Newsletter

S mall businesses struggling with insur- ance rate increases might have some good news coming to them in the next few years. Why? Insurers in the small- business market are using technology and a renewed commitment to refine their offerings, according to trade publi- cation reports. The emerging use of XML (extensible markup language) technology to create faster, more accurate data links between insurance brokers and carriers is making it easier for brokers to seek cov- erage and get quotes for customers. A shakeout among insurance carriers after Sept. 11, 2001 is thinning their ranks; but those that remain are increasing their commitment to the small business marketplace. Some big insurers remaining in the market are patching up service trouble spots. Many are refreshing their commit- ment to small businesses with long-term investments in technology, distribution, targeted products, and/or small-business insurance packages. Over time, these changes should lead to a greater range of choices for small business owners. As an independent agency, we remain committed to finding our business clients the best overall solution for their needs — even as their needs change. If you have a question or concern about your coverage, please call our office. Insurance Choices Widen — Slowly A new state law punishing drivers who cause accidents by driving sleepy might keep small business owners up at night. New Jersey’s “Maggie’s Law” targets drowsy driv- ing. The new law states that a sleep-deprived driv- er who causes an accident after being awake for more than 24 hours can be con- victed of vehicular homi- cide, according to an insurance trade publiction report. If this is the start of a national trend, employers might need to wake up to a new risk: fatigued employees who are involved in auto accidents. Employers that hire drivers and operate during extended hours could potentially face higher legal risk. According to the report, studies have demonstrated that people who have been awake for 24 hours are impaired to the same level as someone with a blood-alcohol level of 0.10%, which is recog- nized as legally intoxicated in all states. About 24 million Ameri- cans work in jobs outside the hours of 7:00 a.m. to 7:00 p.m. Some workers routinely stay awake for 24 hours on their first night shift of the work week. Utility workers and technical support person- nel are called on to work for days without rest during emergencies. Asleep at the Wheel? See You in Court

Can one policy cover your multiple business locations adequately? Having one policy cover all might seem to be the simplest answer, but it might not be the best. The issue of whether it’s better to cover all of your business locations under a sin- gle policy or to purchase separate coverage for each location can involve such factors as the type of coverage, the type of business activi- ty conducted at each location, and the applicability of local laws or insurance regulations. For example, some states require a separate workers compensation pol- icy specific to locations or operations in that state. Depending on the type of building and occupancy, you might be better off utilizing multiple policies for your property coverages, each with unique coverage provi- sions and applicable deductibles. Due to contracts with clients, landlords, or lienholders, your liability coverages might require varying limits applica- ble to each location or client project. Even when you don’t need differenti- ated coverages, there might be rating or underwriting advantages to sepa- rate policies. There’s one easy way to cut through all this potential complexity — deal with just one agency for all your insurance needs. We can help you sort through the various issues and arrive at the best approach for your unique exposures. We then can arrange to get the necessary coverages issued, whether simple or complex. So whether you need one policy or many, you need only make one call — to us. Make it today. Billboards sprout beside highways. Ads appear on the sides of buildings. Park benches are adorned with busi- ness logos and web site addresses. A business name glows in the night from the lighted sign at its entrance. Are any of them yours? Depending on the type of sign, its location, and the materials used in its construction, your current insurance might not provide coverage if it’s damaged or destroyed. Standard property policy provisions offer coverage for various types of signs, but there are limitations on type, location, and amount. If you use any signs in your business, call us for a time to meet and review just what your current coverage will or won’t do at the time of a claim. This might sim- ply entail increasing limits of cover- age. Perhaps an endorsement or sepa- rate policy will be needed. Possibly nothing will need to be done if your current provisions are sufficient. But, with just a few minutes of your time we can be certain which choice is best for you. Contact one of our property coverage professionals to arrange a coverage review at your convenience. In fact, why not take the fact you’re reading this article as a sign? Call today — we’re here to help. Sign, Sign, Everywhere a Sign Q Do contractors count as employees under equal employment opportunity laws? A Independent contrac- torsare not considered employees. But determining whether an individual legally is an independent contractor is a question that might not be easy to answer, accord- ing to the Equal Employ- ment Opportunity Commission. If you’re unsure whether your business or an individual who works for you is covered, consult an attorney. Equal Employment Opportunity Q&A Multiple Places, Multiple Policies

COPYRIGHT ©2003. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is understood that the publishers are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert advice is required, the services of a competent professional should be sought. W hen reviewing policies, clients often express surprise that a particular activity or item is excluded from coverage. “But that happens all the time in my busi- ness! How could that not be cov- ered?” Contrary to popular opin- ion, exclusions aren’t created just to avoid paying claims. In fact, of the three major purposes for exclusions, only one refers to “uninsurable” situations. The other two might better be seen as attempts to provide coverages in the most efficient and economical manner. The three purposes are “covered elsewhere; coverable only by extra cost or modification; or uninsurable.” 1. “Covered elsewhere” focuses primarily on efficiency. These exclusions are added to policies when another policy is intended to cover the specific item or activity. For example, automobiles are excluded under general liability forms because the liability for operating autos is properly addressed by automobile policies. The efficiency arises from minimizing duplication of coverages — just get it right in the proper policy and there’s no need for other policies to step in. 2. A key goal of “covered only by extra cost or modification” exclusions is keeping coverage economical. Items and activities eliminated by this group of exclusions are those not typically associated with most insureds. Why charge everyone to include coverage pertinent to only a few? If you need the coverage, you can add the endorsement and pay the extra premium, while allowing others to forgo the added expense. 3. “Uninsurable” actually repre- sents the smallest number of exclusions. These are items and operations (such as intentional damage, warfare, or nuclear activ- ities) that are either considered so dangerous as to be insurable only through special programs (nuclear) or governmental authorities (war- fare), or so clearly not intended to be covered by insurance (inten- tional damage) that who could argue? Next time you find an exclusion in your coverage that you’re not sure you want to live with, don’t automatically assume that it falls into the third category. Give us a call. In most cases, we’ll be happy to point out where it’s already covered or what would be involved in adding it to your policy. If there’s no way to provide the coverage, we’ll tell you that, too. When it comes to us, good advice to our clients is never excluded. No Policy Covers Everything Additions and alterations. Improve- ments and betterments. Separation of insureds. Impaired property. Does it sometimes seem as if your insurance policies are written in an unknown tongue? Although much of the policy is written in common word- ing, there are always terms unique to an industry that can seem strange and mysterious to the uninitiated. Insurance is not alone in using such terms. Ever wonder which is the woofer and which is the tweeter in a stereo speaker? What exactly is the difference between RAM and ROM in computer memory? And the incomprehensibility of teenage slang to parents is legendary. When confronted with the inability to comprehend another “language,” a skilled interpreter might provide a welcome assist. And when it comes to confusion over terms such as insurance definitions, where the poten- tial for loss due to misunder- standings can be significant, the services of such an ally become critical. That’s where we come in. You’ve got a lot invested in your insurance cover- ages and risk management programs. Don’t let the possibility that you might have overlooked or simply misunder- stood a term cause you loss. Just as you’re intimately familiar with the terms used every day in your line of work, so are we familiar with ours. Let’s sit down today to review your current program. If there’s any confu- sion to be clarified, now’s the time — while the opportunity still exists to make changes or close gaps before a loss. After all, the best claim is the one that never happens. And that’s true in any language. Insurance Is Our Native Language

Thank you for your referrals. If you’re pleased with us, spread the word! We’ll be happy to give the same great service to all of your friends and business associates. Although lawsuits were once a measure of last resort, they’re now used routinely to set- tle disputes. And not only are suits more frequent, they’re also more expensive. Multi-mil- lion dollar awards have become commonplace. However, legislators have taken notice and are considering measures to cap awards. What can business owners do to protect themselves while legislators debate these difficult questions? Many business owners are turning to their umbrella coverage to provide additional limits of liability beyond those already provided in their basic policies. If your current business liability coverage is for $500,000, a $2 million umbrella increases your coverage limit to a potential $2.5 million. Umbrella coverage is also available for other liability claims, such as auto. Your umbrella policy covers the excess on your basic policies. So, using the $2.5 million umbrella policy example above, if you’re sued for $1 million and your umbrella pays $1 million on a claim, you’ll still have $1.5 million for future claims. Of course, umbrella policy provisions and coverages vary widely, so it’s wise to con- sult your agent. Call us. We can provide you with a customized review of your liability needs and help you decide on the umbrella that best fits your business needs. Reality of Lawsuits