Defending Against Malpractice Claims

Medical liability insurance pays defense costs and generally covers claims for medical error and neglect. Even though medical claims against U.S. doctors are often dismissed and the verdict is usually in the physician’s favor when they go to trial, defending against a claim can be costly in terms of both time and money.

According to a study of more than 10,000 closed malpractice claims made against U.S. physicians during a recent three-year period, only about 55 percent resulted in actual lawsuits. Of the claims litigated, more than half were dismissed by the court. Less than five percent were decided by a trial verdict, which went in the doctor’s favor 80 percent of the time. Even dismissed lawsuits took more than 20 months. 

Note: According to the study mentioned above, malpractice cases that went all the way to trial typically lasted 39 months even if the doctor won.

Getting Back on the Road

If your auto insurance policy has lapsed, you should not drive uninsured. If the policy lapsed as a result of missing a payment, it’s best to contact your insurer directly to see if you can be reinstated immediately. Otherwise, going even a short time without coverage will place you in a higher risk category, which means that your premiums will spike.

In some cases, such as if you were in the military and stationed overseas or you have been in the hospital for an extended stay, you may be spared rate increases. If not, the best way to shop for a policy is to enlist the help of an independent insurance agent, who can take your specific circumstances into consideration.

Note: If you decide to cancel your auto insurance policy because you will no longer be driving, contact your insurance agent and find out how to cancel your policy officially.

Its a Wrap!

As the housing slump recedes, developers are looking forward to tackling projects with a sharp eye on margins. One proven way to manage risk and reduce insurance costs involves obtaining “wrap up” insurance, which derives its name from wrapping, or bundling, specified insurance risks into a single package.

This type of insurance dates back to the 1940s and has been more recently favored over the traditional approach of relying upon contractor insurance. Wrap up insurance protection, which includes all parties in a project (such as the owner, general contractor, and sub-contractors), typically provides insurance protection for workers’ compensation and general liability/umbrella liability. Pooling all parties’ risks into a single insurance program leads to a reduction in the program’s fixed costs. 

Note: Wrap up insurance coverage is limited to operations at the project site.

Hunter Insurance Adds to Its Team

Brian Morris | Sales Agent

Hunter Insurance has announced that Brian Morris has joined the agency as a sales agent. Brian is a licensed property and casualty broker for Rhode Island and Massachusetts, and recently attained his Certified Professional Insurance Agent (CPIA) designation.

At Hunter Insurance, he will design comprehensive insurance packages, providing prompt and professional service. Brian’s prior experience includes ten years as a Senior Sales Producer for a regional insurance agency.

“Brian has over 16 years of experience working in the field of insurance,” said Brian Hunter, President of Hunter Insurance.“We are pleased to have him join our staff and believe that his knowledge of insurance coupled with his desire to help local home and business owners will make him an asset to our company.”

Why You May Need Umbrella Insurance

When it rains, it pours, the old saying goes.

It’s something that’s especially true for major accidents. Sometimes, normal homeowners or auto insurance may not be enough to protect you against seven-figure claims arising from a catastrophic incident on your property or a deadly crash involving your car or boat.

That’s where umbrella insurance kicks in.

Normally sold in increments of $1 million or more, umbrella insurance will protect you when basic auto or homeowners insurance policies have been exhausted. Umbrella insurance also has the added advantage of “dropping down” to cover any gaps in your existing policies.

This may sound like insurance for millionaires. But it isn’t. It’s for everyone: A $1 million policy on a one-house, two-car family will generally run between $200 and $250 in annual premiums.

So who needs umbrella insurance? Well, just about everybody who owns their home or car, but especially anyone who meets at least one of the following criteria:

• Own rental properties or multiple homes 
• Have children or responsible for children of others (anything from babysitting to carpooling) 
• Own several vehicles 
• Involved in homeowners associations, civic activities, or a board of directors 
• Own a pool, hot tub, or swing set 
• Own an ATV, boat, or motorcycle 
• Shared ownership or access to docks, lakes, or vacant land 
• Use or allow your children to use social media sites like Facebook and Twitter 
• Own animals or care for others’ animals 
• Have retirement accounts, investments, or other assets worth protecting 
• Travel overseas 

If any of the above apply to you consider buying umbrella insurance. Call Hunter Insurance toll free at 1-800-696-4678 or e-mail us at info@hunterinsurance.net.

Preparedness Makes for Fewer Winter Woes

As most New Englanders know, ice, snow and wind can take a toll on residential property, so remember to protect your home well before the snow starts to fly. Homeowners, especially those who spend the winter in warmer locations such as Florida, should do the following:

• Remove debris from gutters. Cleaning out leaves, acorns, sticks and pine cones allows melting snow and ice to flow freely. Cluttered gutters can cause ice damming. 
• Trim trees and remove dead branches. Ice, snow and wind can cause trees or branches to break, damaging your home, automobile or injuring someone walking on your property. 
• Add insulation to attics. If too much heat escapes through the attic, it can cause snow or ice to melt on the roof. If melted snow refreezes, it can result in a collapsed roof, and contribute to ice damming. Additionally, well-insulated basements and crawl spaces will also help protect pipes from freezing. 
• Protect exposed pipes. Wrap pipes with heating tape and insulate unfinished rooms such as garages that frequently have exposed pipes. 
• Keep temperature at a minimum of 65 degrees. Install programmable thermostats to maintain temperature. 
• Have furnaces, boilers and chimneys serviced at least once a year. Make sure that smoke and fire alarms are working properly and consider installing a carbon dioxide detector. 
• Make repairs. Broken stairs and banisters can become lethal when covered with snow and ice – make sure they are ready for winter weather. 

If you have additional questions about preparing your home for winter, or would like to discuss your home insurance policy, please contact your insurance agent by calling Hunter Insurance at 401-769-9500.

Properly Winterizing Your Boat

Boating season is coming to a close, so it’s important to properly winterize your boat prior to inclement weather. Failure to winterize your boat can cause it to suffer significant damage such as cracks that can lead to leaks, corrosion, frozen pipes, interior damage, and fuel degradation.

When spring comes, these problems could be expensive to repair, especially since most insurance policies do not cover damage resulting from lack of maintenance.

Prior to making any decisions for winterizing your boat, you should check the owner’s manual for their recommendations on winter storage.

A few ways to store your boat exist, including storing it in your driveway, yard or somewhere else on your property. However, some homeowners’ associations don’t allow for this kind of storage, so it is important to check first.

Another option is to place your boat in a boatyard where it can be shrink-wrapped. Shrink-wrapping keeps boats dry and well ventilated which often prevents mildew.

A third option is to store your boat indoors. Indoor boat storage provides numerous options for climate control and keeps your boat protected from any winter weather.

As a general rule, boat storage professionals encourage boat owners to properly cover their boats, whether by shrink-wrapping or with a durable, breathable, water-resistant cover.

If you have additional questions about boat or other watercraft insurance, please call Hunter Insurance at 401-769-9500.

Certain Events Should Trigger Changes in Coverage

September is inevitably a busy month. School, soccer practice and homework make schedules a little more hectic. While you’re in the organizing and planning mode of the challenging Fall season, consider the changes in the past year that may make it necessary to alter your insurance coverage. It is wise to contact your independent insurance agent at Hunter Insurance if, in the past year, you:

• Bought a new home, whether it’s your main domicile, a vacation home or rental property. 
• Purchased a new or used automobile. 
• Purchased a boat, recreational vehicle or motorcycle. 
• Are the parents of a teenager who obtained a driver’s license and is allowed to drive the “family” car. 
• Received or purchased an expensive piece of jewelry. 
• Received or purchased an antique of any sort, including household items and coins. 
• Started planning and paying for a wedding. 
• Completed major renovations or an addition to your house. 
• Had (and will continue to have) a dependent that is living away from home to attend college. 
• Got married or divorced. 
• Welcomed a new child or grandchild. 
• Had significant changes in your health or that of your spouse or domestic partner. 
• Took on the financial responsibility of an aging parent. 
• Refinanced your home. 

As you gear up for fall, take a moment to organize your insurance coverage. Please call Hunter Insurance at 401-769-9500 if you have questions about your insurance.

Don’t Overlook Rental Care Coverage When Purchasing Car Insurance

When most people think about car insurance, it’s the cost of collision repair, medical bills, or their own liability in an accident that worries them most. What they tend to overlook is the need for their car in the first place. If your car is in the shop getting fixed how are you going to get around?

Most people assume that they already have rental car coverage, when in fact many do not have it.

Other than the obvious convenience that comes with it, the best part about substitution transportation is how cheap it is. Per day coverage at $15 will cover much of the cost of a rental car and the coverage runs at only about $12 a year. Coverage at $30 a day is also available, but the annual cost is a bit higher, about four times as much as a $15-a-day plan.

For some people, a rental car may not be the best option, especially for drivers under 25 or anyone with a poor driving record that may make a rental car company reluctant to rent to them. But that doesn’t mean Substitute Transportation isn’t for you: it can also cover the costs of bus and rail transportation as well as cab fares.

We’ve found that after filing a car insurance claim almost all people correctly buy Substitute Transportation or increase their overall coverage. Save yourself the trouble and start out with full coverage from the get-go.

For more information about your auto insurance, call Hunter Insurance at 401-769-9500.

Avoiding Mold

Mold occurs naturally throughout the environment—both indoors and outdoors. And during these warm months, mold can be found indoors more often than during the winter months. In fact, mold spores could probably be found in nearly every structure in the United States, regardless of how new or clean the structure is. That’s because mold—in normal amounts—is no more dangerous than dust or pollen.

However, excessive amounts of mold, certain types of mold and/or exposure to molds may present health concerns for some people.

If there is an ongoing moisture problem in your office or home it is important to be alert for:

• The presence of visible mold 
• Strong, musty odors, which may indicate mold is present 
• Any evidence of past moisture problems that might have caused mold growth 

These conditions may require the expertise of a qualified Indoor Air Quality/Environmental Professional to inspect the building for mold growth and water damage problems.

Usually, mold damage is covered by your homeowner’s insurance if it is the direct result of another claim, such as water damage. If you have questions about whether mold in your home is covered by your homeowner’s policy, please contact Hunter Insurance at 401-769-9500.

Hurricane Preparedness

Hurricanes do not strike Rhode Island all that often, but when one does hit, it can cause devastating property loss, serious personal injury or even death. To make sure you have adequate insurance coverage and are well prepared for such events, the Trusted Choice independent insurance agents, who include Hunter Insurance Agency, have established a comprehensive hurricane-related website.

Insuringconfidenceri.com has pages addressing deductibles, ways to minimize damage, available emergency resources, and what to do when a hurricane makes landfall.

Hurricane preparedness means taking action before a tropical cyclone strikes to lessen the damage and personal danger such storms can cause. It improves your chances that you and your possessions will come through a storm safely.

Take action now to ensure you are safe and adequately insured. If you have questions about preparing for a hurricane, contact Hunter Insurance at 401-769-9500.

Maintain That Clothes Dryer

According to the U.S. Consumer Product Safety Commission report, there are approximately 10,000 annual residential fire losses in which the source of the fire is in the clothes dryer or vent. Dryers are the third most common type of equipment involved in fires, ranking behind stoves and fixed area heaters. Clothes dryers can catch fire due to excessive lint build-up in the exhaust pipe or inside the dryer; this lint build-up is often out-of-sight. As a result, you should take the following steps to reduce the chance of your dryer starting a fire.

• Follow the manufacturer’s instructions when installing the vent pipe. 
• Keep the dryer vent clean and unplugged. Check for a plugged vent if the dryer does not dry clothes efficiently. 
• Remove and clean the lint screen before each use. 
• Keep all combustibles away from the clothes dryer. 
• Hire a qualified technician to periodically inspect gas clothes dryers.

Credit Rating and Insurance Underwriting

A big factor in determining the premium of a personal auto policy has nothing to do with a person’s driving record—it’s his or her credit record. According to Conning and Company, more than 90 percent of insurers use an applicant’s credit history—his or her insurance risk score—to slot him or her into a certain program. When a person applies for auto insurance, the insurance company asks for permission to pull his or her credit information. The insurer then secures a credit report from one or more of the credit bureaus—TransUnion; Experian; or Equifax.

Credit scores range from 300 to 850. If your score is below 650, you may have trouble getting insurance or you may have to pay a higher premium. In order to improve your credit score, keep in mind the following factors that influence the score.

• Payment history—The largest factor is credit and loan account payment history. A steady record of on-time payments going back several years shows responsibility. 
• Debts owed—The number of accounts you currently have, including type and balance. Try to have just a few active accounts with low balances. 
• Length of credit history—The longer your credit history, the better. 
• New accounts—Every time you apply for a new account, a record of that application appears on your credit report and drops your score. Limit the number of applications you submit. 
• Balance of accounts—It is best to have between two and six open credit cards and one or two loans. Negative records—Collections, judgments, and bankruptcy filings will drop your score.

For additional information about auto policy premiums and your credit score, contact Hunter Insurance at 401-769-9500. 

Avoid Water-Logged Cars

Flooding and hurricanes are a fact of life in the United States, leaving thousands of ruined cars in their wake. Unethical individuals will often try to capitalize on this situation. Unwary consumers may inadvertently purchase a seemingly fine used car, but with hidden water damage lurking be-neath its surface. Flooded automobiles are notoriously unreliable vehicles and proactive steps should be taken to avoid purchasing one. Here are some tips for you to consider that will help you avoid unknowingly purchasing a flooded vehicle.

• Perform a careful examination of the used vehicle. For example, look for a well-defined line or watermark on the inside and outside of the car. Inspect the vehicle in difficult-to-clean areas, like the gaps between panels in the truck or SUV and under the hood, where water-borne materials and debris may still cling. 
• Be wary of used cars with new or mismatched upholstery. 
• Avoid purchasing cars through auctions because flooded vehicles are often cleaned and then sold at these events. 
• Be wary of individuals who buy and sell cars as a sideline business. It is better to buy from a reputable dealer or an individual that has owned and actually driven the vehicle for an extended period of time. 
• Review the auto title closely. Some jurisdictions require that totaled or flooded vehicles be designated as “flood damaged” on the title. 
• Consider ordering an online vehicle history report (e.g., CARFAX), which provides un-limited vehicle history reports for $25. 
• Before you buy the vehicle, be sure to have a trusted mechanic inspect it. Trained profes-sionals know what to look for when it comes to previous flood damage on autos. They can also spot vehicles that were previously involved in major collisions. 

If you have further questions about how to avoid purchasing a previously-flooded car, please call Hunter Insurance at 401-769-9500.

Purchase Proper Watercraft Coverage for Your New Boat

This is the time of year when many people start to consider purchasing a sailboat or powerboat. Many people, however, are unaware of the significant loss exposure this creates, and some peo-ple mistakenly believe that there is coverage available under their personal auto policy. The auto policy, however, does not provide any liability or physical damage coverage for boats. Other people may look to their homeowners policy for coverage. Most homeowners policies, however, only cover certain low-valued or low-powered boats. Thus, you should contact your agent before buying a boat to discuss the proper insurance protection for it. The following tips will assist you in this process.

• If you purchase a boat valued over $1,500, you probably lack proper coverage under your homeowners policy for physical damage losses to the boat itself. A separate watercraft or boatowners policy is necessary to cover boats over this value. 

• If you are considering the purchase of a sailboat, inquire about its length. If the length is 26 feet or more, there is no liability coverage under your homeowners policy. For motorboats, there are severe horsepower restrictions for liability coverage. For example, only boats with outboard motors of 25 horsepower or less have liability coverage under most homeowners policies. Yet normally any type of powerboat will have a motor with horsepower way beyond this amount. This liability restriction also necessitates the purchase of separate watercraft insurance. 

• Ask your agent about the types of boats you are considering. For example, some insurance companies decline to insure personal watercraft such as jet skis and wave runners, since some of these crafts can reach speeds of 60 mph. The United States Coast Guard reports that these crafts account for a disproportionately high number of accidents. Many insurance companies also refuse to cover houseboats, homemade or kit boats, competi-tion bass boats, and speedboats. You may have to pay a steep premium through a specialty insurance company to insure these types of craft. 

• Be wary of purchasing older watercraft. Many insurance companies reject boats over 15 or 20 years of age because they normally account for more losses than newer boats. You may have trouble finding insurance coverage for older boats or end up paying an extremely high premium. 

• If you do purchase an older boat, consider ordering a marine survey or inspection of it prior to the sale. This survey will point out deficiencies in the boat that may cause you to reconsider the purchase or renegotiate its price. 

• Ask your agent about procuring a personal umbrella policy in addition to a watercraft policy, particularly if you purchase a speedboat, a boat designed for water skiing, or some other craft with a higher potential to cause damage or loss of life. The personal umbrella policy provides excess liability limits above those offered by a watercraft policy. In addition, the watercraft liability limits should meet the underlying limits requirements of any applicable personal umbrella policy. It is usually best to use the same insurance company that writes your homeowners and personal auto policies for your personal umbrella policy.

Helping Teenage Drivers

There are several things parents can do to help keep their teenagers safe behind the wheel this summer. Here are a few tips.

●      Coach your Son or Daughter. You should “coach” your teenage driver. Talk openly and frankly with him or her in order to determine his or her attitude about being behind the wheel. Work with your teen to set ground rules, such as the number of people allowed in the car, where the car may be taken, and curfew.

●      Utilize Emergency Road Service. If you do not belong to a motor club, you should consider joining one that provides 24-hour emergency road service. That way, your teenager may call for help at any time if they need gas, need a jump-start, are locked out, or need a tire changed. You can also arrange with the motor club to provide service for your teen if they are in a friend’s car.

●      Have an Open Discussion about Driving under the Influence. While no one wants to think about the possibility of their teenager drinking and driving—or being in a car with an impaired friend at the wheel—we need to be realistic. History has shown that teenagers will experiment with alcohol. You should make it clear to your teen that driving after drinking is not acceptable. However, if they ever do drink, or are in a car with someone else who is impaired, make it clear to your teen that he or she can call you at any time of the day or night and that you will come to get them—no questions asked.

Two other effective, though more costly, things that can be done are:

●      Install a “Governor.” Many vehicles—school buses and certain types of delivery vehicles are good examples—have a “governor” installed in them that restricts the amount of fuel that can be injected, thus preventing the vehicle from being driven over a certain speed. A governor in your teen’s car may help keep him or her within the speed limits.

●      Install a Global Positioning System (GPS) in your car. You can program it to let you know where your teenager is driving at any time. With the GPS, you can set a radius of operation and the GPS will notify you if your teen has taken the car outside of that radius. It can even alert you when the speed limit is being exceeded. Finally, a GPS can notify you if the car is being kept out past an agreed upon curfew. We realize that this may seem like a rather extreme measure. Use of a GPS may best serve those parents who have a reason to mistrust their teenager.

When your son or daughter gets a drivers license, work with your insurance agent to review various options for both of you. It is important for you—and your son or daughter—to remember that, yes, your auto insurance rates will go up, but they will come down after a couple years of driving experience. However, the rates will really go up if your teenager has tickets or gets into accidents.

Do You Really Need Flood Insurance?

According to the Federal Emergency Management Agency (FEMA), flooding can cause several billion dollars of property damage in the United States each year. If you are like many homeowners, however, you may be unaware that the standard homeowners insurance policy you buy does not cover flood losses. You may believe that you have a low risk to this peril but FEMA reports that approximately 25 percent of all flood claims occur in communities in which flooding is deemed to be a low to moderate risk. So do you really need a separate flood policy? The following tips and ideas may prove helpful in answering this question.

• Contact your insurance agent to see if you live in a community that participates in the National Flood Insurance Program (NFIP), a prerequisite in order to qualify for flood insurance. Participating communities must agree to adopt and enforce certain floodplain management regulations, including building construction and zoning laws that minimize the risks of flood damage.
• Ask your insurance agent to see if you are in a floodplain. Or, if you prefer, go to www.floodsmart.gov and select “What’s Your Flood Risk?” which will ask you to enter your home address. This Web site will then specify whether you are in a low, moderate, or high risk area.
• Consider purchasing flood insurance even if you are in a low to moderate risk community. In these areas, you may be eligible for the Preferred Risk Policy, with premiums as low as $112 per year including coverage for your personal property.
• Note that a flood policy does not take effect until 30 days after you purchase the cover-age. Thus, if the local meteorologist announces a flood alert for your community and you try to purchase coverage, it is already too late.
• The maximum limit of insurance in the NFIP for your home itself is $250,000. If your residence’s value exceeds this amount, ask your insurance agent about excess insurance for losses above the federal policy’s maximum limits.
• Don’t assume that the government will bail you out if you suffer a flood loss and don’t have a flood insurance policy. That decision is a gamble you may not win. Remember that federal disaster assistance, if available, is usually a loan that must be paid back with interest.
• Discuss all the pros and cons of flood insurance with your agent before making your final decision.

If you have further questions about flood insurance, please call Hunter Insurance Agency at 401-769-9500.

Why You Need Uninsured Motorists Coverage

Uninsured motorists (UM) coverage provides insurance protection for bodily injury, and in some states property damage, caused by a motorist who is not insured. This coverage allows you to collect from your own insurance company as if it provided liability coverage for the negligent and uninsured driver. In contrast, underinsured motorists (UIM) coverage provides insurance protection for bodily injury, and in some states property damage, sustained by you when a motorist who is not sufficiently insured negligently causes an accident. The following list provides reasons why you should buy UM/UIM coverage.

• The chance of a negligent uninsured motorist hitting you is greater than you might think. In some states, up to 32 percent of all drivers lack automobile insurance. The country-wide average is 14 percent.
• UM and UIM coverage is broad, since it provides benefits for you and your family members’ injuries sustained (a) in your own covered auto, (b) in autos you do not own, and (c) as pedestrians.
• The cost for this coverage is very reasonable, compared to liability coverage and physical damage coverage for your own car. The increased costs for higher UM/UIM limits are quite affordable for most people.
• If your car is damaged by an uninsured driver, the deductible for UM property damage, if available in your state, is normally only $250. This amount is often considerably less than your collision coverage deductible.

If you have further questions about uninsured motorist coverage, please call Hunter Insurance at 401-769-9500.

Questions To Consider For Insurance Checkup

One recent insurance survey suggests that over 30 million U.S. households own insurance policies that are seriously out-of-date. As a result, the following questions should be asked. If the answer to one or more of these questions is yes, then you should contact your insurance agent as soon as possible so your insurance policies can be appropriately updated.

• Has your house undergone major renovations or improvements? If so, your home may be underinsured.
• Has your marital status changed? If you have married, for example, you may now qualify for a multi-car discount on your auto insurance.
• Have you purchased new valuables or collectibles? If so, you may be seriously underinsured for these items. Specialty policies or endorsements can properly cover them.
• Are you now participating in a carpool? If so, your exposure to injuring passengers has grown and your liability limits may need to be increased.
• Are you now retired? If so, your auto insurance premium will likely drop since your annual mileage should decrease.
• Have you added a burglar alarm with central station reporting for your home? If so, you could qualify for a homeowner's premium discount.

For questions about renewing your homeowner's policy, please call Hunter Insurance at (401) 769-9500.

Is Pet Insurance Really Necessary?

Veterinary bills are increasing much faster than the overall rate of inflation. Part of this reason lies in the advancements of medical techniques and the increasing number of veterinarian specialists. These trends, however, come at a price. Performing a magnetic resonance imaging (MRI) exam on the spine of a cat can cost $1,300. Removing a tumor on a dog can cost $3,700 and implanting a pacemaker can cost $5,500. Even dealing with a dislocated ankle can cost up-wards of $5,000. As a result, pet insurance sales are increasing rapidly. Is this a wise purchase? If the answer to any of the questions below is yes, you should seriously consider purchasing this coverage.

• Are you willing to go into debt to provide health care for your pet?
• Do you consider your pet an integral member of the family?
• Are you on a fixed or limited income?
• Would you be willing to spend over $4,000 to save your pet in a life-threatening situation?

If you decide to purchase this protection, you should carefully compare the rates and policy pro-visions of at least three well-established pet insurers. Call your independent insurance agent at Hunter Insurance Agency at (401) 769-9500 if you would like to discuss this type of coverage.

Protection Against Auto Theft

Every 26 seconds, a motor vehicle is stolen in the United States. According to the FBI, there are over 1.2 million motor vehicles stolen every year. The odds of a vehicle being stolen are 1 in 190, odds that are especially higher in urban areas. The following tips may prove helpful in reducing the chances that your vehicle or property in it may be stolen.

● When temporarily leaving your vehicle, never leave it running or with the keys in the ignition.

● Always lock your car and roll up the windows, even if it is in your driveway. If you have a garage, park your car in it and close and lock the garage door.

● Park in busy, well-lit areas.

● When purchasing auto stereo equipment, choose items that can be removed and locked in the trunk.

● When using valet parking or taking your car in for repairs, leave only the ignition key with the attendant.

● Turn your wheels sharply toward the curb when parking since this makes it extra difficult for thieves to tow the vehicle. Always use your emergency brake and leave the transmission in park or in gear.

● Look into various anti-theft devices for your auto. Ask about auto insurance discounts for anti-theft devices such as alarms, window etchings, and anti-hot-wiring products.

Potential Coverage Gap from Domestic Employees’ Owned Autos

If you have a domestic employee, such as a gardener, housekeeper, or nanny, who drives his or her own auto while working for you, there is a potential for you to incur liability arising from their driving that would not be adequately insured. If your employee negligently causes an accident, you as the employer can be drawn into the lawsuit and held liable. Your employee’s own insurance, if any, will protect you up to its policy limits, but you are on your own after that. And your personal auto policy may not respond to cover the difference. The courts have ruled in different ways on these types of loss situations.

For example, assume your housekeeper negligently injures someone in a serious accident in her own vehicle while out buying groceries for your household. Further assume she has low liability limits or even no auto liability insurance. If she is sued, the injured party may uncover information about you, her employer, and how her driving in this incident was related to her employment with you. As a result, your “deep pockets” may just get you named in the lawsuit.

If you engage domestic employees or contract workers who may drive their vehicles in their work for you, the following tips may prove helpful.

• Ask any employees or prospective employees to provide you a current copy of their driving record. The employee can order this online through http://www.dmv.org/driving-record.php. If they do not have a good driving history, do not allow them to run errands for you.
• If the domestic employee has a good driving record and you ask her to occasionally use her own car to run errands, ask for a copy of her current auto policy and verify that it has at least moderate liability limits.
• Ask your insurance agent to confirm with your auto insurance company underwriter that your PAP policy will provide a defense and cover judgments in excess of your employee’s limits if you are ever named in one of these suits. If possible, get a copy of a letter from the underwriter.
• If the domestic employee has an excellent driving record and a sterling employment history with you, consider having her use your auto to run errands to avoid any question that your PAP will protect you if she negligently causes an accident while working for you.
• Periodically review your employee’s driving record and auto insurance policy.
• Consider procuring a personal umbrella policy that will normally provide coverage on top of your PAP. However, if the loss is not covered under your auto policy but is covered under the umbrella form, you would only be responsible for the retained limit or deductible amount, which ranges from $250 to $1,000.

Pitfalls of Purchasing Travel Insurance Online

If you are planning your family's winter vacation, you may want to consider vacation-related losses. Travel insurance can be purchased to cover this potentially large exposure. It is designed to protect an insured from a wide variety of travel-related losses, including trip cancellation or interruption, emergency medical events, emergency evacuation, lost or delayed baggage, personal effects, lost or stolen passports and visas, and legal expenses. This coverage is increasingly purchased through the Internet.

The following are some helpful tips to review when considering the purchase of travel insurance online.

• When you purchase travel insurance online, determine if you will immediately receive a policy number along with a printable copy of your policy documentation. Some Web sites are not fully automated and cannot complete your purchase. However, they make it look like they can. If you do not receive an immediate policy number, then you have ordered from a Web site that simply holds your data until an operator manually types your order onto the insurer’s Web site. If this happens to you, cancel the policy. An agent is required by law to give you a full refund (minus a small administration fee of around $5) within 10 days of your purchase. The practice of manually typing orders is less than ideal because there are many potential problems with security, typing errors, and privacy.
• Is the agent affiliated with the insurance company? Call the insurance company to check if the agent you are using is, in fact, one of their representatives. Some Web sites sell policies for insurers even though they are not agents.
• Does the Web site list each plan (with slight distinctions) several times? Some Web sites list each plan multiple times because they lack the technology to allow options to be selected by the user. Unfortunately, this makes comparing policies very confusing because you are presented with a single plan several times, each with only minor differences.
• Avoid Web sites you access via spam because these are often disreputable. A better way of finding established and reputable Web sites is to utilize search engines that link you to the travel insurance Web site or to ask friends or family if they have had excellent experiences with any online travel insurance services.

If you would like more information about vacation insurance, please contact Hunter Insurance at (401) 769-9500.