transactions as unauthorized. The bank shut down the account and was able to recover all but $238,781. The FBI and Homeland Security investigated and determined that someone had gained access to the vice president of finance’s username and password via computer programs that had been surreptitiously downloaded onto the vice president’s computer.

-A company’s bank allegedly sent it a letter advising of a new security program. The company then received an email that appeared to be from their bank. The company’s employee opened the email, which allowed a Trojan horse computer virus to get in. It was able to read key strokes from the insured’s computer, thereby enabling the perpetrator to obtain banking and password information and initiate a fraudulent electronic wire transfer from the insured’s account. This ended up causing a loss to the company of $683,000.

Computer Fraud

-A company’s website was hacked into by an employee of one of its customers who changed her employer’s bank routing code on the web site to her own. When the company paid her empoyer for services rendered, the money went directly into her account instead.

-After he’s fired, a former employee used his supervisor’s password to enter the insured’s unlocked building and used the supervisor’s computer. He initiated transactions using his bank routing code to receive fake reimbursements purportedly made to the company’s customers.

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Choose Travelers for your electronic funds transfer fraud and computer fraud coverages and you’ll have access to risk mitigation articles, security guidelines and discounted McAfee software security. To learn more about this comprehensive program, talk with your independent insurance agent or visit Travelersbond.com

How does life expose thee? Let us count the ways

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Six good reasons to have a personal umbrella

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.

Small Businesses Targets for Cyber Crime, Prospects for Specialty Coverage

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Off-the-shelf anti-virus and data-encryption software are far from foolproof, and computer hackers know it. Citing a Verizon study of cyber attacks, The Washington Post reports that cyber criminals are increasingly looking for softer targets like small- and medium-sized businesses that may be less protected.

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

Don’t Overlook Wedding Insurance for Your Big Day

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Wedding insurance is a little known type of insurance coverage that can be priceless should anything at all go wrong on a wedding day. For the couple themselves, this insurance can help to protect their financial investment and future should anything unexpected happen on their wedding day. And for parents of the wedding couple, wedding insurance can both protect their financial investment and help to insure that the wedding day is perfect.

For most people, a wedding day is the single most expensive day of an entire lifetime of expenses. When planning a wedding, there are outrageous expenses at every turn, from booking the venues to contracting service providers. Enormous amounts of money can be spent quickly to make everything perfect for a couple on their special day, and though hopefully everything will go exactly as planned, there are so many emergencies that can pop up. The smartest thing that anyone who is planning a wedding can do is purchase wedding insurance to cover all the expenses that will be paid for.

Wedding event insurance is perhaps the more popular of the two types of coverage generally offered. This covers the entire event from planning through wedding day, and insures against extreme situations. It covers illness, disaster, or military deployment that can lead to postponement. It also covers all the deposits paid to vendors in the event that they go out of business, are unable to serve a wedding, or simply do not show up.

There are generally two types of wedding insurance that are offered, and most providers offer them both individually and as a package in order to offer the insured the right coverage for their event. Wedding liability insurance is the first type of wedding insurance that is generally offered. This insurance offers coverage for the wedding couple, or their parents, should they be held responsible for property damages or personal injuries either at the wedding or as a result of the wedding. This type of coverage usually also covers alcohol related incidents that can occur at or after the wedding. This coverage is important, as many venues now require renters to have it.

FIRST NATIONAL TEST OF NATIONWIDE EMERGENCY ALERT SYSTEM

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On November 9th FEMA, DHS and FCC will conduct the first national test of the Nationwide Emergency Alert System test. This test will kick off at 2:00 p.m. (EST). The test will be nationwide, running concurrently across all time zones.

This system test is the first of its kind. It is designed to broadcast a nationwide message to the American public. Nothing like it has been conducted in the history of the country. There have been tests in the past but none to all parts of the Nation at the same time. The test will run concurrently on all radio and TV bands and the message will run for three minutes. Most messages in the past were anywhere from 30 seconds to 1 minute.

There is great concern in local police and emergency management circles about undue public anxiety over this test. The test message on TV might not indicate that it is just a test. Fear is that the lack of an explanation message might create panic.  Please share this information with your family and friends so they are aware of the test.

Below are two websites, that will provide more information…
http://www.fema.gov/emergency/ipaws/eas_info.shtm
https://nationaldialogue-emergencyalertsystem.ideascale.com/

MD Hand Held Cell Phone Ban Law effective October 2010

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This new law prohibits all Maryland drivers from using a Cell Phone with a Hands Free Device while operating a motor vehicle. In addition, the new law prohibit’s “a holder of a learner’s instructional permit or provisional driver’s license who is 18 years of age or older from driving a motor vehicle while using a handheld telephone”. The fine for the first offense is $$40 and subsequent offenses would be $100. The new law is a secondary offense, meaning that a driver must first be committing a primary offense such as speeding or reckless driving before they could be ticketed for a Cell Phone offense.

OCTOBER IS BREAST CANCER AWARENESS MONTH

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BE BOLD. MAKE AN IMPACT!
SUPPORT SUSAN G. KOMEN RACE FOR THE CURE®
RHH INSURANCE DOES!  HOW ABOUT YOU?

The Komen Race for the Cure® raises significant funds and awareness for the fight against breast cancer, celebrates breast cancer survivorship, and honors those who have lost their battle with the disease.  Find out how you can help. http://www.komenmd.org/site/c.ddJIKPNnFkG/b.2530875/k.BEBF/Home.htm

In Case of Disaster

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CALL US AT (410) 465-4300 IF YOU HAVE AN EMERGENCY
 
As Hurricane Irene approached our area, we posted important announcements for you on our website and Facebook page. Rossmann-Hurt-Hoffman put detailed disaster plan in place, so even in the event we suffer a loss, you will still be able to reach us for assistance. We are here for YOU!
 
Here are some steps you can take to stay safe.
 
Preparing Your Family
• Check your disaster supplies and replace or restock items as needed.
• Talk with members of your family and create an evacuation plan.
• Make sure you know where the closest local shelter is located.
• Put together an Emergency Supply Kit that includes the following:
- Water-at least a 3-day supply; one gallon per person per day.
 
- Food-at least a 3-day supply of non-perishable, easy-to-prepare
   non-perishable foods such as cereal or crackers, and canned goods. 
 
- Can opener
 
- Flashlights and extra batteries (Count on the power being out for at least a
   day or two)
 
- Battery-powered or hand-crank radio,
 
- First aid kit,
 
- Medications (7-day supply) and medical items (hearing aids with
   extra batteries,
 
- glasses, contact lenses, syringes, cane),
 
- Sanitation and personal hygiene items including toilet paper
 
- Cell phone with charger,
 
- Extra cash (remember that ATM’s will be non-operating),
 
- Emergency blankets,
 
- Map(s) of the area,
 
- If needed, baby (bottles, formula, baby food, diapers) and pet
   supplies (collar, leash, ID, food, carrier, bowl),
 
- Extra set of car keys and house keys,
 
- Extra clothing, hat and sturdy shoes,
 
- Rain gear.
 
- If you have children – computer games will operate for only a limited amount
   of time. Consider packing board games, a deck of cards, arts and crafts
   supplies and crayons.
 
If you need to leave your home be careful to avoid flooded roads and washed out bridges.

Preparing Your Home
• Bring in or secure anything that can be picked up by the wind (bicycles, lawn furniture).
• Close your windows and doors. If needed or advised to do so, windows and doors can be boarded up with plywood.
• Turn the refrigerator and freezer to the coldest setting and keep them closed as much as possible so that food will last longer if the power goes out.
• Turn off all propane tanks
• Fill your car’s gas tank.

General Safety Information
• Drive only if necessary
• Keep far away from loose or dangling power lines and report them immediately to the power company.
• Stay out of any building that has water around it.
• Use flashlights in the dark, avoid using candles.
• Before preparing food or drinking tap water make sure it is not contaminated.
• Watch animals closely and keep them under your direct control.
• Use the telephone only for emergency calls.
 
Preparing your business
Consider taking the following precautions to help protect people and property and guard against disruption of operations:
 
• Review your business continuity plan and communicate emergency evacuation and business interruption instructions to employees. If you don’t have a written plan, now is the time to create one. Each business should have an emergency plan including a detailed procedure for evacuation, a checklist for shutting down processes and protecting buildings, contents, equipment, and yard storage. Procedures should include salvage instructions to follow post-event.
• Back up critical data and computer records off-site so that operations can continue after a disaster. Consider keeping a backup generator and plenty of batteries on hand so your business can continue to operate after a power loss.
• As a hurricane approaches, quick actions should to be taken to install temporary protection features including:  
 
-  Shutter or board up windows to protect them from flying debris

-  Clean out floor drains and catch basins to ensure maximum drainage
 
-  Anchor structures, trailers and yard storage so they are more likely to stay
    put during high winds
 
-  Fill emergency generator and fire pump fuel tanks
 
-  Shut down production processes safely
 
-  Shut off all flammable and combustible liquid and gas lines at their source
 
-  Shut off electrical power at the main building disconnect before the 
    hurricane strikes.
 
• Once the storm has subsided and it is safe to return, a salvage team should be assembled and repair work prioritized, assuring proper supplies are available and safety procedures followed.

These and other tips on how to stay safe during hurricanes and other natural disasters are available on the FEMA website. There is no harm in being overly cautious.  Please be safe!

ALREADY TIRED OF HEARING THE WORD EARTHQUAKE?

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Are you already tired of hearing about the earthquake that shook the East Coast yesterday? Well, this is one bit of information that will hopefully make you stop and think, “Does my homeowners or business policy cover damage caused by an earthquake?”.

Did you know that Standard homeowners and business insurance policies exclude damage to property caused by an earthquake? Since coverage is usually available by endorsement or by a separate stand alone policy, call and talk to one of our friendly account executives today at 410-465-4300.