Flooding caused by wildfires may be covered, even without flood insurance

Posted on by Ellen Lichtenstein
If wildfires caused you flooding, you could have more coverage than you think

Think the flooding you sustained from wildfire runoff isn’t covered? It actually might be!

We hope you are staying safe and healthy, and that your year is off to a productive start. With the rainy season upon us, UWIB and our friends at The Greenspan Company want to provide an update regarding California wildfire claims.   
 
If you sustained property damage due to a wildfire and, as a result, subsequent damage from rains, flooding, and debris flow, this could be great news.

Most property policies contain exclusions for damage caused by mudflow, debris flow, mudslide, or similar events. However, for wildfire victims who have, or had, a covered claim due to the wildfire, under Section 530 of the California Insurance Code, these exclusions are not enforceable.   
 
Insurance Code section 530 states:  An insurer is liable for a loss of which a peril insured against was the proximate cause, although a peril not contemplated by contract may have been a remote cause of the loss; but he is not liable for a loss of which the peril insured against was only a remote cause. This is also known as the “efficient proximate cause doctrine.” 

What does this mean?

While your policy may not cover flood and water damage caused by heavy rains, if facts support the cause actually being wildfires (a covered loss), then your insurance will need to cover you for the damages.
 
Some carriers may deny coverage in these situations; however, these exclusions may not be enforceable and may require a reminder of the legislation in place.  

Here is a link to a letter from California Insurance Commissioner Lara. 
 
If you have a mudflow issue or other wildfire-related claims or concerns, we encourage you to reach out to your UWIB agent. They will stop what they’re doing and connect you with someone at The Greenspan Co. that might be able to help. 

If you are NOT a client of UWIB, we would love the opportunity to earn your business. You can get started by emailing Alicia or Veronica, two of our Private Client specialists, or give us your info, and we’ll reach out to you. 

Your Business Interruption Insurance May Cover COVID-19 Shutdowns

Posted on by Ellen Lichtenstein

In The United Kingdom, the highest court in the land just ruled that most Business Interruption Insurances would indeed have to cover lost business due to government-imposed COVID-19 shutdowns. This is big news for many business owners, who have been negatively impacted by compulsory closures.

This ruling will bring massive relief to many UK businesses who are suffering the financial losses of a third COVID-19 shutdown since the pandemic began.

While we don’t know what this means for US-based businesses yet, it is possible the United States Supreme Court could side with businesses, and require claims to be paid, even without specific COVID-19 or Pandemic Insurance policies.

If you have suffered Business Interruption due to COVID-19 shutdowns and you would like to consult with us on your own situation, including whether a claim is warranted, get it touch with us today.

Risky Building? How to Minimize Your Risks When Building or Renovating

Posted on by Ellen Lichtenstein

If the new year has got you itching for a new home, you’re not alone. As the weather gets warmer in springtime, home sales and new builds are on the rise. Among all the things you’re thinking about during this process, insurance may not be at the top of your list. But it should be!

We’ve written a guide to minimizing your risk during building and renovations, including where you should be looking to your contractor to assume liability. If you’re looking for an experienced professional to guide you, we would be happy to help!

Property Rates Rise as Carriers Retrench and Prepare for the Changing Market

Posted on by Ellen Lichtenstein

Our partners at CRC Group Wholesale & Specialty have written about the impact of the 2020 weather disasters and COVID-19 on the P&C markets. Check out this well-researched report to understand the changing markets and the challenges & opportunities they present.

Click the link to download the White Paper:

State of the MarketsDownload

Protecting Yourself from Vandalism: What Every Retail Business Owner Should Know

Posted on by Ellen Lichtenstein

Americans have been more and more vocal about their political opinions in recent months. This environment of uncertainty and confusion is likely to continue, along with demonstrations of protest.

While these protests often start as peaceful demonstrations, emotions can run high and escalate into riots and vandalism. These events can result in significant property damage to your retail business. While every business owner should have sufficient insurance coverage (get in touch with us today for a free insurance checkup to make sure), there are still some steps you can take to protect your retail business from being the target of damage.

Here are five things you can do to protect your business and discourage vandalism:

Secure all points of entry:

● Make sure to cover all windows and doors with exterior grade plywood or other burglar resistant materials.
● Outdoor suitable plywood is often marked with an X making it easily identifiable.
● To ensure your security, it is best to use CDX plywood that is ⅝ inch or thicker.
● Secure plywood with bolts or screws and headers to provide your business with additional protection.
● To slow, delay, or discourage entry by window, apply security film to all glass surfaces.
● Install security roll doors to ensure your business is protected.

Remove inventory, cash, and computers when tensions may higher:

● Begin by confirming this is allowed with a state regulator, as well as the process necessary to remain compliant with all state laws and regulations.
● Call your insurance agent before moving any product and property
● Confirm whether your insurance policy provides you coverage regarding “Preservation of Property.”
● Ensure the safety and security of all employees and products during the transfer.
● Be sure to back up any critical data before the event.
● Post signage on doors indicating the removal of inventory, cash, and computers to dissuade intruders.

Increase lighting and security:

● Install additional lighting and security to your storefront to ensure that any trespassers are easily identifiable.
● Enhanced lighting and security make the property less desirable to vandals.
● Hire a highly visible security presence for any upcoming events.

Protect against roof access:

● Prevent any access to rooftop ladders with the addition of locked security gates.
● Trim all building adjacent trees to prevent vandals from using them as ladders to access rooftop entry.

Check the surrounding area for items that could cause damage or harm:

● Remove easily accessible items from around your store that could be used as weapons or to cause damage.
● Common items include: benches, bike racks, large stones, construction materials, maintenance equipment, etc.
● Remove large pallets and other common combustibles from the premise.
● To reduce the possibility of arson, remove or conceal all trash containers.
● Confirm all exterior or easily accessible water/supply equipment is operable, tamper-proof, and constantly monitored.

No security system can guarantee 100% effectiveness against the often unpredictable behavior of vandals or trespassers. The best way to protect yourself and your business is to use a combination of security methods like the ones above.

The world is always unpredictable: even more so when emotions are running high. Remember to take the necessary precautions to assess and manage your risks and to always use your best judgement when it comes to protecting your property and other people.

For more information on how to protect your product and property, talk to your insurance agent about coverages that may add an additional layer of protection to your business.

If you’d like to be in touch with one of our experts, contact us today.

Your Data Could be the Victim of a Kidnapping!

Posted on by Ellen Lichtenstein

Just like people, your data can be the victim of a kidnapping. These things are real, and they are happening to small and large businesses all across the country.

An increasingly common form of cyber-crime is to infiltrate your company’s data and hold it for ransom. As all of us become more dependent on the Internet for day to day operations, so too do the cyber-criminals looking to take advantage.

Being the victim of data breaches and other security attacks can damage your reputation, but more importantly, your bottom line. One such threat, ransomware, can be particularly harmful and leave your company at high risk if not addressed. Addressing these risks is not expensive.

What is Ransomware?

Ransomware is a form of malicious software which can infect your computer. These attacks often take the form of a message demanding money be paid in return for access to your own systems or sensitive customer information. When faced with a ransomware attack, you may be uncertain whether or not to make the payment. There are solid arguments both for and against doing so.

Why would you consider paying the ransom?

● Payment is sometimes the least costly option available
● Payment may be in best interest for stakeholders
● Payment will avoid fines for loss of important data
● Payment avoids loss of confidential information
● Payment can avoid a publicized security breach

Why would you consider not paying the ransom?

● Payment does not guarantee access back to your system
● Payment funds the attacker and encourages them to strike again
● Payment may cause damage to a corporate brand
● Payment is often an unregulated exchange and can put the organization at risk

Whether you choose to make a payment or not, ransomware attacks can cause both tangible and intangible damage to your organization and others who depend on you.

● Damages from a compromised system can negatively affect those you have a fiduciary responsibility to protect.
● A release of sensitive customer information harms your current customers and your reputation.
● An attack on your suppliers may initiate a counterattack leaving your company with negative supplier relationships.
● Ransomware attacks often leave executives and Boards of Directors embarrassed and with the cost of fixing the damage done to the brand.
● If the attack is large and made public, it can be detrimental to the public trust you’ve worked hard to build.

How to protect your company against Ransomware attacks and their negative consequences

As with most things in life, an ounce of prevention is worth a pound of cure. For this reason, your business should – and perhaps does – practice good information security hygiene. But, what do you do if, despite your best efforts, an attack occurs?

Cyber Liability Insurance can help minimize the negative impacts of a security breach or malicious attack on your company. Specifically, this coverage can:

1. Manage the cost of some if not all, of the ransom demands
2. Help pay for legal fees to prosecute the attacker
3. Assist with the costs of repairing your damaged reputation

In their Ninth Annual Cost of Cybercrime Study, Accenture predicts the global cost of cybercrime to reach or exceed $5.2 trillion over the next five years. In comparison, the cost to insure your risk is insignificant! It’s no longer enough to consider purchasing this specialized coverage; the time has come to act.

While the potential for loss due to cybercrimes is huge, traditional business package policies exclude cyber attacks, just like they exclude COVID-19 and other specific claims. Without a Cyber Liability policy, your business is left exposed in the case of an attack that harms you financially and in other less tangible ways.

At UWIB we help companies, large and small protect their interests with cyber security insurance policies, D&O insurance, employment practices liability insurance, fiduciary liability responsibility insurance as well as all forms of Employee Benefits coverage. Contact us now to talk more about how we can put solutions in place for you.

Five Ways to Reduce Your Workers’ Compensation Costs Through Oversight

Posted on by Ellen Lichtenstein

Written By Eric Schirding

Worker’s Compensation Insurance is something almost every business owner has to deal with, though few would say they enjoy it. The process should be straightforward: you pay premiums to cover replacement wages and medical treatment if an employee is injured during the course of employment.

You might think there’s nothing else to do but pay your bills and encourage your team to work as safely as possible. But, if left on autopilot, Worker’s Compensation claims costs can quickly skyrocket out of control, taking your premium costs along with them.

If you’re purchasing Worker’s Compensation Insurance directly from a carrier, they have little incentive to help you control your costs and will probably only provide enough oversight to make sure their own bottom line isn’t being negatively impacted. Even if you work with an independent agent or insurance broker, their role is still oftentimes relegated to simply selling and renewing your policy. Not every agent has the time and expertise to perform rigorous oversight.

That’s where a Risk Management professional comes in. If you’re reading this because you are worried about rising Worker’s Compensation Insurance costs, here are five things you (or your Risk Manager) can do to help.

  1. Reduce your Worker’s Compensation costs by lowering your reserves

 

Your reserves are the amount of money you have set aside to cover your Worker’s Compensation claims. They also play a large role in your renewal prices each year because they are judged as a factor in your total annual claim payout amounts. In many cases, companies are being penalized unnecessarily with higher renewals simply because their reserves are higher than they should be.

For example, if the reserve is set to $100,000 for a recently filed claim and you have already paid out $25,000, it’s possible that you no longer need $100,000 in reserves. However, the insurance adjuster has no motivation to keep up with this and lower your reserves accordingly. As the claim nears its end, you may have only paid out $50,000 but, if your reserve is still $100,000, that claim will be judged based on the cost you paid plus the reserve. That makes it look like the claim was three times costlier than it really was!

With the oversight of a Risk Manager, your reserves can be adjusted for accuracy as the claim continues. A Risk Manager stays on top of the claim status and takes on the task of working with the adjustor to lower the reserve when it becomes clear that the original amount is no longer needed. With this practice in place, the cost of your claims on which your renewal is based will be far more accurate and not inflated by superfluous reserves.

  1. Reduce your Worker’s Compensation costs by uncovering hidden injury causes

 

When an employee reports an on-the-job injury, how diligently do you go looking for other potential causes of that injury? Unfortunately, workers sometimes do incur injuries outside of work and then roll those injuries into a new or existing Worker’s Compensation claim.

The intention may not always be malicious. For example, an employee may have been subject to repetitive motion at a prior job, which contributed dramatically to an injury that was finally triggered by one wrong move at your business. Without any oversight, your company may be left paying for additional medication, rehab, and time away from work that are not entirely due to injuries sustained while employed by you.

  1. Reduce your Worker’s Compensation costs by eliminating claims without merit

 

“Monday morning claims” exist precisely because some employees get injured over the weekend and then try to claim a work accident on Monday in order to receive time off and paid treatment. Alternately, an accident can be fabricated or grossly exaggerated into requiring Worker’s Compensation when no harm has actually occurred.

This goes beyond a legitimate claim being inflated due to outside-of-work activities and moves into the realm of insurance fraud. A Risk Manager providing oversight on your claims can advocate on your behalf for the insurance company to hire a private investigator and determine whether the claim is valid, and to what extent.

If you uncover evidence that an employee is either completely making up his or her injury, or greatly exaggerating it, the entire claim may have grounds for denial. Obviously, eliminating meritless claims is a great way to reduce your total costs and keep your premiums from increasing.

  1. Reduce your Worker’s Compensation costs by using an independent loss consultant

 

Sometimes, you know your business so well that it becomes easy to overlook safety concerns without even realizing it. An independent loss consultant is trained for precisely that. When a consultant walks through your factory or warehouse, he or she can identify areas of risk and potential safety violations. This report is for your eyes only, so you don’t have to worry about being penalized for the findings. Rather, you get all the information you need to fix the problems before a surprise visit from OSHA.

Not only can a loss consultant point out glaring violations and safety hazards, but they can also make more sophisticated recommendations based on years of expertise and knowledge of what the safest outfits do that you are not currently doing.

  1. Reduce your Worker’s Compensation costs by keeping your safety documentation on hand

 

Speaking of surprise visits from OSHA… Getting caught without proper safety documentation is a completely preventable offense. But having these items up to date and on hand is about more than just avoiding a fine. We know from experience that companies who keep good records and documentation tend to be more safety-minded (and thus, safer) overall.

Do you keep copies of every safety meeting sign-in sheet, along with the topics covered? Do you keep your OSHA 300 Log updated with every incident? Do you have safety data sheets available and visible to employees who handle hazardous substances? These are just a few of the documents needed to stay in compliance and stay safe. A Risk Manager will guide you to ensure you have what you need for your specific industry and type of operation.

One more benefit of engaging the services of a Risk Manager is their ability to negotiate penalties on your behalf if you are ever found in violation by OSHA.

As you can see, the goals of oversight are twofold: reduce the chances of a claim and contain costs when claims happen. By working with a Risk Manager, particularly one who specializes in your industry, you can rest assured that your business has the right coverages, is being proactive about safety, and will have a true ally by your side to contain costs when claims occur.

Want to know more?

 

Fill out the form below for instant access to a success story about how one of my clients saved tens of thousands of dollars by adding oversight to their Workers’ Comp program with UWIB.

 

 

 

 

 

Ready to talk?

 

Click here to schedule a meeting with me to discuss your situation and how we can help.

 

 

 

Before You Sign On The Dotted Line, Consider These Risks

Posted on by Ellen Lichtenstein

A graphic of someone signing a contract with a warning to consider the risks of signing a contract

Contracts are a common and unavoidable part of our modern lives. Whether it’s starting a new job, hiring a landscaper, or buying/selling a vehicle, there’s no getting around the need to sign contracts. In an ideal world, an agreement should protect both you and the other signing parties: each party should be contractually responsible for their own negligence. In the real world, this isn’t always the case.

It’s not unusual for contracts to contain an indemnity clause. By “indemnifying” the other party, such a clause places all risk and responsibility on you. If you agree to these terms, you virtually agree to protect the other party in the contract, and your liability insurance may have to defend and pay damages assessed against someone else, for their own negligence!

For a real-world example of what this could look like, imagine you own a janitorial service that serves commercial buildings. The property management of one of your buildings requires you to indemnify them for “any and all occurrences” in your service contract. Later, a fire breaks out that was unrelated to your services, however, your company is left with the bill for damages because of that indemnification. This sounds bogus, but this situation has actually happened, and the janitorial service was legally liable due to that contract!

While it sounds unfair to be left footing the bill for something you’re not responsible for, you may technically be OK – if your general liability insurance is broad enough and does, in fact, extend protection to other parties. However, if your insurance contains limitations or exclusions that preclude this type of coverage, you will be on your own for any liability and damages. For this reason, it is vital that you carefully read every contract you are negotiating and make sure you thoroughly grasp its implications before you sign.

It’s not uncommon for contracts to require one party to add the other as an additional named insured, alone, or in addition to, indemnification. If you do nothing else, the one thing you should do each and every time you sign a contract that even hints at indemnification is to ask your insurance agent to review it and point out where your uncovered risks may be. It’s also a good idea to consult a lawyer for the same reason. These steps will cost a little extra upfront, but you will know where you may be exposed to liability and then be able to take the steps to cover those risks—or to renegotiate the contract with more favorable terms before you sign it!

Here are some suggestions to consider before you sign any contract that asks for indemnity and/or naming additional insureds:

– Negotiate to remove or revise the contract so that you agree to be responsible only for your negligence, not that of the other party.

– If you cannot achieve that, try to negotiate your responsibility to only cases when both parties are jointly negligent.

– Ask for the request for additional named insured status to be removed.

– If the additional named insured is non-negotiable, ask for the contract to specify the additional insured will not be covered for their sole negligence (i.e. your party had no part in the negligence).

– Consult your insurance agent to learn if it would benefit you to have an owner’s and contractors protective liability (OCP) insurance policy satisfy the requirements of your contract, instead of adding the other party to your general liability insurance.

 

When negotiating these terms, you may need to be willing to give something up on your end – price, for example – in order to get the indemnification portion to your liking. The other party may have greater bargaining power but this does not change the fact that only you can look out for your own best interests when it comes to negotiating a contract.

While we always encourage you to deal in good faith and expect the same from other parties, it’s essential to know the dangers of signing a contract that indemnifies the other party. Assuming responsibility for the sole negligence of another can erode your insurance limits, adversely impact your liability insurance loss experience, increase your liability insurance premiums, and even create a reason for your insurance company to deny renewal in the future.

Our goal is to empower our clients with information that helps them to make well-informed decisions before agreeing to contractual terms that could result in unknown exposures to uncovered financial risks.

If you would like us to review a contract to identify exposed risks and provide options on how you can address these risks, contact us today.

Check your protection before a disaster strikes

Posted on by Ellen Lichtenstein

With fires, floods, earthquakes, and windstorms happening across the country, it’s a good time to check your coverage. The extreme climate changes we’re all experiencing might suggest an adjustment in your coverage is warranted. Are your policies ready to respond the way you would want them to? UWIB’s service team can help you find out fast.

The US is experiencing record-high temperatures and we expect many of the Western states to continue to be under excessive heat and other warnings through October. And what about the possibility of another extreme winter season?

Whether you are a current client of UWIB, or not, we would like to offer you a quick and free policy checkup and make sure you’re covered for the potential risks Mother Nature may bring you.

Considering Earthquake Insurance? We can give you an instant quote. Even if you don’t live in a traditional earthquake zone, they are becoming more common around the United States and it may be worth looking into the cost to protect your property.

Here are some additional resources to help keep disaster preparedness at the top of your mind. With everything else happening in your world right now, a little preparation can go a long way towards preventing even more disruption to your daily life and business.  

Prepare for Fire Season (PDF) 

Emergency Supply Checklist (PDF) 

QuakeSmart Toolkit (PDF) 

 

Click here to set up your free and easy policy checkup.

Is your business ready for the next pandemic?

Posted on by Ellen Lichtenstein

Scientists (and Bill Gates) have been warning us about the risk of a large-scale pandemic for quite some time. If you weren’t fully aware of the impact such an outbreak could have on business, you certainly are now. According to a June 2020 report by The World Bank, the world is predicted to see at least a 5.2% contraction in GDP this year.

Pandemic Insurance, once a relatively unknown idea with little demand, is now something most businesses are at least interested in learning more about.

Pandemic Insurance Coverage is Available Here

 

We are excited to announce our ability to offer a new coverage: Pandemic Protector.

Pandemic Protector provides “non-damage business interruption insurance” for loss of gross profit due to an epidemic and or pandemic outbreak.

The coverage design lends itself to companies of all sectors and sizes and is particularly well suited for those working in:

  • – Hospitality
  • – Retail
  • – Manufacturing
  • – Construction and mining
  • – Government

 

With a starting cost of as little as $35,000 for $1,000,000 in coverage, a customized policy can provide broad coverage with a flexible definition of the “epidemic triggers” to meet your businesses’ unique needs. Companies of almost any size can fit into the Pandemic Protector coverage model.

While this coverage excludes the current COVID-19 pandemic, it does cover future “coronavirus” outbreaks that are not SARS-CoV-2.

If you’re ready to learn more, complete the form below and we’ll be in touch with the information you need to see if Pandemic Protector is a good fit for your business.