F or  those  business  owners  who  are thinking  about  constructing  a  new building    or    performing    a    major renovation   on   an   existing   structure, now is a good time to look into builders risk   insurance.   A   builders   risk   policy covers  property  while  it  is  being  con- structed or renovated, including stored materials to be used in the new build- ing,   such   as   pipes,   HVAC   equipment and doors. Buildings    under    construction    are especially vulnerable to many different losses, particularly theft and vandalism. Thieves   often   stake   out   construction projects to determine the best opportu- nity  to  walk  away  with  valuable  and unprotected   materials   kept   on   the property.  But  other  damage  can  occur that   makes   the   materials   unusable, even if they remain on the site. A builders risk policy may be the piece of   the   insurance   puzzle   that   closes major gaps in your existing commercial property   policy.   As   you   make   your expansion  plans,  give  us  a  call  to  find out more about how a builders risk pol- icy may suit your needs. n Looking to Expand? New crash data from the Insurance Institute for  Highway  Safety  indicate  that  SUVs  are improving  in  safety  rat- ings. IIHS says that mid- sized  SUVs  have  much lower  death  rates  than small,     mid-sized     and large   cars   and   slightly better   rates   than   very large  cars.  The  vehicles have  been  redesigned  to change    the    center    of gravity,  thereby  reducing rollovers and other loss-of-control  problems. Suspension systems have also been improved. These  data  are  supported  by  a  separate report by SUV Owners of America, which says that SUVs are 5% to 7% better than passenger cars in reducing the risk of fatality. The group says that the characterization of SUVs as bad performers   is   not   sup- ported by crash data. With the improvements in   safety   performance, businesses  may  find  the SUV  a  suitable  alterna- tive  to  the  sedan  as  the company  car.  The  IIHS Web  site,  www.iihs.org, offers safety comparisons that  might  interest  you, and your insurance agent can give you a cost com- parison  on  insuring  the different  types  of  vehi- cles.  Call  us  about  insuring  the  company  car before   you   make   your   purchase.   We   can help! n Considering Offering a Company Car?
Remember    Y2K,    the    date    on which   all   computers   would   shut down  and  all  businesses  would  be crippled?  Many  businesses  prepared for  that  possibility  by  reprogram- ming computers, backing up data  banks  and  filling  orders  early. All  that  preparation  paid  off:  Y2K floated past without cataclysm. While   Y2K   was   merely   a   blip on    the    radar    of    technological history, real catastrophes do happen, and they occur often. Just as prepara- tion eviscerated that threatening New Year’s  dragon,  good  planning  can overcome   the   otherwise   crippling effects of a major property loss or lia- bility claim. Business owners seeking assistance with   creating   a   disaster   manage- ment/recovery plan now have access to an excellent, free, online resource. Visit www.ready.gov for an extensive library  of  resources  you  can  use  to prepare your company for the unex- pected. As  part  of  your  planning  process, review your business insurance poli- cies   and   see   if   they   cover   your assets  against  catastrophic  property and liability losses.  If you have any questions  as  you  go  through  your review   and   catastrophe   plan   de- velopment,  please  call  us.  We  can find   answers   to   your   insurance needs. n Take a look around your busi- ness property. Are you someone who takes pride in the way your property  looks?  Do  you  like  to make  the  appearance  of  your building   more   attractive   or accessible   for   customers   and workers? It is not uncommon for places of   business   to   upgrade   their property’s   utility   and   value by   adding   additional   parking spaces   or   perimeter   fencing. Additions such as walkways, bridges or  drinking  fountains  may  be  both attractive   and   necessary   for   your business property. What do all of these items have in common?   They   are   all   considered ‘property  not  covered’  under  many standard  commercial  property  poli- cies. Damage to other items such as building  foundations,  underground piping and many other items are also commonly  excluded  from  property loss protection. In addition to the lack of coverage for  the  property  itself,  many  com- mercial   property   policies   further restrict coverage by limiting the cost to  remove  debris  resulting  from  a loss to covered property only. It may be possible to cover ‘prop- erty   not   covered’   by   adding   an endorsement   to   your   policy.   For more information on how to get your improvements  insured,  give  one  of our agents a call. We will be glad to help you. n M ost   businesses   work   with other businesses to provide a product,  either  selling  or  buying. The product might be a material or a service. In any case, the relation- ship  with  your  business  partners carries with it risk. Most likely, that risk is addressed in your contracts. Sophisticated   contracts   often contain   insurance   requirements, including hold harmless language and  waiver-of-subrogation  rights. These requirements can be compli- cated   and   can   leave   one   party bearing  a  great  deal  of  risk.  In some   cases,   if   a   claim   is   made against  you  and  you  have  a  con- tract  that  relieves  your  business partner of liability, you might end up paying for another’s mistake. It is imperative that you under- stand the insurance implications in every   contract,   especially   where either your company or your busi- ness partner is being held harmless or  waiving  rights.  A  contract  you sign with a business partner does not   change   the   terms   of   your insurance policy. You can consult with us to make sure    your    insurance    coverage matches  your  contractual  obliga- tions. Take a look at your contracts and your policies and give us a call if you have any questions. n Don’t Let ‘Hold Harmless’ Harm You DoYou Need to Cover ‘Property Not Covered’? Good Planning Mitigates Catastrophic Losses
COPYRIGHT ©2007. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is under- stood 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. S hut   down   early   and   break out   the   BBQ;   it’s   time   to party!     Company     picnics     are a     tried-and-true     method     of building  camaraderie  and rewarding    hardworking employees   with   a   little rest   and   relaxation.   But, whether it’s the volleyball pit  or  the  pony  rides,  the rare hamburgers, the pro- vision   of   alcohol   or   the warm  potato  salad,  there are   risks   associated   with your special event.   Your   common   business insurance  policy  may  not cover injuries and proper- ty   damage   that   occur   during an     employer-provided     special event. You may want to consider purchasing   special   event   cover- age.    This  is  a  limited  time  and location policy that mitigates risk associated  with  parties,  concerts, field  trips  and  other  events  that are   outside   the   normal,   daily operations  of  your  business.  You need   to   consider   that   persons other  than  your  employees  will likely   attend   these   events   and that   you   may   be   dealing   with expensive   property   that isn’t yours. When    planning    your next big employee shindig,    keep    in    mind the  property  and  liability risks associated with company-offered   events. Whether you choose to go all-out   or   take   it   easy, our  service  team  can  help you  determine  how  your current  policy  applies  and what additional steps should  be  taken  to  assure  your special   event   has   the   coverage it needs. n The Company Picnic May Be a Special Event Because   your   firm   has   a   com- munity  spirit  and  a  sense  of  civic duty,    you    participate    in    local events.    You  and  your  community are  lucky  to  have  the  active assistance  of  your  employees, who   volunteer   to   serve   as representatives  of  your  com- pany.    They  are  not  obligated, nor  do  they  get  any  pay  or benefits.   In such a scenario, questions to  consider  include:  Are  these employees  covered  if  injured? What  if  they  injure  someone else?    Who  bears  liability  if  a claim is filed? You   may   be   surprised   to   learn that off-site and after-hours activities   that   include   representa- tives   of   your   firm   may   expose your  company  to  claims.    If  you are     the     event     sponsor,     your liabilities   will   likely   be   greater. You   have   to   consider   property, injury,     management     and     fair- ness claims, among others. Beyond   insurance   coverage,   event sponsors   (including   minor   ones) certainly   have   a   requirement   to provide for attendee safety. Conducting    good    risk    manage- ment  means  planning  ahead and   heeding   the   advice   of experts. The   agents   on   our   team are   well   prepared   to   assist you   in   obtaining   the   right coverage  for  all  your  needs. We  can  also  help  you  with risk    management.    If    you intend  to  sponsor  or  partici- pate   in   a   community   event that includes volunteers from   your   firm,   please   contact us   to   make   sure   your   insurance will  protect  your  company  against possible claims. n You May Need to Cover Your Volunteer Representatives You may be surprised to learn that off-site and after-hours activities that include representatives of your firm may expose your company to claims.
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. E ver look at your business capital accounts to figure out how many weeks of shutdown you could incur before your reserves were wiped out? It might be worth a review. It’s common to evaluate the cost to replace property or to protect against injury claims, but have you insured the mainstay of your busi- ness—capital inflow? Business income coverage can pay loss of net income and normal continuing expenses for a specified period to keep you afloat until operations restart. Some policies include extra expense coverage that also pays those expenses necessary to minimize the overall loss, such as costs to rent a temporary facility. More  than  40%  of  businesses  that  suffer  a  major  loss  never  recover. Business  income  insurance  alleviates  some  of  the  obstacles  on  the  road to  recovery.  Contact  our  service  team  for  more  information  about  this valuable coverage. n Don’t Let Your Capital Flow Dry Up
Please call me about:
 Insuring improvements and betterments
 Business interruption coverage
 Disaster planning
 My business insurance policy
 Employment practices liability
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