Commercial Newsletter
WINTER 2011 - 2012In the year ahead businesses will face new and sophisticated cyber threats working to capture and exploit user data. The Georgia Tech Information Security Center and the Georgia Tech Research Institute recently reported three specific threats to watch for in the coming year:
Stolen Cyber Data Used for Marketing – The market for stolen cyber data will continue to evolve as private user information is captured and shared by social media platforms and sold directly to legitimate business channels for activities such as lead-generation and marketing.
Mobile Web-based Attacks – Expect increased attacks aimed specifically against mobile web browsers as the tension between usability and security, along with device constraints (including small screen size), make it difficult to solve mobile web browser security flaws.
Search Poisoning – Attackers will increasingly use SEO (search engine optimization) techniques to optimize malicious links among search results so that users are more likely to click on a URL because it ranks highly on Google or other search engines.
As cyber attacks continue to show up with unprecedented sophistication and reach, the ability to compromise and control millions of computers continues to be a serious threat. It is increasingly important to understand possible threats, make sure your policy includes cyberinsurance, and have a plan in place to recover if your data is compromised.


Have you ever thought about how much personal information your business stores from your clients and/or employees?
Do you acquire credit card information, driver’s license numbers, social security numbers, or medical record information? Where do you keep that information and how safe is it? How much would you have to pay your client or employee if their information was taken from your records and used to destroy their identity or access their financial assets?
The companies that are most at risk for a serious data breach are those who handle and store some of their clients’ and/or employees’ most personal information. These companies can include financial institutions, accounting offices, law offices, medical offices, municipalities, retail or restaurant organizations, and technology companies.
Studies show that your business will likely experience some type of attack, either electronic or paper, within the next 12 months. “Seventy-three percent of small-to-mid-sized companies experienced a cyber attack in 2010, and 30 percent of those attacks were extremely effective.”1
In most states, if your business is responsible for the breached information, then your business is required by law to pay for three years of identity theft protection for each individual whose information was breached—no matter whether the breach resulted in damages or not. For reference purposes, the average cost per compromised record for this service is approximately $200 per year. This means your company could be responsible for approximately $600 per client and/or employee whose information is breached. You can visit www.databreachcalculator.com for a free risk analysis of your company’s data breach exposure.
After this cost, your business is still liable for financial damages, fines, restoring credit worthiness, and restoring your good name and reputation. Luckily, there is insurance coverage available to help.
A cyber/privacy liability insurance policy can mitigate this exposure on your behalf. Cyber/privacy liability coverage is not found, or may be very limited, under your current policies. This specific policy can cover your cyber/privacy liability exposure, your data breach notification costs, damage to your hardware/software systems (including web sites and intellectual data), public relations cost reimbursement, and business interruption coverage for the time that your business can not operate due to the breach.
If your company collects personal information and does not have this policy, please contact your Leavitt Group insurance consultant for more details.
1 McConville, Jim. “Smaller Private Companies At Greater Risk of Cyber Attack.” Financial Advisor. December 12, 2011.
http://www.fa-mag.com/fa-news/9382-smaller-private-companies-at-greater-risk-of-cyber-attack-.html
2 Ponemon Institute & Symantec Corporation. “Data Breach Risk Calculator.” https://databreachcalculator.com/
FALL 2011While allowing employees to work from home has added benefits for both the employee and the employer, there are workers compensation exposures related to at-home workers. As an employer, it is essential that you take a proactive approach to keep your employees safe and avoid potential liabilities.
- First, consider which candidates are best suited to work from home. Employees who have been with the company for a period of time long enough to prove their work ethic and trustworthiness are better candidates for at-home work than new employees.
- After approving an employee to work from home, assist in setting up their workspace to ensure a safe work area. Be sure to include an ergonomically-correct office arrangement. Once the workspace is set up, it is a good idea to take several photographs for proof that a safe area was established, should a workers compensation claim later arise.
- Provide a computer program for tracking time at work and time off. If a workers compensation claim is made, an accurate tracking of the employee’s actual work time will aid in determining if an incident actually occurred during working hours.
To ensure your risk management is keeping pace with the changing trends in your workplace, contact your Leavitt Group insurance consultant.Employers who supply their employees with company cell phones, laptops, BlackBerries, iPads and other portable devices could be in for a surprise if an employee is injured while using the device when off site or off the clock.
Insurance claims professionals say that claims made by workers who are injured, and the relation of the injury to their employment is unclear, are on the rise. The increasing use of mobile devices is challenging traditional notions of work-related injuries.
A few decades ago, when an employee’s work environment was easily defined by a physical location and time period, compensability was more easily determined. With mobile devices, people can, and increasingly do, work from many locations. Even if management does not encourage the behavior, they could still have some responsibility if it is happening, just as it might in harassment situations.
An employer can reduce the risk in offering these devices to employees by collaborating with their human resources department to establish a “best practices for mobile devices” policy. This policy should be communicated clearly and enforced with all employees.
Here are some sample statements you may use when creating a best practices for mobile devices policy:
Mobile devices are not to be used while driving a moving vehicle or operating moving machinery, as such distractions can cause accidents and injuries.
All messaging, including typing or reading text messages or e-mail while operating any vehicle (employer-owned, rented, or personal) when conducting company business is prohibited.
Any violations of this policy will subject employees to disciplinary action, up to and including termination of employment.
If you have questions about any of the coverages discussed in this article, please contact your Leavitt Group agent. SUMMER 2011
Business Interruption Insurance
Business interruption insurance makes it possible for you to quickly resume business activities in the event of a disaster. There are typically three types of business interruption insurance.
- Business Income Coverage. This coverage will compensate you for lost income if your business suffers a property loss or damage from a covered peril such as windstorm or fire. Your business will be covered, after a brief time deductible, until restoration of the lost or damaged property is complete. In addition, the policy will cover operating expenses, such as utilities, that continue even when your business has temporarily halted activity.
- Extra Expense Coverage. During the restoration period following a loss, you may incur extra expenses to keep your business operating. Extra expense coverage reimburses your company for a reasonable sum of money that it spends over and above the normal operating expenses to avoid having to shut down during the restoration period. Extra expense coverage may also cover payroll to key employees so that you may retain them as employees.
- Contingent Business Interruption Insurance. This policy will reimburse your company for its expenses and lost profits when it can’t operate because a disaster has struck a supplier or manufacturer. For example, the massive earthquake and tsunami that hit Japan in March 2011 led to supply chain disruptions around the world. Companies who were affected and who had contingent business interruption insurance were able to use this coverage to reimburse expenses and lost profits during the shipment delays.
Note: Damage due to flood is excluded from most property policies.
Is Your Business Properly Insured?
Four Questions to Determine How Well You Are Covered
Part of risk management involves not only having an insurance policy in place but making sure you have the right elements included in your policy. In addition, a regular review of your policy with your insurance agent will help ensure your policy is kept up-to-date with the changes in your business and industry. The following is an outline of four elements of your insurance policy that we recommend you review regularly with your agent.A building and personal property (BPP) policy covers the building, your business personal property, and the personal property of others. Categories covered include furniture, fixtures, merchandise, personal property owned by you and used in your business, tenant improvements (if leasing/renting), etc. To ensure you have adequate coverage for all of these assets, the value of your property needs to be accurately reported and updated annually to reflect inflation and other changes in costs. To protect the property of your employees, you will need personal effects and property of others coverage added to your policy. This coverage extends up to $2,500 worth of business personal property coverage to your personal effects as well as that which belongs to your officers, partners, and employees. This coverage also protects the personal property of others in your care, custody, or control. Limits higher than $2,500 can be purchased if needed for this policy.
Business interruption insurance is essential to ensuring a quick resumption of your business after a disaster. Without this coverage, your business may have to close down completely while the premises are being repaired, which may leave you susceptible to losing out to the competition. The policy limits you choose for this coverage should be sufficient to cover your company for more than a few days. There are three types of business interruption insurance: business income coverage, extra expense coverage, contingent business interruption insurance.
A commercial general liability (CGL) policy protects your business assets against many common liability claims, including bodily injury, property damage, personal injury (including slander or libel), and advertising injury (damage from slander or false advertising). A CGL policy will cover the cost of defending or settling claims. The two major forms of liability insurance policies are occurrence and claims made. An occurrence policy covers you for the policy amount you had in place when the actual injury occurred, not when the claim was made. A claims-made policy covers you for the policy amount you have in place when the claim is made.
The coverages discussed herein are for illustrative purposes only. The terms and conditions of your specific policy may differ from those described. Please consult the provisions of your policy for the terms, conditions, and exclusions that apply to your coverage.
SPRING 2011Commercial auto insurance differs greatly from personal auto insurance. The type of coverage you need depends on a variety of factors. Here are a few tips to help determine if you need commercial auto insurance:
- Whose name is the vehicle registered under? If it is registered in the name of the business, you need commercial auto insurance.
- How is the vehicle used? If you or your employees use the vehicle for business purposes, then you need a commercial policy. Even personal vehicles may also need commercial auto coverage if they are being frequently used for business purposes. Although your employees’ vehicles are covered by their own personal insurance policies, this coverage will take effect if an employee is involved in an automobile accident with damages that exceed the limits of their own private policy.
If you have employees who drive as part of their job, you should definitely have a written policy regarding cell phone use while driving to reduce your risks and liability. Should one of your employees be involved in an automobile accident, you may incur a workers compensation claim, expenses of hiring and training a replacement if the employee is unable to return to work, and related out-of-pocket expenses for repairing or replacing the vehicle and its contents.
Another substantial economic risk arises if an employee injures someone else in an accident. If an employee caused the accident due to the distraction of a cell phone, you will likely be liable for any injuries or damages caused by the accident. Additionally, if you do not have any policies or guidelines regulating cell phone use while driving, your liability could be even greater.
Understanding applicable state and federal laws pertaining to cell phone use while driving is critical when developing guidelines and a written policy. Here are some sample statements you may choose to include:- Cell phones are not to be used while driving a moving vehicle or operating moving machinery, as such distractions can cause accidents and injuries.
- Employees are required to comply with all state and local laws regarding the use of cell phones while driving. If cell phone use is necessary while driving, all employees must use a hands-free device.
- All text messaging, including typing or reading text messages, while operating any vehicle (employer-owned, rented, or personal) when conducting company business is prohibited.
- Any violations of this policy will subject employees to disciplinary action, up to and including termination of employment.
The safest and most conservative policy would be to prohibit any use of a cell phone while driving. If you feel your employees need to have access to a phone while driving, you should implement policies that still keep usage with certain parameters (e.g. hands-free device). Doing so will lessen the potential liability for both your employees and your company.
WINTER 2010 - 2011Developing and Maintaining An Effective Safety CultureFocusing efforts on developing and maintaining an effective safety culture can help reduce workplace injuries and accidents and ultimately reduce your workers compensation premium. Here are a few key things you can do to improve your safety culture:
Establish a written safety program. Your safety program should include training on preventing workplace accidents and injuries as well as incentives for maintaining an accident-free environment. Getting commitment from management and employees is key.
Be selective in your hiring process. Choose new hires who share the same safety culture values. Provide accurate job descriptions to job applicants, obtain previous work references, and conduct criminal background checks. Also, conduct a pre-start post-offer drug test and obtain a motor vehicle report (MVR) for new hires.
Reduce human error. Ensure employees know the correct methods and procedures to accomplish their assigned tasks. Require employees to demonstrate skill proficiency before performing a particular task.
Prevent accident recurrences. Investigate and document every injury and near-miss. Identifying why and how the accident occurred and making proper corrections can help prevent future incidents.
There are several factors taken into consideration when calculating a workers compensation premium. It is a good idea to review these items with your insurance agent to ensure you aren’t paying more than you should for workers compensation. The following is a summary of some of the factors used in calculating these premiums and what you can do to ensure your premium is accurate.
Classification CodesEmployers are assigned classification codes based on their industry, and different codes are assigned to employees based on the type of labor in which they engage. These class codes are set by the National Council on Compensation Insurance (NCCI), and they are state specific.
You can affect the amount of premium you pay by conducting an audit of your employee classification codes on an annual basis to ensure accuracy. This can be done by reviewing current employee classification codes and identifying any employees who are not correctly classified. For example, if you have an employee who has moved from a job on the factory floor to the office, this employee may be assigned a less costly classification code to reflect the change in their work responsibilities to a job with less risk of injury. If you need to review a specific class code or request information from the NCCI Scopes Manual, you can call NCCI at 800-NCCI-123, or ask your insurance agent.
PayrollThe premium you pay for workers compensation insurance is generally based on the size of your payroll. If you have downsized your workforce and decreased the size of your payroll recently, these changes need to be communicated to your insurance agent. Making this simple update to your workers compensation records may have a significant effect on the amount of premium you pay going forward.
Claims ExperienceThe severity, type, and frequency of workers compensation claims you incur has a significant effect on your workers compensation premium. The more severe the claim and the more claims you incur, the higher your premium will be.
You can make a significant impact on your workers compensation premium over time by developing and maintaining a safety culture geared towards preventing accidents and injuries. In addition, regularly review your loss history and look for open claims that have been resolved but never closed. These outstanding claims can add unnecessary costs to your workers compensation premium.
FALL 2010With the increasing use of social media in the workplace, companies can take effective steps to manage the risks associated with these activities. Many businesses are finding clever ways to leverage Facebook, LinkedIn, Twitter, and other social networking websites to their advantage. While usage may be beneficial, high on the list of concerns should be the potential for employees posting information that could expose the company to legal liability, leak trade secrets, or damage the reputation of the company.
Although there is not absolute protection from lawsuits, companies that demonstrate a commitment to responsible use of social media are in a better position to defend themselves. The following steps can be very effective:
Create an internal social media business-use policy: Companies should notify employees that use of all forms of electronic communications in ways that are illegal, contrary to the company’s interests, or in violation of antidiscrimination policies will not be tolerated. This includes blogging, texting, and instant messaging.
Communicate the policy to employees and enforce it: Employees should be trained to follow the electronic-use policy and be aware that their activities are being monitored. Communicate established consequences for policy violations, and follow through when issues arise.
Consider cyber insurance: This new form of business insurance is designed to pay for losses associated with data compromise as well as media or web content liability. More information on cyber insurance is included below.
Source: Travelers.com
Your standard business owners policy may provide some coverage for damage to your physical computer equipment if caused by a covered loss. However, you may need additional insurance protection to insure your company’s operating data, your website, and private customer data. Cyber insurance can provide coverage for repairs, lost business, and lawsuits over loss of confidential data. Types of cyber insurance coverage:Privacy and security liability: If private employee or customer data is compromised due to faults in your systems or theft by hackers or disgruntled employees, you will be held liable. This coverage protects you from liability exposures associated with this risk.
Crisis management: This coverage generally provides reimbursement for expenses incurred to restore lost or corrupted data and to get your systems back up and running. The policy may also cover expenses for the use of consultants, public relations, and advertising to rebuild your reputation and restore consumer confidence after an incident.
Business interruption, denial of service attack, and lost income: If your service provider (i.e. web host) has downtime due to a cyber attack, has a glitch, or goes out of business, this coverage will help cover resulting losses you may incur. This can include lost revenue, costs for restoring valuable data, and costs to repair systems.
Cyber extortion: If you receive a threat of attack on your computer system or website coupled with a demand for money to avert or stop the attack, this is cyber extortion. Coverage for this risk will generally cover the settlement and the cost of hiring a security firm to track down the extortionist.
Media or web content liability: This coverage protects you from claims of libel, slander, copyright, and trademark infringement for content, slogans, and photos on your website. It also protects you from liability exposures associated with banner ads on your website representing other businesses.
Here are some things you can do on your own to minimize the risk of data loss: - Back up your data regularly
- Use off-site storage
- Encrypt your data
- Run a virus scan regularly
- Use an uninterruptible power supply (UPS)
- Keep your computer in a safe environment
- Have a recovery plan in place
Source: Small Business Review SUMMER 2010
The loss of a key employee can be a major blow to any business if that person is the primary contact for customers and suppliers, or if he or she fills important management roles of the business. Loss of the key person may also decrease efficiencies in running the business and result in a loss of capital.
Losses caused by the death of a key employee are insurable through coverage called key employee life. Here are a few things you should know about this coverage:
- Key employee life pays a death benefit to the company if the key employee dies.
- The policies are normally owned by the company; thus the company pays the premiums and is the beneficiary.
- Key employee life policies will compensate the business against covered losses that result from that person’s death or disability.
- The amount and cost of insurance needed for a particular business depends on the situation as well as the age, health, and role of the key employee.
If you are interested in this coverage for your company, please contact us for a consultation.
Employee Benefits Update:
Directors and officers liability insurance (D&O) can protect directors and officers of a firm from liability due to negligent acts, omissions, or misleading statements that result in lawsuits against the company. This coverage is an effective tool in helping mitigate liabilities for an organization as well as protecting the personal assets of the directors and officers.
What you should know about D&O coverage:- Coverage for directors and officers is only for non-bodily injury claims. This includes claims of financial loss resulting from mismanagement.
- D&O coverage typically excludes intentional dishonest acts as well as property damage claims.
- D&O policies may be broadened to include coverage for employment practices liability.
- There are no “standard” D&O policies. Many versions are available, thus it is essential to review the policy wordings and endorsements with professional advisors, including legal counsel, to ensure the coverage you are acquiring is suitable for your needs.
There are a variety of D&O coverages available, including the following: Corporate reimbursement coverage indemnifies directors and officers of an organization for claims resulting from their acts on behalf of the organization. The corporate charter or by-laws usually state the obligation for the corporate organization to indemnify its directors and officers. In some cases it is mandated by state statute.
Side-A coverage provides D&O coverage for personal liability when directors and officers are not indemnified by the firm. This coverage is needed when the corporation is either financially unable to indemnify its directors and officers or when it is prohibited from doing so.
Entity coverage is designed to cover the organization directly in addition to its directors and officers.
Source: www.irmi.com SPRING 2010Have you considered how you would manage if a fire or other disaster damaged your business premises? To quickly resume business after a disaster, business interruption insurance is key. Here are a few things you should know about this essential coverage:
- Business interruption typically covers loss of income and continued business operation expenses.
- There is generally a 48-hour waiting period after the loss before coverage is effective
- Think about the amount of time you will need to get your business up and running again, and consult with your agent to make sure your limits are sufficient.
Source: www.iii.org
In the event of a natural or man-made disaster, have a plan in place to execute the recovery of your business. Here are some tips for developing a plan:• Client retention plan
Decide on a communications strategy to prevent loss of customers. Post notices outside your premises; contact clients by phone, e-mail, or regular mail; place a notice in local newspapers.
• Back-up resources
Consider the resources you may need during an emergency. Do you need a back-up source of power? Do you have a back-up communications system?
• Business-to-business coordination
Even if your business escapes the physical damage of a disaster, your operations may suffer significant losses due to the inability of suppliers to deliver goods or services, or from a reduction in customers. Businesses should communicate with their suppliers and markets (especially if they are selling to a business as a supplier) about their disaster preparedness and recovery plans so that everyone is prepared.
• Protect your building
Conduct regular inspections of your business property to identify potential hazards. Look for signs of defective electrical wiring, leaky gas connections, and structural defects. By identifying hazards ahead of time and making necessary repairs, you can reduce the threat of injury or death and minimize property damage in the event of a disaster.
• Continued business activity
Identify critical business activities and the resources needed to support them. If you cannot afford to shut down your operations, even temporarily, determine what you would require to run the business at another location.
For guidance on generating your business recovery plan, check out the Business Recovery Checklist at www.fema.gov.Source: www.iii.org

The coverages discussed herein are for illustrative purposes only. The terms and conditions of your specific policy may differ from those described. Please consult the provisions of your policy for the terms, conditions, and exclusions that apply to your coverage.
WINTER 2009Warning Signs
of Workers Compensation Fraud
Employee or claimant fraud accounts for about 20 percent of all workers compensation claims paid.* Protect your company from costly claims by recognizing the following signs of insurance fraud:
- There is no witnesses of the accident or it happened outside normal working hours.
- It is difficult or impossible to reach the employee.
- The accident wasn’t reported until days after it happened.
- The employee changes his or her story about the accident.
- The employee shows no interest in returning to work even when accommodations to the injury are made.
- The employee frequently changes physicians.
- The employee has a past history of workers compensation claims.
In times of economic uncertainty, many employers face the possibility of workforce reductions. Though increases in layoffs could lead to an increase in workers compensation costs, there are preventative measures that can be taken. These include preparation prior to the layoff, appropriate assistance for affected employees, and proper management of records. Careful planning and handling of workforce reductions can help alleviate the problems that may arise and assist employees with the transition to new employment.
Preparation Prior to the Layoff- Be familiar with state unemployment insurance laws, including the levels and durations of benefits.
- Investigate state programs available to employees that may offset workers compensation costs.
- Meet with your insurance broker to review pending claims and identify those that might become problems.
- Backup employee records and store them in secure locations. Claim records should be updated with the latest available information.
- Create a video record of conditions in the building prior to the layoff to easily demonstrate to a court what the work environment was like.
- Use exit interviews to document employees’ physical condition at the time of termination.
Appropriate Assistance for Affected EmployeesWhen layoffs occur, the company should handle them as sensitively as possible. Losing a job is a traumatic experience for anyone. Reduce the chances that a worker will seek retribution by helping affected employees:- Offer resume preparation or outplacement services.
- Offer employee assistance programs for those who need emotional support.
- If the company can afford the expense, offer severance payments to the employees in return for their written agreement to forego any future claims against the company.
- Make sure contingency plans are in place should any of the employees become violent at the time of the layoff or later
Proper Record Management- Ask the broker and the insurance company to coordinate claims handling through one office and one senior claims adjuster.
- Request that the insurer assign the defense of all cases to one law firm.
- Relevant records should be made easily accessible to the attorneys and any medical specialists the firm may hire. Relevant records include videos, employee files, job descriptions, and exit questionnaires.
- Identify key personnel who may be available to testify regarding job requirements and conditions. Have a list of their names and contact information available for the attorneys.
FALL 2009
What is EPLI and What Does it Cover?
Employment Practices Liability Insurance, known as EPLI, can protect your business against claims made by potential hires, employees currently on your payroll, and terminated employees.
An EPLI policy will protect your company against claims of:
- Wrongful termination
- Employment-related emotional distress and invasion of privacy
- Defamation
- Retaliatory/constructive discharge
- Sexual harassment and discrimination
- Workplace torts such as slander
EPLI coverage generally includes the cost to defend against the charges plus any damages you are ordered to pay. Depending on your business needs, it might make sense to purchase EPLI coverage as part of your company officers’ liability insurance since company officials can be named in lawsuits against the business.
Risky BusinessWhy You Need Employment Practices Liability Insurance
Workplace discrimination claims can affect businesses of all types. For example:
- Thirteen current or former computer company employees claimed employment discrimination on the basis of race and national origin. Employees claimed they were treated unequally and subjected to a hostile work environment. Amount of settlement: $635,000 (salary increases, enhanced promotional activities).
- Eight employees filed a class action suit alleging sex discrimination by their employer in the handling of wages, promotions, pregnancy leaves, and other conditions of employment. Amount of settlement: $600,000 (plus $5 million in legal fees).
- A senior regional attorney sued a securities dealer claiming age discrimination and retaliation. He claimed he was unfairly terminated for advice he gave to a co-worker regarding his employment rights. Amount of verdict: $443,000.
Up to half of all businesses will face a workplace discrimination lawsuit at some point. Is your business prepared?
Protect Your BusinessAs an employer, you do everything you can to treat your employees fairly. However, you can be held liable for the actions of your employees or even vendors and customers. And with new employment-related regulations being added to the books frequently, it can be difficult to understand exactly what you are expected to do.
It is important to make sure you remain in compliance with laws governing treatment of employees. But there is an added layer of protection you can obtain: Employment Practices Liability Insurance, or EPLI.

Personal Newsletter
WINTER 2012
More important than knowing how to submit a claim is knowing when to submit a claim and what type of events are covered under your policy.
First, it is critical to understand the purpose of insurance, which is designed to cover losses that are unexpected, accidental, or catastrophic (such as a fire, theft, or natural disaster). Everyday maintenance, for example, is not covered by your insurance policy. Likewise, damage that results from a lack of maintenance may not be covered either.
Fixing leaky pipes or an aging roof, for example, are not sudden or unexpected occurrences, and so the homeowner must arrange for these types of repairs before they cause major damage. At the same time, if a homeowner does all they can to winterize their home, then expenses related to a burst pipe will typically be covered. The more a homeowner can do to prevent serious damage to their property through regular maintenance, the better off they will be if a sudden or accidental loss occurs. If you are faced with a loss, make sure to initiate the claims process right away and retain any documentation of the loss and related expenses. If you have any questions about when to submit a claim or about your specific policy, contact your Leavitt Group insurance advisor.
Reference: iii.orgWater damage to homes accounts for billions of dollars in losses each year. It is one of the most common and costly disasters affecting homeowners and renters. However, you can protect your home and your wallet by properly maintaining your home and by purchasing the right amount and the right
type of insurance coverage.
Damages arising from water that comes from the top down, such as burst pipes, wind-driven rain, and ice dams on your roof, are covered by standard homeowners and renters insurance policies. A separate flood insurance policy would be required to cover the damages when water comes from the bottom up, such as an overflowing river. This type of flood policy can be purchased through the National Flood Insurance Program (NFIP) available through the federal government.
One of the best ways you can prevent water damage is by properly maintaining your home, both inside and out. The following checklist provides tips to help inspect your property and stop water damage before you get soaked.
- Check hoses and faucets. Annually inspect hoses leading to water heaters, dishwashers, washing machines, and refrigerator icemakers. Look specifically for cracks or leaks and replace as necessary. It is a good practice to replace all hoses every five to seven years, regardless of whether they are showing any damages.
- Inspect sinks, toilets, showers, and bathtubs. Make sure the seal and caulking is watertight and that there are no leaks in the piping leading to these items. Fixing the slightest leak immediately upon discovery can save hours of time as well as money in the long run.
- If you are going on vacation for an extended period of time, shut off of the water supply to your home. Never leave your home with the washer or dishwasher running. A burst hose in one of these appliances can cause a lot of damage to your home, even in the time it might take you to run to the grocery store and back.
- Consider installing an emergency pressure release valve in your plumbing system. Should your pipes freeze, a pressure release valve can help control or limit increased pressure and may prevent your pipes from bursting.
- Maintain seals around windows. The caulking may need to be replaced periodically to maintain a good seal. This will help guard against leaks.
- Check roof for needed repairs. Replace shingles that are missing, damaged, or aging.
- Keep downspouts in good repair. Check downspouts and rain gutters regularly and remove debris that may have accumulated. Make sure downspouts are directed away from the house.
- Maintain sprinklers and irrigation systems regularly. Make sure they are not spraying the walls and foundations of the house. Protect against frozen pipes by turning off the water supply and draining outside faucets in the fall.
FALL 2011Standard homeowner and renter insurance policies include coverage for personal items, such as jewelry. However, many policies limit the dollar amount for theft of valuable personal possessions such as jewelry, furs, and precious stones from $1,000 to $2,000 total.
To properly insure jewelry and other expensive items, consider purchasing additional coverage through a floater or an endorsement. In most cases, you would also be covered for what insurance companies term “mysterious disappearance.” This means that if your ring falls off your finger or is lost, you would be financially protected.
To make sure your jewelry and other expensive items are adequately protected, it is suggested you:
- Contact your insurance professional immediately after acquiring jewelry or other expensive items
- Have the item appraised
- Keep a copy of the store receipt and add it to your home inventory
- Store valuables in a secure location
People rarely know how much it would cost to re-build their home and replace their belongings after a total loss, and the prospect of determining local building costs and thoroughly cataloging all of their possessions can seem overwhelming. As a result, homeowners coverage has too often been based on assumptions: either a rough guess or a default percentage of the home’s structural value set by the insurance carrier. Protect your investment by playing an active role in determining the amount of insurance you need to cover the following:
The structure of your home. You need enough insurance to cover the cost of rebuilding your home at current construction costs. Don't include the cost of the land, and don't base your rebuilding costs on the price you paid for your home. For an estimate of the amount of insurance you need, contact your insurance agent. Your agent will have tools available to provide you with an estimate in order to make sure your home is properly insured.
Your personal possessions. To determine if you have enough coverage, you need to conduct a home inventory. This is a detailed list of everything you own and information related to the cost to replace these items if they were stolen or destroyed by a disaster such as a fire. For free online home inventory software, visit
www.KnowYourStuff.org
Additional living expenses. This coverage is for the cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs. This is a very important feature of a standard homeowners insurance policy. This pays the additional costs of temporarily living away from your home if you can't live in it due to a fire, severe storm, or other insured disaster. It covers hotel bills, restaurant meals, and other living expenses incurred while your home is being rebuilt.
Liability to others. This part of your policy covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for injuries to others caused by pets. It pays for both legal defense costs and any damages a court rules you must pay.
Source: iii.org
SUMMER 2011
Personal liability protection is part of your homeowners insurance policy and covers you against lawsuits for injury or property damage that you or your family members cause to other people. It also pays for damages caused by your pets. The coverage will pay for legal defense costs as well as any damages the court rules you must pay. There is no deductible requirement for liability insurance.
What is covered by personal liability insurance?
Most standard homeowners policies provide a basic limit of liability of at least $100,000 for property damages or injuries. In addition, medical payments coverage is included in most policies and reimburses you for basic medial bills incurred under a liability claim, such as a neighbor being bit by your dog or being injured on your property.
How much personal liability insurance do I need?
Consider the property and investments you own that are worth a significant amount. What would be at stake if you had a claim or lawsuit filed against you? You should purchase enough personal liability insurance to protect these assets. The standard amount that is included in your homeowners policy might be sufficient to meet your needs. However, if the value of your assets exceeds the value of the coverage, you need to consider a higher limit.
How can I secure more coverage?
You may be able to obtain additional liability coverage by simply increasing the amount of liability insurance on your homeowners policy. You should also consider an umbrella policy, which is an inexpensive way to obtain a significantly higher amount of coverage.Source: www.rmiia.org Do you ever wonder if you have enough insurance to cover a large insurance claim against you? And do you know where the money would come from if you weren’t adequately insured? The answers to these questions come from insurance agents who recommend that clients get umbrella policies, which kick in when policyholders reach the limit on the liability coverage in their home or auto policies.
Consider the risk in the following scenarios:- Your teenage son is in a car accident and you are sued for $1 million.
- A neighbor is injured or drowns in your swimming pool.
- A passerby trips and falls on the sidewalk at your house.
- Your dog bites a friend’s child.
What’s My Exposure?
Today, anyone can be sued, and million-dollar judgments are becoming more common. And, alarmingly, any amount exceeding your standard liability policy would fall to you. In order to cover the costs, you could be forced to use money from your current assets, such as savings accounts, 401(k)s, or even your home. And your future earnings could be applied as well. So, while these types of catastrophic events are unlikely, insurance companies offer umbrella policies for customers who want to protect their assets and feel more secure. The good news is, this insurance is relatively affordable. Policies are generally available for $1 million, $2 million, and $5 million in coverage (availability varies by state).
How the Coverage Works
If there is a covered liability claim under your auto or homeowners policy and the dollar amount of the judgment is greater than the coverage limits you have purchased on those policies, the umbrella goes into effect. Certain coverage limits must be met on your auto and home policies before you can purchase an umbrella policy. The big question is often: How much coverage should I carry? The answer usually depends on your net worth. Calculating the value of your home, stocks, mutual funds, and retirement accounts is the first step.
Contact your Leavitt Group insurance representative for more information on umbrella insurance and for a review of your coverage options.
Source: The Hartford
SPRING 2011In wildfire situations, most homes are not destroyed by the initial fire front of the wildfire but by the embers from that fire. Creating defensible space around your home and regular clean-up of vegetation and flammable materials will lessen the opportunity for those embers to cause another fire.
Here are a few recommendations for protecting your home against wildfire:
- Use fire-resistant materials when possible (especially on the roof of your home).
- Create a safety zone around your home by clearing leaves, dead limbs, and other flammable vegetation. If you live in a community at risk of wildfire, FEMA recommends creating a 30- to 100-foot zone around your home.
- Remove leaves and debris from roof, gutters, vents, and under structures.
- Safely store flammable items such as gasoline and oily rags in approved safety cans and away from your home or other structures.
- Keep a garden hose within easy access. It should be long enough to reach any area of your home and all structures on your property.
- Prune trees and bushes regularly to keep them clear of power lines and chimney outlets. Remove dead branches that extend over the roof.
For more suggestions on protecting your home, visit www.fema.gov.
Source: www.fema.gov Misconception: My home is not located in a flood zone, so floods are not a risk and I don’t need flood insurance.
Even if your home is not located in a high-hazard flood zone, you are still at risk. Hurricanes, winter storms, and snow melt are common and often overlooked causes of flooding. New land development can increase flood risk, especially if the construction changes natural runoff paths. Nearly 25 percent of all flood claims come from moderate to low flood risk areas.
Though you may not be required to hold flood coverage based on your geographic location, this is still important coverage to add to your policy. Remember, standard homeowners and renters insurance policies do not cover flood damage, so you will need to discuss this coverage with your agent in order to add it to your policy.
Misconception: The value of my home has declined with recent market fluctuations, so I should be able to lower my insurance coverage to save money.
The value of your insurance policy should be based on the cost to rebuild your home rather than the market or tax value of your home. The purpose of the homeowners policy is to rebuild your home and replace its contents in the event of a total loss, so the policy value should be based on actual rebuilding and replacement costs rather than perceived market value.
How do you determine how much coverage you need? Your insurance agent has access to tools that will help estimate the rebuilding costs of your home. Your help in maintaining an accurate home inventory will aid in ensuring your policy is adequate for your needs.
Misconception: I added my boat to my homeowners policy - I don’t need any other coverage to protect this asset and my liability.
While it is easy and convenient to add a boat or personal watercraft to your homeowners policy, the coverage options are limited. A separate watercraft insurance policy provides more in-depth coverage, including the following options:
- Uninsured/underinsured watercraft bodily injury
- Fuel spill liability and wreckage removal
- Personal effects
- Unattached equipment coverage
- Emergency assistance
Winter 2011As a condominium owner, there is comfort in knowing building maintenance, roof repairs, landscaping, and insurance will be taken care of. An insurance policy provided by your homeowners association will most likely cover the exterior building structure and common areas, but what about potential structural damage to your unit and coverage for your personal belongings? Without a personal insurance policy, you could be left paying for damages out-of-pocket if your unit floods, is damaged in a fire, or is burglarized.
You will need two separate policies to protect your condominium investment:1. Your own personal insurance policy
This provides coverage for your personal possessions, structural improvements to your condo, and additional living expenses if you are the victim of fire, theft, or other disaster listed in your policy. This policy also includes liability protection.
2. A “master policy” provided by the homeowners association
This covers liability risk and physical damages for the common areas you share with others in your building including the roof, basement, elevator, and walkways.
If you have questions about what coverage is in place, talk to your homeowners association, insurance professional, or family attorney.
If you are currently renting a home or apartment, you should strongly consider renters insurance. No one likes to think about the possibility of a fire or a burglary, but these are real possibilities worth insuring against. Here are a few things you should know about renters insurance:
- Renters insurance protects your valuables from property losses, including flood, fire, theft, and vandalism.
- Renters insurance provides liability protection to protect you from lawsuits resulting from someone injuring themselves while visiting your home. Potential liability risks include slips and falls, accidents at parties, and pet attacks.
- The amount you receive if your belongings are damaged or stolen depends upon whether your policy is for “actual cash value” or “replacement cost.”
- The best way to determine how much renters insurance coverage to buy is to conduct a home inventory. Check out www.knowyourstuff.org for free software you can use to create your own home inventory.
- Renters insurance is very affordable. In addition, discounts are usually available to those who have multiple policies with the same company and for those with safety features, including smoke detectors, dead bolt door locks, and fire extinguishers.
FALL 2010
Every year, winter storms across the United States cause significant property damage to homes, cars, and businesses. Understanding what information is needed for the claims process is an effective way to make the most of your insurance dollar. Here are six helpful tips to follow when filing a claim:
1. Call your insurance company as soon as possible. Let them know the extent of the storm-related damage. If you had to evacuate your home, let them know where you are staying and how you can be reached.
2. Document your loss. Make a list of your damaged property, and take photographs to substantiate your losses. If you had completed a home inventory previously, provide that information to your insurance company.
3. Keep receipts for additional living expenses (ALE). If you are unable to live in your home due to an insured disaster, your insurance company will typically provide reimbursement for additional living expenses, such as restaurant meals and hotel rooms. Save your receipts so you can submit them for reimbursement.
4. Make temporary repairs to prevent additional damage. It is your responsibility to make basic temporary repairs so that your home and belongings are not exposed to the elements and at risk of further damage. Reasonable expenses will be covered by your insurance, but it is important to keep receipts and not spend too much on repairs until after the adjuster has surveyed the damage.
5. Be organized. Good record keeping can make filing claims easier. It is important to make lists of damage, out-of-pocket expenses incurred, and the names and contact information of everyone you speak to during the claims process.
6. Don’t be the victim of a scam. It is unfortunate, but fraudulent service providers prey on disaster victims. Don’t be rushed into signing contracts. Instead, collect business cards, check references, and get written estimates for the proposed job. Never give a deposit to anyone you do not know. Remember, your insurance company is a great resource when it comes to finding reputable service providers such as roofers and contractors.
Source: http://www.iii.org/

Floods and flash floods happen all across the United States. Standard homeowners and renters insurance policies do not cover flood damage. Flood coverage, however, is available in the form of a separate policy from the National Flood Insurance Program. Flood insurance is available for renters as well as homeowners.
Hurricanes, winter storms, and snow melt are common and often overlooked causes of flooding. New land development can increase flood risk, especially if the construction changes natural runoff paths. You are eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program (NFIP). Over 5.5 million people currently hold flood insurance policies in more than 20,500 communities across the United States.
If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a federally-backed mortgage, your mortgage lender requires you to have flood insurance. In a high-risk area, your home is more than twice as likely to be damaged by flood than by fire.
Last year, about 25 percent of all claims paid by the NFIP were for policies in moderate-to-low risk communities. Don’t wait for a flood season warning on the evening news to buy a policy—there is a 30-day waiting period before the coverage takes effect.
Private flood insurance is available for those who need additional insurance protection, known as “excess coverage,” over and above the basic policy, or for people whose communities do not participate in the NFIP. Some insurers have introduced special policies for high-value properties. These policies may cover homes in non-coastal areas and/or provide enhancements to traditional flood coverage.
Source: www.floodsmart.gov SUMMER 2010Many vacationers will be renting a car this summer, but often don’t start thinking about rental car insurance until they get to the counter. This can result in some costly mistakes. Faced with a number of choices, some renters either purchase all of the coverage, or they decline the insurance without knowing if they are covered by other policies. This can result in either wasting money by purchasing unnecessary coverage or having gaps in coverage.
Before renting a car, you should make two phone calls: one to your insurance agent or company representative, and another to the credit card company you will be using to pay for the rental car.
Rental car insurance offers four important coverages:
Loss Damage Waiver (LDW), also referred to as collision damage waiver, is not technically an insurance product—it relieves or “waives” renters of financial responsibility if a rental car is damaged or stolen.
Liability Protection provides financial protection from lawsuits in the event you are sued following an accident involving a rental car.
Personal Effects Coverage provides insurance protection for the theft of items in your car.
Personal Accident Insurance will cover you and your passengers for medical and ambulance bills incurred by injuries in an automobile accident.
Source: www.iii.org Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Although most auto insurance provides property, liability, and medical coverage, many states have different requirements. Here are typical coverages found in an auto policy:
Liability: Pays for damages you cause to other people and their property. Higher limits than what you currently have may be available.
Medical Payments: Provides protection for the insured, family members, and passengers in the insured’s auto for injuries sustained in an accident regardless of who was at fault. Also provides reasonable expenses for necessary medical and funeral services incurred. Higher limits than what you currently have may be available.
Personal Injury Protection: Provides coverage for injury, death, loss of services, and loss of income suffered by you, your covered passengers, or covered family members (for those who reside in states with no-fault insurance laws).
Uninsured Motorist Coverage: Automobile coverage designed to provide protection for the insured if involved in an accident where an uninsured motorist is at fault. Limits usually match liability coverage.
Underinsured Motorist Coverage: Auto coverage that pays the difference between the insured’s actual damages for bodily injury and the amount of liability insurance carried by the at-fault driver. Limits usually match liability coverage.
Collision Coverage: Protects you from loss caused by damage to your auto by collision with another object or vehicle or the overturn of the auto.
Comprehensive: Pays for the losses to your auto OTHER than collision. Included is damage or loss to your auto caused by fire, theft, glass breakage, falling objects, and vandalism.
Towing and Labor: This endorsement offers reimbursement for the cost of having a vehicle towed. Labor costs to repair a vehicle are not covered. Higher limits than what you currently have may be available.
Rental Reimbursement/Loss of Use: Loss of use covers the daily cost to rent a vehicle while yours is out of commission due to covered loss.
Auto Loan/Lease Coverage:Coverage may be extended for the difference between the unpaid amount due on the loan or lease of a new auto and the actual cash value at the time of loss.
Audio, Visual, and Data Electronic Equipment:Tapes, records, discs, and other media can be included on the auto policy.
The coverages discussed herein are for illustrative purposes only. The terms and conditions of your specific policy may differ from those described. Please consult the provisions of your policy for the terms, conditions, and exclusions that apply to your coverage.
SPRING 2010- Damage from earthquakes is not covered by a standard homeowners policy. Similar to flood insurance, earthquake insurance must be purchased separately.
- Earthquake coverage can be added as an endorsement on your homeowner policy or purchased as a separate policy.
- Many insurance companies have specific enrollment periods for earthquake coverage. If you choose not to add the coverage when you purchase a homeowners policy, you may need to wait until your policy renews to add the coverage.
- If the insurance company has specific enrollment periods for earthquake coverage, you may receive an offer for the coverage with your renewal policy. This coverage is typically offered every other year.
Earthquakes can cause devastation any time of the year and without warning. Taking steps to secure the furnishings in your home may help prevent injuries and mitigate damages should an earthquake occur. Here are some steps you can take to protect your family and your home:
- Secure bookcases and shelves to prevent them from toppling over and causing injury or damage.
- Attach cabinets to the walls and floors to prevent them from falling over and to keep their contents safe.
- Consider using shatter-resistant Teflon® fluorescent lights or install plastic sleeves over the light tubes to keep glass from scattering if they break.
- Securely anchor large appliances to the wall and brace your water heater.
- Secure heavy equipment such as TV’s and computers to the furniture on which they are placed.
- Use closed screw eyes instead of traditional picture hangers to secure pictures and other valuable artwork to the walls.
For more ideas, check out www.DisasterSafety.org.
How will earthquake coverage help?
If you have a typical home loan and deed of trust, you will remain responsible for the loan balance even if your home is damaged or destroyed by an earthquake. The deductible and amount of coverage available for earthquake damage vary by state.
Earthquake coverage can help towards the costs associated with earthquake damage, such as:- replacing the contents of your home
- repairing or replacing your home
- paying a mortgage, second mortgage, or line of credit on your home if your home is destroyed
WINTER 2010Four Golden Rules to Buying Auto InsuranceSimplify the insurance selection process and ensure you have adequate coverage with these tips: 1. Consider higher limits of coverage than the state-required limits. If you choose the minimum coverage required by your state, you may not be fully covered in an accident. For example, if your property damage coverage is $15,000 and you cause $25,000 worth of damage, you’ll have to pay the remaining $10,000 out of your own wallet. 2. Tell it like it is. Be completely up-front and honest about your driving history. If you fail to disclose past accidents, speeding tickets, or other moving violations, the insurance company will not be able to give you an accurate quote. As soon as the insurance company checks your driving record, they will adjust the price to reflect your violations.
3. Pay attention to the total package. Consider price, coverage, convenience, and customer service. Decide what’s most important to you, and communicate this with your insurance agent so they can help you choose the company that is right for you.
4. Don’t double up on coverage. Before you settle on a policy, consider any other auto coverage you may have so you don’t duplicate coverage. For example, if you are a member of AAA, your membership probably covers towing costs if you break-down. Therefore, there’s no need for a policy that includes roadside assistance coverage.As your insurance agent, we are here to guide you in selecting your insurance coverage. Please call us today and we will help ensure you have the right coverage for your needs.
Protect Your Possessions with an
Electronic Home Inventory
Maintaining a thorough home inventory is a critical addition to your homeowners insurance policy. By documenting your possessions and updating the list on a regular basis, you can ensure you have enough coverage, settle claims faster, and substantiate losses for income tax purposes.
A traditional home inventory is a basic list of all belongings along with receipts that substantiate value. With digital cameras and camcorders, the process of creating a home inventory is simple. By electronically documenting your home inventory, you can account for items you may not have thought to include in a written list. Videotaped inventories are especially useful as they can be narrated to include important details of each item. 
Keep copies of supportive records, including sales receipts, purchase contracts, and appraisals. Record the serial numbers for major appliances and electronic equipment, which are usually found on the back or bottom of these items.
Once you finish documenting your inventory, either print out the files or burn a CD. Keep a copy in a safety deposit box or have a friend store it. In case your home is severely damaged, or if you experience a hard-drive crash, it is critical to keep a second copy of your home inventory off-premises.
Finally, remember to update your home inventory annually to add newly acquired items and remove items you no longer own.
FALL 2009Whether you are planning a vacation or a short trip to visit relatives this holiday season, keep in mind that an empty house is a tempting target for a burglar. Follow these tips to keep your home safe:
- Use sturdy locks on all doors and windows and secure before you leave. Repair any broken windows or locks.
- Ask a neighbor or friend to periodically check on your home.
- Don’t broadcast your plans on your answering machine or online (e.g. Facebook)
- Put a temporary hold on newspaper delivery.
- Use a simple plug-in timer to turn your lights on periodically.
- Don’t leave valuables in plain sight.
SAFELY NAVIGATE WINTER DRIVING CONDITIONS

During the winter months, you may run into adverse driving conditions. Make sure to exercise additional care; for example, drive slowly and be aware of other drivers. If possible, avoid driving at all if the road is slippery or the weather is bad.But what happens if you do get in an accident? Here are some key things you need to do:- Remain at the scene of the accident.
- Take steps to prevent further accidents – park safely, turn on emergency flashers.
- Call the police or ask someone to call for you.
- Obtain the other driver’s name, insurance company name and phone number, the vehicle’s license plate number, and the operator’s license number (obtain this information from all parties involved).
- Give the other driver your name, insurance company name and phone number, the vehicle’s license plate number, and your license number.
- Discuss the specifics of the accident only with the police.
- If you have a camera, take photos of the accident scene and vehicles if it is safe to do so.
Winterize NowPrevent Cold-Weather Problems LaterPoorly winterized homes can be a source of both property and liability insurance claims. However, an investment of time and preparation now can save you money and hassle in the long run. The following are tips to help prepare your home and minimize the risk of a wintertime insurance claim.

- Replace filters in all of your heating systems before turning them on for the season. Make sure your units have been professionally serviced, and replace the filters on a regular basis.
- Replace batteries in both smoke and carbon monoxide alarms.
- Check for and seal cracks and gaps around windows and doors. Seal around windows and walls where air-conditioning units are installed.
- Check the insulation in attics, basements, and crawl spaces. Too much heat escaping can cause ice and snow to melt too fast to be carried away efficiently. If moisture seeps into the roofing, it can cause damage or collapse. Adequate insulation can also help prevent the inconvenience of frozen or burst pipes. If pipes are located in unfinished spaces, such as garages, wrap the pipes with heating tape.
- During the winter, keep interiors at 65 degrees or more. Remember, the interior temperature of walls can be a lot colder than the air in the rooms, putting pipes at risk of freezing.
- Check your driveway, sidewalks, and handrails to make sure they are in good repair - this important safety precaution may also limit your liability should an accident occur.
- Make sure your snow blower and other snow removal equipment is in working order. Having cleared walkways will help ensure no one is seriously injured on your property by winter weather conditions.
- Before the first freeze, remove debris from gutters so heavy winter rains and melting snow can flow freely and not damage your roof or walls. Consider installing gutter guards to keep gutters clear from additional debris.
- Survey your landscaping. Trim trees with overhanging limbs that could block your walkways or endanger your home or vehicles during heavy snowfall and ice storms.
