Thinking about a side hustle? Check with your insurance agent


man working at home to illustrate a side hustle

Today, it seems like everybody’s got a side hustle, which is essentially just a fancy rebranding of what used to be called moonlighting. But today’s moonlighting often comes with a twist …. these gigs often involve using your personal car or home to generate extra income. Whether it’s driving for Lyft, dropping off packages for Amazon, delivering meals through DoorDash, renting your home through Airbnb or just taking advantage of a tourist influx during a big local event by renting out your home, five words of advice: check with your insurance agent.

If your goal is earning some extra cash, make sure you understand and are covered for potential risks. You might think you are covered by working for a third-party service, but if you injure yourself or someone else while working, if you damage or lose someone’s property or if you suffer a loss to your own property, you may be on your own. Here are just two examples:

Home rental – If you want to start renting out all or a portion of your home through a peer-to-peer rental service, what happens if a guest is injured on your property? Or if a guest burns the whole place down in a cooking fire, will your rental service cover your home replacement?

Some services, such as Airbnb and VRBO, offer programs such as host guarantees or host liability insurance. On first glance, these may look adequate – $1 million liability coverage should be enough, right? But like most things, you need to read the fine print because there are conditions, limitations and exclusions that could leave you exposed to serious loss. You also should not assume that your own homeowners policy will provide coverage in a home rental scenario. Insurance Information Institute says:

Standard homeowners and renters insurance policies are designed for personal risks, not commercial risks. Some insurers now offer a home-sharing liability insurance policy that can be purchased on a month-to-month basis, but there may be exclusions and limitations, so read the policy carefully. If you plan to rent out all or part of your home on a regular basis, many companies will consider this a business use and you may need to purchase a business policy—specifically either a hotel or a bed-and-breakfast policy.

Ridesharing – Check with the service you are contracting with about any coverage that they might offer – states are increasingly mandating that third-party services provide some coverage, but again – there could be conditions, limitations and exclusions that leave dangerous gaps in your coverage. And it’s a mistake to assume that your own personal auto insurance will cover you. Insurance Information Institute says:

Generally a standard personal auto policy will not provide coverage for ride-sharing. A standard personal auto insurance policy stops providing coverage from the moment a driver logs into a TNC ride-sharing app to the moment the customer has exited the car and the transaction is closed.

They also advise:

Prospective drivers should ask the TNC what level of coverage it provides. Drivers should also contact their own auto insurer to address gaps, if any, in their liability protection. It is also recommended that TNC drivers review a copy of their TNC’s insurance contracts so they know the exact terms and conditions of the coverage.

Learn more: Ride-sharing and insurance: Q&A

These are just two common examples of so-called side-hustles, but other income-generating activities might call for other types of coverage, such as product liability or home business coverage. Your agent can also help you assess the adequacy of coverage offered by a third-party.  If you are considering a side-hustle, give your independent insurance agent a call to talk things over.

Posted in Laws, Liability

Super Bowl LIV Party Planning: Snacks, safety & more


Super Bowl party food
This Sunday, Super Bowl LIV returns to South Florida for a record 11th time. The game will kick off at approximately 6:30 p.m. ET at the Hard Rock Stadium, Miami Gardens. This year’s contenders are the San Francisco 49ers who haven’t won in 25 years vs the Kansas City Chiefs, who haven’t won in 50 years – so it should be a great game with a lot of fan excitement and passion on both sides. We’ve got some ideas for your Super Bowl party ranging from party foods to guest safety … and a few fun odds and ends.

Here’s a pre-game preview:

To follow before, during and after the game on Social Media:

Party Snacks:  If you’re are planning a party but haven’t set your menu yet, we have some ideas. Here’s a how-to on building a Super Bowl snack stadium, and here are 12 football-shaped foods. For a few other menu planning ideas, check out 80+ touchdown-worthy party foods and Big Game Bash party recipes.

Party Safety: If you are attending a party, make sure you have a designated driver or alternate transportation planned in advance. Keep an eye on your friends and don’t let them drive under the influence either. If you are the host, you need to plan for more than just the menu – it’s important to look after guest safety to avoid any host liability. The Insurance Information Institute explains:

Social host liability, also known as “Dram Shop Liability” laws vary widely from state to state, but 43 states have them on the books. Most of these laws also offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol. There are circumstances under these laws where criminal charges may also apply.

Here are some hosting safety tips:

  • Make sure all of your guests designate their sober drivers in advance, or help arrange alternate transportation.
  • Serve lots of food and include lots of non-alcoholic beverages at the party.
  • Stop serving alcohol at the end of the third quarter of the game and begin serving coffee and dessert.
  • Keep the numbers for local cab companies handy, and take the keys away from anyone who has had too much to drink.

It’s a little late for this year’s Super Bowl, but if you are a homeowner who likes to host parties, you might want to talk to your independent insurance agent about umbrella liability insurance, which increases your protection.

Something for everyone

If you’re into the Super Bowl more for the party and less for the sport, you might find Puppy Bowl 2020 more to your style. Meet the stars Puppy Bowl stars and starting lineup. See the preview below.

Some people are only it for the halftime show or the ads. Here’s everything you need to know about the halftime show, featuring Jennifer Lopez and Shakira. NBC sports has an overview of Super Bowl ads including the cost of the ads and spots to watch or preview: Check out the Super Bowl Commercials for 2020.

Every year, we also wait for the hilarious annual posting of the NFL Bad Lip Reading – it’s usually posted sometime near the Super Bowl. As of this today, it isn’t up yet, but here’s the 2019 version to get you in the mood.

Last-Minute Halloween Liability Issues


costumed kids trick or treating

Halloween is scary enough, we don’t mean to add to your fright, but if you are a homeowner or an apartment dweller, there are some safety precautions you should take to greet the little ghosts and goblins who will be ringing your bell or roaming the streets.

A few years ago, Christopher Boggs wrote a great Guide to Homeowners Liability for Injury to Trick or Treaters. He notes:

When the porch light is on, trick-or-treaters are considered invitees; the homeowner is inviting them onto the property (though not for a mutual benefit). Because of this relationship, the homeowner owes the candy seekers the level of “reasonable” care that falls under Ordinary Negligence.

Now anytime you have anyone visit your home, they could suffer an injury or an accident – that’s why you have insurance. But on Halloween, a steady stream of small feet traipsing across your porch in the dark increases the risk. Plus, you are giving out food.

Here are some tips to minimize Halloween hazards and reduce your risk.

  • Keep porches and walkways well-lit and free of debris and clutter that might be tripping hazards
  • Put reflective tape on your steps and along your walkway
  • When decorating, avoid candles – use LED lights and battery-powered lights instead.
  • Keep pets away from kids to avoid bites, scares or allergic reactions. Even friendly pets can be overexcited or upset by the unusual activity and may be skittish or overly protective.
  • Avoid mystery treats. Distribute labeled treats and tell parents what they are and if they contain nuts.
  • Provide alternative allergy-free treats – consider small non-food trinkets.
  • Be cautious about any spooky pranks for kids or guests – make sure they are safe and not too scary to young children.
  • If you are hosting an adult party, you have particular responsibility to take care in the serving of alcoholic beverages. See our post on holiday parties and liability issues.
  • If you are driving any time on Halloween, be super cautious. Little monsters may be out at any hour and frequenting normally quiet neighborhoods. Be particularly cautious at dusk an early evening.

Protect your home and car too!

Halloween is a huge night for vandalism. Here are a few tips to protect your property from fire, theft and vandalism.

    • Don’t overload electrical circuits with lights.
    • Paper and dried plant decorations can easily ignite. Keep them away from flames, lights, and electrical cords.
    • Lock up bicycles, gas grills and other outdoor valuables.
    • Park your car in a garage, if possible. Mischief makers may egg your house or car.
    • If you don’t have shelter for your car, consider stopping at the car wash for a coat of wax that may offer some protection.
    • If you are out trick or treating with your kids or partying with your peers, make your home looks occupied. Leave lights and the TV on.
    • Doorbell cams and motion activated lights can offer added protection.
    • If your car or home is egged, deal with it right away that night or in the morning before damage can set in. See How to Remove Egg Stains From Your Car’s Paint Job and 4 Ways to Wash Egg off your home

    Call your agent

    If you should suffer any damage to your property or have any accidents during Halloween weekend, file a claim as soon as possible to get the claim process in motion. Be ready with the details of where and when the event occurred, along with the names and addresses of any injured parties or witnesses to the event. If there is damage to your property, report it to the police, take photos, and record the details so you won’t forget them later.

Boston remembers its Great Molasses Disaster


We recently passed the 100 year anniversary of the huge Boston Molasses Disaster, which occurred on January 5, 1919. In today’s world, it can be hard to imagine how a household product could cause a disaster that would lead to the death of 21 people, more than 150 injuries and an entire neighborhood being leveled. That was indeed the case when 2.3 million gallons of molasses burst from a 50-foot tall North End storage tank with powerful force.

Molasses was in important staple of the day, a common sweetener. In addition to household kitchen uses, molasses was a key ingredient in rum and was once used in the manufacture of munitions.

The disaster occurred just after lunchtime on an unseasonably warm January day in a bustling Boston neighborhood. Insurance Journal describes the event:

The initial wave rose at least 25 feet high – nearly as tall as an NFL goalpost – and it obliterated everything in its path, killing 21 people and injuring 150 others. Rivets popped like machine-gun fire. Elevated railway tracks buckled. Warehouses and firehouses were pushed around like game pieces on a Monopoly board. Tenements were reduced to kindling.

Outrunning the molasses was out of the question. The first of it raced through the harborside neighborhood at 35 mph. Not even Usain Bolt, who clocked just under 28 mph at his world-record fastest, could have sprinted to safety.

The storage tank was owned by Purity Distilling Company. After the disaster, they tried to blame the explosion on bombs set by anarchists. The real source of the disaster was a confluence of predictable factors, primarily a poorly-constructed, overloaded storage tank, so badly constructed that it was painted brown to mask all the leakage.

A page dedicated to the molasses disaster with links to historical accounts says:

“Envision a disaster scene with smashed buildings, overturned vehicles, drowned and crushed victims, and terrified survivors running away covered in molasses. Like the modern-day disasters with which we are unfortunately familiar, there was chaos, terror, buildings in ruins, victims to be dug out, trapped survivors to be rescued, rescue workers among the victims, and anguished families rushing to relief centers to find their relatives. It was like any horrible disaster scene, with the addition that everything was covered in smelly sticky brown molasses.”

Agency Checklists also features an article on the disaster, including several photos. They note that the disaster marked the beginning of stricter construction codes and accountability.

“According to a Time magazine article on the flood, the resulting court case in which the U.S. Industrial Alcohol (USIA) corporation, owner of the Purity Distilling Company who operated the tanks, was forced to pay “… restitution amounting to about $15 million in today’s money” due to the structural weakness of the tanks used to hold the molasses. It was revealed during the ensuing lawsuit that the engineer who oversaw the construction of the North End tanks did not even know how to read blueprints, and that the tanks has subsequently been painted to match the color of molasses in order to hide the constant leaks in the tank.

As a result of these revelations and the tragedy which resulted from such negligence, Massachusetts instituted stricter construction codes, essentially creating the idea and requirement of “accountability in construction.”

A century ago, liability insurance was in its early days. ( IRMI: Early Liability Coverage.) Businesses rarely had adequate insurance and the courts were often a victim’s only financial remedy for damages or loss.

Today, business insurance is a social safety net that protects a business owner from financial losses and provides financial remedy for personal injury, death and property loss by third parties, as well as for a business owner’s litigation costs. In addition, insurance companies play another important role, providing an additional layer of public protection through risk and loss exposure identification during the underwriting process, as well as loss prevention expertise for business owners.

If you’re interested in more information on this unusual disaster, we’ve included a few links and a video clip of a 22-minute video documentary.

‘Tis the season: Party hosts should be aware of liability issues


people at a holiday party

With Thanksgiving in our rear view mirror, we enter the season of holiday parties. If you are planning to host parties at your home or business this season, it’s time to think about responsible party hosting practices. We’re revisiting a post we made a full decade ago on holiday party do’s and dont’s – despite, the passage of time, everything is still relevant today!

A national survey on homeowners insurance issues by Trusted Choice and the Independent Insurance Agents & Brokers of America (IIABA) found that about one-third of homeowners did not think or did not know if they could be held responsible in the event of an alcohol-related accident. In addition, more than 46% of the survey respondents thought they weren’t liable in the event that a guest became seriously ill from catered food consumed at the host’s home and more than 22% didn’t think they could be held responsible if a guest was injured on the sidewalk in front of their property. In fact, these are all situations in which a homeowner could have liability.

A spokesman for the IIABA suggest that homeowners regularly review their liability coverage limits with their independent agent to ensure adequate coverage, and that frequent party hosts inquire about an umbrella policy providing $1 million or more in additional coverage. IIABC also suggest the following holiday hosting tips for homeowners and business owners:

  • Limit your guest list to those you know.
  • Host your party at a restaurant or bar that has a liquor license, rather in a home or office.
  • Provide filling food for guests and alternative non-alcoholic beverages.
  • Schedule entertainment or activities that do not involve alcohol. If the party centers around drinking, guests will likely drink more.
  • Arrange transportation or overnight accommodations for those who cannot or should not drive home.
  • Stop serving alcohol at least one hour before the party is scheduled to end.
  • Do not serve guests who are visibly intoxicated.
  • Consider hiring an off-duty police officer to discretely monitor guests’ sobriety or handle any alcohol-related problems as guests leave.
  • Stay alert, always remembering your responsibilities as a host.
  • Review your insurance policy with your agent before the event to ensure that you have the proper liability coverage.