News You Can Use

July 2017, Volume 8, Issue 3

If you have a question about any article in this newsletter or coverage questions, contact your broker at one of our offices.

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The Four Most Common Water Damage Claims HOMEOWNERS’ ISSUES

SO OFTEN WHEN we talk to one of our clients who has just filed a claim for fire or water damage, we find that they wish they

had stayed on top of repairs and maintenance.Indeed, the majority of homeowner’s insur-

ance claims are preventable with just a little bit of scheduled effort.

While many people tell you to be prepared for major calamities like floods, tornadoes or earthquakes, the fact is that the majority of homeowner’s claims are for damage that is caused by their own negligence or lack of in-spection and maintenance.

Today we look at claims that should never happen to you if you stay on top of the main-tenance.

Washing machine issuesIf a washing machine leaks in the middle of

a wash cycle, you could end up flooding and damaging floors and furniture in many of the adjacent rooms.

To avoid this, you should inspect your wash-ing machine twice a year for any issues that could lead to a major leak. These tips should help you head off any problems in the future:

Inspect all hoses and look for cracking, peeling or loose hoses.

Don’t overload your machine, as stuffing too many clothes and linen in at one time can lead to an unbalanced load and leakage.

Be sure to keep the machine level. Clean the inside once a month. That

means looking for obstructions or any stray pieces of fabric.

Clean out the detergent/fabric softener dispenser, which can get clogged up – espe-cially with powder detergent.

Bathtub and shower leaksSome of the worst water damage hap-

pens to the bathroom floor underneath and around the tub and shower.

You should keep an eye out for cracked seals and grout. Water can seep through those tiny cracks and damage the floor be-neath.

Regularly inspect for any holes in the caulking or signs of potential damage. Look for stains or soft places on walls, floors and ceilings near the bathroom to determine whether a leak is occurring.

If you do find a leak or major problem within your bathroom, you should call a plumber as letting leaks go unfixed will only lead to further damage.

Toilet issuesToilets are also a source of water damage.

In a new home, the toilet can fail through a faulty supply line.

In older homes, toilet issues are usually in the form of a slow leak or clogging, which can lead to water damage if unchecked.

See ‘Basic’ on page 2

Continued from page 1

Basic Maintenance Key to Long Life for Your Roof

2 George Petersen Insurance Agency www.gpins.com July 2017

Better X-Mod Calculation Regimen to Start 2017

The first thing that must be done is to caulk all around the toilet. This way, even if an overflow does occur, the water will not be able to trickle down under your tile or linoleum floor.

If your toilet clogs, act quickly by opening the tank and lifting the flapper to prevent more water from coming in and overflowing the bowl. When possible, replace the supply-line gate valves with ball valves, which can reduce the risk of overflowing.

Roof leaks and collapsesConsider the roof as your home’s protective shield against the ele-

ments. The key to long life for your roof is basic maintenance, which includes cleaning your rain gutters twice a year and inspecting shingles and replacing any that are damaged.

And during the winter storms in colder climates, monitor roof con-ditions to protect against roof collapse from accumulated snow or ice. The following are signs of a building structure under significant stress:

• Deflection or cracking of structural members.• Cracks that have recently developed in interior and

exterior walls and ceilings.• Cracked or broken windows.• Unusual creaking or popping sounds.• Doors or windows that bind or do not open and close

properly due to racked frames.

If you notice any of the above, call in a qualified structural engineer for an immediate inspection.v

How Management Can Demonstrate Safety Buy-InWORKPLACE SAFETY

W E’VE HAD many articles about workplace safety and that to have a successful workplace safety program you need not only employee buy-in, but also management buy-in.

If the management can show its leadership and commitment to promoting and ensuring a safe workplace, getting staff to fall in line is easier.

Dr. Isabel Perry, CEO of The Safety Doctor, a workplace safety app, recently posted a blog about the 18 examples of management involvement she has observed visiting job sites and conducting workplace safety interviews, benchmarking, safety conferences and more.

These are the specific examples she identified of how a manager can show active safety leadership:

1. Creating a company safety committee.2. Asking that safety functions, when assigned, report

to the committee chair.3. Having a board of directors’ safety and health

committee.4. Holding a monthly plant-wide safety meeting where

management in charge of safety takes questions and addresses safety issues.

5. Having fatality and recordable incidents reported directly to management in charge of safety at the time of occurrence, or in a given time frame.

6. Ensuring that organizational safety expectations are absolutely clear by asking every member of the organization about them.

7. Being present, and supportive, whenever key safety issues are decided. Demonstrate they are as impor-tant as key product and quality decisions.

8. Management in charge of safety should spend daily time in the work environment (factory floor, construction site, work areas) asking people about safety and observing and commenting on issues.

9. Starting every meeting with a discussion of safety or a safety tip.

10. Requiring a formal safety and health plan from every manager, and holding them accountable for results.

11. Delivering the safety vision in person to every busi-ness/work unit (rather than sending it out in a memo).

12. Demonstrating commitment by picking up dropped items, moving obstructions, helping out with safety every day.

13. Making it clear that employees flouting safety rules is unacceptable and that management will probe each accident to find out what went wrong.

14. Empowering every employee to do what’s right for safety. Support and encourage them when they make a mistake.

15. Trying progressive approaches that fit into the company business strategy and workplace culture.

16. Management should personally attend safety train-ing.

17. Senior leadership should rotate in kicking off safety classes.

18. Management should be well acquainted with the facility safety rules and never violate any rule for any reason. Challenge and hold people responsible for anyone who does.

3 George Petersen Insurance Agency www.gpins.com July 2017

Deductibles Shift Drives Interest in Critical Illness Cover VOLUNTARY BENEFITS

To stave off debt, some people dip into, or deplete, their retirement savings and end up paying extra due to resulting taxes, fees, and reduced health insurance subsidies.

However, other adults don’t even have enough, or near enough, of a nest egg saved to cover all the costs.

IF YOU WANT to provide your employees with the one voluntary ben-efit that can give them peace of mind should tragedy strike, critical illness coverage is the answer. Demand has grown for critical illness insurance over the last few

years as more of the cost-sharing burden has been shifted to employees on employer-sponsored health insurance plans.

According to the Kaiser Family Foundation’s “2015 Employer Health Benefits Survey,” employees had to pay 255% more for their individual insurance deductibles in 2015 compared to 2006.

Additionally, the foundation reported that the number of workers with deductibles of $1,000 or more nearly doubled between 2010 and 2015 – increasing from 27% to 46%.

Since employees have taken on a higher cost-sharing burden, many employers have begun to enhance their voluntary benefits offerings to include critical illness or cancer coverage to help offset the risk for employees and increase satisfaction and retention.

Interest growsIn part, employee interest in critical illness insurance stems from the

chain of events that may have cut back their benefits and caused their deductibles to skyrocket. They are looking for peace of mind should they be stricken by a serious illness.

In addition, advances in medicine and technology that have pro-longed life also make critical illness coverage more attractive.

Consider that out-of-pocket costs for a critical illness can start at around $15,000 and climb from there, and that lost income can be as much as $50,600, according to a 2014 MetLife study.

In other words, battling a critical illness could be just the tip of the iceberg. If someone’s lucky enough to survive a critical illness, they may still suffer major financial damage due to high medical bills and restricted income.

Critical illness coverage provides a lump-sum payment a policyholder can use for any expense if they’ve been diagnosed with a serious illness.

How it works

Evolving productsInsurers have started offering new and/or improved critical illness

products.Mostly, this insurance only pays out for one occurrence of a listed

condition. And once that payment is made, the policy is terminated. Now, insurers offer polices that cover a wider variety of conditions

and allow beneficiaries to receive multiple payouts if they suffer from a reoccurrence or another condition entirely.

As a result, more employers are offering critical illness coverage. According to Mercer’s “2015 National Survey of Employer-Sponsored Health Plans,” the percentage of employers with 500 or more employees offering group cancer or critical illness insurance increased to 45% in 2015 from 34% in 2009.

And a Willis Towers Watson survey predicts that 73% of these em-ployers will offer it by 2018.

If one of your employees is in a fight against a critical illness, the last thing they should have to worry about is whether they have enough money to fund the battle. Be the one to stand up and offer this timely form of protection.v

WANT TO KNOW MORE? CALL US: 1-800-236-9046

Produced by Risk Media Solutions on behalf of George Petersen Insurance Agency. This newsletter is not intended to provide legal advice, but rather perspective on recent regulatory issues, trends and standards affecting insurance, workplace safety, risk management and employee benefits. Please consult your broker or legal counsel for further information on the topics covered herein. Copyright 2017 all rights reserved.

AS THE CONSTRUCTION industry continues to rebound from the recession, contractors face evolving risks that, left unchecked, can leave your operation exposed to new liabilities.

If you already operate a construction firm, you know that there is a labor shortage that has affected the makeup of your workforce, and that hiring entities are asking builders to take on more of the design function, as well.

Your liability picture has also likely changed with the increasing use of wrap-ups and, if you’re using technology in your operation, you now have cyber-security risks, too.

Lack of qualified workersThe bottom fell out of the construction industry in the U.S.

when the great recession hit and many of those laid off in the wake have left the workforce or found jobs in other industries.

Now, as home construction is growing again, many contractors are having a hard time finding qualified workers, as well as project managers, engineers and estimators. That means your workers are likely taking on greater workloads, which puts them at risk of injury or making mistakes.

And you likely have more green workers in your ranks who are not aware of workplace safety and lack the experience to identify hazards, which puts them and others at risk of injury.

Those injuries in turn affect your workers’ comp premiums.

Professional liability risks As more project owners want an all-in-one job with the lead

contractor designing and building the project, those construction firms now face a new type of risk: professional liability.

But the typical contractor’s insurance policy doesn’t provide protection for any design work you take on.

Courts have ruled that:• Designers who perform “builder activities” lose limitation of

liability typically enjoyed by design professionals. • Builders who perform “design activities” assume responsi-

bility for design deficiencies.

Wrap-ups more prevalentMany construction projects are now covered under one general

liability policy to cover the work of the general contractor, as well as of all the subs. More lenders are requiring that liability is set up in one all-encompassing policy.

A properly assembled general liability wrap-up should provide coverage not only during the construction period, but also up to 10 years after the work is completed.

These policies often reduce the cost of coverage.

Cyber-security risks emergeLike all industries, the construction sector has grown increas-

ingly reliant on technology to get the job done. That exposes the company to a variety of cyber risks, including keeping project de-signs, client records and employee records confidential.

Many building contracts today include clauses requiring the contractor to be responsible for potential cyber breaches.

Given the increasing popularity of practices such as Building In-formation Modeling, Integrated Project Delivery, and file sharing between participants in a construction project, contractors may be at increased risk of liability in the event of a data breach. v

Building Risks Evolve, Creating Unique ChallengesCONSTRUCTION INDUSTRY

4 George Petersen Insurance Agency www.gpins.com July 2017

THERE’S AN INSURANCE SOLUTION FOR EACH OF THESE RISKS

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