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We Have a Great Opportunity. With the holidays quickly closing in I have a hard deadline to meet. My client needed his insurance program put together and bound by Thanksgiving. After that he was too busy to discuss insurance. Named Insured was Santa Claus. I still need to determine the type of entity we need to insure. Is this an LLC, C Corp, or a partnership? If other entities are involved, we need all the details for the correct named insureds. Property coverage is for a workshop / office / transportation hub at the North Pole. Given the scope of manufacturing described this would be a significant property exposure. There may be a wide range of special hazards and the need for special extinguishing systems. Given the location at the North Pole we need details on building construction and heating system. High winds may make a roof review important. How accessible is this location? The risk described his primary transportation as a sleigh. Is the fire department available to respond? Construction class, building size and private protection would be important. Contents coverage will be a challenge to quantify. There seems to a steady buildup of values until late December when the inventory is suddenly depleted. Perhaps a reporting form with a peak season endorsement is needed. Storage arrays and protection will be critical to understand. Business income is a head scratcher. Santa says he does not sell the goods but gives them away. Somehow there must be an income stream to pay for this. We need to do some serious research to define the incoming revenues to define the business income limit and exposure. Give the remote location, I expect that a mechanical breakdown policy is needed for heating, power generation and other utilities. The risk has a data center of some sort, so coverage for those equipment exposures is needed. The general liability is different. Santa maintains that there are few if any visitors to his homebase. He travels extensively and meets his clients in retail settings during the last quarter of the year. He has a staff that lives on site called the “elves”. The “elves” manufacture the products that Santa distributes. We may have some type of residential habitational exposure to consider. The potential products list looks like an old Sears catalog. Products liability will be tough to place. The scope of the products is soup to nuts. The target customers are children, so we have a very sympathetic plaintiff. How the “elves” turn out so wide a range of products is unknown. We may have a significant distribution only exposure if Santa gets merchandise from others and simply delivers the goods. How much is delivered or drop shipped is an open question. Santa will need a good fleet policy to cover his delivery operations. I suspect there are at least eight power units. I could not find “Rudolph” in SAFER, so perhaps a DOT number would help with fleet underwriting. He was very proud of this part of his operation and all delivery operations may be very time compressed. What about driver fatigue and hours of service? The radius of operation of the deliveries is said to be worldwide. If this is true then, we need an ocean marine policy for the goods in transit overseas. Perhaps an ocean marine throughput policy may be best to package the real property at the North Pole and the goods in transit across the globe. If there are more delivery outlets than Rudolph, we need to consider transit coverage or verifying that carriers have adequate limits for their motor truck cargo legal liability. Santa says he delivers the goods and installs some of them. He mentioned something about chimneys, but I must have misunderstood him. All we need is a work at elevation exposure to scare off potential carriers. Depending on the installation work being performed, is an installation floater required? WC coverage is reported to be needed in all states. We may need to manage the four monopolistic states and getting the remainder covered will require a carrier with a lot of WC reach. I was not clear if the international workforce who delivers is our own staff or subcontractors. If subs, we need to do the employment test to verify that WC does not apply. We should ask for an NCCI EMR worksheet. Cyber is a big issue for this risk. Santa reports that he maintains a list of all the children and separates them into good and bad categories. This suggests a lot of PII around children and we need to have strong cyber controls. It was not clear of the data is maintained at the North Pole or in a cloud. Would the separation be a source of potential discrimination claims? I only got bits and pieces of this operation over the open bar at the Chamber luncheon. I am trying to get back in front of the client this week to start gathering data. This could be a big revenue account. The Driehaus Difference We want everyone to enjoy their holidays. We share these safety tips and suggestions so you can have the best experience and with the least risk. Call us with your insurance questions or needs. We look forward to hearing from you Call us at 513-977-686 0 or contact us via our website, driehausins.com  to discuss your needs. We want to be your insurance provider.

Most businesses have cyber security protection for their laptops and desktop computers. There are two points of entry into your network that may not get the attention they deserve. Copiers and Printers A common office machine that can print, scan copy and fax is extremely useful. This machine can be shared by multiple users, including remote users. It can stage multiple print jobs and have a print queue when it is busy. The connection to a network and internal data storage make this a workhorse in the office. These features strongly resemble a computer, but many cyber security plans do not treat copiers as a threat. Network Connections If your copier is shared by multiple users and is not connected by dedicated printer cables, it must be connected to your network. As a network point, it has the ability to send and receive data to you. This ability can be exploited if the network connection is not protected with a security system and if access is not controlled. Leaving the printer open for guests to print opens your network to those guests. With WI-FI being the preferred network connection, your WI FI can be accessed outside of your premises by a hacker. You should treat the printer as a workstation and require the same level of access control for this tool as you would a workstation. If you allow guests to use your printer, enforce guest passwords that change routine to maintain an acceptable level of security. Be sure USB connections to the printer are scanned for malware and viruses before allowing use. Conference Room Presentation Systems The convenience of simply plugging in and projecting data is another often-overlooked cyber threat. Instead of a single user connecting directly to the screen with a cable, a network connected device allows easy screen sharing and multiple users to share upon demand. This means the system is connected to your network and can send and receive data. The same issues with your copier also impact on a network connected screen sharing system. Some standalone projectors have onboard memory to allow a presentation to be loaded or a streaming service to buffer to allow a more stable experience. This data will remain onboard the device unless you proactively remove the data. The next user can access your data. This is a particular exposure for shared conference rooms. Projection options that accept a USB flash drive also have the potential to load malware into your system. Strict controls on USB ports should be part of your cyber security program. Requiring the USB drive to be scanned by your security software before use is sound security control. No Good Deed Goes Unpunished When your technology reaches the end of its useful life in your environment, it may be a working tool for someone else. You may also want to avoid the environmental aspects of technology disposal. Donating equipment to non-profits, schools and other groups seems to be a good deed. Any equipment that leaves your control must be cleared of any data. Do not rely on the “format” commands to clear memory devices. There are commonly available utility programs designed to recover data on storage devices. Many security software platforms offer data destruction or shredding programs. These programs rewrite the storage media with random data that prevents retrieval of your data. Your current security software likely has this function. Use it on all equipment moving to another home. This includes equipment you may sell or give to employees. Cyber Liability is Real If a customer’s data is compromised by a security breach or lapse at your company, you can be held liable for damage. The damage can be to real property by malware or reputational damage from data release. You may be required to offer identity theft protection and credit monitoring to affected people and businesses. You need adequate insurance coverage for this exposure. Cyber threats are no longer limited to big business. Anyone with an internet connection is at risk. A major cyber liability broker, AMWINS, estimates the average ransomware attacks costs a small business $262,000 excluding ramson payment. The average social engineering attack costs over $123,000. The Driehaus Difference We have multiple cyber liability options for any business. Our companies can offer limits that will meet your needs. Cyber policies offer restoration and response services to help you manage a cyber incident and limit downstream damage. This service is worth the cost of the coverage. We can help you with your cyber liability exposure and coverage. Call us at 513-977-6860 or reach out to use on our website, www.driehausins.com We want to be your insurance provider.

With the start of the holiday season there are safety and risk management considerations that will prevent you getting a lump of coal in your risk management stocking.   Lighted decorations  Everyone enjoys a festive light display. If you are creating your light show, keep these safety issues in mind. The lights you use should be UL listed for the location of use. Check to see that your lights are listed for outdoor use. Many low-cost lighting products that are not UL listed appear every year in stores and online. This is a buyer beware situation. See our article on Product Listings for more information Look for electrical devices listed as waterproof or suitable for wet locations. When attaching lights or other decorations to the building, remember to “Do No Harm.” There are clips and brackets that allow attachment of decorations to gutters and roofs that will not create a leak or damage the integrity of the roof covering. If you are working at heights to attach decorations, use the proper ladder and set it up properly. If the outlet for your decorations is not already Ground Fault Circuit Interrupter (GFCI) protected, add a portable GFCI to the circuit. Keep the plugs and connections dry and off the ground. This will keep the GFCI from tripping.   Holiday Parties You can take simple precautions to assure a happy ending to your celebrations. See our article on liquor liability  for more information. Christmas Trees  If you use a natural tree, make sure to follow these guidelines for safety. If you have never seen a dry Christmas tree fire, they are devasting. This video from the National Fire Protection Association is a great safety review. Christmas Tree Fire Safety Cut the base of the tree to expose fresh wood. This will allow the tree to absorb water. Keep the tree base in fresh water at all times. Refresh the water daily. Secure the tree in a stand to prevent tipping or falling. If the tree starts dropping needles, it is too dry and should be removed. Candles Candle fire frequency peaks in December. The NFPA  reports 12% of fires in December are related to candles versus 4% in other months. Candles should be used only when you are present to monitor and supervise. Do not let candles burn unattended. Use a sturdy candle holder that will not tip over. Keep candles at least 12 inches from any combustible material. Consider using flameless candles. They look and smell like the real thing.   Cooking Cooking is the leading cause of fires in homes. We had a prior article on cooking safety that offers  guidance. If you choose to deep fry your turkey, please take these precautions. Deep frying turkeys should be done outside the building. The deep fryer should be on a noncombustible surface. Test the level of oil needed before heating. A boil over can create a severe hazard. Have a fire extinguisher available for an emergency. Keep children away from the fryer. The Driehaus Difference We want everyone to enjoy their holidays. We share these safety tips and suggestions so you can have the best experience and with the least risk. Call us with your insurance questions or needs. We look forward to hearing from you by phone at 513-977-6860 or on the internet at www.driehausins.com

Your insurance company may request that Verisk, formerly ISO, come out to your property and conduct a survey to establish the base loss costs for your property. While many carriers say they do not use the Verisk loss costs, they do use the data collected during this process. Inaccurate data can lead to incorrect construction classifications and no sprinkler credits given. This information will persist until another insurance company orders and pays for a new survey. Your property insurance premiums can be affected by the bad information for years. Preparing for a Verisk Rate Survey Verisk will call and request an appointment. If you do not return the call or schedule the appointment, they will cancel the survey. The requesting company will be notified that you declined to schedule the survey. This may not be in your best interest. When the representative arrives, it is essential that you have the right materials immediately at hand. The following should be assembled for review by the Verisk representative. Have all materials ready to show to the representative. Building Construction Documentation Code Summary Page from the construction drawings – Will have square footage, construction type and indication of fire resistance ratings on structural members If you do not have building plans, have this information assembled and ready to share If built in stages, have ages of each addition, square footage of each Site plan showing building, and underground water supply for sprinklers Exterior wall construction – materials and cut sheets for siding or other cladding materials besides masonry or wood. Is the exterior cladding combustible? Roof structural supports and roof covering – cut sheet on roofing materials – any fire resistance rating for the roof structure or covering? Floor construction – any fire rated construction on floor/ceiling assemblies? Vertical openings – fire ratings on any vertical opening shafts and doors Diagram showing location of fire rated walls. Can reduce ratable area of building. Details on wall construction, door ratings – identify if fire walls terminate against noncombustible or masonry ceilings. Is the attic space combustible? Any use besides joist channels? If so, are the sprinklers installed? Is the attic area subdivided in any fashion. Any interior finishes that would be considered combustible finishes? Sprinkler System Documentation Copy of sprinkler system plans – including specific data on the sprinkler heads used Copy of hydraulic calculations including water supply data Be sure the placard is up to date on the riser Fire department connection provided, caps in place Documented water flow alarm – local if not monitored by remote station or better alarm service Copy of Underground Testing and Flushing certificate Copy of Aboveground testing certificate 2” drain test results – have tags on the riser or hard copy inspection reports Documentation of any five-year testing done on your sprinkler system Why bother with all of this? Insurance is driven by data. If you do not provide the correct information when given the chance, the default values used by the insurance industry are values that generate the highest premiums. Verisk loss costs may not be the basis of your rate, but the data gathered during this process is used across the industry. Having your noncombustible building rated as frame from lack of information about the insulated panels will persist and cost you money. Lack of sprinkler system information will have your building listed as being non-sprinklered. Having the right information ready for the representative of Verisk will prevent this from happening. The Driehaus Difference We clearly understand this process and how to get the best result for our clients. We have helped numerous clients correct data errors and allow them to reap the benefits of accurate property rating information. This is more than just shopping your insurance program. It is managing your insurance program. Call 513-977-6860 or reach us via our website, www.driehausins.com . We want to be your insurance provider.

The OSHA standard for Hazard Communication - 1910.1200 entered the business world in 1983 for manufacturing and was expanded to all industries in 1987. The standard was updated in 2012 and again in 2024 to align the OSHA standard with a Globally Harmonized System of Classification and Labeling (GHS). The term Materials Safety Data Sheet (MSDS) was replaced with the Safety Data Sheet (SDS).   How Hazard Communication Works The fundamental elements of the standard require that the employer conduct an inventory of chemicals in the workplace and document the hazards related to those chemicals. The standard called for all containers to be labeled with hazard information and that all employees be trained in the hazard recognition process in use. Employees were also to have access to the MSDS for chemicals in use at their workplace. The chemical industry originally developed MSDS sheets to meet this standard. The difficulty was that no consistent standard existed for the MSDS. While the standard required certain information, the placement of that information was inconsistent. This made the use of MSDS in an emergency a challenge.   Labeling was a second challenge. You could not attach a multi-page MSDS to each container, so a number of systems evolved for numerical hazard ratings. While the systems looked alike, the definitions of the hazard ratings were inconsistent. . Global Harmonization In 2012 OSHA agreed to adopt GHS as the basis for hazard communication. The GHS had a standard for communicating hazard s and their SDS sheets became the required tool. The SDS has 16 sections. 1.   Identification:  Includes the chemical name, recommended uses, and supplier contact information.  2. Hazard(s) identification : Describes the hazards of the chemical, including physical hazards, health hazards, and environmental hazards, along with warning information.  3. Composition/information on ingredients : Lists the ingredients of the chemical, their concentrations, and other relevant information.  4. First-aid measures : Provides guidance on what to do if someone is exposed to the chemical, including first aid procedures.  5. Firefighting measures:  Details on how to extinguish fires involving the chemical and what hazards might be present.  6. Accidental release measures:  Outlines procedures for dealing with spills or leaks, including containment and cleanup methods.  7. Handling and storage:  Provides instructions on how to handle and store the chemical safely, including precautions for safe handling and storage.  8. Exposure controls/personal protection:  Specifies exposure limits, engineering controls, and personal protective equipment (PPE) required to minimize exposure to the chemical.  9. Physical and chemical properties : Describes the physical and chemical characteristics of the chemical, such as boiling point, melting point, and solubility.  10. Stability and reactivity:  Explains the stability of the chemical and what conditions or substances might cause it to react dangerously.  11. Toxicological information:  Provides information about the health effects of exposure to the chemical, including routes of exposure, acute and chronic health effects, and other toxicological data.  12. Ecological information:  Describes the environmental impact of the chemical, including its potential to harm the environment and guidance on how to minimize its environmental impact.  13. Disposal considerations:  Provides information on how to properly dispose of the chemical and any associated waste.  14. Transport information:  Includes information relevant to the transportation of the chemical, such as hazard class, packing group, and other transport regulations.  15. Regulatory information : Lists any regulatory requirements that apply to the chemical, such as environmental regulations or other safety regulations.  16. Other information : Includes any other relevant information about the chemical, such as the date of preparation or revision of the SDS.    Why is this Important? Beyond the regulatory requirements, SDS sheets can be invaluable in employee safety and health. By clearly identifying the health and safety impacts of chemicals, the employer and employees can make informed choices. The data being in a consistent format allows immediate retrieval of needed facts in an emergency. The use of standard warning words and pictograms allow faster recognition of hazards. The Driehaus Difference We can help our clients build an effective Hazard Communication program. Involving both insurance carriers’ resources as well as OSHA resources to bring clarity to an issue that is effective at improving safety is a positive outcome for all involved. We want to help you solve risk management questions and be your insurance provider. Call us at 513-977-6860 or contact us on the internet at www.driehausins.com

Lithium-ion batteries store a lot of energy in a small place. These batteries can overheat, start a fire, or explode if overcharged or damaged. By learning how to BUY , CHARGE , and RECYCLE these batteries safely, you can help prevent a fire in your home. Continue to read on for more safety information. You can call us at 513-977-6860 or contact us via our website at www.driehausins.com  We look forward to helping you with your insurance needs.

Contractors’ equipment (CE) insurance is designed to insure machinery, equipment and tools of a mobile nature that may be away from your locations listed on a property policy. The definition of contractor’s equipment also includes the vehicles that are primarily used to carry mounted equipment and vehicles that may be designed for highway use but are not licensed and not operated on public roads. This coverage is useful for any business that has tools and equipment that may be away from the locations listed on your property insurance. It can also be used to provide physical damage coverage to specialty vehicles such as cranes, concrete pumps, and other special construction vehicles. The policy can offer a method for physical damage for off road vehicles. For businesses that have this exposure and have included this equipment as contents values, you may want to explore if a CE policy would offer broader off-premises coverage and a more competitive rate than contents. Equipment Schedule The policy depends on the schedule of equipment. The schedule may be attached to the policy and made part of the agreement, or it can be a “schedule on file.” This is an important distinction as a scheduled equipment policy covers only those items on the schedule. The “schedule on file” option allows some additional flexibility as it can cover equipment in your “care, custody and control” which could be leased or rented equipment. It may also allow you to update the schedule during the policy period. Valuation The standard valuation for most CE policies is Actual Cash Value (ACV) which is the value of your equipment with age, condition and depreciation considered. You may request Replacement Cost (RC) which does not include depreciation in the valuation. While some would say that RC is new for old, most policies limit your recovery to the amount scheduled for that item. If you want true RC coverage, you must insure RC values. Additional Coverages Most carriers have multiple CE forms, and they change the additional coverages built into the form. Debris removal  may be a flat dollar amount or a percentage of the value of the item in question. If your jobsites are very remote or waterborne you may need additional debris removal dollars to recover a damaged piece of equipment. Leased and rented equipment coverage is often needed. If not included, you need to endorse the policy for this coverage. If you loan equipment to others , you need to cover this exposure in the event the other party lacks coverage. Fraud and deceit coverage  would protect you against fraud that causes you to lose equipment. There are specific coverage limits for waterborne equipment  to cover values in this environment. Other coverages that may be included or endorsed to the policy: Construction trailers – Employee tools – Fire department service charge – New purchased property (subject to a time limitation) – pollutant cleanup – Fire extinguisher recharge – Rental reimbursement- Stolen equipment reward – Spare parts and fuel Risk Management – Theft prevention National Equipment Register (NER)– There is no standard format for CE serial numbers, so law enforcement does not have a good way to identify stolen equipment. NER offers a registration service for your equipment and can alert law enforcement if it is stolen. www.ner.net Good serial number and equipment schedule data. If you cannot accurately report the year, make model and serial number of a stolen item, you may have a challenge settling the claim for this undefined item. You will not be able to offer police the data needed to identify your property. Equipment location services may be built into your newer equipment. There are many vendors offering GPS location devices for equipment. Equipment ID via paint and colors. The default equipment color is yellow and that makes stopping equipment in transit unworkable for law enforcement. Having a distinctive color scheme or logo will aid in equipment identification. Unique keys for the equipment. You can order a ring of standard CE keys online. Changing the ignition on your equipment will make it harder to steal. The Driehaus Difference We have access to multiple markets for your CE exposures. We can help with risk management tips and improving your schedules and equipment data to make your policy stronger and make a recovery possible. Call 513-977-6860 or use our web site tools to contact us. We want to be your insurance provider.

Lithium-ion batteries are the power source for most portable devices and electric vehicles. The technology allows for a powerful power source in a smaller package. Lighter weight and greater power have made lithium-ion the battery of choice. There is a downside to these batteries. They present a unique fire hazard that is hard to manage and a fire that is difficult to control. Battery Chemistry and Hazard A lithium-ion battery structure has an anode, and a cathode as does any battery. The passage of the lithium-ions between these two materials generates an electrical charge. The properties of lithium-ion batteries allows superior power versus prior battery types. The flow of ions is in one direction when discharging and powering a device and the opposite direction when the battery is charging. The passage of these ions is done in an electrolyte solution that is commonly an organic solvent. The basic chemistry of the materials provides carbon,which is a fuel, oxygen contained in the anode and cathode materials and the electrolyte may be a flammable or combustible liquid. All of the ingredients for a sustained fire are present. When there is damage to the cell or the onboard electronics that manage the charging and discharging fail, the battery can enter a runaway chemical reaction that leads to an explosion or fire. Since all of the materials needed for combustion are present, the reaction is self-sustaining. The fire can be difficult to extinguish and reignites after it appears to be extinguished. Fire protection methods for this hazard are still being developed. Clean agent and heavy sprinkler discharges have not been effective. Lithium-Ion batteries are probably in your pocket (smartphone), on your desk (laptop), in your car (EV), in the mail (musical greeting cards) and possibly in your home or office building as an energy storage system for wind or solar power or an uninterruptible power supply for critical equipment. You cannot ignore this hazard. What to Do about this hazard The batteries become hazardous when they are physically damaged. Original testing by UL was “blunt nail test” to see if the cell was strong enough to resist physical damage. The second scenario is when the onboard circuitry that manages charging and discharging fails. Both of these hazards are manageable. UL testing and listing addresses both of these issues in manufacturing of the battery. Purchasing Controls Buy devices and batteries that are UL Listed and from a reputable source. The market is full of unlisted cells that are cheap and therefore popular. You get what you pay for, so be a wise shopper when introducing this hazard into your life or home. Our article on Product Listings helps explain how these listings can be helpful in getting safe products Charging and Discharging Use the charger and cable that comes with your device. It is rated at the correct voltage and power output for the battery pack. If you are using other cables and charging devices make sure those devices and cables are UL listed. With the proliferation of USB charging systems, the quality of the cable becomes a paramount concern. Check the USB charger for a UL listing mark. Do not alter the cell arrangement to increase power output. Connecting cells in series to increase voltage or capacity is outside the original design of the battery and may cause a failure. Storage Since lithium-ion batteries can retain a charge for a long period, treat any battery as a charged battery. Do not allow battery terminals to contact one another or a grounded surface. Lithium-ion batteries are shipped in protective sleeves or packages to keep the terminals from contacting each other. Use this same method to store batteries. For devices with large batteries such as electric bikes and scooters, consider storing them in an area that is cut off from the balance of your facility with fire resistant construction and have fire detection equipment in this area. Prompt notification of a fire and the time purchased with fire resistant construction can make a difference in a fire event. Disposal Do not assume that the lithium-ion battery is dead. It can still retain energy and disposing of this type of battery where it could contact another battery or grounded surface can create a fire Do not throw lithium-ion batteries into the trash. When the trash is compacted or processed the cells can be damaged and start a fire. This is becoming more frequent in landfills, trash trucks and recycling centers. The best way to dispose of lithium-ion batteries is at a recyclin g point. There are disposal points that accept lithium batteries. Check https://www.call2recycle.org/  for a local disposal site. Many Home Depot, Lowes and Staples stores participate in this program. Before depositing the batteries in a recycle bin, apply tape over the terminals to prevent contact. The Driehaus Difference As fire experience data with these batteries and their devices continues to accumulate, there may be changes in building and safety codes to regulate this hazard. Every major code organizations has a project on lithium-ion batteries in process. We also expect to see property insurers take notice of this new hazard. We follow these emerging trends so we can offer our clients sound risk management advice. Reach out to us for assistance and advice on your insurance and risk management programs. You can call us at 513-977-6860 or contact us via our website at www.driehauins.com We look forward to helping you with your insurance needs.

While parents focus on getting their children ready for school with new supplies, clothing and technology, they may be missing the need for insurance policy changes. School residency should include a renters’ policy Establishing a new home at school is more than getting a new microwave and mini fridge. With a new residence there are exposures to loss from fire, theft and natural hazards that need your attention.   Along with real property losses, the new location away from the main residence brings liability concerns. Injuries to visitors can give rise to a liability claim.  Activities can cause property damage or injury to others. Without a liability policy that covers this location, you may be left without any protection from a loss.   Many college residency agreements and most leases require a policy to be in place and the property owner be named as an additional insured. Failing to do this leaves you in breach of the contract you signed and can cause other legal issues for your family.   A renters’ insurance policy is a cost effective method to manage this exposure . Education related travel  Some programs have international trips and foreign study as part of the curriculum. Don't forget a spring break trip abroad as well. If your student is going to be traveling outside the United States, consider obtaining a travel insurance policy for the duration of the trip. These policies can extend health insurance, cover medical transportation expenses, offer auto liability coverage, trip interruption, baggage insurance and contain provisions for kidnap and ransom.  Most domestic insurance program coverage areas are limited to the United States. Some schools and organizations will obtain travel insurance. If this is the case, get a sample policy for review. Where is the car parked? When your student moves to a new school, they will probably take their car with them. Auto insurance uses the garaging location of the vehicle as a rating factor.  If the new garaging location would have generated more premium, the auto insurer may dispute coverage. The nominal costs incurred with most garaging changes pale in comparison a claim for a severe accident being denied based on inaccurate garage location.   Technology Values  Many renters’ or homeowners’ policies have a sublimit for off premises coverage for electronics.  Check your policy or the proposed policy and compare those sub-limits to the value of the electronics going to school.  Raising these coverage limits is generally a very inexpensive change. The Driehaus Difference We want to reduce the stress of back to school by helping you update your insurance program to reflect these changes in your life. Call us to discuss your needs and the solutions we have to provide the best insurance program for you. Reach out to use at 513-977-6860 or use any of the contact tools on our website, www.driehausins.com We want to be your insurance provider.

There was a time when you had one deductible for your insurance. You knew that this was the amount that you would pay in settling a claim. There were established discounts for raising that deductible and as your risk tolerance increased, your premium decreased. Those days are gone, and your latest insurance policy may have a number of different deductibles. Deductibles have evolved into a tool for exposure and risk management for policyholders and insurance companies. Wind and Hail Deductible Most personal lines and commercial property insurance policies now have a separate wind and hail deductible. This can be a set dollar amount or a percentage deductible. The percentage is not a percentage of the claim, but the percentage of the building value. Since roofing represents an average of 3% to 5% of the value of a building, a 2% deductible is significant. Earthquake / Earth Movement Deductible This line of business has commonly used a fixed dollar amount or a percentage deductible. The percentage deductible of 5% to 20% is common and must be evaluated in terms of your values. A common loss anticipated in our area is damage to brick veneer on frame structures. The cost of brick veneer averages between 7% and 10% of the property value, so this deductible may leave you with a substantial cost. The deductible applied increases as your seismic exposure increases. Flood / Water Damage Deductible Flood insurance carriers generally offer premium discounts for higher deductibles. Premiums increase with your exposure and the use of FEMA flood maps are a common tool for exposure determination.  Knowing your property elevation data is crucial to managing the cost of flood insurance. Making sure the flood determination is accurate is a key question for your insurance provider. As more insurance companies use third party services, address accuracy and geocoding are critical to this process. Property Deductible Risk Management The first step in deductible management is to know the dollars at risk. Having accurate property valuations will allow you to model the deductible amounts.  Determine if the deductible is a per occurrence deductible, so one deductible applies to the entire event versus a per building deductible. A per event or per occurrence deductible is easier to understand and manage.   Stop Loss for Deductibles For a deductible per building policy, you need accurate property values, and an estimate of how many properties could be exposed to the same event. You need to model the different locations for loss estimates for different perils.   For a schedule of values with multiple locations subject to a single event, the per building deductible can be a very large number. You may consider asking to negotiate a stop loss that would cap the deductible at a certain figure. This allows you to limit your loss exposure to a catastrophe event.  A stop loss value can be negotiated to limit the single event number to a known value.   Deductible Buy Back Insurance Ironically since one market is requiring the deductible, another market is growing to cover the deductible itself and buy back the dollars.  For large property exposures this can be a good risk management tool. Deductible buyback programs exist for wind, hail, flood and earthquake perils. Coupling a stop loss with a buyback is an effective tool for risk management. Liability Deductibles General liability policies may come with a deductible for liability losses. This can be to control loss frequency or to encourage risk management activities by the policy holder. This can also be expressed as Self-Insured Retention (SIR), where the insured manages their own claims to a certain value. An SIR is common in captive insurance programs and may be required for some excess liability policies. SIR is common in professional risk such as Errors and Omissions, Employment Practices and Executive Risk, Directors and Officers policies. Cyber liability policies may also include SIR.   There is an important difference between deductible and SIR. With a deductible the insurance company handles the loss adjustment process from day one. With SIR in place, the policyholder must manage the claim until the SIR limit is reached. You should consider how you will handle a claim if your policies include a significant SIR. Workers’ Compensation Deductibles Employers may opt for a deductible for small workers compensation claims as a management tool for their experience modification rate (EMR). This is a decision that is reached via careful loss analysis and modeling of EMR impacts. It is generally a choice made by the customer, not the insurance company. Some insurance companies will not offer this program as they are concerned with delays in claim reporting. Auto Deductibles Most people are familiar with deductibles for comprehensive and collisions insurance. It is possible to have vehicle specific deductibles to address either older or high value / high performance vehicles. This can be a good risk management tool for vehicle schedules with multiple units.   Similar to a general liability deductible you may see a liability deductible for auto. This is not a common tool, and many insurance companies decline to offer this as they want to avoid any delay in claim reporting. The Driehaus Difference Our understanding of coverages, insurance forms and market appetite make us agile in evaluating how a deductible can impact your cost of risk.  The day of higher deductible equals lower premium has given way to insurers using deductible to address their loss exposure. You need an insurance agent that can see through the numbers to help you make an informed choice. Call 513-977-6860 or contact us via our website, www.driehausins.com  to discuss your needs. We want to be your insurance provider.

In the world of “only pay for what you need”, shopping for insurance has taken on a new feel. The decision making about coverages and limits are now placed in the hands of the buyer. While this does lead to the buyer having the power to choose, it can be a difficult set of choices if you do not understand some of the differences in products offered by the insurance industry. Insurance is a not a “one size fits all” product. Different customers have different needs and different exposures have different treatments. We will take a look at homeowners’ insurance to highlights some of the choices available to you. This commentary is based on ISO forms. Individual companies may offer their own versions of homeowners policies, but the fundamental differences will remain. The titles of the forms are not descriptive. Many people expect the broad form to be better than the special form. The language is not intuitive. To appreciate the differences in these forms you need to understand the difference between a named perils and open perils insurance form. Without this context, you cannot make an informed choice as to what you need. Named Perils – policies using this type of coverage trigger include a list or descriptions of the perils that are intended to be covered by the policy. The insured party has the burden of proof to show that the loss was caused by one of the stated perils and is covered. Different policies may have different perils named. You need to evaluate the specific form to be sure you have the coverage you need. Open Perils - these policies take the opposite approach of named perils. The insurer describes or lists the perils that are not covered . The burden of proof at time of loss lies with the insurer to prove that coverage does not apply. It is still important to review the excluded perils on these forms to see if you have the coverage you need. The policies were once referred to as “all risk” coverage. That language is no longer used as it was found to be misleading. The differences in the policy forms become clearer when you understand the structure of the coverage. This also sets the stage for how you would approach a claim under these policies. If this is new information to you, do not feel bad. You will not find this level of detail on the web sites that want you to buy insurance directly. The insurance policy is a contract between you and the insurance company. In exchange for your paying the premium, the insurance company is obligated to provide the coverage in the form. You need to know the language of the form to evaluate what perils are either covered or excluded. The challenge is that you do not get the form until you purchase the policy. Most carrier web sites have FAQ sections, but they do not offer a copy of the form. As a result, you may find making the above suggested coverage comparisons a challenge. This discussion did not touch on the wide range of variables on deductibles, valuation terms and the endorsements that are available to tailor coverage to your situation. We know that you have a limit on your desire to read about insurance. Broadening Endorsements - Most insurance companies will offer a number of additional coverages on their policy. This broadening endorsement serves several purposes. It allows the main policy language to remain in place. Since this language has been litigated numerous times, this is an advantage for the insurance company. It offers the insurance company a way to respond to market changes and requests to add coverage. With service line and home warranty policies being widely marketed, the company can add coverage for mechanical breakdown and service lines to their products . The endorsements also allow companies to limit their exposure to some perils that are concerning. By adding a modest amount of coverage for backup of sewer and drains, the insurance company avoids litigation around excluding this peril. A small limit is easier to manage than the uncertainty of litigation. Read these endorsements carefully and request increases to limits when you feel the coverage offered is not adequate for your needs. The Driehaus Difference You have a busy life and may not want to take your time to uncover the definitions, policy terms and unique language of insurance contracts. You may not want to compare products from company to company. We have done this already. We want our clients to know the differences between forms and coverages. We can explain these to you and tell you why we suggest a carrier and the product from that carrier for you. We pride ourselves on our depth of insurance knowledge and experience. We want to use that knowledge to your advantage. Contact us by phone at 513-977-6860 or the internet at www.driehausins.com .

Every business uses cars or trucks to conduct their business. As auto accidents are the most frequent commercial insurance claim, you need to have a fleet safety policy to define expectations, set standards and have accountability for your results. This is an essential risk management tool. Vehicle use What is appropriate use of company owned vehicles? Do you allow personal use of the vehicles? If yes, then you are assuming a greater exposure to loss as the vehicle will be on the road more frequently. If you limit the usage to business use only, this must be clearly communicated to your employees. You can choose for either option, but the vehicle use should be clearly identified. This is not coverage issue for most auto policies, but a common underwriting question. Rules for vehicle use such as, no off road, no towing or other restrictions that you want to apply should be included in the vehicle use part of your fleet safety program. Authorized Drivers Who is an authorized driver? If you permit personal use of vehicles, are spouses or children permitted to use the company vehicle? Your insurance company will ask for a drivers list. Best practice is to maintain a drivers list that includes full name, date of birth, license number, state of issue and expiration date. This will allow you to alert drivers whose licenses may be ready to expire. In the COVID-19 era, some states stopped sending expiration notices to drivers. Some excess and surplus lines fleet insurance programs are driver specific. Having an outdated driver list for these policies can cause coverage gaps Motor Vehicle Records - MVR The driving history is a primary point of driver reviews and qualification for insurance purposes. It should also be a point of evaluation that the business owns and performs for itself. If you rely on your insurance agent or company to run MVRs for you, you are not managing your own exposures. The insurer may run all or a sample of the drivers’ data for motor vehicle record screening. Insurance companies and agents will not provide copies of MVR reports due to privacy laws. You should develop an MVR review standard and use that to qualify drivers. Having your own MVR standard allows you to establish expectations for behaviors and performance. It allows you to make objective decisions on driver qualification. Insurance carriers can offer sample driver qualification standards for you to use as a baseline. MVRS should be obtained before assigning driving duties and annually thereafter. For drivers that require DOT driver files, there is an annual requirement for a driver review that must be documented. Some insurance companies offer discounted driver surveillance services. These services monitor the motor vehicle record (MVR) of each enrolled driver. You get an alert of violations, expirations or any change to the license data. This may help any risk manage their driver list and know the status of drivers motor vehicle record. Not having established MVR standards can expose the employer to a claim of negligent entrustment. You gave a driver with a poor record access to a vehicle and a loss occurred. MVR Online access There is online access to MVR data for our local states. Ohio - https://bmvonline.dps.ohio.gov/ You can get a two-year MVR for free and a three-year MVR for a small fee. Kentucky - https://secure.kentucky.gov/dhronline This is a three-year record and costs $6.00 Indiana - https://www.in.gov/bmv/resources/driver-record/ You can view your record online or get a printed copy for $4.00 For employers who conduct background investigations, the MVR can be part of that process. Driver Qualifications For DOT regulated fleets there are medical evaluation requirements, reference checks and other driver qualification rules. Other non-regulated fleets may have experience requirements to be a qualified driver. These should be documented and communicated to your drivers. Vehicle Maintenance and Inspection Your policy should outline procedures for vehicle maintenance. The frequency and who will perform the services should be identified. Records of the vehicle maintenance should be maintained for each vehicle. For pool vehicles or units without a specific driver, make allowances for these vehicles to be inspected and maintained. Company vehicles should be inspected to verify condition and maintenance. This can also identify any unreported damage that has occurred. The inspections should be documented for each vehicle. There are DOT requirements for annual vehicle inspections by certified DOT providers that must be performed. DOT fleets also have the responsibility of performing pre-trip and post-trip inspections. Accident Reporting You should have a clear policy on accident reporting. Who is to be notified and when are police reports required? Accident kits with accident report templates are a valuable tool for helping a driver in this high stress time. Encourage cell phone photos of the accident scene and damage. Promptly reporting the claim to your insurance company will help the insurer manage the claim. DOT fleets are required to maintain an accident register for all accidents that meet DOT reportability standards. Defensive Driving Your fleet policy should endorse the concept of defensive driving and accident avoidance as a goal for your drivers. This seems like an obvious point, but it can be important in managing aggressive driver behavior that may be reported or observed. Insurance companies and multiple government agencies have materials on defensive driving that can be used as an ongoing messaging program for your drivers. Distracted Driving You need a clear policy that bans texting while driving and limits cell phone use while driving. Texting is simply too dangerous to consider a safe practice. Research has shown that hand-off cell phone use is not the panacea. The level of distraction from cell phone use is the intensity or complexity of the call. The best practice is to require drivers to focus their attention on driving and not allow texting or cell phone use. There are DOT regulations to this effect for DOT regulated fleets. Hired and Non Owned Vehicles Reimbursing employees to use their own vehicles for business does not mean you do not need a fleet safety plan. The driver qualification, MVR standards, accident reporting, vehicle inspections, defensive driving and distracted driving polices apply regardless of vehicle ownership. Driving is part of the employee responsibility, and you have a duty to manage that activity. The last level of risk management for hired and non-owned vehicles is having the owner prove they are carrying adequate levels of automobile insurance. You require minimum limits such as $100,000/ $300,000 limits as the minimum acceptable for your firm. This insulates you from minor events that occur. Telematics Technology offers fleet and business owners the ability to monitor vehicle use and driver behavior with ease and precision. Telematics can identify use patterns, operating areas and driver behaviors around speed, hard maneuvering, and driver distraction. Most insurance companies offer a discount for use of these services, and many have vendors aligned with their offerings. A good fleet safety plan that includes telematics has a higher success potential than one that does not leverage technology. The Driehaus Difference We understand the needs for business to have policies and procedures that support their overall operations and risk management plans. Ask us for help in reviewing or developing a fleet safety plan. Call us at 513-977-6860 or contact us via our web site at www.driehausins.com