Insurance Insights: The Cleary Insurance Blog
The Cleary Insurance blog covers insurance, risk management, and financial planning for New England businesses and individuals. Our team of licensed advisors and specialists publishes regular articles on commercial and personal coverage, employee benefits, life and financial planning, and insurance compliance. Browse recent articles below, or use the category filters to find topics relevant to your business or personal situation.
Drones, Electric Bikes, and Scooters: Is Insurance Necessary?
Recently, there has been extensive media coverage regarding notable drone activity along the East Coast. Analysts and commentators are emphasizing a notable and rapid increase in the usage of drones across various settings, which raises important conversations about safety and liability.
If you’ve spent any time in urban areas recently, you may have noticed the prevalence of electric scooters and electric bikes alongside the growing number of drones in the skies. These new modes of transportation are becoming part of the urban landscape, and they share a critical issue: a significant majority of private operators and users do not have adequate insurance coverage.
There are several reasons for this lack of insurance:
- Most homeowners’ and auto insurance policies explicitly exclude coverage for aircraft-related activities, which encompasses drone usage.
- Standard homeowners’ insurance typically does not extend coverage to electric vehicles, including electric scooters and bicycles.
- Auto insurance policies are usually limited to registered vehicles, leaving many users of electric scooters and bicycles vulnerable in the event of an incident.
All three—aerial drones, electric bikes, and electric scooters—possess the potential to cause considerable bodily injury to others in case of an accident. This highlights a substantial gap in liability protection for users of these vehicles.
If you are actively operating drones, or using electric bikes or scooters, it is crucial to take proactive measures. We strongly encourage you to reach out to your Cleary Account Manager to discuss your current situation and explore the coverage options that may be available to you. Understanding your insurance needs can help protect you and others from unforeseen incidents.
Employer of Record and Drones: Two Challenges Employers Face
As we enter 2025, two common issues have emerged that pose potential coverage problems for an organization’s financial well-being: Employer of Record Agreements and the use of drones.
**EMPLOYER OF RECORD AGREEMENTS**
More U.S. companies are hiring talent from around the globe, thanks to advancements in technology that simplify communication, expand operational hours, and facilitate talent acquisition. To manage global hiring, organizations often turn to Employer of Record (EOR) services such as Globalization Partners, Oyster HR, and Velocity Global. These EOR organizations handle payroll, taxation, benefits, and local legal compliance for the U.S. entity.
However, an unintended consequence of this arrangement is that an organization might discover it lacks coverage after a loss caused by an EOR employee. Insurance policies typically have clauses that define “Who is an Insured.” While employees are generally considered insureds, policies also specify what constitutes an employee. If a policy’s definition excludes EORs, coverage for losses arising from EOR employment issues will not be available for the U.S. organization or the individual named in a lawsuit.
Furthermore, different policies issued by the same carrier may have varying definitions. For instance, General Liability coverage might include protections that are absent in Professional Liability policies.
When reviewing insurance programs, it is critical to:
- Identify where the organization has “employees” and determine if any non-U.S. talent falls under an Employer of Record program. If so,
- Collaborate closely with insurance carriers and underwriters when applying for or amending coverage to ensure that EOR employees are properly covered.
Many organizations, insurance brokers, and carriers may not be aware of this challenge, making it essential to recognize and address it promptly. Please reach out to your Cleary Account Manager to discuss whether EORs are being utilized.
**DRONES**
Drones are increasingly used in commercial operations, benefiting industries such as roofing, real estate, and insurance adjusting. They allow for safer and more efficient property inspections, often from a distance, which can be beneficial for risk management in Workers’ Compensation.
However, this innovation presents potential challenges for an organization’s General Liability (GL) exposure. GL insurance typically provides coverage for bodily injury and property damage to others. If a drone causes injury or damage, one would generally look to the GL policy for defense and settlement coverage. The complication arises from the GL policy’s list of exclusions, which commonly includes the use of aircraft.
If your organization is using drones, please contact your Cleary Account Manager to discuss the implications for your coverage.
Embracing A Digital Detox
Technology has become such an integral part of life that it may be hard to imagine functioning without it. Beyond work, people depend on technological devices for information, communication, and entertainment. However, constant attachment to these devices can have harmful effects on your mental health. To combat these issues, you may consider a digital detox. The National Institutes of Health defines “digital detox” as a disconnection from devices or social media for a defined duration.
A survey by the American Psychological Association (APA) found that constant digital connectivity is linked to higher stress levels, with nearly 1 in 5 (18%) adults identifying technology use as a major stressor in their lives.
This article explores the effects of heavy technology use on mental health and offers practical tips for effective screen timemanagement with digital detoxing.
The Impact of Technology on Mental Health
Many people are hooked on tech gadgets for a reason. Checking these devices stimulates the brain’s reward system, causing the body to release dopamine, the pleasure hormone. However, these pleasurable activities can become addictive. Excessive screen time has also been linked to mood swings, suicidal tendencies, and increased stress and anxiety.
Studies suggest that excessive use of digital devices can have detrimental effects on mental health. For example, checking social media in bed at night has been found to increase the likelihood of anxiety and insomnia. Research also suggests that frequent technology use can lead to feelings of isolation, difficulty focusing, tech addiction and slower brain development.
Consider unplugging if you’re experiencing any of the following symptoms:
- Increased anxiety
- Increased anger or irritability
- Depression
- Poor sleep quality
- Feelings of insecurity
- Difficulty concentrating
- Dependence on validation from social media
- Fear of missing out
Benefits of a Digital Detox
Taking a break from digital devices is crucial to maintain balance and overall well-being. It helps reduce stress and improvessleep quality. When you step away from technology, you become fully present for yourself and for others, allowing for moremeaningful social connections. Furthermore, digital detoxing has significant mental health benefits. Studies show that peoplewho refrained from social media reported lower stress levels and improved self-image. Additionally, taking a technologytimeout allows you to be mindful of your online habits and form healthier routines, ultimately leading to higher productivity.
Simple Strategies for a Digital Detox
The APA survey also revealed that while 65% of Americans agree that occasionally unplugging or taking a digital detox isimportant for mental health, only 28% actually do so. Begin your digital detox by determining which behaviors you’d like toaddress and creating a plan that works for you. Try these strategies for an effective digital detox:
- Turn off notifications. Notifications are distracting and can hinder productivity. Consider turning off as many as you can to minimize interruptions.
- Use digital detox tools. Plenty of devices have built-in tools that can silence notifications or disable apps for a certain period. Research shows that those who use digital detox tools (e.g., iOS Screen Time or Google Play’s Digital Wellbeing)are less apt to use their smartphones compulsively and, thus, more likely to avoid the negative effects of social media.
- Start your day tech-free. Many people pick up their phones and start scrolling when they wake up, but Stanford Lifestyle Medicine Program experts say this behavior activates the fight-or-flight response. This not only creates a sense of anxiety but also conditions the brain to be more hypervigilant. Instead, use the first hour of the day for activities such as exercising, spending time outside or preparing a healthy breakfast. The goal is to create a morning routine that sets a positive tone for the day and supports brain health.
- Take periodic breaks from technology. Eliminating the use of all digital devices may not be realistic, especially if you use them for work. Instead, set limits for how much time you spend on social media each day or designate certain times for phone use. You can also consider ways to make small changes, such as chatting with someone face-to-face rather than using your phone.
- Create gadget-free zones. Designate specific areas in your home, such as dining rooms and bedrooms, where gadgets are not allowed. This allows you to be more present and encourages tech-free activities, such as baking, reading, doing crafts, and playing cards or board games.
- Reach out for support. Family and friends can offer emotional support during your digital detox. They can hold you accountable and keep you motivated when you’re struggling to stick to your goals.
Conclusion
While technological devices aren’t inherently harmful, overuse can negatively affect your physical and mental well-being. Witha digital detox, you can break unhealthy habits and embrace more balanced, healthier alternatives.
Contact a mental health professional for further guidance.