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More On Insuring a Rental Car

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Properly insuring a rental car can be confusing. So how do you determine whether or not you should purchase the coverage offered by the rental car company? Most importantly, you must educate yourself in order to make the decision that is right for you. Know what’s covered by those seemingly steep fees so you can make an informed decision when you step up to the rental car counter. Avoid the costly mistakes of either wasting money purchasing unnecessary coverage or having dangerous gaps in coverage. Before renting a vehicle, you should make two phone calls-one to your insurance agent and the other to the credit card company you will be using to pay for the rental car.

To help you become an informed insurance consumer, let’s start with a few of the many unknown facts:

Loss valuation: Most personal auto policies (PAP) don’t cover reimbursement for the full value of a car, which many rental car agreements require. Without purchasing the rental car company’s collision damage waiver/loss damage waiver (CDW/LDW), you could end up with coverage of the actual cash value or repair costs (the lesser of the two wins out), which–more often than not will not reimburse the rental car company for the full value.

Diminution of value: For third-party claims, your policy could cover claims of diminished value under the “expenses for which you become legally responsible” clause. However, there is a cap on the payout, and many states have approved an endorsement which excludes claims of diminished value. This means you could be caught legally responsible for paying the difference between the reimbursement by your insurance carrier and the vehicle’s decrease in value to the rental car company.

Use of vehicles: While many auto policies don’t cover physical damage of certain non-owned vehicles–including vans and pick-up trucks–used for business purposes, the CDW/LDW doesn’t carry those exclusions.

Coverage area: The ISO Personal Auto Policy (PAP) doesn’t cover an insured when traveling beyond the United States, Puerto Rico or Canada.

Types of vehicles: Physical damage coverage for motorcycles, pick-up trucks, vans, motor homes and other non-autos isn’t normally covered under the PAP for rented vehicles.

Loss settlement: Certain Personal Auto Policy editions stipulate that an insurance company has an opportunity to appraise the vehicle before it is repaired. If an ambitious rental company makes immediate repairs, the insured may lose coverage by default.

Indirect losses: The rental car company will probably hold the driver responsible for its loss of rental income. Certain PAP editions only cover loss of income for a theft; others have daily and maximum indirect-loss caps.

Administrative expenses: The PAP usually doesn’t cover loss-related fees for appraisal, storage, towing, etc. Rental car companies are known to tack on exorbitant expenses and lump them under “administrative expenses.”

Credit Card Company: Insurance benefits offered by credit card companies differ by both the company and/or the bank that issues the card, as well as by the level of credit card used. For instance, a platinum card may offer more insurance coverage than a gold card.

Credit cards usually cover only damage to or loss of the rented vehicle, not for other cars, personal belongings or the property of others. There may be no personal liability coverage for bodily injury or death claims. Some credit card companies will provide coverage for towing, but many may not provide for diminished value or administrative fees. Some credit card companies have changed their policies, too, so you may not have as much coverage as you thought.

To know exactly what type of insurance you have, call the toll-free number on the back of the card you will be using to rent the car. If you are depending on a credit card for insurance protection, ask the credit card company or bank to send you their coverage information in writing. In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

If you have more than one credit card, consider calling each one to see which offers the best insurance protection.

Be an educated insurance consumer, do your homework and then weigh the risks and benefits. The extra $20 per day doesn’t seem nearly as ugly when compared to hefty expenses from coverage gaps.

Want to learn more about rental car coverage? Call our agency today and ask to speak with one of our insurance specialists! (410) 504-1002

Contractors Insurance | Maryland

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Contractors insurance is essential to have to protect your business and your personal assets. If you are acting as an independent contractor, this is even more important because chances are you are operating as a sole proprietor and therefore your personal belongings are at risk in a legal dispute.

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 liability insurance. This type of insurance assures protection to clients also, against non-performance and other problems that commonly occur when using contractors.

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.

Lowering your exposure to risk is another area where insurance expertise is essential. At www.rhhinsurance.com, their insurance experts know from experience what coverage will actually help lower your risks from damage that occurs while on the job. They will confirm that you have all the proper coverage limits in effect, examine the financial state of your insurance carrier and check for overall correctness.

Coordinating your contractors insurance with your clients’ specifications in contracts is another important detail to look at. Meeting all insurance and indemnification provisions is a “must do” in today’s litigious society.

Preventing Outdoor Same Level Slips, Trips and Falls

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Slips, trips and falls in outdoor environments can be caused by rain, sleet, ice and snow, and particulate soil that causes surfaces to become slippery or produce poor traction. While we cannot control environmental conditions that increase slipperiness of outdoor walkway surfaces, we can certainly reduce the likelihood of falls through improved design of exterior sidewalks, curbs, parking areas, improved lighting, and improved maintenance to increase awareness and eliminate hazards.

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.

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.

Watch Out For Those Deer!

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Maryland is classified as a high risk state for vehicle collisions with deer, which if you drive and live in our area doesn’t come as a big surprise to you! The same holds true for most of our neighboring states including West Virginia, Pennsylvania and Virginia.  Though not in the top ten, statistics show that in Maryland, 1 in every 141 motorists will have a collision with a deer in the next 12 months. For the third year in a row, West Virginia tops the list of states where a collision is most likely to occur at 1 in 39 with Pennsylvania 1 in 94, and Virginia rounding out the top 10.

The fall, when deer are mating and in many rural areas drawn out of their habitat by hunters, is the time of year when the most deer-vehicle incidents are reported.  While Maryland has seen a 27% increase in deer-vehicle collisions in the past few years along with increases in other states, there are things you can do to help minimize your chances of being one of these statistics.

Defensive driving tips to avoid hitting a deer:

  • Be especially attentive from sunset to midnight and during the hours shortly before and after sunrise. These are the highest risk times for deer-vehicle collisions.
  • Drive with caution when moving through deer-crossing zones, in areas known to have a large deer population and in areas where roads divide agricultural fields from forestland. Deer seldom run alone. If you see one deer, others may be nearby.
  • When driving at night, use high beam headlights when there is no oncoming traffic. The high beams will better illuminate the eyes of deer on or near the roadway.
  • Slow down and blow your horn with one long blast to frighten the deer away.
  • Brake firmly when you notice a deer in or near your path, but stay in your lane. Many serious crashes occur when drivers swerve to avoid a deer and hit another vehicle or lose control of their cars.
  • Always wear your seat belt. Most people injured in car/deer crashes were not wearing their seat belt.
  • Do not rely on devices such as deer whistles, deer fences and reflectors to deter deer. These devices have not been proven to reduce deer-vehicle collisions.

If your vehicle strikes a deer, do not touch the animal. A frightened and wounded deer can hurt you or further injure itself. The best procedure is to get your car off the road, if possible, and call the police.

Contact your insurance agent (Rossmann-Hurt-Hoffman, Inc. of course!) to report any damage to your car. Collision with an animal is usually covered under the comprehensive portion of your auto insurance policy if you carry that coverage.  http://www.iii.org/individuals/auto/lifesaving/deercar/

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

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.