Water damage from naturally occurring floods and mechanical breakdowns cause extensive and catastrophic losses to homes every year. But there are numerous ways you can safeguard your home from these losses, including the following.

• Your home’s drainage system should be checked to verify that proper water drainage occurs. For example, gutter downspouts should extend the proper distance from the foundation.
• Your yard should be properly graded to slope away from your home to allow surface water to adequately drain. French drains can also assist in this process.
• A sump pump system should be considered in your basement to keep unwanted water out of this vulnerable part of your home.
• Periodically check your washing machine hoses since these hose failures cause millions of dollars of water losses each year. Hoses should be replaced at the first sign of wear. Consider upgrading to the heavy-duty wire mesh hoses or stainless steel hoses during this replacement.
• Ascertain the location of your main water shutoff valve. Water shut-off valves should be installed on water lines under toilets and sinks and water lines leading to outside faucets

Copyright 2010
International Risk Management Institute, Inc.

By July 1, 2010, you must upgrade your home heating system equipment to prevent leaks from tanks and pipes that connect to your furnace.  Please click here to read more information on who must take action, who is exempt, why comply, etc.

Have you ever thought about what happens to the sensitive data stored on your company computers if they are lost or stolen?  What about unhappy employees or cleaning services using private customer information in unethical ways?  Click here to read about John E. Dowd, Jr.’s article for Business West on Electronic Data Liability Coverage: How to keep your business protected. 

Is your license
up for renewal?

Be Sure to Check Your License Expiration Date!

The Massachusetts Registry of Motor Vehicles will no longer mail out renewal notices.

Be sure to renew at least seven days before your birthday to ensure that you receive your new license before your old license expires.

You can renew online instead of in line.

The RMV express lane is always open.

The National Highway Traffic Safety Administration (NHTSA) estimates that nearly 13,000 people per year (about 35 per day) are killed in alcohol-impaired driving crashes.

Many of these tragic accidents happen after an inebriated person leaves a party — an event in which the host of that party might be held liable for injuries and deaths to innocent parties. Although there might be coverage under your personal auto policy or homeowners policy if you (as the host) are held legally responsible for such a terrible accident, a wiser risk management strategy is to avoid or reduce the chance of loss altogether. With that in mind, here are some tips to consider if you (or a resident family member) occasionally host social events involving alcohol.

• Surveys of youth indicate that the most common source of alcohol is the young person’s own home. Thus, closely monitor social events your youth hosts to make sure there is no drinking allowed — particularly any type of illegal underage drinking. It is wise to not allow your teenager to host a party when you are out of town.
• Limit the amount of alcohol at your event.
• If alcohol is served at your party, make sure that there is plenty of food. The consumption of food slows down the absorption of alcohol.
• Encourage designated drivers and provide nonalcoholic drinks for these guests.
• Look for signs of intoxication. An intoxicated person often has trouble walking, has slurred or loud speech, or is atypically uninhibited. There is not, however, a fool-proof method of determining whether someone is intoxicated because exceptionally tolerant individuals often do not show signs of tipsiness even though they are intoxicated.
• Restrict alcohol to any near-intoxicated or intoxicated persons by offering instead some food or alternative nonalcoholic drinks.
• Consider hiring trained bartenders. As they are trained to recognize and deal with intoxication, using professional bartenders can significantly reduce the risk and may help in defending a claim should there be one.
• If you have a cash bar, use tickets and issue a limited number. Don’t price alcohol too low because this encourages excessive drinking.
• Do not allow the intoxicated guest to drive away from the event even if you have to take away his or her car keys. Instead, offer to drive them home or provide a free cab service. Soliciting the help of the guest’s spouse or a close friend may help.

Copyright 2009
International Risk Management Institute, Inc.

The United States has experienced a rapid growth in home-based businesses in the last decade. The U.S. Census Bureau reports that there are now more than 11 million home-based businesses in the country, a figure that is expected to rise in the coming years.

But if you run a home business, losses associated with that business may not be covered under your homeowners policy unless special coverage endorsements are added. Some insurers sell an endorsement that covers losses associated with a home-based business. We can quickly find out if such an option is available.

What if you are operating a home-based business without your insurer’s knowledge? Suppose you had a small fire that damaged your home office and computer and resulted in some lost income. Once your insurer sends an adjuster who, while investigating your claim, discovers your business, your insurer may deny some or all of the claim because of business-related exclusions and restrictions found in many homeowners policies.

Conversely, if you paid the additional premium to add a home-based business endorsement to your homeowners policy or you bought a businessowners policy (BOP), your loss would likely be covered—even the loss of income. (A BOP is a separate policy form designed to insure the property and liability exposures of small businesses.)

And do not forget about liability. If you have business visitors in your home and they get hurt, many insurers’ homeowners policies will not cover those injuries because of the business-related loss exclusion found in the personal liability section of the policy. Again, it is necessary to purchase a special endorsement to the homeowners policy or a separate BOP. Also, if your activities give rise to any type of errors and omissions or professional liability exposures, they are not likely to be covered under either your homeowners policy or a BOP. A separate errors and omissions (E&O) policy will need to be arranged for this loss exposure.

Different insurance companies have different criteria for excluding business-related losses from their policies. If your current insurer cannot respond to your coverage needs, we can present several options to you.

But the important thing to remember is this: if you are running a business out of your home, call us. We will work hard to assure you are properly protected.

Copyright 2009

International Risk Management Institute, Inc.

Many people overlook the need to properly insure their expensive jewelry, believing that it is automatically covered by their homeowners policy.

While homeowners policies do cover jewelry, this insurance usually is subject to a much lower limit than the overall contents coverage. This reduced limit is called a “sublimit,” and a typical sublimit is $1,500 for loss by theft of jewelry, watches, and precious and semiprecious stones.

If your jewelry is worth more than the sublimit in your homeowners policy, you should consider purchasing specific insurance to cover it. The following is a good process to follow.

* Arrange an appointment with us to review your jewelry coverage. Bring as much information about your jewelry portfolio as possible, including any appraisals.

* If your high-valued jewelry has not been appraised within the last 3 years, consider obtaining an appraisal from a reputable jeweler. Insurance companies often require an appraisal on more expensive jewelry from a graduate of the Gemological Institute of America (GIA). The Institute’s G.G., G.J., or A.J.P. designations at the end of an individual’s name indicate that the jeweler has achieved a high level of professionalism with an education backed by a respected nonprofit organization.

* Make sure the appraisal has a description of the diamond’s four C’s –

(a) carat, (b) cut, (c) clarity, and (d) color. The “carat” refers to the weight of the diamond. The quality of the “cut” of the diamond results from the way light enters the stone and is reflected back. “Cut” is also used to refer to the diamond’s shape, such as round or pear-shaped. The “clarity” refers to the prevalence of minor spots, lines, bubbles, or other natural imperfections within the diamond. The “color” denotes the tint a diamond may possess. Remember that the better the appraisal, the fewer problems you will encounter with the insurer if you ever have to make a claim.

* Purchase inland marine coverage that can be added via an endorsement onto your homeowners policy. This endorsement (also available as a separate policy) provides much broader coverage than the limited protection found on the unendorsed homeowners policy.

* Consider keeping any valuable jewelry you rarely wear in a safety deposit box at your bank.

* Review your jewelry protection with us at least every 2 years or whenever you sell or purchase high-value jewelry.

Defective electrical wiring systems cause approximately 40,000 residential fires annually, according to a United States Consumer Product Safety Commission (CPSC) study. In addition, electric cords and plugs are involved in about 7,000 fires annually. The National Electrical Safety Foundation offers numerous tips to safeguard the home against electrical fire and related losses, including the following.

* Verify that outlets and extension cords are not overloaded.

* Examine electrical cords to ensure they are not frayed, damaged, or placed under rugs or carpets.

* Verify that the proper wattage bulbs are being used in light fixtures and lamps.

* Consider installing ground fault circuit interrupters (GFCI) in bathrooms, utility rooms, and kitchens. This device protects people against electrocution by shutting down the electrical system if it detects any imbalance in the electricity.

* Take steps to safeguard electrical appliances from power surges. A power surge is a sudden rise of current or voltage in an electrical circuit that can last up to several seconds and can ruin electrical appliances and equipment, such as computers. You can purchase surge protection devices to safeguard against the problem.

* Consider updating the entire electrical system if the home is over 40 years old. Older homes are more susceptible to electrical fire. For example, many older homes contain aluminum wiring, which is much more susceptible to starting fires than the copper wire required by modern building codes.

* Install child tamper-resistant electrical outlets to prevent a child from inserting something into the outlet holes.

* Install arc fault circuit interrupters (AFCI) to avoid fires caused by arc faults. An arc fault is a discharge of electric current across a gap.

This can be caused by improper electrical connections, pinched wire insulation, and overheated wires.

The National Flood Insurance Program (NFIP) is one of the few sources of insurance for flood-prone communities that include millions of American homes and businesses. The program of the Federal Emergency Management Agency deserves recognition for NFIP insurance being the great bargain that it is.

They list a few good reasons to purchase Flood Insurance.  To read more, click here.

The Institute for Business and Home Safety has a great site that can help you prepare and protect your property from Hail, Flooding, Freezing, Earthquake and other natural disasters.  Enter your zip code and the more common types of occurrences for your area will be listed.