http://www.smhins.com/index.php?do=/blog/ Latest Blogs http://www.smhins.com/index.php?do=/profile-4/blog/did-you-know-there-is-a-your-work-exclusion-in-cgl/ Commercial General Liability (CGL) Policy Exclusion (l) Damage To Your Work

Liability coverage is not a replacement for a warranty or a guaranty of ...]]> Commercial General Liability (CGL) Policy Exclusion (l) Damage To Your Work

Liability coverage is not a replacement for a warranty or a guaranty of the performance to be given to an insured’s client. It does not replace faulty work or products, but it does cover the Bodily Injury and Property Damage caused by the faulty work or products. The exclusion of faulty work often referred to as “your work”.

The Commercial General Liability Coverage Form CG 00 01 excludes coverage for property damage to the insured’s completed work.

Exclusion (l) Damage To Your Work states:

“Property damage” to “your work” arising out of it or any part of it and included in the “products-completed operations hazard”.

This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.

Claim Scenario:

A contractor remodeled an upstairs bathroom for one of his clients. After the bathroom was complete and while the homeowner was away from the home, the connection to the bathtub came apart and flooded the house. Damage to the interior of the homes floors, baseboards, walls, contents, etc.

The claimant contacts the contractor, who calls, his insurance broker. An Adjuster is assigned, goes out and determines that there was a lot of water damage. It appears the contractors connection failed at the pipe, despite using the proper fittings, the connection just failed and came apart.

The claim is covered in full for the damages to the floors, baseboard, walls, contents, etc. as a result of the water damage. The contractor will not recover the pipe fitting or the labor.

Note~ Work is completed when:
• Contract work is complete
• Work at the site is completed
• Work has been put to intended use]]> http://www.smhins.com/index.php?do=/profile-4/blog/did-you-know-there-is-a-your-work-exclusion-in-cgl/ Mon, 09 Apr 2012 13:11:06 +0000 Kim Nevinger, CIC http://www.smhins.com/index.php?do=/profile-14/blog/water-damage-something-to-think-about/
Do you know if you have coverage if your basement flooded due to the backup of a sewer or drain? How much wo...]]>
Do you know if you have coverage if your basement flooded due to the backup of a sewer or drain? How much would your insurance company pay if any? The average water damage claim is over $5,500 and is the second most frequently filed insurance claim. If you happen to have a finished basement your damage could easily be higher than the average. If you live by a body of water your exposure could be even greater and you should consider purchasing flood insurance.

Other areas of water damage concerns are leaks from toilets or other household appliances. Your home is a major investment and damage to your floors, furniture or walls as well as the appliances can be very costly.

If you are unsure about your coverage please stop or call our office with your policy information and we would be happy to help you.]]> http://www.smhins.com/index.php?do=/profile-14/blog/water-damage-something-to-think-about/ Thu, 22 Mar 2012 15:00:03 +0000 Rebecca Bessell http://www.smhins.com/index.php?do=/profile-13/blog/learn-6-ways-to-pay-less-for-car-insurance/ 1) Breakdown Your Policy.
From roadside assistance, towing to comprehensive and collision, insurance
is made up of components, each with its own pric...]]> 1) Breakdown Your Policy.
From roadside assistance, towing to comprehensive and collision, insurance
is made up of components, each with its own price tag. Understand what
each part costs and what it covers. If you don't understand it, call your Local Independent Insurance Agent to break it down for you.
Understanding exactly what you're paying for can help you save. If you have an older vehicle you own outright, it might make sense to drop comprehensive and collision coverage. These components cover theft, vandalism and accident damage to your car when you're at fault. One rule of thumb: If the annual cost of comp and collision coverage exceeds 10% of the car's value, it might be worth dropping. But remember, if you don't have full coverage on your car, you won't have it when you rent one either. Which can mean paying outrageous rates at the rental car counter.

Remember: Don't be penny-wise and pound-foolish when it comes to liability coverage. That covers other people and their property if you cause an accident. This is critical.

2) Raise Your Deductible.
A deductible is simply what you're willing to pay before your insurance kicks in. For obvious reasons, the more you're willing to pay yourself, the lower your premium. The Insurance Information Institute says going from a $250 deductible to $500 can save 30%, and up to $1,000 can save more than 40%.

3) Ask About Discounts.
Many companies offer discounts for having anti-theft and safety devices, multiple policies with the same company, good driver, being over 50; the list goes on and on. Even setting up online auto-pay can help.

4) Take a NY Defensive Driving Course.
Provides a 10% reduction, for 3 years, of the motorist's liability, no-fault and collision insurance premiums (for the Principal Operator of a covered automobile), If you qualify you can take this course ONLINE with no exams or tests of any kind. You can work at your own pace. In addition to the insurance reduction, this Defensive Driving Course also enables you to reduce up to four points on your driving record.

5) Maintain Good Credit.
Insurance companies use lots of seemingly irrelevant information to set their rates, including your credit score. They've found that people with bad credit are more likely to file claims. So work on your credit score if it's not where you want it. Estimate your credit score for free.

6) Drive Cars That Carry Lower Rates.
Some vehicles cost more to insure, and not just Porsches either. While a low insurance rate may be way down the list of factors you consider when buying a car you can find out the least and most expensive cars to insure.]]> http://www.smhins.com/index.php?do=/profile-13/blog/learn-6-ways-to-pay-less-for-car-insurance/ Fri, 16 Mar 2012 14:58:36 +0000 Lusanne Simard, CISR http://www.smhins.com/index.php?do=/profile-4/blog/stop-making-excuses/
It’s Too Expensive – You...]]>
It’s Too Expensive – You don’t know unless you call us to discuss. There are many types of life insurance available, and there’s usually something that can fit into your budget.

I’m Single – Even if you are single with no children, you don’t want to burden the person who is going to oversee your estate.

I’m Healthy – That’s the best time to buy life insurance. Health can change quickly and life insurance prices are contingent on good health.

I’m Not Insurable – Due to a health condition you don't think you will qualify. You may be surprised to find out that you are insurable.

I’m Covered Through Work – Life Insurance through your work is a nice benefit, but it is usually limited. And it does not go with you if you change jobs.

As much as we’d all like to think that it will never happen to me, reality is that none of us know what the future holds. Over the past year, I have attended three funerals that varied in age. I wish we all had a crystal ball to prepare us and our families, but we don’t. If you died tomorrow can your family maintain their lifestyle without your income? Can your children go to college? Your family’s future is too important to leave to chance. Life Insurance is not mandatory and it is not for the person who is insured, it is for the family or the people you leave behind. There are so many options that there is no excuse to protect the people you love.]]> http://www.smhins.com/index.php?do=/profile-4/blog/stop-making-excuses/ Thu, 08 Mar 2012 18:02:33 +0000 Kim Nevinger, CIC http://www.smhins.com/index.php?do=/profile-13/blog/good-news/ Lusanne]]> http://www.smhins.com/index.php?do=/profile-13/blog/good-news/ Mon, 05 Mar 2012 21:15:54 +0000 Lusanne Simard, CISR http://www.smhins.com/index.php?do=/profile-4/blog/why-you-need-a-personal-umbrella-policy-rain-or-shine/ liability coverage through your homeowners and auto insurance policies. Why would you need a personal umbrella policy as well? One ...]]> liability coverage through your homeowners and auto insurance policies. Why would you need a personal umbrella policy as well? One word: lawsuit.

Accidents can be costly. A minor fender-bender in which no one is injured will in all likelihood be covered by your auto policy. But what if you are at fault for an accident that leaves another person seriously injured? What if your child’s friend falls off a swing in your yard, is seriously injured, and her parents sue you for damages? How would you protect your assets?

If you are sued, you could be forced to pay a legal judgment from your current assets and future earnings. These judgments can far exceed the coverage limits of your existing automobile and homeowners policies, leaving you financially devastated.

Extend Your Personal Coverage With an Umbrella Policy
A personal umbrella policy is coverage that protects your existing and future personal assets from devastating losses if you are sued. These policies are an extension of the coverage you already have through your auto and homeowners policies. The umbrella policy kicks in where the other policies leave off (e.g., after your auto policy’s $300,000 liability limit) and pays for damages up to its limit (typically $1,000,000 or more, depending on your assets).

What is Covered Under an Umbrella
A personal umbrella policy will provide coverage above and beyond that in your other insurance policies. For example, if you are sued for $900,000 and your auto policy provides $300,000 in coverage and you have a $1,000,000 umbrella policy, the auto policy would pay $300,000 of the damages and the umbrella would pay the remaining $600,000.

In addition to providing coverage for automobile accidents caused by you or accidents that take place on your property, an umbrella policy can protect against car accidents caused by your dependent children, accidents caused by you or your dependent children while operating a watercraft, accidents that occur on a rental property you own, and personal injury lawsuits arising from slander, libel, defamation of character, false arrest, detention or imprisonment, abuse of process, malicious prosecution, shock/mental anguish and more. Policy specifics will vary by state and insurer, so be sure to read and become familiar with precisely what your policy covers.

When Your Umbrella Can’t Cover You
Because it is a form of personal insurance, an umbrella policy will not provide coverage for judgments made against you related to any business that you own. It will not provide coverage for injuries or damages caused while you are performing any high-risk activities with your vehicle (e.g., drag racing), and it may exclude certain types of vehicles, such as recreational vehicles, farm tractors, or other types of heavy vehicles or equipment. It also will not cover the cost of damages to your own car or property (this would be covered by your auto or homeowner’s policy).

In addition, a personal umbrella policy will not cover you for damages or injuries caused while you are committing a crime (e.g., driving under the influence) or if the damage or injury has been caused by willful or malicious acts. It will also not provide excess health insurance coverage for you or your family.

Underlying Insurance Requirements
A personal umbrella policy is a form of secondary insurance. Remember, it kicks in after your auto and homeowner’s policies have paid to their limits. Requirements for umbrella coverage vary by insurer, but typically you will be required to carry the following coverage in order to purchase an umbrella:

• Auto insurance bodily injury coverage of $250,000 per person/$500,000 per accident


• Auto insurance property damage coverage of $100,000 per accident


• Homeowners insurance personal liability coverage of $500,000

How Much do Umbrella Policies Cost?
Considering the level of coverage, umbrella policies are quite affordable. The cost depends on how much coverage you need, the number of properties you own and the number of vehicles or watercraft you own (your level of risk). A person with one house and two cars would generally pay around $200 per year for the first $1 million in umbrella coverage and another $100 per year for the next $1 million in coverage. This is a relatively inexpensive way to protect your finances from devastating lawsuits.]]> http://www.smhins.com/index.php?do=/profile-4/blog/why-you-need-a-personal-umbrella-policy-rain-or-shine/ Sat, 11 Feb 2012 05:40:26 +0000 Kim Nevinger, CIC