Two-thirds of dog owners admit to engaging in distracting activities with their dogs while driving

Millions of Americans recognize that dogs are wonderful companions and bring their favorite furry friend along on road trips, day trips and even day-to-day errands. However, in a vehicle this can mean added distractions for the driver. A recent survey conducted by AAA and Kurgo asked dog owners how often they drive with their dog and about their habits behind the wheel. The survey found that drivers not only love to bring Fido along, but they also often engage in risky behaviors when man’s best friend is along for the ride.

Drivers distracted by dogs; many don’t realize it

Thirty-one percent of respondents admit to being distracted by their dog while driving; however 59 percent have participated in at least one distracting behavior while driving with their dog. More than half (55 percent) have pet their dog while driving, and one in five allowed their dog to sit in their lap (21 percent). Other distracting behaviors drivers admitted to include giving food and water to their dog (seven percent) and playing with their dog (five percent). These behaviors can distract the driver and increase the risk of a crash. The AAA Foundation for Traffic Safety found that looking away from the road for only two seconds doubles your risk of being in a crash.

Unrestrained dogs dangerous to driver, passenger and man’s best friend

An overwhelming 80 percent of respondents stated that they have driven with their pets on a variety of car trips including day trips, local errands and leisure trips, the pet store, dog parks and to work. However only 17 percent use any form of pet restraint system when driving with their dog.

“Restraining your pet when driving can not only help protect your pet, but you and other passengers in your vehicle as well,” cautioned Beth Mosher, AAA Director of Public Affairs. “An unrestrained 10-pound dog in a crash at 50 mph will exert roughly 500 pounds of pressure, while an unrestrained 80-pound dog in a crash at only 30 mph will exert 2,400 pounds of pressure. Imagine the devastation that can cause to your pet and anyone in the vehicle in its path.”

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Looking for another “value-add” to promote to prospective clients?  Believe it or not, if your firm is properly insured, you already have another valuable sales tool.  Sounds far fetched, you say?  It isn’t at all.

In most cases, before an underwriter will offer coverage for a project, they require proof of insurance for everyone involved.  As such, there is a growing trend toward requirements for proof of insurance as a pre-requisite in RFP’s.  This is the first opportunity.

Competitive Advantage

When you are responding to an RFP and can include proof of insurance, you have made the clients job one step easier.  They don’t have to ask for it or follow-up while you attempt to put coverage in place or track down paperwork.  Frankly, I look favorably upon anyone who can make my job easier and I would suggest that in this fast-paced world we live in, we all look favorably upon those who are proactive.

Image

The second benefit to those who are proactive in acquiring insurance, is image.  Certainly it creates the impression of being a “good corporate citizen”.  This must be further substantiated through best practices and professionalism, but this is a good indicator to a prospect that doesn’t know your firm well.  As business owners,  we know that we must create value in our personal or corporate image in order to sell to others.  When you insure your business, it says to others that you have something of value.  You are serious about your business because it is of tremendous value and by insuring it properly, you convey that image to your client.

Financial Security

The third benefit is that you increase your client’s financial security.  Despite the fact that you are buying insurance with the intent of protecting your firm, there is direct benefit to your clients in a number of ways.  To begin with, financing for a project often requires proof of insurance before loans will be dispersed, and in order to get insurance in place insurance carriers frequently require proof of insurance from all who are contracted to said project before they will offer coverage.  It also affords the client the peace-of-mind of knowing that, should something occur that is covered by your Errors and Omission or Commercial General Liability policy, an insurance company will respond rather than having to become embroiled in a bitter legal battle to recover losses from a private citizen or firm.  And, it confirms to your client that if a difficulty occurs with a completely separate project your firm is involved with, they are less likely to be adversely affected by it because your insurance company will respond, better enabling you to complete their project without interruption.

There are all too many reasons to insure your business to protect yourself.  But, there are also many ways to spin this into a direct selling feature to your clients to gain maximum benefit from your insurance investment.  When one adjusts their perspective slightly, they see that, in addition to protecting your own business, insurance can give you a competitive advantage, increase the financial security you extend to your clients while enhancing your professional image.

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Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.

1. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
2. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in.
3. The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

Extra Expense Insurance

Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without the purchase of business interruption insurance.

*Article from http://www.iii.org

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When you think of crime insurance, what comes to mind? Smash and grab robberies? Thieves in black, creeping through windows of stores to steal merchandise and money?

While these common loss scenarios are typically covered by burglary insurance, there is much more to know about crime insurance.

You may think your store or office is already protected from losses due to crime. Your business has a state-of the art-security system and you even opted for burglary insurance. So what can you gain from crime insurance? Probably more than you think.

Risks covered by crime insurance usually fall into two categories.

The first is for money and securities taken or damaged through burglary, robbery, theft, or disappearance.

The second category is for dishonest acts of your employees, such as embezzlement and theft. This may prove valuable in the event that business property goes missing without visible sign of forced entry or in the event that you provide an employee with your corporate credit card to buy office supplies and the employee decides to use it for a personal shopping spree instead. General insurance policies usually exclude coverage for employee theft.

The primary value of crime insurance is that it provides coverage should you be the victim of dishonest employees.

While crime insurance is a great tool in protecting your business from losses due to employee theft and dishonesty, and theft from intruders, it is not a replacement for good risk management. Regular data back-up is one essential practice that will help ensure that the nightmare of being a victim of crime does not become a reality.

Businesses are also well advised to do what they can to ensure that crime losses from within the company are discouraged: keep valuables locked in a safe, keep a meticulous inventory of office supplies and contents, and of course, invest in a good alarm system.

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Your clients are concerned about the insurance you carry. They have good reason. When embarking on a construction project, there is risk in the adventure they are about to set in motion, and they want to be certain they do everything they reasonably can to allocate that risk to those in the best position to manage it.

Some clients have more compelling reasons than others. They may be uninsured, or, to keep their costs under control, they may self-insure a healthy portion of their risk. These clients tend to be more demanding. They would like to have you insure their risk, as well as your own.

Can you do this? To a certain extent you can, but you need to know the limitations. Otherwise, you could find yourself in something of a quandary - faced with a client who refuses to pay until you comply with contractual requirements you simply cannot meet. The problem is complicated by the fact that there are differences from one coverage to the next. The best approach is to address the two principal coverages individually. Just as a reminder, the general liability policy covers claims arising from ownership of your premises and from your operations, but excludes professional errors. Your professional liability policy covers errors and omissions arising from your design services.

General Liability

It is common for clients to request that they be included as additional insureds under your general liability policy. The principal reason is that they wish to have your policy extend coverage to them so that they are protected for their "vicarious" liability arising from your operations on their behalf. Most insurers are prepared to add them as additional insureds, with respect to their interest in your operations. This is normally done upon request and usually at no additional premium.

In other cases, some clients may take a more active participatory role in connection with the services you perform, and ask to have your policy extended to cover them for losses to which they have contributed, and which do not arise solely from your operations. It may be possible to secure this protection for them, but your insurer will generally want to attach an additional cost. The client may insist that your policy become "primary", that it be "noncontributing", and that it have a "severability of interest" provision. This is because your policy normally has a clause stipulating that it will pay on a contributory basis with any other applicable insurance. The purpose of the client's request for these changes in the policy is that they want your policy to clearly state that other insurance they maintain will be called upon in contribution. In these circumstances, your insurer has good reason to charge an additional premium. There is additional risk.

In addition to being added to your policy as a named insured, some owners may request that your policy be endorsed to waive the insurers' right of subrogation against them. This is unnecessary as the insurers will not subrogate against a named insured under a general liability policy. This request, therefore, is easily declined.

Professional Liability

No demand, no matter how strident, will produce an additional insured endorsement affording coverage to your client under our professional liability insurance. Most clients know this. They understand that they have no insurable interest. What we mean by this is that the policy is written to provide coverage for your liability as the design professional. Consequently, there is no direct connection between the risk being insured (your design work) and the client. Another important point is that frequently, the client is the claimant. In the investigation and settlement of a claim, this relationship may pose substantial conflicts of interest.

Clients' knowledge of these reasons may not stop them from asking for the coverage, but it simply cannot be done. On this issue, there is nothing to discuss. Delete the requirement from your agreement.

What you can deliver is an endorsement to the policy (or a certificate issued by the underwriters) to the effect that the policy will not be cancelled without thirty days' written notice. Such an endorsement is generally available from all of your insurers, although most will balk at notice of "reduction in limits" or "material change". No one knows what these terms might mean, particularly not in connection with policies written with aggregate limits of liability.

These then are the differences among the two coverages you carry. There are also differences from one insurance company to the next, and you need to know how your insurers will respond to the various demands you encounter. You also need to know costs. Your insurance broker can help you distinguish between those insurance requirements which can be met and those which cannot.

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Whether you are a sole proprietor, a partner or a shareholder, most business owners have a huge financial and emotional stake in their business. When you are deeply involved in the all-consuming task of building your business, it may be hard to imagine a time when you would no longer be involved in the business. But the reality is that someday your involvement will end. It could happen suddenly and unexpectedly as a result of premature death, from suffering a life altering illness or accident that affects your ability to be an integral part of the business’ operation or even from disagreements with other shareholders or partners. It could be a gradual process involving the transfer of the business to the next generation, a key employee or other shareholders as your retirement unfolds according to plan.

Most business owners look to their business interests to provide for their retirement or their families if something happens earlier. Without a clear plan now, little if any of this value will be available!

The only way to ensure this value is with a solid business continuation plan that details how your business will continue as a viable enterprise without you, if and when any of these events occur.

What happens if you die or cannot work?

Will the business be wrapped up?

• Do you have projects that you are legally bound to complete?
• Will your estate have liability into the future?
• What will happen to the employees that rely on you for their livelihoods?
• What other financial or moral obligations do you have?

Will your partner(s) or other shareholders buy out your interest?

• How will the value be determined? (Will you leave it up to the other owner to determine how much your family will get? Does your spouse have a value in mind that might not be reasonable any longer without you being involved?)
• Will an employee buy your interest and try to keep the business going?
• Where would either of these groups get the money? (What happens if they agree to pay over a period of years and the business fails?)
• Will lenders get nervous and call their loans which would affect the company’s viability and the survivor's ability (and interest) to make payments?
• Will the other owners even want the company if you were a key ingredient in its success?

Any agreement also needs to look at the following:

What happens if the owners no longer get along?

• Will the business be wrapped up?
• Will one owner be bought out?
• Who will determine the value? (It much easier to get agreement on the formula to be used when you are getting along than it is when you don’t! Have you ever seen what happens to family assets when people get divorced?)

How will the buy out funding be provided for? Would you be willing to rely on the buyer’s ability to keep the business going as the means to pay you?

Can one owner sell his / her interest without permission from the other owners?

What happens in a marital breakdown of one owner? (Would their ex spouse suddenly own 50% of their shares?

If one owner has financial difficulties what can happen to their share? Could you come into the office on day to find that your banker is now your partner?

How about at retirement? How would the value be determined and what would the structure of the buy out be? (If the retiring persons has not planned well for their retirement, or their investment portfolio has lost a lot of money they may look to squeeze more out of the company or not be willing to sell their interest since they would be entitled to ongoing dividend income, etc.)

Any good plan must address all of these and more however the best plan without proper funding will not be much help in the case of death or illness.

Please contact us to discuss haw we can help you develop and implement your business continuation plan.

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Protect your antique or special interest vehicle with an opcf19A!

The Ontario Automobile Insurance Policy statutory conditions state that the insurer is not liable for more than the actual cash value of the automobile at the time any loss or damage occurs, and the loss or damage shall be ascertained or estimated according to that actual cash value with proper deduction for depreciation, however caused, and shall not exceed the mount that it would cost to repair or replace the automobile, or any part thereof, with material of like kind and quality.

If you own an antique or special interest vehicle, you may be interested to note that we are able to offer an Agreed Value of Automobile endorsement which provides a guaranteed value for the vehicle based on its current appraised value. Let us know if you'd like to know more!

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As many of our clients are design professionals, the commercial coverage normally required is a professional office policy. The primary coverages afforded by this policy are a) office contents (furniture, computer equipment, etc). b) commercial general liability and c) business interruption insurance.

Many of the questions posed on applications pertain to CGL coverages. Accordingly insurers will pose questions that will allow them to gain relevant details of the insurer's exposures. It is also standard practice for insurers to inquire if a firm is involved with international work, particularly if staff are travelling outside of Canada where they may sustain injuries which are not covered by workers compensation and accordingly the commercial general liability insurer may be forced to respond.

You may find the following information helpful in understanding why some of the questions are posed;

1. Errors and Omissions Insurer - any insurer offering commercial general liability insurance to a business that has a potential for a professional liability claim will normally ask for confirmation of errors and omissions insurance. This is because the commercial general liability insurer does not want to be drawn into court for a profesional liability related claim where the insured business does not carry coverage. Although commercial general liability policies exclude professional liability claims, the defense costs alone can be quite expensive.
2. Gross receipts - business receipts are asked for most business operations as a standard commercial question. Insurers use income as a way to calculate liability premiums as well as loss of income coverage . Since the latter provides reimbursement for income loss as a result of a fire, water damage, or other insured peril, the insurer will need verification of income in order to determine the appropriate premium. Likewise, payroll figures are often requested due to the fact that the general liability insurance is priced based on payroll figures. Insurers use payroll as an indication of liability exposure taking into account that employees are covered by the policy contract as additional named insureds.
3. Subcontracting Work - is required because your insurer may be forced to respond to a loss arising from the work performed by subcontracts that you have hired. If your subcontractors do not carry their own insurance, there is a greater risk of your insurer paying liability claims arising from your subcontractors work.
4. Details of coverage required - this information allows your broker to review your coverage limits in order to ensure that they are appropriate.

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75% of Canadians drive distracted: Allstate poll

Seventy-five per cent of Canadians drive distracted, despite the fact that nearly all Canadians view distracted driving negatively, according to an Allstate Canada poll conducted by Leger Marketing.
The most common forms of distracted driving include talking on a mobile phone or texting while driving, changing a CD, eating or drinking, using an electronic device like GPS, applying makeup or being pre-occupied with other passengers, says an Allstate release.
One-quarter of Canadians report they, or someone they know, have been in an accident caused by a distracted driver.
Thirty-seven per cent of drivers between the ages of 18 and 24 say they have been, or know someone who has been, in an accident caused by a distracted driver.
Eighty-eight per cent of Canadians perceive texting while driving negatively. But only 19% have a negative view of adjusting the radio or portable music player, the study found.
"Regardless of the distraction, taking your eyes off the road for five seconds while driving at 90 km-h is like driving the length of a football field completely blind," the release said.

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For many commercial property and business insurance policies, Co-Insurance is a fundamental principal of your contracted coverage. It is important you understand how it works.

With Co-Insurance, you agree to maintain coverage up to a percentage of the value of the property you wish to insure – 80%, 90% or 100%. This percentage is stated on your policy form. As a result of this promise, a significant reduction in the premium charged is given.

In the event a total loss occurs, the Co-Insurance requirement is waived and the policy limits are paid. However, should a partial loss occur, consideration is given to the amount of insurance carried compared to the value of the property prior to the loss.

If the amount of insurance is within the agreed Co-Insurance percentage requirement, the loss is paid in full, up to the policy limits. If however, the amount of insurance carried is below the agreed percentage, you and the Company then share the loss.

EXAMPLE: Assume the value of the property you are insuring costs $1,000,000 to replace and the policy contains a 90% Co-Insurance clause. This means you should be carrying at least $900,000 coverage. If you only carried $500,000 coverage and had a loss of $400,000, the Insurance Company would pay based on the following formula: In this example, you would suffer a $178,000 Co-Insurance penalty!

Don’t let this happen to you. Make sure your insurable values are reviewed by a competent, independent appraisal company, then talk to us to ensure you are properly protected.

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