Do You Know If Your House Insurance Plan Includes Homeowners Liability Insurance?
Whenever the majority of us think about the insurance that we get on our house we generally think about protecting ourselves from disaster. For instance, we would want to ensure that our policy covers us in case of a flood, fire or other natural disaster. However, what many of us do not realize is that there are other types of plan that are available and we would want to make sure that we have these included in our insurance bundle.
Homeowners liability insurance is an example of such a plan.
It is advisable to have this sort of insurance policy quite simply because we are responsible for what goes on in our home. This form of liability insurance would cover you if something should happen to go wrong, either inside your property or even outside of your property. For example, if someone trips and falls at our home as a result of negligence on our part, or any other reason, you may be held liable for their misfortune in a court of law. This type of insurance plan will provide you with cover in this situation.
Of all of the different forms of cover that you are likely to have on your home this is likely the one that is most frequently overlooked. However, the majority of mortgage companies are going to require you to have homeowners liability insurance as part of your policy in order to keep in line with the terms of your mortgage agreement. Naturally, there will be varying degrees of liability cover available to homeowners so you will need to discuss this with your insurance agent in order to determine what would be best in your individual case.
By being covered with homeowners liability insurance you will not only have protection at law in case a person should happen to sue you when they are injured on your property but will also have cover for any medical expenses which may be incurred as a result of the injury. Despite the fact that we all certainly hope that instances such as these would not arise it is clearly possible so you want to ensure that you are covered just in case.
Insurance Industry Settlement Tactics – Navigate The Injury Accident Claim War Zone On Your Own
You Unknowingly Have Entered A War Zone
Did you know that the day you were injured you entered a war zone with the insurance industry? Over the past 30+ years, the insurance industry has spent billions of dollars on advertising to spread false and misleading information about accident claims. The industry wants people to believe that the justice system is out of control and that people who file lawsuits are getting millions of dollars for minor injuries. Such propaganda has created the false perception among the public that the system needs fixing. Unfortunately, this “misinformation” spread by the insurance industry has had an enormous negative influence on juries and their verdicts.
Juries today are highly skeptical of people who file lawsuits that claim money for “pain and suffering.” Many people who wind up on juries believe the myths touted by the insurance industry. This can be a huge obstacle to achieving justice in your case, even when the injuries are severe and negligence has been established. Lawyers who handle these cases have learned over the past few years that it is much more difficult to achieve justice for their clients.
You need to be aware that the insurance claims adjustor will utilize any means necessary to pay out as little as possible, even on legitimate claims that involve serious injuries. Insurance adjustors receive extensive training on how to save the company money, and not necessarily on how to examine a claim and pay a fair settlement. Many insurance companies reward their adjustors with bonuses or promotions based on how much money that person saves the company rather than how many claims are settled. The claims adjustor accomplishes this in several ways:
**Using Delay. The adjustor is a master of using delay tactics to wear people down. He knows that many people will at some point throw up their hands and say “Enough!” while finally accepting the company’s last offer just to be done with the whole process.
**Requesting Unnecessary Information. Another method is when the adjustor makes repeated requests for “documentation” even if the information will have little or no bearing on the amount that will be offered in settlement. Repeated requests for unnecessary documentation can easily frustrate people and wear them down so they’re more likely to accept a lower settlement offer.
**Disputing the Medical Treatment. One way the adjustor will minimize your claim is to dispute or question your need for medical treatment, despite having no medical training! (even if the treatment is prescribed by your own doctor!). Many times it does not matter to the adjustor that your treatment has been recommended by a reputable licensed physician.
**”Nickel & Dime” the Medical Charges. Often times the adjustor will only agree to “accept” 70, 80 or 90% of your past medical charges, while having no medical background to support such a position. By “nickel and diming” the consumer, the well-trained adjustor knows that most people will not hire a lawyer to challenge a small portion of the medical bills.
**Tell You Not to Hire an Attorney. Other times the insurance company will dissuade you from hiring an experienced attorney and falsely tell you that any money you receive will go only to the attorney. Still other times the adjustor may threaten to “deny” or “lowball” the claim if you hire a lawyer.
**Misrepresenting Insurance Policy Benefits. Sometimes the adjustor will misrepresent the amount of insurance coverage that is available to you. Or worse, the adjustor doesn’t even tell you that the insurance coverage or certain types of benefits even exist. This tactic may also be used to entice you into accepting a smaller settlement than what would otherwise be warranted.
**Acting as Your Friend. There are times when the claims adjustor will “befriend” you and make it appear that she is watching out for your interests when in fact she is not. Sometimes the adjustor will give you advice about the type or frequency of your medical treatment, and then decide later on not to pay for the treatment because it is “excessive.”
**Making False Promises. There are times when the adjustor will make promises to you that he or she knows can’t be met. For example, this author had a client who was promised that the insurance company would continue to pay her medical bills every month until she recovered. This went on for four months until the adjustor decided that four months of treatment was enough. The problem was that the client didn’t find out about the insurance company’s decision to stop paying until she had racked up many more months of medical bills!
These are just a few of the tactics that the insurance industry uses to badger and wear down injured victims so that less money is paid out. And to a large extent, the industry has been successful. The strong backlash created by the insurance industry against our justice system is a very strong movement in many parts of our country. The movement has a name, it is called Tort Reform. The success of the Tort Reform movement has emboldened the insurance industry to withhold fair settlements until you convince them that you are ready, willing and able to go to trial. But do not be discouraged. You CAN achieve fair compensation for your injuries and beat the insurance industry at their own game. But it may take time and effort.
Workers Compensation Liability Insurance – Being Safe and Secure
It is important for all businesses small or large know about Workers Compensation Liability Insurance. This insurance is important to ensure that the business is covered as well as all of their employees so that the books are clean and clear.
With every business comes risk and concern. You are taking a risk that you can make back the money that you put down, as well as make a profit. This is an extremely hard task for businesses when they first start out, and will determine if they will succeed or crash and burn. For some employees the stress of opening a business can be too much. For other businesses that are hands on the risk of injury is always present. This can cause a big problem for the business if they’re not insured properly. That is why it is very important to pay attention and know what your options are.
There are a variety of different types of small business insurance that you can look into. Some of these types are Professional Liability Insurance (PLI,) Workers Compensation Insurance (WCI,) Umbrella Liability Insurance (ULI,) and Business Liability Insurance Package Policy (BLIPP.) All of these have a various amount of different disadvantages as well as advantages.
PLI can be filed by a client if he/she feels that because of your negligence or lack of prompt and/or professional service they have suffered a financial loss.
WCI is insurance that is required in almost every single state in the US as well as Puerto Rico. This states that if you or any other employee is harmed while on the premises working, or off the premises but clocked in that the business pay. That means that if you work for a factory and get caught in the machine while working, the company has to have insurance to cover your medical bills, loss of wages or other things. That can even be recovery or rehabilitation for the injury.
Business Liability Insurance Package Policy is for clients who get hurt while on the premises of a business. It also covers if you or an employer or employee damages anything at a client’s property or anything like that.
Last but not least is ULI which are basically for any claims that seem to exceed the amount of your General Liability policy. This means your coverage isn’t enough to cover the claims.
The most important of these four however is workers compensation liability insurance because it happens more frequently than the rest, however all are important.
Understanding Professional Liability Insurance
Design firms face a myriad of risks to manage. Professional Liability Insurance (AKA Errors and Omissions Insurance) is one critical tool that a design firm can use for protection from actual or alleged negligent acts in the performance of its professional services.
Professional Liability Insurance coverage demands special attention due to the unique nature of the coverage that is provided. Understanding your policy will empower you with the precise knowledge of exactly what you are paying for and may even help to improve your firm’s profitability. In addition, your understanding of professional liability insurance can help you purchase appropriate coverage in order to reduce the impact of claims.
Purchasing Professional Liability Insurance is a very important decision. The premium for Professional Liability Insurance can range from one to two percent of a firm’s revenues or even more. As insurance brokers dedicated to serving your industry, we understand the intricacies of professional liability insurance for design firms. We would like to share four basics with you via this professional liability insurance primer.
Q. What does a professional liability policy cover?
A. In general, the policy covers actual or alleged negligence in the performance of professional services. Failure to meet your applicable industry’s standard of care will typically trigger negligence. Professional services typically include Architecture, Interior Design, Engineering and Land Surveying. Some policies also include Environmental Consulting, Construction Management and Technical Consulting as covered professional services. Insurance policies can differ widely. It is important to know the professional services that you are covered to perform. You can find this in the definitions section of your policy under “Professional Services”.
Another item worth mentioning is that many client-written agreements include adverse indemnification wording that may place your firm in the unfortunate position of being uninsured if such indemnification is triggered. Many indemnification clauses will make the design firm responsible beyond the applicable standard of care. As your agent, we are available to review such contract wording for you at no charge.
Q. What is the “retroactive date” on my policy and why is it so important?
A. The policy will only cover professional services performed after the retroactive date of the policy. Your policy may provide “fully retroactive” coverage or it may be limited to a certain date. The retroactive date is typically the date that the firm first purchased professional liability insurance. The policy does not respond to claims, incidents, or circumstances that are related to professional services performed prior to the retroactive date.
When reviewing professional liability proposals pay special attention to the retroactive date to assure that it is not compromised. Keep in mind, a lapse in insurance coverage will typically result in losing your retroactive date.
Q. My professional liability policy is on a “claims made” basis. What does this mean?
A. This means that the policy provides coverage for claims made against your firm during a policy period provided they arise out of professional services performed after the “retroactive” date on your policy. Under a claims made policy, all coverage ceases when a policy cancels or is not renewed. Once a claims made policy lapses, it is like it never existed. Therefore it is crucial to avoid compromising your retroactive coverage as well as to maintain continuous insurance coverage.
Any claims, or potential claims should be reported to the insurance company that has a policy in force at the time you are made aware of the claim. It is also important to know that most professional liability insurance policies do not automatically renew.
Q. What are some common exclusions listed on a professional liability insurance policy?
It is very important to be aware of the exclusions listed in your professional liability policy. Following are some exclusions that we have seen to be the reason for a claim to be denied:
1. Prior knowledge: The insurance company will not cover any claims that a member of the insured firm had knowledge of prior to the effective date of the policy.
2. Prior to the retroactive date: The insurance company will not cover any claims that arise out of professional services performed prior to the retroactive date of the policy.
3. Not reporting the claim in a timely manner: The insurance company will only cover claims that are reported within a reasonable amount of time.
4. Claim against a firm not named on the policy: It is important to list all current and predecessor firms for which insurance coverage is desired. Most insurance policies will only cover claims made against a firm named on the policy.
5. Arising out of non-professional services: The policy will only cover negligence in the performance of professional services. Examples of claims of a non-professional nature are breach of contract, fraud, payment disputes, faulty workmanship, and intentional acts.
Please remember that this provides only general information regarding professional liability insurance and is not a determination of insurance coverage for specific situations. The actual insurance policy should be consulted for specific coverage details.
What is Public Liability Insurance, and Why Do I Need It?
What is public liability insurance and why do I need it? public liability insurance is the insurance that covers any risk of liability that a business may have to pay to a customer if the customer suffers an injury while on the premises. PLI also covers the risk if the business causes damage to a customers property. public liability insurance will also reimburse the owner for legal charges while defending the business as a result of claims. This coverage of insurance is especially important because if a court does not award any damages, the business owner will still have to pay large legal fees as a result of the claims.
public liability insurance is a necessity for the business because the fact is that no one can run a business that doesn’t carry some type of risk. A small business cannot ignore the risk factors associated with their particular business. It is the business owner’s responsibility to and legal obligation to compensate the customer for any loss to their property as a result of negligence by your business. Sometimes a claim can go as high as or beyond a million dollars. It is important that a business owner purchase insurance because just one claim could cause the business owner to lose their business and depending on the type of company their personal assets as well.
An example of a situation when it would be important for a contractor or carry public liability insurance would be if you and your employees were at a construction site, building a house or office complex. A person passing by steps on a rusty nail, trips on a piece of wood or an employee drops a heavy object on the passer by. The responsibility for payment on any of these claims would be the business owner. These are just a few examples that show how important a public liability insurance policy is to a small business. Any business. The possibilities of causes for claims are endless. The best decision a business owner can make is to purchase insurance and have peace of mind so they can concentrate on build their business.
Can You Really Remove the Fear of Financial Disaster If Your Legal Claim Fails?
For many ordinary members of the public, the motivation for going to law is a burning quest for justice and a genuine need for compensation.
What tends to put many people off the idea of seeking satisfaction in the courts – no matter how ‘wronged’ they may feel – is a fear that should the judge’s decision not go in their favour, a bad situation may be made even worse as a result of being found liable to pay the other side’s heavy legal costs. Their solicitor may have been happy to do the case on a “no win no fee” basis, so at least they’re not getting a bill from him if they lose, but that is not much comfort when they get handed a bill for tens of thousands of pounds from their victorious opponents!
So they tend to stick with the first law of holes, as interpreted by the former Labour Minister, Denis Healey: “If you’re in one the first thing you do is stop digging.”
In some cases that may indeed be the most sensible course of action – just as long as they can live with the consequences of not being compensated for someone else’s negligence or carelessness.
This is why some solicitors have decided to look around for some sort of insurance package which can be offered to clients, and which would take away the risks of losing a court action. At last, there is an insurance company which can provide clients with ATE (After The Event) insurance, an ideal arrangement for the vast majority of litigants who have limited funds but nevertheless are left with no alternative but to seek justice in the courts.
If the client has this sort of ATE arrangement, the solicitor will not only handle the case on a no win no fee basis, but will also take out an insurance policy for the client which pays the legal costs should the subsequent court case not be successful. In the scheme we know about, the premium will only be around £200 – £300. The client doesn’t have to pay it until the end of the case, and only then if he has been successful, which of course means there is no loss to him at all if the case is unsuccessful. Outlays incurred during the case are also refunded if the result is unfavourable, so effectively any client with an ATE arrangement can pursue a court action in a completely safe place.
ATE insurance is not, of course, appropriate to every person and to every case. Insurance companies are in business to make money and they will not issue policies for cases which do not appear to have a potential success rate of at least 51 per cent. Most personal injury claims can be insured, but there are some which the insurance company may regard as too tricky to take the risk. Also, the insurance will only be available through solicitors that have a proven track record of success in court cases.
Even when a case seems, on paper, to be “open and shut”, taking out insurance might still be advisable as most lawyers agree that “expecting the unexpected” is a fact of life when decisions are being handed down in the civil courts.
So someone really can now make a claim without any fear of disaster if the claim is not successful.