General Liability vs Errors and Omissions

General Liability
What it protects against: Accident and injuries that occur on company property or the property of a customer. It also protects against product liabilities.

How it works: Commercial General Liability (CGL) includes payments to an injured person or to an owner of property that is damaged. These can cover medical expenses and the cost of defending lawsuits, including legal settlements or investigations. Insurance may also provide the means to post bonds during a legal proceeding, or pay judgments. A CGL policy also covers libel, slander, copyright infringement and other personal and advertising injuries.

Who needs it: Most, if not all, companies

Errors & Omissions
What it protects against: Claims by customers that a company made mistakes or failed to perform contractual work. It should include coverage of the cost of legal defense. It is also know as professional liability insurance.

How it works: It insures mistakes made by a company’s owners, employees and contractors. It is similar to a doctor’s medical malpractice insurance.

Who needs it: Anyone who advises, recommends, consults or designs solutions should consider this coverage.

Information provided by: Bests Review The Guide to Understanding Business Insurance Products (2007-2008)

So What is the Difference?:
The key difference between the above two mentioned business insurance coverages is that General Liability only pays claims that have resulted in bodily injury or property damage (meaning damage to property not owned or leased by the business). It will not cover a financial loss that is a result of errors or alleged errors done by the business or the omission of work that the business was contractual obligated to do. That is where Errors & Omissions Insurance steps in and pays for the cost to defend the business as well as any settlements that a court requires them to pay for their error or omission of work.

Travelers Launches Mobile Applications

On March 8th Travelers annouced that they have a new application for smart phones.

The new mobile tools provide auto accident assistance for iPhone and
BlackBerry1 smartphone users. Additionally, Travelers’ customers will have the added advantage of starting the auto claim process directly through the iPhone application and the mobile Web site.

Integrating Travelers’ online claim reporting into the new mobile applications is part of the company’s ongoing mobile strategy that first began with the launch of the mobile Web site in late November 2009. The number of people accessing news and information daily on the mobile Web more than doubled in 2009 when compared to 2008, according to comScore2.

See full article at:
http://www.comscore.com/index.php/Press_Events/Press_Releases/2009/3/Daily_Mobile_Internet_Usage_Grows

Here is a vidoe about the importance of taking care of small windshield cracks early.

Finished Basement? We should talk!

An unfortunate homeowner incident that has been occurring a lot over the past few years is water damage caused by either a sump pump failure or water backing up a basement drain. These claims can leave finished basements with damaged carpet and drywall as well as damaging the basement contents, not to mention clean up expenses for these situations which can cost hundreds or even several thousands of dollars.
A majority of homeowners’ insurance policies will include up to $5,000 for claims that fall into this category. However, if someone had a finished basement, this amount might not be sufficient. Insurance companies have options for higher limits ranging from $10,000 all the way up to $100,000. If you have a finished basement, this is a coverage that you and your Fey Insurance Services representative should discuss.
One thing to note, this coverage does not cover flood insurance (meaning surface water from outside the house that has come into your home). Floods are not covered by homeowners’ insurance policies. If you have a concern about this type of exposure to loss, please contact us and we can provide you with a Flood Insurance Quote.

New ATV Registration Law in Ohio

Golf cart, ATV, and off-road vehicles are now subject to Ohio’s new mandatory registration which became effective 7/1/2009.

Please be aware of the new law and the need to have proof of registration with the Ohio Bureau of Motor Vehicle (BMV) for your recreational vehicle(s) before operating them on an Ohio roadway and now, thanks to the new law, Off-Road on Public and Private lands. (Note: Certain exemptions are still in place for usage on your own property or operations relating to agricultural use.) This new law and proof of registration will probably now also impact on how these vehicles are covered under standard ISO Homeowner insurance policies.

Most Homeowner policies do not cover usage on the roadways for these types of vehicles and this new law will probably change the way limited coverage has been offered off-road for these previously classified “unregistered” vehicles.

If you own an ATV, Golf Cart or Off-Road Motorcycle, please contact us to review the benefits of specialized Motorcycle and Off-Road Vehicle coverage.

Link to LAWriter Ohio Laws and Rules for new law 4519.02 Registration required - exceptions wording @ http://codes.ohio.gov/orc/4519.02

SHOVEL OR NOT TO SHOVEL? SNOW REMOVAL IN OHIO

This is an article I found from the Ohio Insurance Institute dated 2/10/10
Written By:Mary Bonelli/Mitch Wilson

As far as Ohio law goes, it’s long been established that homeowners do not have a legal obligation to shovel when there is a natural accumulation of snow and ice. In December 1993 the Ohio Supreme Court upheld this concept when a guest attempted to sue a homeowner in Franklin County for a slip and fall outside of the homeowner's house. (See Brinkman v. Ross).Some states have laws in place requiring snow and ice removal; Ohio does not. However, a homeowner would be liable if someone decides to sue as a result of tripping over a crack or other irregularity on your walkway. Also, if someone slips on ice that was formed because of a poorly positioned down spout, you could be held liable.
1. Did this court decision affect the cost of homeowners insurance?It did not affect the cost of insurance since the court decision didn’t overturn the standard practice claims of most property/casualty insurers. This decision did not change existing Ohio law. It basically reinforced the claims practices of most Ohio insurers. In surveying some of Ohio’s insurance companies, OII found that these types of claims are rather infrequent. In the past, companies usually reviewed them on a case-by-case basis, and in some situations felt obliged to pay for such claims. The Supreme Court decision clarified by its ruling that homeowners cannot not be liable in situations where the injury was solely caused by natural accumulations of ice and snow. Because of the nature of Ohio winters, you’ll likely be subject to icy and snowy weather conditions causing sidewalks and roadways to become slick. Basically, you are walking at your own risk. Otherwise a homeowner would perpetually suffer the threat of lawsuits every time Mother Nature comes calling. 2. Should homeowners stop shoveling or clearing sidewalks? This is more of a personal decision than one that can be mandated by any industry. As a homeowner or business owner you may feel you have a moral obligation to keep walkways as clear as possible. By making the decision to not clear sidewalks and steps, not only do you jeopardize the safety of your visitors and guests, but also yourself and your family. 3. Can my local city or municipality invoke snow removal ordinances?Although you may not be held liable for injuries of others caused solely by slipping on ice or snow, some cities and villages have ordinances in place that require residents to make every attempt to keep sidewalks clear and impose subsequent fines on those who disregard warnings to that effect. Such an ordinance cannot invoke a homeowner’s liability for accidental slips and falls as part of its snow removal ordinance requirements. View the Bexley OH ordinance as an example.

Employment Practices Liability

A poor economy not only hits business owners in the profit/loss area but it also creates added liability exposures. During a down turn in the economy, many employers have to downsize their number of employees. This opens the door for employment practice type liability claims. Wrongful termination claims for things such as age, race and sex discrimination are on the rise. Sadly, a number of these claims are false claims and cost employers thousand to defend themselves. However, with an insurance coverage called Employment Practices Liability (EPLI) you can protect your business from such incidents.

EPLI products will help defend you during these claims and pay for the expenses that result from them. A number of products even provide a hotline for employers to call and get advice on how best to handle a layoff or termination. They will even give you ideas on how to create an employee handbook and other employment related forms such as job applications and termination forms.

Hopefully the economy will rebound soon and as a result employers will start to hire again. Even though this would be a positive thing, there is still a liability exposure during this time of growth. Discrimination claims can still arise during the hiring process. EPLI will also protect employers from discrimination claims by individuals that were not hired, but claim discrimination during the interview process.

Whether it is a downturn or upturn in the economy, employment related claims can happen. Feel free to get in touch with a Fey Insurance Services representative to learn more about how to protect your business.