Oak Creek Insurance Agency

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Special Coverage for Jewelry and Other Valuables

Jewelry losses are among the most frequent of all homeowners content-related insurance claims. Taking these four steps will ensure adequate protection for your new ring:

1. Contact your insurance professional immediately.

Find out whether you will need additional insurance. Most standard homeowners and renters insurance policies include coverage for personal items such as jewelry; however, many policies limit the dollar amount on jewelry to $1,000 to $2,000. With the average engagement ring costing nearly $6,000, according to The Knot, that is unlikely to be enough coverage.

To properly insure jewelry, consider purchasing a floater or an endorsement policy. In most cases, these add-ons to a homeowners or renters policy would also cover you for “mysterious disappearance.” This means that if your ring falls off your finger and is flushed down a drain, or is lost, you would be financially protected. And, unlike a homeowners policy, floaters and endorsements carry no deductibles, so there is no out-of-pocket expense to replace the item.

2. Obtain a copy of the store receipt.

Forward a copy of the receipt to your insurer—so that your company has a record of the current retail value of the ring—and keep a copy for your own records. It’s also a good idea to get a copy of the appraised value of the item.

3. If you received an heirloom piece, have it appraised.

Antique jewelry will need to be appraised for its dollar value. You can ask your insurance professional to recommend a reputable appraiser.

4. Add the item to your home inventory.

An up-to-date inventory of your personal possessions can help you purchase the correct amount of insurance and speed up the claims process if you have a loss, so remember to add your new ring to your inventory.

Source: Insurance Information Institute, “Get Insurance for That Ring and You’ll Be a Cut above the Rest” http://www.iii.org website. Accessed November 27, 2020. https://www.iii.org/press-release/proposing-on-valentines-day-get-insurance-for-that-ring-and-youll-be-a-cut-above-the-rest-021116

© Copyright 2020. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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Holiday Parties & Liquor Liability

Did you know that many states hold you or your company liable for accidents and injuries caused by party attendees having too much to drink. Not only that, in many cases, you or your company may have insufficient insurance – or no coverage at all – under your existing liability insurance policies.

What to do? Implement one or more of the following steps and ensure everyone has a safe and healthy holiday season:

  • Do not serve alcohol at your party and adopt a zero-tolerance policy for consumption on your premises. If zero tolerance is too harsh, consider a “key bowl” presided over by a sober third-party. If a party attendee is impaired the third-party calls a cab and their car keys stay in the bowl.
  • If your event is off-site, make sure your party venue has liquor liability insurance. Ask if it covers you or your company – or have them add you or your company as an additional insured for the party.
  • Limit party attendance only to people you know – friends, family, neighbors, employees. After all, even significant others can be under age, and who will check?
  • Off-site venues for parties should offer a cash bar if a bar is present at all. Another option is a “ticket” system where each attendee gets one or two tickets for free drinks and the remainder is cash.
  • If this is a company party, consider renting transportation for the event. While it may be expensive, it will be cheaper than the loss of an employee.

No matter what, you should designate a person/s who understands your rules and the potential liability. And give that person permission to call a cab for a party attendee – on your tab if necessary.

© Copyright 2020. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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IN: Preparing For a Safe & Healthy Holiday Season

Dear Valued Customer,

In this issue of “——————” we focus on how to ensure everyone has a safe and healthy holiday season.

Sorry to be a party pooper, but did you know you or your company can be held liable for accidents and injuries caused by party attendees having too much to drink? Read on to learn what to do to protect yourself…like obtaining liquor liability insurance! In addition, read on regarding insurance for jewelry you may be giving or receiving at this time of the year.

Look, this may not be the year for holding a party at all, but if you do take the plunge we urge you to remember that social distancing should be practiced in combination with other everyday preventive actions to reduce the spread of COVID-19, including wearing masks, avoiding touching your face with unwashed hands, and frequently washing your hands with soap and water for at least 20 seconds. All this, plus make sure you stick by your county rules for the number of people in your gathering.

With our best wishes for a fun and safe holiday season. We appreciate your continued business and look forward to serving you.

Kind regards,

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Social Host Liability

Be a Responsible Host When It Comes to Serving Alcohol at Parties

Whether you’re hosting a Super Bowl party for 50 or greeting the New Year with a few friends, if you’re planning to serve alcohol at your home take steps to limit your liquor liability and make sure you have the proper insurance.

Social host liability is the legal term for the criminal and civil responsibility of a person who furnishes liquor to a guest. Social host liability can have serious consequences for party throwers.

Social host liability law

Also known as “Dram Shop Liability,” social host liability laws vary widely from state to state, but 43 states have them on the books. Most of these laws also offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol. There are circumstances under these laws where criminal charges may also apply.

While a social host is not liable for injuries sustained by a drunken guest (as the guest is also negligent), the host can be held liable for harm to third parties, and even for passengers of the guest who have been injured in their car.

Social host liability—insurance considerations

Homeowners insurance usually provides some liquor liability coverage, but limits are typically $100,000 to $300,000, which, depending on your assets, might not be enough. Before planning a party in your home, speak to your insurance professional to review your homeowners coverage for any exclusions, conditions or limitations your policy might have that would affect your social liability risk.

Protect yourself and your guests

Remember that a good host is a responsible host. If you plan to serve alcohol at a party, promote safe alcohol consumption and take these steps to reduce your social host liability exposure:

  • Make sure you understand your state laws. These laws vary widely from state to state (see final chart). Some states do not impose any liability on social hosts. Others limit liability to injuries that occur on the host’s premises. Some extend the host’s liability to injuries that occur anywhere a guest who has consumed alcohol goes. Many states have laws that pertain specifically to furnishing alcohol to minors.
  • Consider venues other than your home for the party. Hosting your party at a restaurant or bar with a liquor license, rather than at your home, will help minimize liquor liability risks.
  • Hire a professional bartender. Most bartenders are trained to recognize signs of intoxication and are better able to limit consumption by partygoers.
  • Encourage guests to pick a designated driver who will refrain from drinking alcoholic beverages so that he or she can drive other guests home.
  • Limit your own alcohol intake as a responsible host/hostess, so that you will be better able to judge your guests’ sobriety.
  • Offer non-alcoholic beverages and always serve food. Eating and drinking plenty of water, or other non-alcoholic beverages, can help counter the effects of alcohol.
  • Do not pressure guests to drink or rush to refill their glasses when empty. And never serve alcohol to guests who are visibly intoxicated.
  • Stop serving liquor toward the end of the evening. Switch to coffee, tea and soft drinks.
  • If guests drink too much or seem too tired to drive home, call a cab, arrange a ride with a sober guest or have them sleep at your home.
  • Encourage all your guests to wear seatbelts as they drive home. Studies show that seatbelts save lives.

Source: Insurance Information Institute, “Social Host Liability” http://www.iii.org website. Accessed November 27, 2020. http://www.iii.org/article/social-host-liability

© Copyright 2020. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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Directors and Officers Insurance

PROTECTING YOUR BUSINESS FROM LIABILITY ISSUES

While business insurance policies by definition provide coverage for the business itself, individual company officers may still be personally exposed to financial losses resulting from a lawsuit. To protect your company’s leadership, you may want to consider purchasing directors and officers (D&O) liability insurance.

What D&O Covers

Directors and officers is a type of liability insurance that covers individuals for claims made against them while serving on a board of directors and/or as an officer. This type of policy can be written to cover directors and officers of for-profit businesses, privately held firms, not-for-profit organizations and educational institutions. There are several elements—called “Sides”—to a D&O policy, including:

  • Side A—Protects a corporation’s directors and officers when the company cannot indemnify the individuals.
  • Side B—Reimburses the organization when it indemnifies the individuals, thus protecting the company’s balance sheet
  • Side C—Also known as “entity coverage,” this eliminates disputes of coverage allocation when both the directors and officers and the insured organization are named as co-defendants in a securities lawsuit.

A wide range of claims against a business have the potential to target company leadership for responsibility—and liability. Business leaders can be held responsible for a company’s failure to comply with regulations and to provide a safe and secure workplace. In addition, if a company is found liable for losses because of operational failures and mismanagement, directors and officers may be exposed to liability as well. The types of claims that may target company leadership individually as well as the company itself typically include:

  • Shareholder suits over company or stock performance.
  • Creditor or investor suits over mismanagement or dereliction of fiduciary duties.
  • Misrepresentation in a prospectus.
  • Decisions exceeding the authority granted to a company officer.
  • Failure to comply with regulations or laws.
  • Employment practices and HR issues.
  • Pollution and other regulatory claims.
  • Cyber liability.

What’s Excluded?

Standard exclusions in a D&O policy typically include:

  • Fraud.
  • Personal profiting.
  • Accounting of profits, and other illegal compensation exclusions.
  • Pending and prior litigation.
  • Prior (late) claim notice.
  • Bodily injury/property damage.
  • Insured versus insured claims.
  • ERISA.

The Added Value of Protecting Company Leaders

Aside from paying for claims against company leadership, there are several other benefits to carrying directors and officers liability insurance, including a company’s ability to:

  • Retain Strong Leaders—Many potential directors and officers will be reluctant to join your business if they are exposed to personal liability. D&O liability insurance helps address this issue.
  • Attract Investment—Venture capital and private equity firms often require companies to have D&O coverage before they make an investment.
  • Cover Legal Fees—Even if directors and officers are exonerated of wrongdoing, your business may incur substantial legal fees in responding to a lawsuit against your leadership. If you have a D&O policy, your company’s legal fees will likely be covered.

There are several types of D&O policies, defined by what liabilities, legal costs and other exposures are covered. You should select coverage based on risks and how your business is organized. Your company’s bylaws or articles of incorporation may provide certain protections—or indemnification—for directors and officers. You should seek guidance from your insurance professional about this somewhat complex, technical type of insurance.

Source: U.S. Department of Transportation, “Director’s and Officers Insurance” http://www.iii.org/ website. Accessed March 1, 2016. http://www.iii.org/article/directors-and-officers-insurance

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.