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.
Water Damage Safety Tips
Whether it’s the result of a leaky appliance, burst pipe, or destructive storm system, even a small amount of unwelcome water in your home can lead to thousands of dollars in damages within hours. We hope the information provided here will help you understand where water damage in your home is likely to start and how you can possibly identify minor issues before they become major problems.
6 Common Causes of Water Damage in Homes
- Plumbing-related losses, e.g., frozen or burst pipes
- Drain line issues, e.g., blockages or breaks
- Roof leaks
- Water heater failures
- Sump pump overflows and municipal sewer backups
- Appliance-related breakdowns
Telltale Signs You May Have a Water Leak or Damage in Your Home
- Trickling, dripping, or running water sounds
- Musty odors
- Cracking, peeling, or bubbling paint or wallpaper
- Water stains on ceilings or walls
- Mold or mildew growth
- Warped Floors or ceilings
- Puddles under or around pipes
10 Steps You can Take to Prevent Water Leaks and Damage
With the following list in hand, take a walk around your home. If you answer no to one or more of the questions below, it may be wise to contact a licensed professional to help you better protect your property from water damage.
- Protect the Pipes-Are all pipes on external walls or in unheated places insulated? Can you relocate vulnerable pipes to heated spaces? Do you shut off your water supply to exterior water spigots and drain them prior to winter months? Have you upgraded to frost-free exterior spigot lines?
- Seal Any Gaps-Are all cracks and holes sealed, especially those where water pipes and electrical cords come in and out? Are all rubber seals and hoses connected to appliances secure with no signs of wear and tear?
- Maintain Appliances-Is grime or buildup removed from the refrigerator coil, dishwasher filter, and washing machine drain regularly? Did a licensed professional install appliance water and gas lines? Do you know when your hot water heater warranty expires? Have you considered changing the anode rod?
- Clear Gutters and Downspouts-Are leaves and debris scooped out and is water flow good? If you spotted a leak, has it been fixed with waterproof sealant? Are all gutter hangers firmly attached?
- Inspect the Roof-Do you frequently check your roof for loose or missing shingles and damaged soffits? Are tree limbs cut back from the roof’s surface? Have you checked for signs of wear at the roof connection point for chimneys and vent pipes?
- Safeguard Septic and Sump Pumps-Does your system have a backflow prevention valve to protect against overflow or clogs? Do you have a backup sump system or alternate power source if electricity gets knocked out?
- Install Sensors and Alarms-Are leak detectors near all water-use appliances, under sinks, and in bathrooms, crawl spaces, and the basement? Do you have temperature change alarms to detect sudden drops? Have you checked with your home security system provider to see if you can add these helpful sensors?
- Landscape Smartly-Have you made “rain gardens” so water runs off the lawn and away from the foundation? Has your lawn been graded properly to ensure water runs away from the building? Are there trenches between your home and nearby plant beds?
- Know How to Stop Water Flow-Does everyone in your home know the location of the main water shutoff valve, and is it easily accessible? If your gate valve looks corroded, have you considered having a licensed plumber change it to a ball valve style? Is your shutoff valve connected to leak and temperature sensors?
- Have an Away-From-Home Plan-Do you shut off water supply to appliances while traveling? If there is a water emergency while you are on a trip, does a family member, friend, or local licensed professional have access to your home? If you’re traveling for an extended period or relocat- ing temporarily for the winter season, do you consider shutting off your heating system and draining your pipes?
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Is My Business Covered for That?
8 Common Business Insurance Gaps
Most small and mid-sized businesses are aware of the importance of having business insurance but often simply opt for general property and liability insurance and call it a day. While these policies cover most of the basics, there may be gaps in your insurance that can leave your business exposed to risk and financial loss.
Here are some of the most common potential gaps we see in business coverage and an overview of more specialized policies and endorsements that may help you protect your business and help your business recover after a covered loss. Keep in mind that individual policies can vary widely, so it’s always important to review your coverage options with your agent or broker.
- Am I covered if an employee sues my business? Consult your insurance agent or broker about adding these coverages to help close the potential gaps:
- Employment Practices Liability Insurance – to protect against lawsuits filed by employees who claim their legal rights as employees have been violated.
- Directors & Officers – to protect your company’s officers and directors if they are personally sued for acts or omissions committed in their capacity as corporate officers or directors.
- Is my business covered if it’s sued by a customer for professional negligence?
- Consider adding Professional Liability or Errors and Omissions (E&O) insurance to help protect against claims directly related to your professional services.
- If my business is damaged by a fire or break-in and must close temporarily, are my operating expenses insured?
- To help cover that potential gap following a covered property loss, ask your insurance representative about adding business interruption insurance to your property policy.
- Am I covered if one of my employees accidently infects my company’s computer system with malware?
- Consider procuring a commercial cyber policy to help provide solutions and services for privacy breaches, network security, incident response, and media liability.
- Is my business insured if our mechanical system breaks down?
- To help close this potential gap, consider equipment breakdown insurance to provide the funds and resources to get you back up and running quickly after a covered loss.
- Is my business covered if an employee gets in an accident while delivering products to a customer?
- A commercial auto policy can help protect vehicles owned by a business; and some may include coverage for individually owned vehicles used regularly for that business (other than commuting to work).
- Is my business covered if it is damaged by a flood?
- Since the typical commercial property insurance policy does not include flood coverage, ask your agent or broker about commercial flood insurance options available from private insurers or the federal government’s National Flood Insurance Program (NFIP).
- Is my business covered if my employees are injured while they are overseas?
- To help cover this potential gap, consider multinational travel accident insurance – to provide resources for international travel, including emergency medical, cash and document replacement, local country reports and travel alerts, and more.
Regardless of the type of business you run, it may be smart to talk to your independent insurance agent or broker to make sure your business is appropriately insured so that you can focus on keeping your business running smoothly, even if you experience a loss.
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This document is advisory in nature and is offered as a resource to be used together with your professional insurance advisors in maintaining a loss prevention program. It is an overview only, and is not intended as a substitute for consultation with your insurance broker, or for legal, engineering or other professional advice.
Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services. For a list of these subsidiaries, please visit our website at www.chubb.com. Insurance provided by ACE American Insurance Company and its U.S. based Chubb underwriting company affiliates. All products may not be available in all states. This communication contains product summaries only. Coverage is subject to the language of the policies as actually issued. Surplus lines insurance sold only through licensed surplus lines producers. Chubb, 202 Hall’s Mill Road, Whitehouse Station, NJ 08889-1600.
Rate Increases on Personal Auto
Seeking a return to profitability after a few years of underwriting losses, U.S. private passenger auto insurers continue to issue double-digit rate increases for drivers, according to a report from S&P Global.
Over half of the country has seen double-digit auto insurance rate increases.
The average premium has gone up 11% year-to-date nationwide, S&P revealed.
“The countrywide average will have increased by double digits in back-to-back years if this trend continues for the remainder of 2023,” the ratings firm added.
Among the top 10 personal auto insurers, USAA, Farmers Insurance and State Farm have implemented the largest effective rate changes year-to-date, with average increases of 14.9%, 14.2% and 13.9%, respectively. The top insurers with the lowest average increases so far are GEICO at 7.6%, Progressive at 8.5%, and Nationwide and Liberty Mutual at 8.8% each.
Rate increases vary widely by state, S&P noted. Nevada has had the highest overall effective rate increase so far at 27.9%, while rates in Idaho have increased the least at just 2.5% on average. In all, 32 states have seen double-digit increases.
Texas has the highest cumulative rate increase stretching back to January 2022, at 37.6% over the 20-month period. Seven other states have a cumulative effective rate increase of at least 30% since 2022. They include Illinois, Ohio, Tennessee, Nevada, Arizona, Illinois and Utah.
The states with the lowest cumulative increases are Hawaii (4.4%), Vermont (6.3%), North Carolina (8.2%) and California(11.1%). S&P noted that the cumulative rate increase in California is low “due to the almost two-year hiatus by the state regulator to approve any private auto rate increase.”
Rate-change data in S&P’s analysis is current through Aug. 18, 2023, and reflects 8.5 months of approved rate filings.
Key Takeaways
Even as insurance providers increase rates, consumers are looking for ways to reduce costs. Individuals are encouraged to discuss potential discounts with their insurance agents. Such deals may include reduced rates for good driving or bundling coverage.
While Cleary Insurance, Inc. cannot control insurance pricing, we can help you explore options for lowering rates without sacrificing essential coverage.
Contact us today to review your unique auto insurance policy.
The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2023 Zywave, Inc. All rights reserved