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The Occupational Safety and Health Administration (OSHA) estimates that power industrial trucks (PIT), often called forklifts or lift trucks, cause approximately 85 fatal accidents each year, almost 35,000 accidents that result in a serious injury, and about 62,000 non-serious accidents.  Accidents can be trajic for employees and can affect workers compensation insurance rates.

Drilling down to the details behind the statistics, 42% of PIT-related fatalities involve being crushed by a forklift that tipped over, while another 25% come from someone being crushed between the vehicle and a surface. Manufacturing (42%) and construction (24%) lead the fatality list. Sadly, most of these accidents could have been prevented, according to OSHA.

Here are twelve rules for the safe operation of a forklift that are easy to follow:

1. Qualified operators

This should go without saying, but anyone who uses a forklift must be trained and licensed to do so.

2. Appropriate clothing

Loose-fitting clothing can get caught in machinery. Operators should be wearing a hard hat, safety glasses, steel-tipped shoes, earplugs, and a high-visibility shirt or jacket.

3. Do an equipment check before driving

Before driving, the operator should do a routine check of the lift truck, paying particular attention to brakes, steering, controls, warning devices, and tires. Any problems must be reported immediately and the vehicle parked until repairs are completed.

4. Pay attention to your surroundings

Follow worksite rules and guidelines. Drive only in designated aisles near machinery, and observe all signs, particularly those that refer to load capacities and clearance limits.

Be careful near the edge of a loading dock or ramp; you don’t want to go over the edge. And be aware of your load height and mast when entering or exiting a building.

5. Operate your lift at a safe speed

Obey posted speed limits. Make changes in direction slowly and gradually. And avoid tipping by slowing down before taking corners and turns.

6. Check your load

• Don’t lift anything that’s not stable and secure
• Check overhead before lifting or stacking your load
• Tilt the forks back and keep them low to increase stability
• Position the load so that it’s balanced across the forks
• Stack the load correctly on a skid or pallet
• Secure your load with ropes or cords if required
  
  

7. Steer clear of hazards

Avoid uneven or loose ground and slippery conditions. Use your horn near a corner, at entryways, and to warn pedestrians. Always keep a safe distance from other trucks, and make sure you have plenty of space to stop safely.

8. Forklifts are not passenger vehicles

You’re not doing anyone a favor by giving them a ride on your forks. It’s dangerous.

If you must lift someone, attach a work platform and cage to your forks, and carefully follow the operating instructions.

9. Make sure you can see clearly

Operate the forklift in reverse if it improves your visibility. Make sure you can clearly see the racks on which you will position your load. If visibility is poor, either stop driving or get someone to act as a ground guide for you.

10. Stay away from the mast

Don’t allow anyone to walk under your raised load. And keep your hands and feet clear of the mast’s cross members to prevent a serious injury as you lower the mast.

11. Be careful on ramps

Drive up a ramp in forward come down in reverse. And never load and unload or make turns while you’re on a ramp.

12. At the end of your shift

Park your lift truck in an authorized area. Lower the forks and apply the parking brake. Turn it off and remove the key. You should never leave the engine running on an unattended forklift.

Get Help in Selecting the Best Workers Comp Insurance for Your Business 

To learn how to further protect your employees and your business with Workers’ Comp Insurance, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. As independent agents, we're free to shop among competing carriers to find the right insurance at the right price. Click or call today to get started. 

Starting an independent trucking business is expensive. But, if you get a good return on your investment, it’s worth it. You can be your own boss and have a career that offers excellent earning potential. And, you have a choice to lease your trucks and services or to become an independent carrier.

Here are some trucking insurance tips to get you off on the right foot:

1. If you are under permanent lease

With this arrangement, your insurance needs will be determined by your lease agreement with the carrier. Most will provide Primary Liability coverage, which covers injuries and damage to other people and property if you are at fault for an accident.

Even if your carrier covers this liability, you are still left to purchase other owner-operator insurance that includes:

• Physical damage coverage: This insurance protects your truck and trailer against collision, fire, theft, hail, windstorm, earthquake, flood, or vandalism. This coverage is likely required by the lien holder of your vehicle.
• Non-trucking liability: If you are not under dispatch—you’re getting your truck washed or taking it for repairs—this coverage provides you with limited liability protection.
• Motor truck cargo insurance: This insurance is needed to protect the carrier in case of lost freight or damaged goods. There is a maximum load limit per vehicle with this policy. And the premium may vary depending on the cargo you’re hauling.

2. If you are operating under your own authority

When you are under your own authority, it’s up to you to carry all of the important commercial trucking insurance coverages. Here are four you should consider first:

• Primary liability: You pay this yourself now, and it protects you against property damages and bodily injuries to others.
• Physical damage: Pays for repairs to your rig whether it's damaged by a collision or by golf ball-sized hail stones.
• Motor truck cargo: Pays for damages to the cargo that you’re hauling in the case of fire, theft, or an accident.
• Trailer interchange insurance: Sometimes a load needs to be transferred to a different trucker to complete the delivery to the final destination. Motor carriers frequently haul trailers that are owned by other motor carriers. This move is often made to facilitate scheduling through a "trade" of trailers that are in different locations.

A trailer interchange agreement makes the motor carrier that has possession of the trailer responsible for any damage to the trailer, whether or not the trailer is attached to the tractor. This is where Trailer Interchange Insurance plays a part. It covers physical damage caused to a non-owned trailer under a trucker’s care.

Get the Help You Need - Contact Us Today!

Signing on with a reputable trucking company can mitigate some of those insurance premiums, but whether you are driving under permanent lease or under your own authority, you will need to sit down with an expert on trucking insurance to help you get the best coverage at a competitive price. Contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848 to learn more about how to protect your business investment.

If you’re like most Americans, your life is pretty good right now (probably a lot better than you realize), and you see no reason why that should change in the foreseeable future. Now imagine being blindsided by a serious illness that takes away your good health and puts a significant dent in your income.

This is not some doomsday scenario; it happens often. And it can leave a trail of financial stress that can impede the healing process.

Dr. Marius Barnard, the famous South African cardiac surgeon, saw first-hand the effects of the financial and emotional stress of serious illnesses on his patients, and in 1983 he came up with the idea of critical illness insurance, a special form of health insurance, as a way to counteract it.

What is Critical Illness Insurance?

If you are ever diagnosed with a life-altering illness that has been pre-specified in your policy, Critical Illness Insurance will provide you with a lump-sum payment that you can use any way you choose.

Although your health insurace plan will identify what is covered, the following illnesses are typically included:

• Heart attack
• Stroke
• Cancer
• Multiple Sclerosis (MS)
• Organ transplants
• Parkinson’s disease
• Alzheimer’s disease
• HIV treatments
• Blindness

The advantages of critical illness insurance

Your health insurance should pay the bulk of your medical expenses, but think about all the things it doesn’t cover—this is the biggest advantage to critical illness insurance. The lump sum payout from your plan can ensure that you don’t have to face any financial disruptions in addition to coping with a serious medical condition.

Consider these five ways that Critical Illness Insurance can be an economic lifesaver:

1. You may have to travel for treatment. Depending on your illness, your doctor may recommend an out-of-state hospital with a successful track record in treating your condition. Without savings or a payout from a critical illness insurance plan, you could be forced to run up your credit card for airfares, hotels, and meals. It might take years to pay off these expenses after you recover.
   
   
2. You’ll need to pay what your health insurance doesn’t. Copays and deductibles are becoming larger as health insurance premiums increase. And there are always other out-of-pocket expenses with which to contend.
   
   
3. You’ll need to make your mortgage payments. If you’re like most people, you have a life insurance policy that pays off your mortgage if you die. But like any set of statistics will show, if you are younger, you are much more likely to be disabled by an illness than to die. Part of a lump sum payment could be used to make your mortgage payments while you heal. Imagine the peace of mind that would come from knowing that you and your family can continue living in your house even though you can’t work.
   
   
4. Modify your home or car. Some critical illnesses—MS, for instance—can take away your mobility. Retrofitting your home or car can restore some of it, but it will be expensive (stair lifts alone can cost $5,000). Doorways may need to be widened to accommodate a wheelchair, and ramps will need to replace steps in some areas of the house. A van that allows wheelchair access to the driver’s seat and hand controls could reach $50,000.
   
   
5. Maintaining your lifestyle. Everyone gets used to a particular way of life. And when a critical illness hampers it, it can cause emotional distress for the whole family. With the payout you’ll receive, a critical illness health insurance plan can eliminate any worries about your lost income during a critical illness.

In Summary:

Your family will have peace of mind, and you can concentrate on getting better if you have properly planned for a critical illness. Knowing that insurance has covered your financial needs after a critical illness diagnosis will remove any financial stress and facilitate your recovery.

We Can Help With Any Health Insurance Need

To learn more about Critical Illness Insurance, or for any health insurance need, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848.

We'll research plans from across many competing health insurance providers to find the best insurance policy that meets your needs and your budget.

Call or click today to get started!

Most employers know that to reduce their workers compensation insurance costs, they must cut their claims costs. What they might not know is that the quality of claims handling by the workers comp adjuster can contribute significantly to the overall cost of a claim.

Here are five steps that any employer can take to get the most from a relationship with an adjuster.

#1. Make the insurance adjuster your partner

This might sound elementary, but getting along with a workers compensation insurance claims adjuster is a big step toward making progress in the claims process. Being a claims adjuster is already an underappreciated job. Don’t ruin the relationship with an attitude of superiority or by dictating how the adjuster should do his or her job. Working as partners will smooth out the process and bring it to a quicker (and more mutually beneficial) conclusion.

#2. Communicate promptly

As you get new information, make sure to relay it to the insurance adjuster immediately. The first communication should be right after the accident, and subsequent messages—any type of medical information that was not previously known, for instance—should be sent to the adjuster that same day. Conversely, you should let the adjuster know that you expect him or her to be in touch as soon as anything new and important arises.

#3. If possible, choose your workers comp adjuster

After a few claims have been processed for your company, you will be able to evaluate the work of the insurance adjusters who have managed those claims. Ask your insurer to assign the most efficient of those to your future claims. There are benefits for doing this:

• The adjuster will become familiar with you, and you will be made more significant to him or her
• As the adjuster learns what you consider essential, he or she can tailor the work to your needs
• When the adjuster gets to know your company, it is easier to contact the right person to obtain information and ask questions

#4. Be proactive with information

Information is the key ingredient in the workers compensation claims process, and if you can provide it before the adjuster requests it, you are speeding up the process and saving your business money. For example, if your adjuster needs a job description to get an employee back to work and you have anticipated that by sending it in advance, you will have saved time and created goodwill with your adjuster. Or, if the injured employee will be off work longer than expected, sending the worker’s earnings history the adjuster, rather than having to ask for it, will make for a quicker process.

#5. Do your part to get an injured employee back to work

The sooner your worker gets back to work, the easier it will be to resolve the workers compensation claim. After your employee’s first visit to a medical provider, request the return-to-work restrictions. Accommodate modified duty for the worker if it’s possible. If it’s not, stay in touch with the adjuster and, as soon as the restrictions are lifted or eased, bring the employee back to limited duties. The adjuster will appreciate your cooperation, and your company will end up saving money.

In Summary

Taking these steps will help to get your workers’ compensation insurance claims settled quickly and without needless expense. Bottom line: Your overall workers’ comp costs will be lower for your business.

Want to Lower Your Workers Comp Insurance Costs? Contact Us!

To learn more about lowering your workers comp costs, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848.

We'll leverage our independent agency status to compare your needs to policies offered by many competing insurance providers, so you'll be assured of getting a workers comp policy that meets your needs and does so at a competitive price.

Call or click today to get started!

Most medical statistics that you read or hear about are not designed to brighten your day.

Well, here’s another one: Once you reach the Medicare-eligible age of 65, you have a seven in ten chance of needing long-term care at some future point. A good long term health care insurance policy can provide both peace of mind and valuable protection against the high cost of care. 

Long term care may be provided be at home, in a skilled nursing facility, or in assisted living. It is a surprise to many that the average annual cost of care in a nursing home is a whopping $81,000 for a semi-private room or $90,500 for a private room. Those are national averages, but you can expect similar costs in Philadelphia, Allentown, Reading, Lancaster, Harrisburg, Pittsburgh and elsewhere throughout Pennsylvania.

“Well, so what?” You’re probably thinking. “I might have underestimated the cost of long-term care, but my Medicare will be there to foot the bill.” Well, maybe not

Medicare Falls Short When It Comes to Long-Term Care

It's wise to consider long-term care insurance to supplement Medicare. Here's why: If you are recovering from an acute illness, condition or injury, Medicare will cover the services performed by a skilled medical professional. Your physician must certify to Medicare that these specialized services are necessary and that you are required to be housebound to receive these services. Any custodial care--bathing, eating, dressing, etc.--will be covered by Medicare only if the care accompanies your need for skilled acute care and is concurrent with it.

If you require long-term care in a nursing facility, Medicare will pay at least a portion of your care for up to 100 days, but only after you have satisfied a hospital stay of at least three days and you still need daily medical attention. For instance, physical therapy following a joint replacement or wound care after surgery would qualify.

Note: Medicare will cover 100% of your full costs for the first 20 days only. You are responsible for a co-payment of $157.50 per day on days 21 through 100. If you have Medicare Supplement insurance, it will pick up this co-payment. After 100 days of skilled nursing care, you are on your own for all costs. 

Why the confusion over Medicare?

Much of the misunderstanding arises because Medicare helps to cover certain services at home, but only if these services are medically necessary due to an acute medical need. But Medicare specifically excludes from coverage custodial care from chronic and disabling illnesses. As previously noted, custodial care refers to ongoing assistance with the activities of daily living such as bathing, eating, dressing and toileting. Skilled acute care and custodial care are decidedly different, yet skilled nursing facilities and home care agencies provide each type of care, which just adds to the confusion.

What about Medicaid?

People often do not distinguish between Medicaid and Medicare. Medicaid does cover 100% of long-term care custodial costs within a state licensed and certified Medicaid nursing facility. But Medicaid is a program for individuals and families with low income and insufficient resources to pay for health care. Additional confusion comes from not knowing this distinction.

You are responsible for your health care

Long term care can deplete your assets and shift the burden to your loved ones. You can ease these costs by properly planning for your future long-term care insurance needs. Doing so will help to preserve your savings and assets while providing you with options for the type of care that best meets your needs, whether it’s assisted living or in-home care. 

Contact Us for Help in Evaluating Your Long-Term Care Insurance Needs 

Seek professional assistance before planning for your long-term care. There are a variety of policies from which to choose, from traditional long-term care insurance to hybrid plans that will return your premium should you not need care. There are also decisions to be made within each policy type that may require expert advice.

To learn more about long-term care insurance, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. Call or click today to get started!

Hiring a competent workers compensation defense attorney is not an exact science, but it is an important first step in the process of defending your business in a contested workers comp claim, which can impact the cost of your workers compensation insurance

But even after retaining an attorney, your risk manager or director of worker’s compensation might still want to consider the relationship as a trial run until the attorney’s responses to various case management guidelines are evaluated. Discuss fees and your expectations with the candidate, and make sure your attorney follows up any agreement with a written confirmation
 

How to Use Your Attorney Effectively in Workers Comp Cases

Remember, all lawyers charge fees and bills by the hour. Once you have retained defense counsel, it is imperative that you limit your attorney’s hours by using his or her services efficiently. Here are some suggestions that could save your business unnecessary legal costs:

#1. Communicate through e-mail whenever you ca
n. Limit messages to only the most necessary information. This method gives you electronic documentation for the claims file and is faster than formal letters sent through regular mail.

#2. Keep all telephone calls short by planning your discussion ahead of time. Gather the information you need and end the call as soon as possible. Be sure to document the conversation for the workers compensation claims file.

#3. Limit your attorney’s time by having your claims manager obtain the defense and claimant statements. Supply any required personnel records as well as all medical examination information. Make sure your attorney receives claim file reports and all investigation information.

#4. Require your attorney to ask your permission before doing any additional research or hiring a private investigator.

#5. Obtain a cost estimate for legal services from your lawyer and follow up on this with any revisions. You can use the estimate as a basis for a workers comensation legal reserve.

#6. Eliminate redundant mailing and copying costs. After the attorney has made an initial assessment and provided a plan of action, it is only necessary to comment on current activities. There should be no need to copy the claim file on subsequent depositions or interrogatories.

#7. Employ more than one attorney, if possible. The competition can generate better results, especially in litigation.

#8. Promptly obtain and provide information that your attorney needs to efficiently handle your workers comp case.

#9. Negotiate agreements and settlements whenever possible. Limit attorney negotiating to pretrial conferences, arbitration, and trial.

#10. When your attorney negotiates, set limits and authorities. And require a telephone request for additions to the first limits and authorities. Serve any subpoenas for the attorney, if possible.

#11. Ask your lawyer to bill you promptly and on a regular basis. Check the invoices carefully for accuracy—everything should conform to your written agreement and coincide with the information in the claim file records. Make sure that paralegal fees have not been submitted as attorney fees. Pay the invoices promptly to avoid late charges.

#12. Manage fee increases. Make it clear that fee increases should happen only after direct negotiation and agreement.

Any time your attorney is working on your workers compensation insurance case, the clock is running. Think about everything that comes under billable time—telephone calls, research, investigations, depositions, trial prep and the trial itself, just to name some of the activities—and you begin to realize the importance of controlling those hours as much as possible.

Want to Lower Your Workers Compensation Insurance Cost? 

To learn more about controlling your workers compensation insurance cost, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848.

As a Trusted Choice independent insurance agency, we have the freedom to shop among many competing workers comp insurance providers, so you'll get the right insurance coverage at the right price. Call or click today to get started!

Don't shoot yourself in the foot - consider your concealed weapons policy!

As a small business owner who allows customers and visitors on your property, you assume the responsibility of providing a reasonably safe environment for them. This responsibility includes warning them about any concealed dangerous conditions. In states with “concealed carry” laws, you might need to post warnings that your sales clerks are armed.

But what if one of your employees, legally carrying a concealed weapon, negligently (or deliberately) shoots a customer who is on the premises conducting business, and the client subsequently sues you for the injuries? Will your Commercial General Liability Insurance (CGL) policy cover this incident?

Obviously, you would have to be found legally responsible for the injuries for the CGL to pay. And, while your liability might be debatable, you will be brought into any lawsuit by the injured customer. At that point, your insurer will be compelled to defend you unless there is some clear-cut exclusion in the general liability policy that would apply to the shooting occurrence. And that’s not likely.

What's the right policy for minimizing risk and protecting employees and customers?

Even though it’s probable that your business liability insurance policy will cover you against such claims, it could be a smart move to minimize this type of risk by being pro-active. For instance, requesting an exemption from the scope of the concealed-weapon law will give you the authority to ban weapons in the workplace. Make it your company’s policy for all present and future employees that guns are not allowed on the premises. That would eliminate the possibility of a lawsuit…wouldn’t it?

What if your employee is attacked?

Think about your employee being attacked and beaten at work after you have forbidden him from carrying a weapon. Looking at this from his perspective, couldn’t that employee file suit claiming that he was unable to defend himself because of your weapons ban? The injured worker could assert that he sustained a bodily injury and that you, as his employer, are legally responsible for those injuries.

The workers’ compensation exclusion and the employers’ liability exclusion in the general liability policy would need to be considered, but if the injury to the employee is not work-related - in other words, not arising out of and in the course of employment - the exclusions won’t apply. In that case, your general liability policy would respond with a defense since there is no exclusion in the policy to prevent such a response. But, of course, the duty to pay the claim would depend on your liability being established in a court of law.

Suppose you don’t ban weapons and one employee shoots another?

If one of your staff carries a concealed weapon to work and shoots a fellow employee, and it results in a claim against you, will an insurance policy provide coverage? Once again, the first thing to consider is workers compensation. CGL does not apply to any of your obligations under a workers’ comp law, or to bodily injury to one of your employees arising “out of and in the course of employment.”

If the shooting injury did not arise out of the employment, the general liability policy would respond to a claim against you, but if the injury arose out of the employment, you could look to workers’ compensation for coverage. But what exactly is "out of and in the course of employment"? State workers’ comp laws have yet to define this. It may have to fall to the courts to make this determination.

Properly screen employees during the hiring process

The list of potential problems that concealed weapon laws pose for you as an employer is quite long. Good risk management calls for preemptive actions. Banning weapons from your premises is a good start. And instituting hiring practices (pre-employment screenings, etc.) that yield levelheaded employees who won’t resort to violence to settle disputes is also necessary. All business owners can learn to live with concealed weapons laws, but none can afford to ignore them.

Contact Us for Your Commerical Liability Insurance Needs

To learn more about Commercial General Liability Insurance, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. As an independent insurance agency, we'll compare pricing and coverage among many competing carriers to get you the right commercial insurance at the right price. Contact us today!

Employers and insurance companies have been using functional capacity evaluations (FCE) for over thirty years. In workers compensation insurance cases, the FCE is used to evaluate an employee's ability to perform activities related to his or her employment.

The FCE process compares the individual's health status, body functions, and structures to the demands of the job and the work environment.

What is the purpose of an FCE in workers’ comp?

An FCE's primary objective in workers’ comp insurance cases is to evaluate objectively an injured employee’s ability to return to work. By identifying functional restrictions and determining the degree of disability, the test is designed to increase the likelihood that an injured worker can safely return to work. The test can also uncover “symptom magnifications,” which, in layman terms, are exaggerated claims of incapacity and pain.

How does the FCE test work?

Experts with a background in industrial rehabilitation and social work administer the physical and cognitive tests. The tests measure the worker’s resilience and endurance. If the employee is unable to perform his pre-injury job, the testers attempt to determine if there are skills that are transferable to another line of work. The results of the testing, used in combination with opinions and other findings, are used to decide if the employee can return to work.

The FCE provides objective information in the following areas:

• When to allow the employee to return to work
• If the employee can return to the same job
• The employee’s functional abilities on the job
• The employee’s functional abilities away from work
• A disability evaluation
• A rehabilitation plan
• The need for other medical treatments

There are two types of FCE

The Job Specific FCE evaluates an injured worker’s ability to work in a particular job. The test can be performed at a clinic or on the actual job site. The therapist will determine if the worker can safely perform the tasks of the job he held before the injury or if modifications of the required work will be needed.

The General Purpose FCE is used if the employee no longer has a job to which he can return or if the job functions have not been determined. The results of this test will be used to find out the worker’s ability to work at specific jobs that may become available in the future.

When should you use an FCE?

It probably goes without saying that you won’t need to use a functional capacity evaluation in every one of your workers’ comp cases. But the tests should be utilized in any case in which the injured worker’s functional ability is at issue. You would certainly consider using the evaluations when the employee claims not to be able to return to work because of restrictions, education, or non-transferable skills. If the worker is requesting retraining benefits or looking for permanent total disability, an FCE would be warranted.

Choose the right time to seek an FCE

If your employee is currently at a point in the healing process where additional medical care will be needed, the FCE will not help the defense of the workers comp insurance claim. But if you suspect that your employee is malingering, the tests may help to detect the symptom magnification mentioned above. The report from the tests could lead to a quick settlement or bring about an advantageous result in litigation.

Finding the right evaluator

Choosing an expert comes down to looking at a few vital factors:

• Professional reputation
• Education and background
• Ability to write a plausible FCE report
• Capability to provide trustworthy testimony

To learn more about workers compensation insurance, contact American Insuring Group online, or call us at (800) 947-1270 or (610) 775-3848. We're independent agents who with access to many competing providers.

We'll match up your needs with the companies who can provide reliable workers compensation insurance at a competitive price. Call or click today to get started!

On the surface, home sharing looks like a simple idea. You, the homeowner, offer accommodations to a guest--a home sharer--in exchange for an agreed-upon fee and, in some cases, help with household tasks.

There are even companies—Airbnb and HomeAway to name just two—that will list and advertise your home to potential renters. Each of these firms claims over one million listings, attesting to the growing popularity of home sharing.

But have you considered whether your house insurance policy covers the additional risks associated with sharing your home? Is your current homeowner's insurance sufficient?

Before you log on to one of these websites and join the ranks of home sharers who cover about 190 countries, you need to ensure that you are not exposing yourself to unnecessary financial risk with insufficient homeowner’s insurance coverage. HomeAway’s Bill Furlong warns that most hosts “probably don’t think through the fact that they’re beginning to engage in a commercial venture (and) they have to think about the tax part of the equation and they have to make sure the insurance is covered.”

Is Your Home Sharing Done For Profit? Watch Out for These Traps!

As with most homeowners, your insurance offers broad coverage for your property. The problem arises when you rent out your home since these policies almost always exclude a business pursuit. If you’re renting out your property for income, that is a commercial transaction. And there may be traps and gaps in your coverage that could be devastating

Traps and Gaps

• A guest is injured or dies, resulting in a personal injury lawsuit
• A guest files a property damage lawsuit against you
• You lose income because of significant damage to your home by one of your guests

Your standard homeowner’s policy does not cover these home-sharing activities. You have now changed your exposure from that of a residential homeowner to a business vacation rental. And as soon as you create a business exposure in your home, your carrier can refuse coverage for a claim and, in some cases, discontinue liability and property coverages—sometimes at renewal, maybe in mid-term.

Landlord policies may not be the answer

Up until recently, those who rented out their houses, or just a few rooms, had the option to buy a landlord’s policy to cover the home, structures, liability, and lost rental income. The problem with these policies is that they are designed for people who rent out their property full time. These landlords live elsewhere and have tenants who have signed contracts to live in the rental property for a longer term.

Home sharing presents a unique exposure that demands more options in coverage. Retired couples who bought a second home at the beach or the mountains are now discovering that they are not spending as much time there as they thought they would. Renting out these properties for short periods (perhaps 6-8 weeks each year) helps to offset set some of the expenses of ownership. The same goes for those who wish to have guests while they take a vacation or an extended business trip. They need a policy that offers risk protection for these shorter terms.

Policies that address the needs of the host are available

Some insurers are responding to this new market with insurance that can be added to an existing policy. These add-ons provide extra protection in cases where, for instance, your guest steals or damages your expensive flat-screen TV. Some home-sharing companies like Airbnb and HomeAway advertise coverage options for their hosts. Keep in mind, however, that these plans also have gaps—like not paying for intentional damages to your property. 

Don't Risk It - Contact Us About Your Homeowners Insurance

Before you commit to becoming a host, check with American Insuring Group to understand what your existing homeowner’s policy covers and what exclusions might apply. Then you can purchase a policy that closes all of the gaps.

To learn more about homeowner’s insurance and the available add-ons, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848.

Attention: restoration contractors! You may have lucrative opportunities from an unlikely source—mold. Yes, the fungus that grows in moisture-laden areas of many old homes has created a demand for professional mold remediation services.  Done right, you can grow your mold remediation business while controlling your contractors insurance rates. 

Mold is one problem that homeowners cannot just ignore. Not only does it look disgusting, but it can also weaken the walls, ceilings, floor, and foundation of a house. And it presents a substantial risk to the health and safety of its inhabitants. 

Income vs. Risk

But along with the possibility of additional income, mold has created new risks for businesses that work on water damage restoration, mold removal, or construction. By implementing a mold risk management strategy, however, contractors can participate in these business openings without endangering their company with uninsured liability.

A recent history of mold and insurance

Around 2001, the number of insurance claims for mold damages soared, as did the income for restoration contractors. Unfortunately, the insurance industry had not expected this rush of claims, and they had not priced them into their policies. In response, insurance companies were compelled to begin issuing mold exclusions and limitations. While these exclusions are not standardized, almost every type of property and liability insurance policy has them.

Liability exposure increases for contractors

Without contractors insurance to help resolve their mold problems, some property owners tackled the mold themselves (bad idea!) or sought out mold remediation experts. But these experts are not the only contractors who come up against mold on a regular basis. Restoration contractors, plumbers, and electricians also encounter mold on their job sites. Even though they have not been hired to eliminate a mold issue, these contractors should always inform the property owner when they discover mold. So, why should this put any contractor at risk?

Disgruntled homeowners often blame their contractor

In an ironic twist, many homeowners began filing lawsuits against the contractors who pointed out the mold to them. This shoot-the-messenger mentality put contractors at risk of liability. The Commercial General Liability Insurance (CGL) policy, usually a protective tool for a contractor, has the same pollution exclusion clause as the homeowner’s policy. This exclusion states that the insurance does not cover any bodily or property harm caused by the escape, dispersal, or release of pollutants.

Is mold a pollutant? There is no universal agreement on this from the courts. Some have found the policies to be vague in their definition of pollution, while other courts have defined mold as an airborne pollutant.

Contractors are advised not to expose their business to chance

Contractors need to protect themselves against potentially devastating lawsuits. There are now insurance policies that specifically cover mold and pollutants. Contractors Pollution Liability (CPL) can be added to your CGL to cover liability for these pollutants and provide an unambiguous definition that includes mold or fungi.

CPL is probably the best available policy for contractors wanting to avoid liability when they discover mold on a job site. And there are other methods contractors can use to manage their mold risks.

Reduce Your Risk With an Arsenal of Protection

• Choose your customers wisely: If your client is aware of a mold problem and knows the insurance company won’t cover it, you may want to walk away from this job.
• Document your work: Leave nothing to chance. Use photos, notes, and witnesses to corroborate your findings.
• Treat your customer with empathy: Approach your client with a plan of action that shows you understand his problem and will work with him to solve it.
• Protect yourself: Adding CPL to your contractors insurance will complete an arsenal that will mitigate your mold risks.

Get Help For All Your Business Insurance Needs 

To learn more about Commercial General Liability and Contractors Pollution Liability insurance, or for any business insurance need, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. We offer insurance from over 25 competing carriers, so we're sure to find you the right insurance at the right price. Call or click today!