Commercial General Liability Coverage: Product & Completed Operations Hazard

Time To Talk Insurance

This Months Topic: Commercial General Liability Coverage

 Product & Completed Operations Hazard

If you manufacture, sell or distribute a product of any kind, there is a possibility that the use of this product by one of your customers could potentially cause bodily injury. The most common and apparent example of a Products Liability exposure is all the warning labels manufacturers attach to a stepladder. Next time you are at a home improvement store take a look at all the warning labels the ladder manufacturer places on their product. Who really needs to be told not to stand on the top rung of a ladder? Or Watch Your Step!

The reason why the ladder manufactures places obvious warning labels on their products is because of the potential risk of someone injuring themselves from an undisclosed exposure that results in a hazardous fall. A product liability hazard exists when someone injures themselves as a direct result of the manufactures not disclosing the potential dangers or risks associated with owning their product. So that’s why it is wise for all manufacturers to properly inform their consumers of the potential dangers and risks associated with owning a particular product. Even if you are not the manufacturer, and simple sell someone else’s product, you could still be liable for bodily injury damages.  

The second part of this important coverage is called Completed Operations Coverage. If you install or repair products such as a heating system, you could be negligent should damage be caused by your work after your work is completed. Let’s say that you installed a new furnace in a restaurant, and later that day fire ensues. The fire marshal determines the cause of the fire to be from the product literature that was left inside the furnace that just happened to catch on fire, further melting a plastic cover causing black smoke to spread throughout the premises. The business had to close until repairs and cleanup could be completed. A substantial amount of money was lost due to the business being closed and the cleanup was in the thousands of dollars.

Both of the situations cited above would be covered under a Commercial General Liability Policy if your policy includes Products and Completed Operations Coverage.  Not sure if you’re commercial package includes this very important coverage? Then Give us a call at 740-286-5031 and we will be glad to help you better understand this important coverage and many more.

Michael Carlisle, Agent

Carlisle Insurance Agency

Renting a Vehicle? Do you need to buy the auto insurance coverage from the rental car company when renting a vehicle?

Time To Talk Insurance

This Months Topic: Renting a Vehicle

 Do you need to buy the auto insurance coverage from the rental car company when renting a vehicle?

            As a licensed insurance agent I answer a large number of insurance coverage questions on a daily basis for my insured’s and potential clients. One of the more frequently asked question is “If I rent a vehicle from a rental car company and have an auto accident am I covered for Liability and physical Damage on my personal auto policy or do I have to buy the auto insurance from the rental car company?” My answer varies depending on the insurance coverage’s offered by their personal auto insurance company.

             You do not always have to buy the auto insurance from the rental car company because you may have the coverage already included in your personal auto policy or you can purchase Rental Automotive Gap Coverage from your personal auto insurance carrier. Many personal auto insurance carriers do have some form of Rental Automotive Gap Coverage that may be automatically included or that can be added to an existing auto policy for a very small fee. The auto insurance companies that have this coverage available have their own Rental Automotive Gap Coverage form and the product and coverage’s can vary.

            It is important to remember that all rental car companies have their own written rental agreements using a specific language in their contracts designed to protect their legal and financial interests. You may be personally liable for damages to the rental car or bodily injury to others if you do not have adequate insurance coverage. Most rental car companies have insurance you can purchase from them and this coverage may be limited and the cost very high. Always call your auto insurance agent and ask for a detailed explanation of coverage and make sure your insurance company’s rental coverage form is broad enough to cover diminished value, and loss of use. Also, have your insurance agent verify in writing that the coverage exists before you rent a car or travel. If you do have the rental car coverage included in your personal auto policy contract then keep a copy of these important documents with you when you travel in case you have an auto accident and have to show proof of insurance coverage.

            The Rental Automotive Gap Coverage offered by my insurance carrier Auto-Owners Insurance is among the best in the industry and provides coverage for the amount you are contractually liable under the terms of the rental car agreement. The coverage pays for diminished value of the rental vehicle, which is any real perceived reduction in market value of the vehicle, and includes coverage called loss of use. Loss of use - The rental car company can actually charge you for the days they are left without a vehicle to rent out to others because the vehicle is not available to rent out for the following reasons… the vehicle is being repaired, replaced, or in storage.   

            Remember, it is extremely important to call your local insurance agent and ask a few coverage questions before assuming you have this coverage automatically included in your policy. Some insurance company’s may cover the liability and physical damage coverage but more than likely will not have coverage for loss of use and rental auto gap unless you add to your policy.

Michael Carlisle, Insurance Agent

Carlisle Insurance Agency, Inc.

Flood Insurance

Time To Talk Insurance

This Months Topic: Flood Insurance

Flooding is the most common natural disaster that can occur anywhere or anytime, even if you do not live near water. Flash floods, inland flooding, and seasonal storms bring flooding to every region of the country and just inches of water can cause thousands of dollars in property damages. Your homeowner’s insurance and business insurance policy will most likely exclude any coverage for damage to your property from flooding. A flood insurance policy has to be written separately thru an insurance company and that provides this specific coverage.  The good news is that anyone can purchase a flood insurance policy even if your property is not in a flood zone.

 If your home or business is in a high risk flood zone the average premium for a flood policy is $500.00 a year. If your property is in a low risk zone or completely out of a flood zone the average premium is $119.00 a year. If you do decide to purchase a flood policy for your home or business here are a few important items to keep in mind: 1. Once purchased, there is a 30 day waiting period for the policy to become effective, so don’t wait to buy it! 2. You can purchase flood insurance if you have been flooded before, and you can purchase it even if your mortgage doesn’t require it. 3. About 25% of all insurance claims come from low to moderate risk flood areas. 4. Your community has to participate in the National Flood Insurance Program to qualify. 5. Business owners can buy $50,000 building coverage and $50,000 contents coverage for just $550.00 a year. 6. You can decide how much flood insurance coverage to purchase on your home, business property, and personal property.

As of March 31^st, 2009 FEMA re-evaluated their flood elevation certificates for most of Ohio including Jackson, Wellston, and Oak Hill. Some properties that were in a high risk flood zone may now be in a low to moderate flood zone allowing for a reduction in your flood insurance premium. The new flood elevation certificates will not be used by FEMA to automatically adjust the flood zone certificates to your flood insurance policy. The only way to find out if your premiums can be lowered or if your property is currently out of a high risk flood zone is to speak to a licensed insurance agent that is familiar with the Flood Insurance Program.

You might be tempted to take a big chance and go without this valuable coverage. When you consider the cost of this coverage could be less than $200.00 annually, you will be doubly disappointed if you have an uninsured loss. All you have to do is bring your current flood insurance policy into my insurance agency or fax it to 740-286-5032, or email a copy to Carlisleagency@hotmail.com and I would be glad to re-evaluate your flood insurance policy free of charge for any one in Jackson County. If you would like a new flood insurance quote for a home or business please call the Carlisle Insurance Agency at 740-286-5031 and ask for Michael Carlisle. We represent Auto-Owners Insurance Company the largest flood insurance provider in the country with 94 years of experience.                 

Michael Carlisle, Insurance Agent

Personal Liability Insurance

The Basics of Homeowners Insurance

This Months Topic: Personal Liability Insurance

            Your Homeowners Insurance Policy includes a very important and often under looked coverage called Personal Liability Insurance; this coverage protects your financial and legal interest in the event a bodily injury or property damage lawsuit is brought against you, your spouse, or any others under the age of 21 under your care. The personal liability coverage that is built into your homeowner’s insurance policy has a minimum limit of $100,000 and the option to increase to $500,000, or $1,000,000. The cost to increase your liability limit from $100,000 to $500,000 is a mere five to ten dollars annually and well worth the minimal increase in premium dollars.

            Almost 100 percent of all Homeowners Insurance policies I have reviewed from my competitors for my potential clients have a limit of $100,000 and do not provide the basic homeowners protection. At Carlisle Insurance Agency we include a minimum of $500,000 of liability insurance protection in all of our homeowner’s insurance contracts because we care about protecting you the policyholder from potentially damaging and life altering lawsuits.     

            Your current insurance agent has an ethical and moral responsibility to provide an iron clad insurance policy designed to protect you and your family members in the event of a catastrophic insurance loss. As a self advocate and a concerned Homeowner it is imperative for you to take an in-depth look at your homeowner’s insurance policy to make sure your insurance agent is looking out for your personal financial needs.

To evaluate your financial situation ask yourself a few questions. 1. How much do I have to lose? 2. What is the monetary total of my assets? 3. How much would legal fees cost me? 4. How much risk do I have? Do you own a swimming pool, recreation room, or have people work in your home? Take the time and make your insurance agent work for you and make him accountable for his actions.   

            After you have carefully reviewed your homeowners insurance policy and have identified that your personal liability limit is $100,000 please call your insurance agent and ask him this question…As a professional insurance agent, are you providing my family with the best possible insurance protection for the price or are you interested only in protecting your bottom line?

Michael Carlisle

Annuities and the Power of Tax Deferral Retirement Savings

Time To Talk Insurance

This months Topic: Annuities and the Power of Tax Deferral Retirement Savings

      Millions of Americans have lost a significant portion of their retirement assets, and many of these individuals may have to delay their planned retirements due to the recent global financial economic crisis, wide spread unemployment, and inflation all having negative impacts on retirement earnings. If the Federal Government continues to borrow money at an attempt to fix these problems the current financial crisis could get even worse.    

      What if the same financial scenario occurred today as it did in the stock market crash of 1929? Would your retirement money still have any value if invested in a Bank CD or Mutual Fund? Today, the financial strength of most banks is tied to the stock market, risky mortgage exposures, and the Federal Governments promise to insure your investment money through the bankrupt FDIC. During the stock market crash of 1929 the only financial industry still paying dividends were conservative and financially stable insurance companies.

      There is a way to invest your hard earned money and receive a guaranteed rate of return on your retirement money without the risk of losing your principal or interest. The investment is called a Deferred Annuity. During the recent stock market crash of 2008 at month when the stock market was at its lowest Auto-Owners Insurance Company increased the rate of return on their deferred annuity. “We made our clients money”      

      With a deferred annuity taxes will have to be paid on gains eventually, but a larger nest egg will have been built in the meantime. “Tax deferral puts my clients in control, allowing them to choose when to pay those taxes.” Taxes are paid every year on a bank CD, with an Annuity taxes are paid only when the money is withdrawn allowing for compounding interest and tax free growth.

      For example, if $100,000 is invested in a three-year CD that is currently offering 4.4%, the money would grow to $104,400 at the end of the first year, and may be subject to annual income taxes, further reducing gains. Assuming a 28% tax bracket, 6.6% would need to be earned from the CD in order to actually return 4.4% once taxes are figured in. After calculating the $1,232 (28% tax bracket) in taxes on the gain just in the first year the total return on your investment is actually $3,168 instead of $4,400. A bank CD reduces the total gains on your investment year after year and does not have an investment choice to defer the taxes at a later time. After three years the bank CD’s true value is $109,504. Now let’s take a look at the deferred annuity…  

      However, if the same $100,000 were put into a three-year Annuity paying 4.4% it would grow to $104,400 at the end of the first year, and $113,789 at the end of the third year. That’s tax-deferred savings, compounded growth, and flexible access to your money along the way.

You decide: Bank CD $109,504 VS. Annuity $113,789

     

      Our goal is to provide the consumer an investment choice that is Safe, Sound, and Secure thru the financial strength of Auto-Owners Insurance Company. Auto-Owners Insurance Company was years ago and is rated very highly by the top financial professionals in the industry: Thestreet.com rates Auto-Owners as one of the 20 best annuity companies, Consumer Reports highest rated company pick, J.D. Power and Associates awarded Auto-Owners their top award 2 years in a row; highest A.M. Best rating of A++ only 10 insurance companies have this high of a rating, and they are a Fortune 500 Company. The Safe, Sound, and Secure investment approach is an annuity for all individuals and businesses seeking a guaranteed rate of return with no fess or the risk of losing any of your hard earned money.  

      Because I am an independent insurance agent I have the flexibility of providing state of the art insurance products thru many of the top rated insurance companies to the people of Southern Ohio. Please stop by my office or call me at 740-286-5031 and I will be happy to explain the benefits of investing in an annuity and allowing your money to work hard for you.

Michael Carlisle, Insurance Agent

Identity Theft Insurance

Time To Talk Insurance

This Months Topic: Identity Theft Insurance

Identity Theft can happen to anyone at anytime and can occur in many different forms. That’s why it’s important to know the real facts about Identity Theft and what you can do to protect yourself. Identity theft is defined as the process of using someone else’s personal information for personal gain.

In 2007, 10 million people fell victim to identity theft and in 2008 this number increased by 22% to over 12 million people. 43% of victims have their personal information stolen from thieves using low tech methods such as stealing a wallet or physical documents to obtain your personal information. Online identity theft accounted for only 11% of all identity theft cases. Alarming statistics show that one in every 20 Americans risks being a victim of Identity Theft this year. If you have any suspicions that someone has stolen your personal information act fast and contact your local law enforcement agency and then report this information to your credit card companies and banks where you have your checking and savings accounts. 71% of all fraud happens within a week of someone stealing your personal data, so acting fast and report any suspicious activity immediately.  

Identity Theft can occur in many different ways. For Example, your credit cards numbers could be stolen and used to make online purchases; a thief could impersonate you and open up a loan in your name; a felon could commit a crime and pretend to be you when caught; or someone could use your personal information to apply for a job.

      You can protect yourself from the harmful effects of an Identity Theft by adding this important coverage to your homeowner’s policy. The cost for this coverage is typically $25.00 a year and provides $15,000 of reimbursement protection for recovering one’s financial identity. This important coverage includes reimbursement costs associated with: Preparation and notarization of documents; Loan reapplication fees; lost earnings as a result of time off work; Reasonable attorney fees; and Bond premiums. Call Michael Carlisle at 740-286-5031 and ask for more information regarding this topic or any important coverage questions.

Identifying Risks for Non-Profit Organizations

Time To Talk Insurance

This Months Topic: Identifying Risks for Non-Profit Organizations

                Most Nonprofit Organizations have a very limited understanding of the insurance industry and the recent and ongoing changes in the insurance marketplace. When shopping for insurance a non-profit organization has a very limited market and is at the mercy of their insurance agent’s professional knowledge of non-profit insurance contracts. All licensed insurance agents in Ohio have a moral, ethical, and professional obligation to identify the non-profit organizations insurance exposures by evaluating risks, identifying gaps in coverage, and then applying the specialized insurance products to fill in the insurance gaps. There are only a few insurance carriers in the marketplace today that can provide the specialized and unique insurance coverage’s designed to protect the exposures that exist for all types of non-profit organizations.

                Most of my competitor’s insurance contracts are missing hundreds of specialized coverage’s, millions of dollars of liability and property coverage’s and their insurance premiums are extremely overpriced. Here are just a few examples of some missing coverage’s: 1. Donation Assurance – Retracted donations. 2. Liberalization Coverage - Revisions in the State of Ohio. 3. Human Services Professional Liability. 4. Crisis Management Coverage. 5. Directors and Officer’s Defense Coverage - Limits are in addition to liability coverage. 6. Fund Raising Liability. 7. Coverage for exposures of all IRS code 501(C)(3) organizations. 8. Fines and Penalties Coverage - Violation of the Emergency Medical Treatment Act. 9. A 17 point definition of employment practices. 10. Actual or Alleged violations of HIPAA. 11. Most favorable venue wording for punitive, multiple or exemplary damages. 12. Order of payment language with priority placed on protecting the individual insured first. 13. Employee Benefits Liability. 14. Employed Lawyers Liability. 15. $2,500 deductible for Employment Practices Liability - The insurance industry standard is $25,000.   

                That’s why it is imperative for all active Board Members and Managers to work in unison and become extensively involved in the insurance decision making process, have an objective risk management program in place to evaluate current insurance market trends, and work with an insurance agent that has the non-profit organizations financial and legal interests in mind. For Example: The recent market changes in Employment Practices Liability Insurance have lowered the insurance premiums for this coverage by 75% and have made this specific coverage available thru most insurance carriers. Just a few years ago this coverage was only available thru a small number of insurance carriers and was very expensive to purchase. A local competitor of mine was charging a local non-profit community organization over $5,000 for this coverage and I reduced the premium to $1,400 and increased their coverage’s considerably.     

                 Today, I’m seeing very destructive trends in a majority of all non-profit organizational operations that include…1. The board members are not including themselves in the insurance decision making process and are allowing the managers to make all the insurance decisions. 2. Organizations are listening only to their current insurance agent are not educating themselves by searching the marketplace for better insurance coverage; most insurance agents are only interested in keeping the insurance contracts with their current insurance carrier and are not working in the best interest of the organization to lower insurance costs and increase coverage’s. 3. Organizations are not placing their insurance contracts out for bid every few years to ensure their getting the best possible product available at a competitive price. 4. The managers think they have a clear understanding of complex insurance contracts and choose not to listen to the industry professionals because they feel they are protected properly by their current insurance company and agent.

               

                All non-profit insurance contracts are very complex in their definition of what’s covered and excluded. That’s why all insurance contracts need to be evaluated annually for changes in contractual policy language, new or improved insurance products available in the insurance marketplace, and changes in exposures. There are thousands of insurance companies and agents eager to sell you a product, but there are no two insurance contracts that are exactly alike. If you are a Board Member or Manager of a non-profit organization you can be successful in fulfilling the insurance needs of your non-profit organization by speaking to a qualified professional insurance agent that truly cares about saving your organization money while protecting you and your community organization from the financially devastating affects of having an underinsured or uninsured loss.

   

Michael Carlisle, Insurance Agent for Carlisle Insurance Agency in Jackson, Oh

http://www.facebook.com/pages/Jackson-OH/Carlisle-Insurance-Agency-Inc/112853485397976?v=app_2373072738&ref=sgm#!/topic.php?uid=112853485397976&topic=70