Tag Archives: insurance

EAT, DRINK AND BE LIABLE!

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Hidden liability comes along with holiday festivities. For those who mix alcohol with corporate or private parties, proper insurance is essential.

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.

When Decorating Your Business for the Holidays…

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HERE ARE SOME SAFETY TIPS TO KEEP IN MIND  WHEN DECORATING YOUR BUSINESS FOR THE HOLIDAYS…

•    Consider hiring a contractor for unusually dangerous installations such as locations which require work over large atriums, roof tops and leading edges subject to falls greater than 6 feet from the walking surface. Be sure to obtain certificates of insurance, including a hold-harmless agreement, from a sub-contractor to verify insurance coverage for workers compensation and general liability.
•    Refrain from using inappropriate substitutes for ladders, such as an unstable chair or box to reach overhead areas.
•    Electrical fixtures must be UL listed, be in good condition and not subject to damage and or overheating.
•    Use caution when selecting the area to display decorative lights. Consider displaying decorations in low traffic areas and avoid creating a trip/fall hazard with light strings and/or extension cords.
•    Be sure to consult with local authorities regarding laws which prohibit the use of live trees in-doors within public places of assembly. In some jurisdictions the use of live trees for display or electrical lights is not permitted.

Do you need to carry workers compensation insurance?

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Do you have any employees?  Do you know the criteria used by the State of Maryland, or any other state, to determine whether someone working for you is considered an employee?  Workers’ compensation laws  vary greatly state by state, so be sure and call one of our Workers’ Compensation specialists today at 1-866-847-0449 and they will help you determine if you are in a situation that legally requires you to purchase this coverage.  If you find that you do need workers compensation insurance, be sure and ask about our “Pay As You Go” plan that is offered by many of our insurance carriers!

For more information regarding workers’  compensation coverage click here: http://www.rhhinsurance.com

H1N1 Flu-Everyone’s Problem

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If the flu becomes more severe this fall and winter, it is likely to be a prolonged and widespread outbreak that could require major changes in many areas of society, including schools, businesses, transportation, and government. To be prepared, government health agencies encourage individuals, businesses, and communities to consider the following:

• Talk with your local public health officials and health care providers, who can supply information about the signs and symptoms of a specific disease outbreak and recommend prevention and control actions.

• Adopt business practices encouraging sick employees to stay home, and anticipate how to function with a significant portion of the workforce absent owing to illness or caring for ill family members.

• Practice good health habits, including eating a balanced diet, exercising daily, and getting sufficient rest.

• Take steps to stop the spread of germs, including frequent hand washing, covering coughs and sneezes, and staying away from others as much as possible when you are sick.

• Stay informed about pandemic influenza and be prepared to respond. Businesses can receive e-mail updates on guidance and H1N1 facts and figures virtually daily through the federal government’s clearinghouse for influenza information: www.flu.gov.

At the end of the day, both the public and private sectors must incorporate the lessons we learned this spring. Being prepared to respond to an emergency is in a business’ own interest; it is also a shared responsibility of both business and government to become actively engaged in preparation and prevention efforts—working separately and together.

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!

MD Insurance coverage for children in college

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A question parents and their college-aged children don’t ask, but we need to ask, is, “Will these college students be covered under their parents’ Homeowners and Personal Auto policies while they’re living away from home and attending school?” The answer may be, “Yes.” However, the answer may be, “No.” And, sometimes the answer could be, “Maybe.”

The Millers’ 21-year old son, Buster, and their 18-year old daughter, Princess, have loaded their cars and are headed to college. Buster is entering his junior year, and Princess will be a freshman. Buster is sharing an apartment with three of his fraternity brothers, and Princess will live in the dormitory. Will their “stuff” – clothes, computers, TVs, music systems, books, etc. – be covered under their parents’ Homeowners policy? Will they have liability coverage if they cause injury or damage to another person? The Homeowners definition of “insured” includes “a student enrolled in school full-time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of 24 and your relative.”  Therefore, as long as Buster and Princess satisfy three requirements – full-time student, resided at home before attending school, and under the age of 24 – they’re considered an insured under their parents’ Homeowners policy.

If  Buster and Princess are considered insureds, their “stuff” will be covered for the same perils as the personal property located in their parents’ home. However, it could be limited. The Homeowners policy’s limit of liability for “personal property usually located at an ‘insureds’ residence, other than the ‘residence premises’, is 10 percent of the limit of liability for personal property, or $1,000, whichever is greater.”  Therefore, if the Millers’ home is insured for $200,000 and they have a personal property limit of $100,000, the “stuff” belonging to Buster and Princess is limited to $10,000.  This may be enough for Buster, but probably not for Princess. (I’ve raised a son and a daughter!). Again, there is an endorsement to address this problem.

One last comment on Homeowners coverage for college students. If they’re living in an apartment rather than a dormitory or a fraternity or sorority house, and qualify, purchase a Tenant Homeowners policy (HO-4). It’s worth the few extra dollars. I’ve been there too!

Buster and Princess probably have their own cars. After all it would be un-American to send a child off to college today without their own automobile. Are there any concerns here? Could be.

Who owns the cars? If titled in the kids’ names, then they need their own Personal Auto policies. What limits will they buy? Probably minimum. Since they’re “family members”, will they have any coverage under their parent’s Personal Auto policy? No. The Personal Auto policy excludes liability for “the ownership, maintenance or use of any vehicle, other than ‘your covered auto’, which is owned by any ‘family member’.”  What if the cars driven by Buster and Princess are owned by the parents? No problem as long as they keep those cars listed on the Millers’ Personal Auto policy.  Too often parents of college kids think if they transfer the auto insurance to the kids, they’re getting rid of the exposure. Not true. In order to transfer the auto risk, you have to transfer the title.

Let’s wrap this up…
• Make sure your insureds’ children who are away at college are still considered “insureds” in the Homeowners policies you write.
• Increase the 10 percent of Coverage C limitation on the student’s personal property, if necessary.
• Write a Tenant Homeowners policy for the student, if possible.
• If the parents still own the car being driven by the student, that car should be insured under the parents’ Personal Auto policy.
• If the parents want to take the student off of their Personal Auto policy to save money and have the student purchase the insurance, they should transfer the car to the student.
Will those college students be covered under their parents’ policies? That’s up to you!

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 continuing education programs.