Consumer Insurance Blog

For homeowners in snow-prone areas of the country, roof damage or leaks from snow and ice dams are common winter threats to your home. How do you know if you have ice dams? Wikipedia has a good photo of an ice dam forming on a slate roof. Essentially, if you have large icicles hanging from your roof, you probably have an ice dam problem. The icicles are the symptom, not the underlying problem, which is generally one of insulation. How Stuff Works offers a pretty good non-technical explanation of what ice dams are and why they occur.

If you have ice dams on your house, you need to address them with a two-fold strategy:
First, you need to get rid of the ice dams and minimize the immediate damage.
Your best bet is to hire an experienced professional to do this - it can be a risky task. Some folks want to go out and chop away at icicles, but it's not a good idea to be climbing on snow- and ice-covered roofs or using ladders on slippery ground. Plus, using the wrong tools to remove snow or chunks of ice from your roof may cause further damage to your shingles or your gutters. Not to mention damage to you: flying ice chunks can be very heavy and sharp. Many people also use salts or other chemical concoctions to deal with ice dams, a less-than-ideal "fix" because chemicals can damage or discolor your roof and can leach into the ground, damaging plants and greenery. If you have a low roof, one of the most common ways that people deal with ice dams is by purchasing a specially-designed roof rake and removing snow from directly above the ice dam. Again, this can pose risks to both you and your roof.

Second, you need to diagnose the underlying problem and take steps to prevent ice dams from forming.
While ice dams can sometimes occur as a result of freezing rain, more often than not they are a symptom of an insulation problem which should be addressed because there are other problems besides ice dams that can occur, such as a build-up of moisture that could lead to rot, mildew or mold. Not to mention that with poor insulation, heating costs are almost literally going through the roof. While there are a number of products that can treat the symptoms and prevent ice dams, the best way to protect the value of your house would be to enlist the expertise of a weatherization, insulation, or energy conservation contractor to diagnose the and remedy the root problem. Builder and consultant Paul Frisette offers his thoughts on why ice dams form and how to prevent ice dams by treating the root cause, not just the symptoms.

Ice dams and homeowners and rental insurance
The Insurance Information Institute discusses what's covered and what's not in terms of water damage: "Standard homeowners and renters insurance provides coverage for burst pipes, wind driven rain and damage resulting from ice dams on your roof." III also offers this helpful rule of thumb: "Generally speaking, water that comes from the top down, such as rainfall, is covered by a standard homeowners insurance policy, while water that comes from the bottom up, such as an overflowing river, is covered by a separate flood insurance policy." When in doubt about your coverage, call your agent - that's what we're here for!

Snow overload and other perils for public and commercial buildings
Commercial and public buildings with flat roofs are susceptible to other winter woes. In addition to the risk of ice dams, flat-roofed buildings can also suffer damage or collapse from an accumulation of deep snow. Deep snow followed by heavy rain can be particularly perilous, especially for older buildings. One of our insurance partners, Utica National, has issued a handy risk management advisory about severe winter weather and roofs. The advisory includes general guidelines to help estimate the weight of snow.

In the wake of Michael Jackson's untimely death at a relatively young age, much is riding on the results of his autopsy and a ruling on the cause of his death. Anschutz Entertainment Group (AEG) is estimated to have about $40 million at stake, depending on the cause of his death. According to Billboard, about three-quarters of a million concert tickets had been sold and AEG plans ticket refunds of about $85 million.

As part of the event planning, AEG sought and secured event cancellation insurance from Lloyd's of London. This type of insurance is particularly important to protect all parties against unforeseen losses due to any number of problems - sudden unavailability of a venue, catastrophic weather that might force a cancellation, or ill health on the performer's part, to name a few examples. In the past, Jackson has canceled shows in the latter parts of his tour for ill health or exhaustion. Earlier this year, when AEG was arranging for insurance coverage, Jackson had to pass a four-hour medical exam attesting to his health.

But like any insurance policies, there are exclusions. If Jackson's death was due to a reason that was excluded in the policy - such as a pre-existing medical condition or a substance abuse problem - the promoters could be left holding the bag. While autopsy results so far have been inconclusive, ongoing investigations into Jackson's death are occurring. And with the amount of money at stake, it wouldn't be unusual for an insurer to conduct their own investigation.

Business insurance for large events
Rock concert promoters aren't the only parties that might need event cancellation insurance. This is a common type of insurance sought by corporations and businesses that sponsor major events, conferences, and trade shows and depend on revenue for those events. Determining whether of not cancellation insurance is needed and how much is generally a matter of scale, based on the number of people involved and the amount of financial and other risk involved in the event.

"Whether planners should invest in cancellation insurance depends upon how important an event is to an association or corporation financially and what kind of risk it is assuming. “If you're holding a board of directors meeting for 65 people that wouldn't generate income and was inexpensive to hold, there's no point,” explains James M. Goldberg, an attorney with Washington-based Goldberg & Associates. “But if it's a big annual event for 3,000 people that's a major source of revenue, definitely think about insuring."

Event insurance can cover unforeseen problems, and "... perils that are beyond the control of a planner, such as inclement weather, a principal speaker dropping out, strikes, outbreaks of disease and so on." But experts caution that it will not cover poor planning or poor attendance.

Personal events such as weddings may benefit from insurance, too
Beyond businesses, private events can also sometimes benefit by similar types of coverage. As the average cost of a wedding climbs - in the U.S., it is between $20,000 and $30,000 - wedding insurance is increasingly common. Wedding insurance can cover costs for cancellation due to weather, illness, or venue unavailability. It can also cover losses if gifts are stolen, damage or loss of photos, rings, gowns, and the like, and other unforeseen problems. If you are planning a costly reception, you may want to discuss wedding insurance options with your agent. In addition to insurance for cancellation or other problems, your reception venue may require liability insurance. You should also be sure to verify that your wedding venue and your vendors are properly insured, and learn exactly what and how their insurance might extend to cover any problems you might experience.

Our workers' compensation service partner Lynch Ryan had previously posted this on their Workers" Comp blog - we thought it was important advice that bears repeating as we approach the summer months.

If you are a parent of a high school or college age kid, you are probably familiar with the quest for the summer job. Between Memorial Day and Labor Day, more than 2 million teen workers flock to the workplace, many for the first time. Think back to your first job - it can be an exciting thing to earn that first paycheck. It can also be very dangerous. Every year, about 70 teens are killed on the job and about a quarter of a million suffer injuries on the job. That means that about once every three minutes, a teen gets hurt at work.

All first-time workers are vulnerable to work injuries, teens especially so, often because of youthful feelings of invincibility. New workers aren't yet work hardened. Because they don't know their limits, they are more susceptible to overexertion, strains, and sprains. Young workers typically aren't seasoned enough to have good judgement about risks. Eager to make a good impression, they often don't want to ask for help, question authority, or call attention to themselves in any way.

Most work-related teen deaths occur as the result of motor-vehicles or as a result of machine related accidents. Agriculture has accounted for more than 40% of these fatalities, followed by the wholesale/retail trade, and construction. Frequent nonfatal injuries include lacerations, contusions, abrasions, sprains, or strains. Weather related injuries are also common - sunburns, heat exposure, and the like. The pattern of nonfatal injuries follows the most common types of employment: wholesale/retail and service industries.

Over the month, we'll follow up with more information on this topic. today, we'd like to address parents, and urge parents (or aunts, uncles, friends) to be proactive about teen worker safety:

Familiarize yourself with child labor laws in your state. Know the hours they can work, and restrictions on the type of work they can do. For example, according to the the American Society of Safety Engineers (ASSE):

" ...by law, your employer must provide protective clothing and equipment necessary for your job, payment for medical expenses if you are injured at work and training in on-the-job safety; and, that on a school day, a 15-year-old is only permitted to work up to three hours a day. Sixteen year-olds are limited to the type of work they can do. For instance, out of these jobs -- A. operating a meat slicing machine at a deli counter, B. driving a forklift at a warehouse, C. waiting tables at a restaurant, or D. performing demolition work at a construction site -- a 16 year-old is legally only allowed to work waiting tables.

... Teenagers are not allowed to work in mining, logging, meatpacking, roofing, excavation or demolition, according to labor laws. They cannot drive a car or forklift or work with saws, explosives, radioactive materials, or most machines."

Take a detailed interest in your teen's work - talk to your child about what they do on the job and talk specifically about safety matters. Ask a lot of questions:
-Do you work alone?
-Who is your supervisor? Is he or she in your work area with you?
-Do you use any equipment or machinery? Have you had training?
- What would you do if…

Trust your instincts - call or visit a workplace before your teen starts work. If you have any misgivings after work starts, follow-up with the boss or the supervisor.

Other resources for parents:
Department of Labor's Youth & Labor page
OSHA: Do you have a working teen?
Clocking in for Trouble - Teens and Unsafe Work
What teens need to know before going to work
Teen Workers: Avoid 2005’s Five Worst Jobs this Summer
Working the Smart Shift: Helping Parents Help their Teens Avoid Dangerous Jobs
Driving on the Job: New law for teen Workers
Teen Driving Safety
Your Teen at Work: Tips for Parents

This article on "Additional Insureds" for commercial insurance policies was written by Geoff Gordon of Andrew G. Gordon Insurance Agency.

Generally speaking, it’s good to have others name YOU as an "Additional Insured" (AI) on their policy, but bad for you to name others on yours. (But not always — this article explores both sides). The main point is that when you name someone an additional insured on your policy, you are sharing your insurance with them; when they name you, you’re piggybacking on their insurance.

For example, Ed Electrician (sub-contractor), wants to do electrical work for Bill Builder (general contractor). Bill Builder requires Ed to name him as an Additional Insured on Ed’s General Liability policy; to get the work, he agrees. After the project is completed, a fire destroys the building, and the Fire Marshall determines the fire was caused by Ed’s work. The owner’s insurance company pays the fire loss, then goes after Bill to recover the money. Bill, as an additional insured on Ed’s policy, gets his defense and losses paid from Ed’s insurance, never touching his own. The problem arises for Ed if defending both exhausts the insurance.

Why you would ask someone else to name YOU as an Additional Insured:

• Prohibits their insurer from subrogating against you (common law prohibits one "insured" from suing another "insured").
• Receive direct policy rights with respect to defense coverage.
• Acts as a safety net if the hold-harmless agreement becomes unenforceable.
• Provides vicarious liability defense—for actions of the policyholder, and direct liability defense for your actions.
• Provides higher total limits (you still have yours)
• Reduced insurance costs today (best insurance costs available when you require sub-contractors to name you an "additional insured".

Reasons NOT to be named as Additional Insured:

• Loss off defense control (it’s the other guy's insurance); and dependency on others.
• "Other insurance" conflicts may arise between your policy and theirs.
• Increased possibility of disputes over coverage.

Your reasons to name others as Additional Insured:

• Close relationship with the AI: all members of an insured club,
  church, or charitable group, or unit-owners of a Condo association
• Business relationship, especially common with
  - Project owners, on policies of general contractors;
  - General contractors on policies of sub-contractors;
  - Owners or lessors of real estate on policies of tenants;
  - Vendors named on the policies of manufacturers.

Your reasons to avoid naming others as Additional Insureds on YOUR policy:

• Dilution of your policy limits—you’re sharing your insurance with some one else.
• Unintended coverage provided to someone you might not be getting along with.

Definitions
Hold Harmless agreement: Where one party (or both parties) agree that if something goes wrong, you agree not to go after them. A sub-contractor may be required to hold the General Contractor harmless, meaning that if the GC makes a mistake resulting in damages to the sub, the sub won’t seek damages.

Indemnification agreement: where one part agrees to indemnify, or compensate, for damages that arise from the actions of another. A sub-contractor is asked to "indemnify" - the general, meaning if the sub does anything that results in action against the general, the sub will pay.

Business Owners Policy - also known as BOP - a type of insurance purchased by small to mid-sized businesses that combines several forms of business insurance in one package, usually at a more affordable price than buying each policy separately. Typically, BOP includes property insurance, liability, and business interruption.
Learn more: What does a business owners policy cover?