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.
Frozen Pipe Prevention
Turn up the heat! Set the thermostat to the same temperature day and night. If you live in an old house built over an uninsulated crawl space turning up your thermostat will increase the air temperature in the crawlspace by projecting heat energy through the floor into the space. Plan on insulating and air sealing the space.
Open the kitchen and bathroom cabinet doors to allow warm air to circulate around plumbing. It’s not unusual for plumbing running to a kitchen sink on an exterior wall to be extremely vulnerable because the wall is not insulated. Open the cabinet doors along that wall to project heat into the space.
Check around the home for other areas where water supply lines are located in unheated areas. Look in the basement, crawl space, attic, garage, and under kitchen and bathroom cabinets. Both hot and cold water pipes in these areas should be insulated.
You can keep unprotected pipes above freezing by simply placing an electric heater near them. Remember, the goal is not to make the space toasty warm and comfortable. It’s to keep the water in the pipe above freezing. Remember to never leave a space heater unattended.
Consider installing specific products made to insulate water pipes like a “pipe sleeve” or installing UL-listed “heat tape,” “heat cable,” or similar materials on exposed water pipes.
If you have an attached garage, keep the doors shut. Wind and cold air drafts increase the likelihood of a frozen pipe.
Turn off the water. In the worst case, turn off the main water valve while the house is unoccupied (such as a vacation home) or while you sleep. If a pipe freezes and breaks, the spillage is limited only to the water in the pipe. If you are going away, shut off the water supply line to your washing machine.
Drain and shut off all outside spigots.
Please refer to the link below if you would like additional information:
What You Need To Know About Crime Insurance
Crime Insurance refers to theft of money and/or securities from a business. There are a variety of Crime Insurance categories including:
Employee Dishonesty: Covers theft of money, securities and other property by an employee. These types of losses are commonly carried out through theft of small amounts over time.
Forgery or Alteration: Pays losses incurred through the direct result of forged or altered checks, drafts or Promissory notes.
Money and Securities: Theft or destruction of cash or securities either at your location(s) or in transit.
Computer and Funds Transfer Fraud: Losses due to money transferred, paid or delivered because of fraudulent computer entry. The impacted computer equipment must be owned or operated by the insured.
Money Orders and Counterfeit Currency: Loss incurred from accepting in good faith counterfeit currency or fraudulently issued money orders.
Client Property: Coverage required by a client for money or property in your possession. Financial institutions will often require this coverage for contractors and vendors.
ERISA Compliance: ERISA requires that 401(k) and other types of employee benefit plans be bonded for an amount not less than 10% of the plan’s assets subject to a maximum of $500,000 ($1,000,000 if employer securities are involved). This coverage can be combined with Employee Dishonesty or written inexpensively on a separate ERISA Bond coverage form.
Exposures to crime losses have changed over time. Electronic transactions have reduced the cash exposure for many types of businesses. However, this transition has increased the risk from fraudulent electronic transactions.
Employee Dishonesty or Theft claims continue to be a serious problem for businesses. These losses are well hidden and typically take place in small amounts over a long period of time. The result can be a large loss once the crime is discovered several years into the process.
An effective risk management approach is to combine internal controls with some level of insurance coverages. Good internal financial controls are the best method for preventing and limiting the loss potential from theft. For example, good controls can reduce the opportunity for employee theft and therefore act as a deterrent. Click here to view a prevention guide offered by Chubb. Insurance coverages should also be considered for additional protection. Crime coverages can also be cost effectively obtained as part of a Package or Businessowner’s policy as well as on a stand-alone basis. Please feel free to contact us with any questions regarding this important exposure consideration.
Canadian Auto ID Cards
A U.S. traveler in Canada is required to carry a motor vehicle liability card, plus vehicle ownership papers. A copy of the automobile policy is recommended to be carried. You should also carry a Canadian Non-Resident Inter-provincial Motor Vehicle Liability Card which is strongly recommended.
The Canadian Non-Resident Inter-provincial Motor Vehicle Liability Card is proof of that your US auto policy liability limits meet the minimum requirements for all Canadian provinces and territories and that your coverage extends to Canada and its territories.
U.S. travelers who do not carry a Canadian Non-Resident Inter-provincial Motor Vehicle Liability Card and are stopped by Canadian police or are in an accident while driving in Canada risk being fined or having their vehicle impounded until proof of proper coverage is obtained.