Why Should My Insurance Account for Dog Bites?

Date: June 19, 2024 Author: Rinehart Insurance

Sharing your home with dogs can be a delightful and rewarding experience, often providing you and your family with company and comfort while encouraging you to enjoy the outdoors. However, while these furry friends can be beloved additions to your family and household, they may also come with potential risks. After all, regardless of how well trained or docile they may be, these animals may still exhibit unpredictable behavior that could even become violent.

Dog owners should take time to understand how their pet biting someone, such as a guest, neighbor or passerby, could potentially incur significant financial consequences. Much like how a child injuring someone or a teenage driver causing an accident might lead to costly losses that affect everyone on the policy, you may be considered at fault for incidents involving your dog. Fortunately, understanding and optimizing your insurance coverage may help you enjoy financial security and peace of mind following these situations.

Why Should My Insurance Account for Dog Bites?

Some dog owners may make the mistake of thinking their adorable pets cannot inflict significant harm; however, this misconception could prove costly. According to the Insurance Information Institute (Triple-I), nearly 4.5 million Americans (many of whom are children) are bitten by dogs annually; the number of claims against homeowners insurance for dog-related injuries and the average cost per claim has risen in recent years. Furthermore, according to Triple-I and State Farm, liability claims arising from bites and other dog-related injuries resulted in nearly $1.2 billion in costs for homeowners insurance carriers in 2023 alone. Even a small and usually well-behaved dog can inflict significant harm on a person, and resulting medical bills and other financial losses could lead to catastrophic costs.

Understanding the Law

In 29 states, you are legally responsible for injuries inflicted by your dogs, although exceptions may apply. Seventeen other states and the District of Columbia do not automatically consider dog owners to be liable for the actions of their pets, but attacks can be considered misdemeanors or even felonies in some cases, according to Triple-I. In some cases, insurance companies may adjust rates or deny coverage altogether for homeowners who own certain breeds, although they may be prohibited from doing so in some states.

Generally, three types of laws may apply if your dog injures someone:

Dog-bite statutes may automatically consider you liable for unprovoked bodily injuries or property damage caused by your pet.
A one-bite rule may hold you responsible for injuries caused by your dog if the victim can prove that you were aware of the dangers your pet presented.
Negligence laws may consider you at fault if an incident occurred due to your carelessness, negligence or failure to control your pet.

Dog attacks can lead to significant fines and legal ramifications for you and your family. For example, there have been cases where individuals were convicted of charges, including murder and involuntary manslaughter, after their dogs attacked someone. Dog owners should research and understand their states’ laws regarding dog-bite liability and then take measures to reduce the risk of bites.

Insurance Solutions for Dog Bites

Given the financial and legal ramifications that could arise from an incident where your dog bites someone, it’s critical for you to have adequate insurance coverage. Fortunately, standard homeowners insurance policies typically include personal liability coverage, which can extend to your spouse, children and pets. If your dog bites someone or otherwise causes injuries, such as if they knock someone down inadvertently while playing, your insurance may help cover the affected party’s medical bills and financial losses. Similarly, your personal liability coverage may assist with repair or replacement costs should your dog damage someone’s property, such as digging up a neighbor’s garden.

Still, you should be aware of any restrictions or exclusions in your homeowners insurance. While many policies may include dogs under their personal liability coverage, some insurance companies may exempt certain breeds, such as rottweilers and pit bulls. In some cases, insurers may evaluate your dog before deciding on coverage. You should also be aware that personal liability coverage does not extend to incidents where you or other members of your household are injured. For financial protection after your dog bites you or your children, you will require alternate coverage.

Considering the expensive consequences of dog bites, you may wish to retain additional coverage beyond the capabilities of your homeowners insurance. In these situations, personal umbrella insurance emerges as a valuable investment. These policies establish a secondary layer of liability coverage, meaning that if your homeowners insurance coverage limits are exhausted, you can receive additional aid.

Tips for Preventing Dog Bites

While having suitable insurance can help limit the financial consequences of your dog biting someone, keeping an incident from occurring in the first place is ideal. Consider the following strategies to minimize the chance of your dog harming someone:

Invest in training classes for your dog and compound these teachings with your own efforts at home, particularly in regard to stopping aggressive behavior.
Have your dog spayed or neutered to reduce unpredictability, adventurousness and aggression.
Introduce your dog to a variety of people and environments to help your pet be more comfortable in unfamiliar situations.
Avoid environments where you cannot predict how your dog will react. This may include confining them to a room or kennel while having company over.
Be aware of your dog’s breed and behavioral tendencies, and understand any potential triggers.
Obey leash laws and ensure yard fencing is sufficient to contain the dog, as applicable.
Be especially cautious with your dog around young children, who are the most frequently bitten.
Maintain your dog’s health, as dogs who are sick or in pain may be more likely to lash out.
Recognize your dog’s behavior, including knowing when they are agitated or stressed. Be ready to de-escalate a situation if this occurs when others are around.

Ultimately, you know your dog better than anyone. Consider talking with a veterinarian about potential causes and remediation if your dog is acting strangely or showing signs of aggression.

For More Information

Dogs can be beloved additions to your family and household, but these animals still possess sharp teeth and claws that could inflict significant injuries. As a responsible dog owner, you should be diligent and dedicated to minimizing the risk of your pet harming someone else or otherwise causing damage. Furthermore, adequate insurance coverage should be a top priority to ensure you can manage the financial fallout of such incidents.

We’re here to help. At Rinehart, Walters & Danner Ins we can help you understand coverage options related to your dog and limit potential losses. Contact us today for more resources.

How to Safely Secure Your Road-Trip Cargo

Date: June 12, 2024 Author: Rinehart Insurance

When faced with the dilemma of transporting oversized items that won’t fit in your vehicle’s trunk, simply strapping them to the roof may not be the best plan. Do you know how to safely secure your road-trip cargo?

Secure the Load

Safety extends beyond the confines of your vehicle, and it’s crucial for drivers to help ensure the safe transport of cargo by doing the following:

Use sturdy rope, netting or straps to securely fasten cargo to your vehicle.
Cover the entire load with a durable tarp if necessary.
Avoid overloading a trailer or vehicle.
Inspect the load to confirm that it is securely fastened.
Periodically check the load when en route to your destination.

Safety Regulations

Most states have unsecured-load regulations designed to help protect other drivers and pedestrians. Drivers bear the responsibility for safe operation of their vehicles, including the transport of secured loads.

Prioritizing the safe and secure transport of your cargo is crucial to safe driving and could help you avoid accidents and liability claims. We hope you now feel confident on how you an safely secure your road-trip cargo.

How To Keep Your Home And Family Safe From Lightning

Date: June 5, 2024 Author: Rinehart Insurance

National Lightning Safety Awareness Week runs from June 23-29 this year. As its name suggests, this campaign, started in 2001, attempts to raise awareness about the dangers of lightning and ensure people are as safe as possible during storms.

Lightning storms are incredibly dangerous, with the potential to cause serious harm to you or your family. In fact, getting struck by lightning could cause severe burns, brain damage or even cardiac arrest. That’s why it’s crucial to be prepared and respond appropriately if a storm approaches your area. When stormy conditions occur, remember the following guidance.

If you’re at your home during a lightning storm

Vacate outdoor areas of your home, including those that may be covered.
Make sure all windows and doors are shut.
Avoid tasks or activities involving water, such as showering, laundry or washing dishes.
Don’t use any electrical equipment that plugs directly into the wall (e.g., a corded phone, computer or television).
Do not rest on concrete surfaces, as lightning may travel through metal wires or bars within them.

If you’re outside during a lightning storm:

Get as close to the ground as possible without placing your hands or knees on the ground—never lay completely flat on the ground.
Avoid seeking shelter underneath trees.
Stay away from elevated areas—such as hills, cliffs or mountain ridges.
Get as far away from bodies of water or objects that could conduct electricity (e.g., wire fences or power lines) as possible.
If you are swimming, boating or fishing, seek shelter on land immediately

If Someone Gets Struck

If someone you know is struck by lightning, contact 911 immediately. If you have the proper medical training, administer CPR to victims who do not have a pulse and treat conscious victims for burns, fractures and other wounds while you wait for help to arrive.

For more additional home safety guidance and homeowners insurance solutions, contact us today.

What Is Rental Car Insurance And Do I Need It?

Date: May 22, 2024 Author: Rinehart Insurance

When renting a car, the rental company will typically ask if you’d like to purchase insurance coverage for the vehicle. It’s at this point when you have to ask yourself: Do my personal insurance policies provide the coverage I need, or should I purchase insurance through the rental car company?

Although standard auto insurance policies may extend to rented vehicles, you should never assume you are protected. Examining your own auto insurance policy will show you the types of coverage you already possess and where additional coverage may be needed. Since auto policies differ, it’s a good rule of thumb to contact your broker so they can help you navigate your policy and determine if you have the appropriate amount of coverage when renting a vehicle.

Examining Your Insurance Policies

When deciding whether or not your personal insurance will cover your rental car, there are a few different coverages you should have. If you answer yes to all of the following questions, you may not need to purchase additional coverage:

Do you have liability, collision or comprehensive car insurance? Liability, collision and comprehensive insurance are the three main coverage options available when purchasing car insurance. Although it is not always required to purchase all three coverages, they can optimize your protection in the event of an accident.
- Liability insurance provides coverage if you damage or injure another person or their personal property.
- Collision insurance provides coverage if your vehicle is involved in a collision, either with another vehicle or object.
- Comprehensive insurance provides coverage if your car is damaged by a variety of exposures such as theft, vandalism or natural disasters.
Does your policy cover administrative fees, loss of use or towing charges? It’s always a good idea to check see whether your insurance company pays for—or provides a rider for—additional fees associated with rental cars. This coverage can be helpful if a car you rent is lost, stolen or damaged.
Do you have a renters or homeowners policy that will cover your belongings if lost or damaged? Your homeowners or renters insurance policy covers your personal belongings from theft, fire or vandalism within your home. Policies often include off-premises coverage that can extend your coverage to outside your residence. Therefore, if personal belongings in your vehicle are stolen or damaged, your homeowners or renters insurance policy may be able to cover a percentage of your losses. Not all insurance carriers will extend coverage to protect personal belongings within your vehicle—always check with your broker to see what your renters or homeowners policy covers.

What Is Rental Car Insurance, and What Does It Cover?

Car rental companies provide additional coverage that is often used to supplement insurance you already possess.

Rental car agencies offer four different coverage options:

Supplemental liability insurance: Most car rental companies need to have the minimum amount of liability coverage required by the state, but oftentimes it isn’t an adequate amount of coverage. If you have a personal car insurance policy with a high liability limit, you may not need additional protection.
Loss damage waiver (LDW)/collision damage waiver (CDW): This is not insurance per se, but rather a document that can alleviate your financial responsibility should your rental vehicle be damaged or stolen. This also includes loss of use coverage if the rental company charges you for the amount of time the car could not be used while being repaired, as well as other administrative fees the car rental agency assesses. The LDW may become void if the incident occurred from the driver of the rented vehicle exhibiting reckless behavior, speeding or the vehicle being driven on unpaved roads.
Personal accident insurance: This will cover the driver and any passengers within the rented vehicle for any medical bills caused by a car crash. This coverage is useful if you do not already have health insurance or personal injury protection insurance.
Personal effects coverage: This covers any personal belongings that are stolen from the rental vehicle. If you already have renters or homeowners insurance, this may already be covered under your policy.

The coverages offered are oftentimes the same as what you already have for your personal car insurance. Again, to avoid paying for coverage you already have, review your policy before renting a vehicle.

Does Your Credit Card Provide Rental Insurance?

Many reputable credit card companies offer rental insurance to their customers. To utilize this secondary form of coverage, you must put the total amount of the car rental on your credit card. In many cases, credit card companies will also require you to deny any insurance offered by the car rental agency in order to access their coverage. In the event that your rental car is in a covered incident, the credit card company will help cover costs of damage or theft up to a certain dollar amount. Various rental car fees can be covered by your credit card, but this can vary by provider.

Before purchasing any additional coverage through the car rental facility, call your credit card company to see if your card offers car rental insurance. Since most credit card rental insurance is classified as a secondary form of coverage, you may need to rely on your personal auto insurance coverage first.

Ask About Your Policy

Deciding on your rental car coverage can be a tricky endeavor. Before purchasing any extra coverage, talk to your insurance broker about your personal auto insurance policy and whether you may need to purchase any additional insurance. No one wants to pay more for their auto insurance, and you shouldn’t have too.

If you have any questions or are unsure if rental vehicles are covered under your policy, contact Rinehart, Walters & Danner today.

Click here for Auto Insurance information.

What You Need To Know About Boat Insurance When You Buy A Boat

Date: May 15, 2024 Author: Rinehart Insurance

If your new boat is a canoe or an un-motorized boat, there’s a chance that it’s covered under the personal property portion of your Homeowners Insurance policy. However if it is anything larger, you need a separate boat insurance policy. A Bout Insurance policy is there to ensure you and your boat are protected. After all, I’m sure you purchased your boat with long term plans in mind.

Does My Homeowners Insurance Cover My Boat?

Theft to watercraft, including furnishings, equipment and outboard motors, is typically excluded if the theft occurs outside your residential premises. To cover your boat and its accessories, you need a separate boat insurance policy.

What is Boat Insurance?

A typical boat insurance policy will protect your boat, motor, equipment and passengers. Coverages will usually include:

Theft, loss or damage to the boat and attached equipment
Bodily injury coverage, if someone else is injured
Damage caused to someone else’s property by your boat or watercraft
Liability coverage for your passengers, which would include family and guests
Medical payment coverage for injuries to the occupants of the boat

Physical Damage Coverage

Physical damage coverage insures your boat, motor, boat trailer, boating equipment and other personal property against accidental loss or damages.

Liability Coverage

A Boat Insurance policy will include two principal liability coverages.

Personal liability coverage provides protection for legal liability. It pays up to the limit of your policy, the legal obligations imposed upon you due to an accident resulting from the ownership, maintenance or use of your watercraft, including bodily injury, property damage and legal defense.
Medical payments coverage pays medical expenses up to the limits in the policy, including the insured’s boating-related medical expenses from an accident arising out of the ownership, maintenance and use of the boat. Expenses include hospital, medical and ambulance.

Additional Coverage Options

Along with the basics some extra coverage to consider include:

Reasonable Repairs. Covers repairs done to protect covered property from further damage
Emergency Services. Pays for reasonable costs that you incur 4resulting from specified emergency service to your boat, motor or boat trailer.
Wreck Removal. Pays the reasonable expenses you incur for any attempted or actual raising, removal or destruction for the wreck of your watercraft when damage is caused by an insured loss and remove or destruction required by law.
Umbrella Liability. Provides additional boat insurance coverage across the board for home, auto and watercraft.

Whether your boat is big or small, it’s still an investment. As a result, we want to make sure your are protected and familiar with your coverage. Call us at 419-522-9892 to review your policy or get a quote today.

Scheduled Versus Blanket Limits for Commercial Property Insurance

Date: May 8, 2024 Author: Rinehart Insurance

Commercial property insurance is an essential form of coverage for any organization. Such a policy can provide much-needed financial protection if an organization’s commercial building or its contents are damaged or destroyed by covered perils (e.g., fire, theft, vandalism, wind and lightning). Specifically, this coverage can help reimburse property repair or replacement expenses when these perils occur.

A commercial property policy is usually subject to a coverage limit, which refers to the maximum amount an insurance carrier pays toward a claim after the deductible is met. There are two main types of coverage limits available under commercial property insurance: scheduled and blanket. These limits largely determine the extent of financial protection afforded to an organization’s property amid potential losses, thus playing a major role in the valuation and claims processes.

With this in mind, it’s important for organizations to know the differences between these limits and better understand how their commercial property policies will respond when losses occur. This article provides more information on scheduled and blanket limits, outlines the main distinctions between them, and weighs the advantages and disadvantages of these coverage offerings.

Scheduled Limits

Also known as a specific limit, a scheduled limit applies to individual property or assets at a single insured location; in other words, each property or asset has a personalized limit of coverage. This means that each of an organization’s commercial buildings may have its own coverage limit, and the various contents stored within each building—commonly called business personal property (BPP)—may also have separate limits. For example, if an organization has two insured locations, one location may have coverage limits of $1 million for the building and $500,000 for the BPP, whereas the second location may have different limits, such as $2 million for the building and $750,000 for the BPP.

When an organization has a commercial property policy with scheduled limits, it’s imperative to itemize each asset with its respective value and update these values as needed (e.g., upon making property updates or after purchasing new assets). In doing so, the organization can maintain accurate coverage limits for individual property and avoid costly out-of-pocket losses when claims arise.

Blanket Limits

A blanket limit either applies to several different assets at a single insured location or the same types of property across multiple locations. In some cases, a blanket limit may even apply to all property at any insured location.

Rather than each property being assigned a specific limit, the same limit applies to all assets, therefore providing a blanket of coverage. For instance, an organization may have a coverage limit of $1.5 million for both its commercial building and BPP at a single location. On the other hand, if an organization has multiple insured locations, it may leverage one of the following blanket limit options:

Separate coverage limits for buildings and BPP—With this option, the organization may have a blanket limit of $2 million for its buildings and $1 million for its BPP, regardless of location.
Separate coverage limits for each location—Alternatively, the organization may have a blanket limit of $1.25 million for both its building and BPP at one location and $1.75 million for the same types of assets at another location.
The same coverage limit for all properties and locations—Finally, the organization may have a single blanket limit of $3 million for both its buildings and BPP across all locations.

Commercial property policies with blanket limits are known to offer more coverage flexibility as property values fluctuate and assets get moved around, ultimately lowering the likelihood of underinsurance concerns and minimizing out-of-pocket losses.

Coverage Differences

In addition to the distinctions in how commercial property is itemized and valued, here are some of the key coverage differences between scheduled and blanket limits:

Premium costs—In most cases, commercial property policies with blanket limits are more expensive to obtain than those with scheduled limits. That is, a policy offering the same coverage will typically carry higher premiums with blanket limits than with scheduled limits.
Coinsurance penalties—Coinsurance clauses are included in many commercial property policies. Such a clause requires a policyholder to maintain a minimum amount of coverage (usually between 80% and 90% of the value of their insured property). If the policyholder submits a claim and an inspection reveals that their coverage doesn’t meet the minimum amount, the insurance carrier will penalize the policyholder by paying a reduced percentage of the claim.
Because scheduled limits require organizations to ensure accurate values for individual property and assets, they could leave organizations more vulnerable to coinsurance penalties than blanket limits. After all, just one undervalued asset can invoke a penalty with scheduled limits, whereas blanket limits allow for more leeway when property values change.

Margin clauses—Commercial property policies with blanket limits sometimes include mandated coverage endorsements known as margin clauses. This type of clause generally states that the insurance carrier won’t pay more than a certain percentage of commercial building and BPP values (usually between 110% and 125%) toward a large-scale claim, thus preventing the policyholder from potentially abusing their blanket limit and leveraging the entirety of their coverage to reimburse one major loss.

Yet, even with margin clauses, commercial property policies with blanket limits tend to offer more coverage versatility than those with scheduled limits. Nevertheless, it’s best for organizations that have policies with blanket limits to be aware of margin clauses and their related stipulations.

Advantages and Disadvantages

The primary benefits of commercial property policies with scheduled limits are that this coverage often includes less expensive premiums than its blanket counterpart and can provide organizations with greater control over the valuation of individual property and assets. However, maintaining up-to-date values for all commercial buildings and BPP can also leave organizations with substantial administrative responsibilities. What’s more, failing to uphold accurate values for all property and assets can result in serious consequences, including coinsurance penalties and underinsurance concerns.

As it pertains to commercial property policies with blanket limits, this coverage can allow organizations to simplify their property valuation processes by applying a single limit across different buildings and BPP. Further, blanket limits can offer greater coverage fluidity and significantly mitigate out-of-pocket losses. Even so, this coverage carries a higher initial price tag and still comes with restrictions (i.e., margin clauses) that can limit total claim payouts.

Conclusion

Organizations don’t have to navigate the commercial property insurance landscape alone; they can consult trusted insurance professionals to assess their coverage needs and determine which types of limits are most suitable for their assets and operations.

4 Important Differences Between Traditional and Cyber Business Interruption Policies

Date: May 1, 2024 Author: Rinehart Insurance

When organizations face large-scale disasters or other unexpected losses, ensuring business continuity is often a top priority. Yet, various losses may make it challenging for organizations to avoid operational disruptions or temporary shutdowns. In these instances, even brief closures can carry costly consequences. Fortunately, that’s where business interruption (BI) insurance can help.

BI insurance can offer much-needed financial protection when organizations’ usual business activities are interrupted due to covered losses. This type of coverage is typically available through a few different commercial insurance policies. Traditional BI coverage can be purchased as a supplement to commercial property insurance or a business owner’s policy (BOP), whereas an alternative form of BI coverage can be secured via cyber business interruption insurance.

Nevertheless, there are several differences between traditional and cyber business interruption policies, including when they apply and what they cover. As such, organizations should be aware of these differences and better understand their overall coverage capabilities. The following article provides more details on traditional and cyber BI insurance and offers a coverage comparison between these policies.

Traditional Business Interruption Insurance

Traditional BI insurance is typically added onto a commercial property insurance policy or comprehensive insurance package, such as a BOP. This coverage generally includes financial protection for the various expenses that can arise if an organization is forced to pause its operations or temporarily close its doors due to a covered loss. Such a policy may reimburse these operating costs:

Income that an organization would be earning if it were running normally
Commercial mortgage, rent, lease, loan and tax payments due during a disruption
Payroll expenses to maintain employees’ wages amid a closure
Relocation costs related to an organization’s move to a new or temporary location during a disruption
Commission and training costs stemming from an organization having to replace damaged tools or machinery amid a closure and educate workers on how to use the new equipment
Extra expenses that an organization reasonably incurs (beyond typical operating costs) during a disruption to help it get back up and running

Examples of covered losses under traditional BI insurance include a range of perils, such as fires, theft, vandalism and certain natural disasters. For instance, if a fire destroys the kitchen in a restaurant, this coverage may help reimburse the business for lost income and employees’ wages while it temporarily closes for repairs.

With traditional BI policies, some insurers may also offer contingent business interruption (CBI) coverage, which provides financial protection for operational disruptions caused by covered losses among suppliers and business partners. Some insurers may also provide civil authority coverage, which can help compensate expenses stemming from government-mandated business closures (e.g., a citywide curfew, local evacuation order or temporary road closure).

Cyber Business Interruption Insurance

As its name suggests, cyber BI coverage is solely available through the purchase of a standalone cyber insurance policy. This relatively newer coverage offering has become increasingly common as organizations expand their digital operations and invest in various technological advancements, thus driving up their associated cyber exposures and leaving them more susceptible to disruptive attacks. Even so, not all insurers include BI coverage in their cyber policies; with this in mind, organizations should carefully review their policies for this offering rather than assume they have coverage.

Cyber BI insurance usually provides financial protection for costs stemming from an organization experiencing technology failures (e.g., system shutdowns or network outages) and related operational disruptions due to a covered loss. Such a policy may help reimburse many of the same operating costs as traditional BI coverage, including lost income, employees’ wages and extra expenses.

Examples of covered losses under cyber BI coverage include a variety of security and privacy events, such as data breaches, social engineering scams and ransomware attacks. For instance, if an online retailer’s website gets temporarily shut down due to a ransomware attack, this coverage may help compensate the business for lost profits incurred while the website is offline.

With cyber BI coverage, some insurers may also provide financial protection for digital disruptions caused by human errors (e.g., an employee accidentally downloading a harmful computer virus) or malfunctioning software (e.g., an organization’s network unexpectedly freezing during a routine system upgrade). Further, some insurers may offer cyber CBI coverage, which can help reimburse expenses arising from third-party cyber events that result in software provider shutdowns or cloud vendor outages.

Coverage Comparison

Despite some similarities, traditional and cyber BI policies are not the same. Here’s a coverage comparison to highlight the main differences between these coverage offerings:

1) Coverage triggers—Both traditional and cyber BI policies have a waiting period, which refers to the amount of time that must pass once a loss occurs before coverage can be triggered. Under traditional BI coverage, the waiting period is typically 72 hours. With cyber BI coverage, however, this period is often shorter. Since cyber events happen quickly and are generally resolved faster than losses caused by property-related perils, the waiting period for such coverage is almost always less than 24 hours, usually between six and 12 hours.

2) Period of measurement—In the scope of BI coverage, the period of measurement pertains to the calculation of lost income caused by an operational disruption. Traditional BI policies primarily apply to commercial property losses that pause typical business activities for long periods, making it relatively easy to determine the period of measurement.

On the other hand, digital disruptions stemming from cyber losses may only last for hours or days, making it more difficult to calculate lost income correctly. To accurately determine the period of measurement and ensure sufficient reimbursement of lost income with cyber BI coverage, it’s best to collect more detailed loss data, such as hourly profit statements and sales records.

3) Period of restoration—One key factor in determining the overall value of any BI loss is the period of restoration, which refers to the total length of an operational disruption. In most cases, the period of restoration is measured from the start date of a loss (e.g., when property damage occurs or a cyber event initially strikes) until the affected organization fully recovers and resumes normal operations (e.g., when property repairs are completed or digital assets are restored). The period of restoration is often pretty simple to determine when it involves property damage, but cyber events aren’t as straightforward. There can be far less certainty regarding when cyber events start and end, as there could be minimal evidence of physical recovery.

What’s more, some cyber insurers may even define the period of restoration differently than others, prompting more confusion surrounding cyber BI policies than traditional BI policies. Considering these difficulties, it may be necessary to closely review policy wording, consult forensic accountants and assess additional loss elements (e.g., how and when cyber events were detected and resolved, what technology was affected, and which operations were paused) to correctly calculate this period following digital disruptions.

4) Reputational losses—When organizations encounter traditional BI losses, they usually don’t have to worry about reputational damage, as these losses generally stem from perils out of their control. Yet, with cyber BI losses, stakeholders may partially blame organizations for their involvement in cyber events, especially if these events involve a breach of confidential data or are caused by preventable security failures.

Consequently, organizations may experience prolonged profit losses due to diminished customer loyalty even after recovering from cyber events and associated digital disruptions. That’s why cyber BI policies may offer coverage for reputational losses, whereas traditional BI policies do not.

Conclusion

While there are a number of differences between traditional and cyber Business Interruption policies, both forms of coverage can prove valuable and offer significant financial protection to organizations facing operational disruptions. Organizations can consult trusted insurance professionals to learn more about these coverage offerings and discuss their specific BI insurance needs.

Why It Is Important to Have Uninsured/Underinsured Motorist Insurance Coverage

Date: April 17, 2024 Author: Rinehart Insurance

Car insurance is a vital safeguard for drivers that is often legally required by states. Specifically, auto liability insurance (a standard component of a car insurance policy) can help pay for damages you cause to others in an accident, saving you from costly out-of-pocket expenses. For example, if you rear-end another car, your liability coverage may help pay for damages to the other party, including their vehicle repairs and medical costs, up to your policy’s limits. If you didn’t have liability coverage in this scenario, you would be personally responsible for paying those expenses.

Yet, despite its importance and potential legal requirements, some drivers still don’t have auto liability insurance. Or their liability limits are too low to pay for the damages they cause. These individuals can put you in financial jeopardy if they cause an accident. This is why uninsured/underinsured motorist insurance is essential.

What Is Uninsured/Underinsured Motorist Coverage?

Uninsured/underinsured (UM/UIM) coverage may help pay for car repairs and medical costs for you and your passenger if the driver at fault doesn’t have enough insurance or no auto liability insurance at all. Depending on location and insurer, this type of coverage may be offered jointly or separately. If you or your passengers are injured due to the negligence of an uninsured or underinsured driver, you may seek compensation for injuries and damages through the UM and UIM portions of your policy.

How Does Uninsured/Underinsured Motorist Coverage Work?

If you are in an accident with another person found to be at fault, but they do not have enough insurance to cover the damage, your UIM coverage can kick in. For example, if the medical and property damage totals $200,000, but the other driver’s insurance only covers up to $100,00, you can claim the balance against your insurance provider up to the policy’s limits.

In the case of a hit-and-run accident, you may also be able to leverage your UM coverage; however, depending on location and insurer, there may be additional requirements regarding property damage. For instance, some insurers may require hit-and-run claims for vehicle damage to go through your collision coverage rather than UM/UIM.

Critically, UM/UIM coverage won’t provide a payout until the other driver’s fault is established. This stipulation can affect when money is received for damages.

How Much Coverage Do I Need?

There are a few considerations to keep in mind when reviewing UM/UIM insurance options. Perhaps the most important aspect to understand is the liability limit amount. When choosing your coverage, you can set the limit of your UM/UIM coverage; this establishes the maximum amount the insurance company may pay for an applicable UM/UIM claim. Generally, this limit should be the same as your auto liability limit (i.e., the maximum amount your insurance would pay if you caused damage to others).

It’s important to note that the UM/UIM limit cannot exceed your auto liability limit. Thus, if you want higher limits on your UM/UIM coverage, you must first increase your auto liability limits. Alternatively, you may consider “excess UM/UIM” coverage (which would kick in after your initial UM/UIM limit is reached) as part of a personal umbrella policy, which could offer greater liability protection.

If your insurer offers personal injury protection (PIP) or medical payments (MedPay) coverage, you may be able to leverage that insurance after an accident, regardless of fault. However, these coverages—which may not be available in all locations—have their own rules and may not offer sufficient protection involving an uninsured or underinsured driver.

Speak with your Rinehart, Walters & Danner Insurance agent to discuss your circumstances. They can help recommend coverages and walk you through key policy details.

Final Considerations

Driving comes with many inherent risks, and accidents happen every day. As inflation and other factors cause prices to rise, more people may be skimping on their insurance. Without UM/UIM insurance, you could be left on the hook for damages you didn’t cause if an uninsured driver hits you.

Don’t let irresponsible drivers risk your financial security. Contact us today to learn more about UM/UIM coverage and other insurance solutions that can help protect you after an accident.

Are My Valuables Covered By Homeowners Insurance?

Date: April 3, 2024 Author: Rinehart Insurance

Your grandmother decided to pass on her birthstone ring to you on you 16th birthday, many years ago. Of all your valuables, it is the most important to you. You always took extra precautions when wearing it and storing it. But, even when it’s locked up safely at home, is it truly safe? If it was ever stolen or lost, that’s what your homeowners insurance is for, right? Wrong.

Standard homeowners, condominium or renters insurance policies include a limit on coverage for jewelry and other valuables. Most policies have stringent limits on coverage of valuables.

Jewelry – as little as $1,000
Firearms – up to $2,000
Silverware – up to $2,500

Also, many policies may not cover losses due to theft, accident or loss.

Common items that require additional coverage

Jewelry
Silverware
Heirlooms (furniture, paintings, etc)
Rugs
Musical instruments
Fine Art
Antique china, crystal, decorative items
Designer appliances
Furs
Vintage wine
Collectibles (stamps, coins, glassware, etc.)
Firearms
Computers

Additional coverage options

Endorsements – Endorsements are additions to your homeowners, condominiums or renters insurance policies. This will change or add to the policy’s provisions. Your valuables are “scheduled” on a list that includes a brief description and the item’s dollar value. For all items, an appraisal or sales receipt is typically required. This will help ensure that, in the event of a covered loss, the amount of insurance is enough to cover the repair, replacement or cash payment of the item. The endorsement can cover property otherwise excluded from a basic homeowners insurance policy, extends the number of perils insured against or increase the amount paid for a covered loss. Items scheduled are typically not subject to the policy deductible.

Floaters – A Separate personal articles floater may be used to schedule your valuables that are subject to special limits under basic homeowners insurance coverage.

If you have an existing endorsement or floater, it is important to periodically review our policy’s coverage limits to minimize the likelihood of underinsurance arising out of outdated appraisals and inadequate limits of insurance.

Doing a home inventory can help protect valuables

A home inventory can be a great tool when it comes to protecting your home and valuables. A home inventory will allow you to go room to room and take pictures and details for your items. Some insurance carrier’s even provide a mobile application and you can save the inventory information within the app.

As always, your agent is there to help you determine the best coverage for your needs. Doing a home inventory and sharing it with them is a great way to help make sure no valuables are missed.

Do You Have Allergies? 6 Helpful Tips For Allergy

Date: March 27, 2024 Author: Rinehart Insurance

Between the rain, new growth and house cleaning, chances are if you have allergies, you are miserable right about now. Whether you have seasonal allergies or suffer year round, there are steps you can take to help decrease your symptoms without having to stock up on medication.

Who is affected by allergies?

Though allergies can affect anyone, individuals with the following characteristics are afflicted more often:

Under 40 years old
Have at least one parent with allergies
Suffer from allergic conditions such as asthma

What are the symptoms?

Symptoms of allergies include:

Sneezing
Red, itchy or watery eyes
Dry throat
Stuffy nose

Tips to alleviate allergy symptoms:

To alleviate allergy symptoms, consider the following recommendations:

Stay indoors when the pollen count outside is high.
Keep your home clean and as dust-free as possible.
Place pillows, mattresses and duvets in allergen-proof encasements.
Use a vacuum cleaner with double bags, allergen-trapping bags or a HEPA filter.
Avoid having pets or going near others’ pets if you have animal allergies.
In your home, choose hardwood floors instead of carpeting.

Did you know?

According to the American Academy of Allergy and Immunology, about half of the U. S. population suffers from allergies. These negative reactions occur as a result of coming in contact with normally harmless substances. Some allergies change or disappear over time, while seasonal attacks will return at the same time each year for only a few weeks or months.

Healthy Hints

Treatment for most allergy symptoms is available over-the-counter or as a prescription from your physician. If your symptoms are severe or you don’t know what is causing you to have a reaction, an allergist can perform a test to pinpoint what you are allergic to. And don’t forget, allergy testing and treatment is usually covered by your health insurance.

Do you need help finding what your copay or out of pocket cost will be?

Call us today – 419-522-9892 – we can help.