Nail Down Quality Roofing Contractors Insurance

| June 30, 2024
roofers installing new roof on house

Roofers are in high demand and can make good money.

But roofing has its risks, some of which can financially devastate your roofing company if you aren’t properly insured.

According to the Bureau of Labor Statistics, roofers have some of the highest rates of occupational injury, illness and death compared to other jobs. You must also contend with property damage, both at job sites and during supply deliveries.

If you’re an experienced roofer, you know insurance is key to managing your risk and protecting your business from property damage, liability claims and work-related accidents. You may even have been asked to submit proof of workers’ compensation, property and general liability insurance to obtain your license.

Whether you’re a seasoned contractor or just getting started, it’s important to work with an insurance professional who knows your business. They can help you choose the right coverage for your company.

Before you call your agent, here are some important coverages to know about.

Commercial general liability

As a contractor, you can be held liable for property damage or injuries that occur in the course of your work at a client’s house or job site. For example, you could face a costly claim if:

  • A customer trips on a ladder.
  • A bundle of shingles falls off a roof.
  • An improper installation causes damages.

Commercial general liability (CGL) insurance protects you against financial losses from property damage, bodily injury, medical expenses, and advertising and personal injury stemming from the operation of your business. It covers your work on someone else’s property and losses that happen on your company’s premises. CGL also protects you against personal injury such as copyright infringement, misleading advertising, libel, slander and use of another’s intellectual property.

CGL insurers offer different coverage limits, depending on your risk and the size of your business. A policy with a $1 million limit would pay up to $1 million in legal expenses and damages during the period of coverage (usually one year).

However, CGL won’t cover bodily injury if one of your employees is injured on the job. For that, you’ll need workers’ compensation insurance.

CGL doesn’t cover professional liability or employment practices liability claims, either. Professional liability refers to bodily injury and property damage claims arising from your professional errors, omissions or negligence. Employment practices liability refers to employment-related claims against your business, such as discrimination, wrongful termination, sexual harassment and retaliation. You can purchase these additional liability coverages separately or include them in a bundled policy.

Even if your state doesn’t require you to carry CGL, most general contractors and project owners will ask for proof of coverage before signing a contract. CGL coverage is also usually required if you want to open a bank line of credit, qualify for a loan or rent space. It’s often thought of as the most important coverage for business owners. That’s because one expensive lawsuit could spell the end of your company if you aren’t adequately insured.

Workers’ compensation

As you might imagine, workers’ compensation is an important coverage for roofers. Workers’ comp helps your employees if they get sick or are injured on the job. It pays for lost wages and covers medical and rehabilitation expenses while the employee recovers. Unless you’re a sole proprietor, your state probably requires you to carry it. You may also be required to furnish proof of workers’ comp coverage to maintain your license.

The type of industry you work in, the number of employees you have and your claims experience will determine availability and coverage costs. High-risk trades such as roofing are often hard to insure, especially if you’ve had a recent claim or you’re just starting your business.

If you’re having trouble finding coverage in the standard workers’ comp market, you may need to buy insurance through an assigned risk pool. Government-run risk pools are an alternative source of coverage for employers who have been declined because of high risk or too many claims. An insurance professional who specializes in workers’ comp can help you find coverage in the assigned-risk market.

Property insurance

Your business property, vehicles, equipment and tools need to be insured as well. This includes any building materials you store on your premises or deliver to customers’ homes or job sites.

Commercial property insurance covers the property located at your business address. It protects against fires, theft, vandalism and various weather-related perils. However, it doesn’t cover floods or earthquakes, which usually require separate policies. Note that most commercial property policies do not cover property transported or stored off-site. For that, you’ll need inland marine insurance.

Inland marine insurance is designed for contractors who transport equipment, tools or materials to job sites and store them there. This is especially important for roofers, who have shingles and other roofing materials delivered to job sites and transport everything they need for the job on their truck.

Commercial auto insurance is required for company-owned vehicles. Much like a personal auto policy, it covers liability, bodily injury and property damage. If your workers use their own vehicles for jobs, you should also consider “nonowned auto” coverage. Personal auto policies often don’t cover vehicles damaged during business use.

BOPs bundle the coverage you need

Business owner policies (BOPs) bundle many of the commercial coverages you need. Most BOPs include CGL, commercial property and business interruption insurance. Business interruption insurance compensates you if your business has to temporarily halt its operations due to a covered loss.

Another type of bundled policy, called a commercial package policy (CPP), gives you more flexibility to design the coverage you want. Your insurance professional can help you decide if it’s better to bundle your insurance or purchase the policies you need separately.

Large construction projects involving multiple subcontractors may have a controlled insurance program (CIP), known as a wrap-up. The project owner or general contractor purchases the policy, which wraps up all of the insurance everyone working on the job needs. CIPs usually include CGL and workers’ comp. You may be able to add coverage as well. Your agent or broker can review your CIP policy and contracts to prevent insurance gaps.

There are plenty of jobs for good roofers, but having a lot of work poses its own set of challenges: scheduling jobs, supervising crews, securing materials and meeting deadlines. In the rush to get everything done, don’t neglect your insurance needs. Manage your risks by making sure your business is adequately insured.

Learn More

To learn more about managing your risks as a roofing contractor, reach out to Brett Findlay at BFindlay@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

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As a Dentist, Are You Due for an Insurance Checkup?

| June 29, 2024
pexels cedric fauntleroy 4269942

Your insurance policy should be as personalized as your care.

Whether you operate as a one- or two-person dental practice or employ a large team, you’ll need to work with your insurance professional to design a custom dental insurance policy. Your policy should address risk in four major categories of business ownership:

  • Property insurance. This covers your office space or building, as well as any property within it, including equipment, furniture and fixtures. You should be ready with the estimated value for these items and report any upgrades or new purchases to ensure your policy keeps pace with your agreed-to limits. If you rent or lease, do you know what you are required to insure?
  • General liability. If someone is injured while at your practice or their personal possessions are damaged, this type of insurance will pay restitution. These would be claims unrelated to dental care.
  • Business interruption. This type of insurance reimburses you for lost earnings if you have a covered property loss that temporarily halts your ability to continue operations at your place of business. It can cover payroll, rent, utilities, and lost profits.
  • Employment practices liability. If one of your employees sues you for wrongful termination, sexual harassment, discrimination or another employment complaint, this type of insurance repays any related legal fees or awarded judgments.

You can purchase any of these coverages independently. However, if you group them under a single business owners policy (BOP), you can typically save money.

Before you offer any services

Basic coverage is just the start. Don’t ask anyone to “open wide” until you have professional liability coverage in place, sometimes called dental malpractice insurance. This protects you if a patient accuses you of harming them due to negligence, misrepresentation or inaccurate advice. If you are sued, this type of policy covers expenses or legal fees required for your defense, as well as any resulting judgments against you.

If your practice is incorporated, it is vital to secure a corporate malpractice policy or a corporate endorsement on your own malpractice policy, as patients can sue both the individual dentist and the corporation. In addition, any associate dentists at your practice should carry their own separate professional liability insurance, as they are not covered by the corporate policy.

If you sometimes substitute for dentists at other offices or provide services somewhere other than your main office, you should also confirm that your policy is not location-specific. If your policy does have this limitation, notify your insurance professional when these situations occur to be sure you have appropriate coverage in place.

If you do implants, this may impact which carriers are willing to write your professional liability policy. Be sure to mention this during the application process. In addition, some state association or state risk pool malpractice insurance policies exclude coverage for “peer review defense.” This exclusion might not be highlighted, so be sure to verify and understand that adding it will lead to a higher premium. If you forgo this option, you may be personally responsible for any legal fees if you do face a peer review claim.

Additional factors

Every dental practice is unique, so consider your own operations before finalizing your insurance plan. Here are some additional factors to consider:

  • Workers’ compensation. Even if this coverage is not required in your state, workers’ compensation is a wise investment. It protects your practice if an employee is injured on the job and will pay for any work-related health care costs and lost income. If you buy your workers’ compensation through your state government, make sure “stopgap insurance” is included. It’s frequently left off government-issued policies. If an injured employee files a lawsuit, this is what covers the resulting legal fees or awarded damages.
  • Auto. If you or your employees use personal cars to run business errands like picking up supplies, making deliveries to patients, visiting shipping or print stores, or depositing checks at the bank, add automobile protection as an upgrade to your general liability coverage. Personal auto policies do not cover accidents that occur during business use, and if you don’t have commercial auto insurance, your practice will be left paying the bills.
  • Data breach insurance. We are all targets these days. You likely store private employee and patient data on computers. If you suffer a data breach, this type of policy covers the resulting costs. These may be related to public relations and good faith advertising, notification services, ongoing credit monitoring, legal fees or damage payments.
  • Independent contractor. If your practice relies on independent dental hygienists, associate dentists or other office staff, they will not be covered by your BOP, workers’ compensation, professional liability or other practice policies. They will need to maintain their own insurance. Include a stipulation in their employment contract that requires proof of insurance. Because you could be named in a lawsuit based on their involvement with your practice, have your insurance professional provide the list of recommended policies you should require as a minimum.
  • Business overhead expense disability policy. If you experience an extended sickness or injury that prevents you from paying the office’s operating expenses, this type of policy will protect the practice. (Your individual disability insurance will protect your personal income.)
  • Business interruption coverage. If your business is unable to operate, you want to make sure that the loss of income and other operating expenses will be covered. Some policies have narrowly defined business interruption coverage with lower limits than your average daily billing or for shorter periods of time (30 days or less). Others do not cover closures resulting from incidents outside of your building or larger issues, such as a citywide power outage.  You should review the details of your policy to understand any limitations.
  • ERISA bond insurance. If your practice offers a pension or profit-sharing plan, this type of bond is required and must equal 10% of the plan’s funds to cover any losses due to criminal activity.
  • Liquor legal liability rider. Many dental offices host holiday or staff parties where alcohol is served. Some purchase drinks for others after seminar sessions. If this is true for your practice, you’ll need this inexpensive but important addition to your general liability policy.

Your insurance professional can identify other potential pitfalls based on your individual practice model, but this general overview of dental practice insurance can help start the conversation. After you’ve finalized a plan, follow up with regular insurance checkups to make sure your coverage stays current with your growth.

Contact Us

To learn more about medical malpractice for physicians, contact Brian Hurley, Senior Vice President Health Care & Business Specialist, at BHurley@OneGroup.com or Lynn Trentini, Business Insurance Account Executive, at LTrentini@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2021 Applied Systems, Inc. All rights reserved.

Fireworks Safety and Festive Alternatives

| June 28, 2024
Kids Watching Fireworks: Fourth of July

Safety should be the guiding principle as you plan your home firework displays.

Fireworks can add a splash of color and excitement to any celebration, but they also come with risks like burns and injuries, fire outbreaks and harm to pets. Here are some facts about fireworks from the National Fire Protection Association:

  • Fireworks start around 19,500 fires annually.
  • Most firework injuries are to the eyes, hands, fingers or legs.
  • Children ages 10 to 14 have the highest rate of firework injuries.
  • Sparklers cause 25% of injuries leading to emergency room visits.

For perspective, sparklers can burn as hot as 1,200 F. That’s hotter than the temperature needed to melt glass. Sparklers burn quickly, but it doesn’t take much time to cause damage. Sparklers can quickly ignite clothing and severely burn people and pets. A dropped sparkler could cause a house fire or brush fire.

Because of statistics like these, many states have made possessing or igniting fireworks illegal.

Taking a few simple precautions can prevent accidents and make celebrations memorable for all the right reasons.

Make sure fireworks are legal

Before purchasing or using fireworks, ensure they’re legal in your area. Check local ordinances and state laws, too. Even if fireworks are legal in your state, they might be banned in your community. If you choose to use fireworks, follow safety recommendations from the Department of Homeland Security:

Purchase fireworks from reliable sources

Buy your fireworks from licensed and reputable shops or dealers. This will help ensure you’re getting products that meet safety standards. Only buy ones that are rated for home use.

Keep a safe distance

Designate a clear, flat area away from buildings, vehicles, pets, kids and flammable materials for the firework launch area. If you’re using ground-based fireworks (like a fountain), keep spectators at least 35 feet away. For aerial fireworks, keep spectators 150 feet away from the launch.

Igniting fireworks

Never allow children to handle or light fireworks.

Keep fireworks on the ground and away from people and animals. Use a stem lighter such as a grill lighter. Ignite fireworks one at a time. Never place a part of your body directly over a firework or hold a firework in your hand while lighting it.

Check for wildfire risk in your area

Obey red flag warnings in your area. The National Weather Service issues red flag warnings when there is an elevated risk for wildfires, like low rainfall and windy conditions. If you’re unsure of the risk, don’t chance it. It only takes one spark to start a blaze.

Douse fireworks that don’t explode

If a firework doesn’t ignite successfully, douse it with water and discard it. Let it sit for 10 minutes to avoid a delayed explosion. Then put it in a water bucket. Never look into the firework to inspect why it didn’t go off. You could be severely injured or killed.

Safety equipment and apparel

Use fireworks outside and have buckets of water or a hose connected to an open water source nearby. Wear safety goggles and nonflammable clothing. Avoid loose apparel that can catch fire easily.

Avoid alcohol when using fireworks

Alcohol and fireworks are a dangerous combination. Only operate fireworks when you’re sober.

Keep pets away from fireworks

Fireworks can be stressful for pets. They don’t understand the noise and lights are for fun. They might panic and try to escape. As a result, your display or spectators could be harmed. Keep your pets indoors when shooting off fireworks. Close the windows and draw the curtains to reduce noise and visuals. Turn on the TV or radio to help relax them. Maintain a safe space, ensuring they have access to their favorite toys, bedding and treats.

Alternatives to fireworks

Some cities opt for coordinated drone laser shows as an ecofriendly alternative to traditional fireworks. But don’t go hosting your own drone laser event until you check with local and state laws. You need to make sure you’re not violating any regulations.

If you decide to go firework-free, here are some alternatives to try:

  • Glow sticks (These can glow for hours and be worn anywhere.)
  • Noisemakers (You can buy them at the store or make them yourself. Use old plastic containers or water bottles filled with birdseed or any other noisy things.)
  • Bubble machines (Amplify the experience after dark by making your own glow-in-the-dark bubbles using dish soap, glycerin and water-based glow paint.)
  • Outdoor movie display (You can use your movie projector to display a broadcast of a firework show or have an outdoor movie night.)
  • Paint-filled water balloons (Hang an old sheet, tarp or shipping box to explode your paint balloons onto. Use water-soluble paint and tell your guests to dress appropriately!)
  • Water soluble rice paper confetti cannons (Check the labels to ensure the paper confetti is water soluble.)

This isn’t an exhaustive list. You can start a new decorating or craft tradition instead of fireworks. Searching online for “firework alternatives” provides plenty of ideas to suit your needs.

Your home insurance may not cover firework accidents

Your home insurance policy may not cover a firework-related incident, including fires and medical liability to others. This is especially true if you cause injury or damage where fireworks are illegal. You risk legal penalties and fines.

Abandoning home firework use can reduce injuries and keep your home and neighbors’ homes safe. Leave the fireworks to the professionals and try some alternatives to keep your home party safe and festive.

For more information

Looking for more information or a coverage review? Reach out to our Personal Insurance team.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Contractual Risk Transfer

| June 24, 2024
DSCF6481

A guide for municipalities

Contractual Risk Transfer (CRT) is a valuable tool that can be used by municipalities to mitigate the financial risks associated with third-party claims. Essentially, CRT ensures that a third party bears the financial responsibility for damages they cause. It assigns or lessens the cost of financial exposure when presented with a claim caused by a third party.

When indemnification is successfully transferred to another party, that third party (transferee) or its insurer takes on the obligation to defend and cover any losses or damages on behalf of the original party (you). As a result, the financial burden of the claim, including legal defense and compensation for injuries or damages, falls on them, not your insurance. This can lead to benefits that include a reduction in financial exposure, potentially lower insurance premiums, and the elimination of deductible payments. Additionally, it may protect you from claims that your insurance might not cover.

For example, imagine you contract a company to conduct repairs on the roof of the Town Hall. During the job, an accident occurs where the company’s ladder topples and gravely wounds a citizen entering the Town Hall. The injured resident decides to file a lawsuit against both the municipality (the property owner), as well as the contractor. The municipality is not at fault, yet it faces potential liability. With a solid contractual risk transfer agreement in place, the contractor would be responsible for defending the municipality in the lawsuit and covering any damages incurred, safeguarding municipal resources and interests.

To make certain the proper transfer of an activity or exposure is in place, a legally executed contract or agreement between you and the other party is required. The contract should stipulate important requirements, including insurance specifications and hold harmless indemnification.

Applicable Situations for CRT:
  • Leases
  • Construction Agreements
  • Transportation Contracts
  • Use of Facility Forms
  • Inter-Municipal Cooperation Agreements
  • Shared Services
  • Purchase Agreements

By implementing CRT, municipalities can safeguard their financial resources and focus on serving their communities while lessening the threat of third-party claims.

Contact Us

To learn more about unique municipality risks and how to address them, contact our OneGroup Municipality team.

Matt Maguire, Regional President, North Country at MMaguire@OneGroup.com.

Todd Goodman, Risk Management Consultant at TGoodman@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Tips for Documenting Manager-Employee Conversations

| June 20, 2024
Two Woman in Black Sits on Chair Near Table

Whether a manager is congratulating an employee on a job well-done or coaching them to improve their behavior or performance, proper documentation helps both parties.

When in doubt, document. That’s the expert advice you should give your managers when discussing important job-related matters with employees. The following tips can help supervisors throughout the documentation cycle. 

(Note: These strategies pertain to day-to-day tasks and responsibilities. Harassment, discrimination and other highly sensitive matters may require a different approach and should involve your HR and legal teams.)

Proper documentation processes

Record dates and names. When holding a formal conversation related to performance, record the date and everyone involved. Never change the date, even if the conversation had been scheduled for a different day. Include full names on the first reference. First names or initials are acceptable after that. Ask all parties to verify the date and discussion points with a physical or electronic signature when possible.

Set expectations. The document should begin with a clear, concise intent. If a manager is helping an employee improve their job performance, the manager should avoid vague phrases like “It’s time to pick up the pace” or “You know what’s expected by now.” Instead, include specific details. For example:

  • “Show up at work by 8 a.m. Monday through Friday.”
  • “Wear appropriate clothing covering your feet and toes.”
  • “Meet reporting deadlines each Friday by 4 p.m.”

Highlight the good and the bad. People often think of documentation as capturing negative performance and charting a path for discipline or termination. However, it should capture the full employment record, including positive records that can lay the groundwork for stretch assignments, promotions, bonuses and salary increases. Managers should relay the full scope of documentation and how it helps both sides. If documentation solely occurs after inappropriate behavior or poor performance, employees will feel under attack and less open to forthright discussions.

Specify objective changes. If the discussion includes behavior or performance matters, focus on job-related issues. Describe actions, not personal failings. The following examples differentiate between factual descriptions and individual criticism.

  • Objective: “Yelling in a meeting shuts down the conversation, makes others less likely to share ideas and harms company culture.”
  • Personal: “You’re always shouting and interrupting, and you need to change that.”

Talk about the employee’s impact on others, both good and bad. And detail the behavior or performance you’d like to see. In the example above, you might note, “People respect your ideas. But before making a suggestion in the next meeting, please affirm the previous speaker’s point. If you disagree, offer an alternative solution without dismissing other viewpoints. Use a civil, courteous tone in all discussions.”

Include employee input. Manager-employee interactions should be two-way. When discussing inappropriate behavior or performance, allow employees to explain their side. Documents should include their reasoning. This strategy records all feedback, demonstrates fairness and enables supervisors to provide customized solutions.

Establish goals. Documents should identify agreed-upon outcomes, especially in cases involving behavior or performance improvement. This process creates a track record with clear steps for employees to take. Examples include:

  • “Beginning Feb. 14, you agree to arrive at work by 8 a.m. each day.”
  • “By 4:30 p.m. every Wednesday, you will provide a status update on your sales goals and potential leads.”

Create a timeline. A timeline may be as simple as listing the date and time of the next discussion. If specific improvements or goals are discussed, set the timing for those to occur. Examples include:

  • “We will document your arrival time each morning and review your progress two weeks from today.”
  • “The presentation you turn in on the 22nd will be peer-reviewed and free of typos.”
  • “When you return from the conference on Friday, you will have one week to deliver actionable takeaways to the team. This report will be due next Friday at 3:30 p.m.”

Follow up with the employee. Managers should document each time they discuss issues affecting an employee’s role or track record. If the conversation involves behavior or performance improvements, list specific consequences for the employee’s failure to achieve the stated goals. Consequences may include:

  • Required training tasks
  • Withheld assignments or promotions
  • Progressive discipline
  • Demotion or termination

If appropriate, managers should discuss positive aspects stemming from the communication process. Include the employee’s feedback and ask for their input on future discussions.

Other considerations

Train managers on proper documentation strategies. Training can help them avoid making personal judgments, accusations, exaggerations and legal conclusions within their documents. Remind them that words like “never” or “always” are unhelpful generalities.

Documentation should be clear, consistent and objective for all of a manager’s direct reports. Supervisors can’t keep separate or secret documents. Documentation needs to be able to withstand outside scrutiny. In a legal action, all documents will be discoverable. When creating documents, supervisors should imagine being able to present them to a jury.

Help managers avoid red flags. Examples of inappropriate documentation include telling employees they have a bad attitude, don’t help the team or don’t fit the culture. These statements don’t provide straightforward ways to improve. Further, they are open to interpretation and could give rise to discrimination claims.

Encourage managers to learn from mistakes, not hide them. Transparency is more important than perfection, and documentation errors can lead to future improvements.

Keep track of all documentation. Have a system for creating, filing and tracking documents. Keep multiple copies, including backups. Many organizations go entirely digital. At the very least, you should have digital copies. Be clear about when documents can be deleted or destroyed. Check your documentation system through internal or external audits.

Additional information

For more information on proper documentation, reach out to our Human Resources Consulting team.They can share best practices, training opportunities and third-party vendors that specialize in organizing and digitizing employee documentation.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

What is Flood Insurance?

| June 19, 2024
Young couple in wellington boots on flooded floor

Flood insurance is a type of home or business insurance that covers flooding, which is not covered by standard home or commercial insurance.

Flood insurance can be written to cover buildings and contents and it’s designed for owners or renters. You don’t have to own waterfront property to be at risk for flood damage. Flooding can happen anywhere and it’s a year-round risk. Poor drainage, summer storms, melting snow, flash rains, nearby construction and broken water mains can all lead to damage and loss of property. Just one inch of floodwater can cause up to $25,000 worth of damage, according to the National Flood Insurance Program (NFIP). The NFIP is the government entity that provides flood insurance.

Ninety percent of natural disasters involve flooding, and devastation is common.

Standard insurance does not offer flood protection

As mentioned above, homeowners and commercial property insurance do not cover flood damage. A separate flood insurance policy is the only way to cover physical losses to your home or building and its belongings.

When lenders require flood insurance

If your property is in a designated high-risk area, your mortgage lender will require flood insurance before approving a real estate transaction. High-risk areas are determined by flood maps from the Federal Emergency Management Agency (FEMA). They face at least a 25% chance of flooding in a 30-year period(the typical length of a mortgage), or a 1% or greater risk annually.

When lenders don’t require flood insurance

Should you still get flood insurance if your home or business isn’t in a flood zone? The NFIP recently reported that over 40% of all insurance claims it received were from policyholders outside high-risk areas. Fortunately, property owners in moderate- to low-risk zones are eligible for lower-cost policies, so it’s worth the investment.

Even if you’ve looked at flood maps in the past, it’s important to know that these maps are always changing. New development in your area, new infrastructure and changing climate patterns can all affect your flood risk.

What’s considered a flood?

Having water in your basement does not necessarily count as a flood, but it may depending on where the water came from. A flash rain might saturate the ground, leaving rainwater nowhere to go except into your basement, for example.

A sewage backup is not flooding, nor is wind-driven rain that enters through the windows, doors, roof or other openings in your building. These perils can be covered by a homeowners or business insurance policy endorsement called sewer backup insurance.

According to NFIP, a flood is “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) due to:

  • Overflow of inland or tidal waters; or
  • Unusual and rapid accumulation or runoff of surface waters from any source; or
  • Mudflow; or
  • Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.”

(Note: Even though a mudflow is a movement of earth, it is covered by flood insurance, not earthquake insurance.)

The danger of relying on federal disaster assistance

Why not rely on federal disaster assistance for flooding? This type of aid is only available when the president formally issues a disaster declaration, which happens with less than 50% of floods. And some disaster assistance comes in the form of a loan that you must repay, with interest.

What does flood insurance cover?

The NFIP offers building and contents coverage. You can buy just one type or both. If you are a renter and lease a property in a high-risk area, your landlord likely carries a policy on the building. However, your landlord’s policy won’t cover your property or belongings. You should still purchase contents coverage to protect your things.

NFIP Coverage LimitsStructuresContents
Residential$250,000$100,000
Commercial$500,000$500,000

Examples of what building coverage includes:

  • The structure and its foundation
  • Electric and plumbing systems
  • Heating, cooling and water systems
  • Built-in appliances, refrigerators and cooking stoves
  • Permanently installed flooring, paneling, wallboards, bookcases and cabinets
  • Window blinds
  • Detached garages (Other outbuildings require separate coverage.)
  • Debris removal

Examples of what contents coverage includes: 

  • Personal belongings such as clothing, furniture and electronics
  • Curtains
  • Portable and window air conditioners
  • Portable appliances
  • Carpets not permanently installed
  • Washer and dryer
  • Food
  • Original artwork or other valuables up to $2,500
  • Microwaves and portable dishwashers

What building and contents coverage don’t include:

  • Avoidable moisture, mildew and mold damage
  • Currency, valuable papers, stock certificates and precious metals
  • Outside property, such as landscaping, hardscape, wells, septic systems, pools and hot tubs
  • Living expenses required for temporary housing
  • Lost wages due to business interruption or loss of use
  • Most vehicles on the property
Private flood insurance options

If the exclusions or limits concern you, talk to your insurance agent about other policies for added protection. Some private insurance providers offer higher coverage limits and endorsements, like coverage for additional living expenses and jewelry, but these policies may cost more than NFIP insurance.

Who sells flood insurance?

Licensed insurance agents and brokers can sell NFIP or private flood insurance (or both).

Before 1968, flooding was considered an uninsurable risk and private insurance was virtually unavailable. For this reason, Congress passed the National Flood Insurance Act of 1968. The act created the NFIP, allowing property owners in participating communities to purchase flood insurance. The NFIP provides flood insurance coverage only in “participating” communities that have adopted and enforced floodplain management practices. Homeowners in these communities can also purchase excess flood insurance from a private insurer, but they must have an NFIP policy first.

Homeowners and businesses that do not qualify for an NFIP policy can still secure private flood insurance. Your insurance agent can help you choose the best coverage for your situation.

Decide before the water rises

There is a 30-day waiting period before NFIP insurance takes effect. Some private flood insurance has a 14-day waiting period. If you’re in a high-risk area, your mortgage lender or business funder will likely require you to carry flood insurance. But even if you’re not in a flood zone, flood insurance is worth consideration.

Call your insurance agent to get help with the details!

For more information

Looking for flood insurance? Reach out to our Personal Insurance team for a quote.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2023 Applied Systems, Inc. All rights reserved.

WEBINAR: PERSONAL INSURANCE 101

| June 18, 2024
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Join OneGroup’s next 101 Series Webinar! OneGroup personal insurance experts, Kimberly Hendrick and Dave Weaver will discuss the value and importance of an umbrella policy, personal insurance claims, and how to save money on insurance – the smart way

REGISTER HERE
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To learn more about how OneGroup can help you with your personal insurance and protecting the important things in life, please visit our Personal Insurance page.

PERSONAL INSURANCE SOLUTIONS

Medical Malpractice Protections for Physicians

| June 18, 2024
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Protect yourself and your practice against financial disaster.

Medicine is a science, but it’s never exact. Even with the best intentions, you might misdiagnose a patient, perform a procedure incorrectly or recommend an ineffective treatment. Textbook care can still lead to patient claims alleging that your services caused bodily harm, property damage or mental anguish. 

Medical malpractice claims usually seek financial awards for patients or survivors to cover medical bills, lost wages or other expenses. Medical malpractice insurance is professional liability insurance for doctors and other medical professionals. It can be expensive, but it’s your best protection against financial disaster. 

Malpractice claims are based on the premise that the patient’s injury was unintentional. According to the American Board of Professional Liability Attorneys, a malpractice claim must prove the following:

  • The standard of care was not followed.
  • The injury was caused by provider negligence.
  • The injury resulted in significant damages.

Examples of malpractice include:

  • Inaccurate or incomplete collection or recording of medical history
  • Misdiagnoses
  • Failure to test for or identify an illness or injury
  • Lab result errors
  • Surgical mistakes
  • Prescriptions or anesthesia errors
  • Poor follow-up care

In contrast, medical battery is when a doctor or medical provider intentionally touches or treats a patient without consent in a way that is harmful or offensive. Medical battery claims must prove intent, and these cases are handled in criminal courts. They are separate from medical malpractice and are usually not insured under medical malpractice policies. 

Other common medical liability exclusions are theft, misrepresentations, fraud, practicing while under the influence of drugs and/or alcohol, and falsifications of medical information or credentials.

Diagnose your risk

Though your state might not require medical malpractice insurance, it is crucial, because even one claim can be financially ruinous.

A 2022 American Medical Association review of medical claims revealed nearly one-third of U.S. doctors have been sued at least once for malpractice. Even though most of these civil lawsuits are dropped or end with no findings of physician negligence or error, there can still be significant costs associated with legal representation and other services.

Your risk of malpractice depends on your specialty and the location of your practice. According to a 2023 Medscape report, surgeons have the highest frequency of malpractice claims, followed closely by obstetricians/gynecologists and orthopaedists.

The report also ranked the 10 states with the highest rates of malpractice claims, from highest frequency to lowest:

  1. Louisiana
  2. Indiana
  3. Kentucky
  4. New Mexico
  5. Pennsylvania
  6. New York
  7. Oregon
  8. Missouri
  9. South Carolina
  10. Tennessee
Getting the right coverage

You can obtain professional liability insurance in two forms:

  • As an individual or group policy purchased directly from a traditional private insurance professional or through a medical risk retention group
  • As part of an employer-provided policy, such as when a hospital provides protection for its own medical team

An appropriate malpractice policy should cover the cost of indemnifying and defending you, if you are found liable.

Recognize that even when you are absolved of any wrongdoing, a malpractice claim can still involve considerable expenses. The complexity of most cases typically requires substantial investigation. You can lose income while working on case research or during court appearances. You may also need professional help restoring your medical reputation.

A comprehensive malpractice policy covers legal fees, court costs and expenses related to arbitration or settlement. It will also cover related lost wages while you’re away from your practice, and many policies will pay for reputation repair. Lawsuits can drag on for years, so this kind of financial protection is particularly important.

When choosing coverage, recognize that malpractice claims don’t always surface at the time of treatment. Each state has its own statute of limitations that defines how long a person has to file a claim. The clock usually begins at the time of the alleged injury and, depending on the state, typically remains open for one to four years. However, states have the option to extend these windows. In most states, there’s a longer time for cases to be filed when a claim involves a child, often extending until they are 18 or older.

Because claims can be filed years after treatment, you should carefully consider the two types of malpractice policies:

  • Occurrence — This type of policy protects you for claims that “occur” during the policy period. You remain protected for that policy term, even if the policy is cancelled at the time the claim is reported.
  • Claims-made — This type of policy covers you for claims that are made while the policy is in effect, or during any extended reporting period, assuming tail coverage has been purchased.

As a buffer, some claims-made policies also offer extended coverage for a predetermined period of time after the policy is canceled. Tail coverage provides important protection when you are changing insurance carriers, changing employers, or retiring from practice.

Most group practices and hospitals provide their physicians with medical malpractice insurance. However, you shouldn’t assume this employer-provided benefit gives you adequate protection. Do you moonlight in addition to working for your employer who carries your insurance?

Review the details of your existing malpractice insurance with your own independent insurance professional to confirm you have the right coverage. Consider your medical specialty, the procedures you perform, your practice responsibilities, your family assets and your long-term financial goals.

Also be aware that some liability policies provided by employers only offer claims-made coverage. This means that you may need to purchase an extended reporting endorsement (tail coverage) if you decide to leave your employer. Is this addressed in your employment agreement?

As a best practice, you should meet with your insurance professional periodically to review your medical malpractice coverage. This is especially important whenever there is a change in your career or personal obligations. When you meet, ask about other potential liabilities doctors face, particularly if you are a partner in a medical practice. These could include cyber liability and risks related to patient privacy as well as the Health Insurance Portability and Accountability Act.

Medical malpractice insurance can protect your assets and those of your employer. It can also financially compensate patients you may have injured. Speak with your insurance professional to find the right coverage for your medical practice. 

Contact Us

To learn more about medical malpractice for physicians, contact Brian Hurley, Senior Vice President Health Care & Business Specialist, at BHurley@OneGroup.com or Lynn Trentini, Business Insurance Account Executive, at LTrentini@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Trampolines and Other Attractive Dangers in Your Yard

| June 17, 2024
Happy friends jumping on the trampoline in summer

While trampolines may offer hours of fun for energetic children, they bring unwanted safety risks to homeowners.

In 1934, University of Iowa gymnast George Nissen and his coach, Larry Griswold, were searching for a way to help Nissen improve his gymnastics training. Working out of Nissen’s garage, the duo built a bouncing device by connecting a steel frame to a canvas sheet using rubber inner tubes. They named the apparatus a “trampoline,” after the Spanish word for “diving board.” They later founded the Griswold-Nissen Trampoline & Tumbling Company in hopes of selling the trampolines commercially. The year was 1942.

Fast forward to now, and the trampoline has become a popular recreational item in homes. About 500,000 trampolines are sold each year, according to a study published in the Journal of Paediatrics & Child Health. But while trampolines may offer hours of fun for energetic children, they bring unwanted safety risks to homeowners.

In fact, both the American Academy of Pediatrics and the American Academy of Orthopedic Surgeons have issued policy statements and recommendations strongly discouraging home use of trampolines due to the high incidence of trampoline-related injuries.

The numbers speak for themselves. In the United States, there are more than 250,000 medically treated trampoline injuries each year. These result in more than 100,000 visits to the emergency room, according to the Consumer Product Safety Commission. And over 90% of these injuries occur in kids ages five to 14.

Why are trampolines so dangerous? Simply put, what makes bouncing acrobatically so much fun also makes it extremely hazardous. Throw in the fact that multiple children tend to use trampolines simultaneously, and it’s no wonder the activity results in arm and leg sprains and fractures, as well as serious head and neck injuries.

The leading causes of injury are:

  • Colliding with another person
  • Landing incorrectly while jumping, flipping, somersaulting or attempting tricks
  • Falling off the trampoline
  • Landing on top of the trampoline’s springs or frame
Other attractive nuisances

Insurance companies consider trampolines, swimming pools, playground sets, treehouses, ponds and fountains, among other things, to be “attractive nuisances.” An attractive nuisance is a potentially hazardous item on one’s property that can attract or lure children.

Because trampolines, swimming pools and playgrounds are especially appealing and enticing to young children, they’re a red flag for many insurance companies. As a result, some insurers may refuse to cover these pieces of equipment, while others allow them only if specific accommodations are made. Such accommodations can include:

  • Building fences and installing locked gates around the equipment
  • Padding the trampoline frame and springs
  • Digging out the ground under the trampoline to place the bouncing surface at ground level instead of several feet above the ground

It’s also common for insurance companies to cover your home but exclude liability for the risky item. They may refuse to cover any medical bills or lawsuit expenses related to the use of the equipment, unless you purchase an insurance rider with specialized coverage. You’ll also want to consider increasing your liability insurance limits or obtaining coverage under a personal umbrella insurance policy. An umbrella adds significant financial protection to your standard homeowners coverage.

Going without coverage can make you appear riskier to some companies. And don’t let your policy lapse in a hard market, either. Some companies will take it as an opportunity to drop you for good, leaving you scrambling for coverage. Sign up for auto pay to ensure your payments are made on time.

Important safety rules

If you have a trampoline or another type of equipment that could be considered an attractive nuisance, follow these safety rules:

  • Install fencing or an enclosure and lock it when there’s no adult supervision.
  • Cover frames, springs, hooks and landing surfaces with shock-absorbing pads. 
  • Place trampolines and other similar equipment far from other structures, trees, play areas and other hazards.
  • Regularly examine all equipment for wear and tear, sharp objects, trip-and-fall hazards and other potential sources of injury.
  • Post notices of hazards, but don’t rely on them. Children attracted to your equipment might not be able to read and certainly will not be held accountable for lack of adherence.
  • Don’t allow potentially risky stunts on your equipment.
  • Install alarms to alert you if someone has entered an unsafe area without permission.
  • Use proper lighting to avoid nighttime accidents.

If you’re considering getting a trampoline, a pool, a playhouse or another attractive nuisance, familiarize yourself with the liability risks associated with your decision. While these items can provide hours of fun for energetic children, they require a substantial investment in security, both physical and financial.

Your insurance professional can help you find coverage that matches your exposure. They can also help with risk management suggestions so you can enjoy your yard safely.

For more information

Looking for more information or a coverage review? Reach out to our Personal Insurance team.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Insuring Your ATV

| June 13, 2024
Driving 4x4 in Costa Rica

Off-road, all-terrain vehicles (ATVs) can be fun to ride and are popular in recreational areas that allow them. 

They can also be useful for getting around a farm or ranch. But ATVs can be dangerous, too. That’s why it’s important to follow safety rules and have an ATV insurance policy to protect against the financial costs of injury and property damage.

According to the Consumer Product Safety Commission’s most recent annual report on ATV-related deaths and injuries, there were an estimated 81,800 ATV-related emergency room visits in 2018. Over a quarter of these injuries involved children under 16.

Insurance is mandatory in many states if you’re riding on public lands. And while ATV insurance isn’t required when riding on private property, it’s still a good idea to have coverage. Also, if you’re financing an ATV, your lender will likely require you to have insurance. So be sure to ask your insurance professional about the various coverages available.

At the very least, you’ll want liability coverage, which is similar to what you might find in an auto or motorcycle policy. Some homeowners insurance policies provide limited liability coverage for an ATV used on your property, but there may be gaps in coverage. Ask your agent what’s best for you.

ATV insurance basics

Here are the basic coverages you’ll want to consider:

Liability coverage pays for bodily injury and property damage up to certain limits if you cause an accident. It also covers legal fees if you are sued. Bodily injury limits are usually written as an amount per person and a total amount per accident.

Property liability coverage includes damage to personal belongings as well as someone’s yard or home. Property liability is also subject to limits that are usually lower than bodily injury limits.

Collision coverage (optional) pays for repairs to your ATV if it gets damaged in a rollover or accident. Collision coverage is subject to a deductible and pays only up to the value of your ATV, so it may not be worth getting this coverage for an older vehicle.

Comprehensive coverage (optional) protects your ATV from theft, vandalism, fire and severe weather. Most policies pay the cash value of the stolen ATV.

Medical payments coverage (optional) pays for medical expenses incurred by your ATV passengers in the event of an accident.

Uninsured/underinsured motorist coverage (optional) protects you if another rider causes an accident and does not have insurance to pay for your expenses, subject to the limits in your policy.

Additional insurance considerations
  • How often and where you ride, the type and age of your ATV, and where your ATV is stored can affect your coverage and premium costs.
  • Most ATV policies cover the use of your ATV only for recreational purposes or commuting on your property. ATV racing is not covered, although you may be able to find coverage from a specialty insurer.
  • It is illegal to ride an ATV on a highway or road, and ATV policies exclude coverage in these situations.
  • Riders must be at least 16 years old and possess a valid driver’s license to be insured.
  • Coverage generally extends to other people who drive your ATV with your permission, provided they are licensed.
  • Older riders usually can find less expensive coverage than younger drivers, who are considered a higher risk.
  • An insurance professional can help you find the most cost-effective policy for you.
Put safety first

Because ATVs are dangerous, it’s especially important to follow safety procedures. The Consumer Product Safety Commission reports there have been 15,744 fatalities from ATV accidents since 1982, and 21% of those were children under 16 years old. Remember to follow these basic safety rules:

  • Do not drive ATVs on paved roads.
  • Do not allow a child younger than 16 to drive or ride in an adult ATV.
  • Do not drive ATVs with a passenger or ride as a passenger unless the ATV is specifically designed to carry more than one person.
  • Always wear a helmet and other protective gear such as eye protection, boots, gloves, long pants,and a long-sleeved shirt.
  • Take a hands-on safety training course.

Drive safely and have a great time, backed by the assurance of proper precautions and good insurance.

More information on insurance for recreational vehicles and watercraft.

Call a OneGroup agent today to discuss your options: 800-268-1830.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

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