An article published in the Lancaster Newspaper on Sunday, Dec 11, 2011 by Associate Editor, Gil Smart, interrupted the game I was watching.  It was about two recent incidents of alleged employee theft.  Or, more simply, two businesses that had money stolen from them by former employees. 

The article was a sad tale of a retail shoe store that, even though they had insurance for employee theft, is faced with closing their store because of the loss.  In the middle of the article was a reference to another recent incident at a local movie theater.  Both cases of employee theft resulted in losses over $100,000. 

Do you know if your business could sustain such a loss?  Do you know if you have insurance that covers a loss by employee theft?  If you have insurance, is it enough? 

Is your business too small to worry about such things?

Many insurance package policies provide a minimal amount of coverage for employee dishonesty.  These built-in limits could be $10,000, $15,000 or $25,000.  But in the two examples I referenced above, the total loss was over $100,000.  This means that, after the insurance company pays their $25,000, you could still be out more than $75,000.

The newspaper article goes on to reference a comment by Christopher T Marquet, chief executive officer of Marquet International Ltd, which is an investigative and security consulting firm based in Boston, Mass.  Christopher runs a blog called “Fraud Talk,” which tracks cases of fraud.  He says, “We only talk about cases over $100,000, but there are a lot of small businesses, townships or religious organizations that have been subject to that kind of fraud…  It is happening every day.”

In addition, the article indicates that, according to newspaper records, “Since last December, area police have brought charges in at least five fraud or embezzlement cases where losses totaled $100,000 or more…”  And, “Since 2008, 21 cases involving theft of $100,000 or more have been reported in Lancaster County.”

But it’s something the owner of the shoe store said that is even more telling, “Unfortunately I never envisioned a massive loss and did not have enough coverage to save the business.”

My guess is, you haven’t given much thought to the possibility of losing money by employee dishonesty.  Or, if you have, you haven’t thought about the need for higher limits of coverage.  You may not even be aware that you can buy coverage for employee dishonesty.  As I mentioned previously, many package policies provide a minimal amount of insurance.  Many, however, also give you the option of buying more.  An insurance company I am familiar with will write up to $100,000 of extra coverage with the possibility of more given the right circumstances.  The price for additional coverage would probably depend on your number of employees, your type of business and your location.   

The bottom line is, theft by an employee could have a devastating impact on your business.  It’s never too late to begin taking steps to protect yourself, no matter how big (or small) you are. 

You can read the referenced article in its entirety at http://lancasteronline.com/article/local/548489_Secret-Sneaker-closing–police-investigate-claimed-loss-of–115-000-.html#ixzz1jH4F1Hu8

Under Pennsylvania’s social host liability or “Dram Shop law”, a business or individual who gives alcohol to a visibly intoxicated person may be legally responsible for any damage that person might cause. While a social host may not be liable for injuries sustained by the drunken guest (as they are also negligent), the host may be held liable for third parties, and may even be liable for passengers of the guest who have been injured in their car.

Before planning a party in your home, it is important to speak with your insurance agent or company representative about your homeowners coverage and any exclusions, conditions or limitations your policy might have for this kind of risk. Homeowners insurance usually provides some liquor liability coverage, but it is typically limited to $100,000 to $300,000, depending on the policy and may not be enough.

If you plan to serve alcohol at a holiday party the Insurance Information Institute offers the following tips to promote safe alcohol consumption and reduce your social host liability exposure:

• Make sure you understand your state laws. Before sending out party invitations, familiarize yourself with your state’s social host liability laws. These laws vary widely from state to state. Some states do not impose any liability on social hosts. Others limit liability to injuries that occur on the host’s premises. Some extend the host’s liability to injuries that occur anywhere a guest who has consumed alcohol goes. Many states have laws that pertain specifically to furnishing alcohol to minors.

• Consider venues other than your home for the party. Hosting your party at a restaurant or bar with a liquor license, rather than at your home, will help minimize liquor liability risks. 

• Hire a professional bartender. Most bartenders are trained to recognize signs of intoxication and are better able to limit consumption by partygoers. 

• Encourage guests to pick a designated driver who will refrain from drinking alcoholic beverages so that he or she can drive other guests home. 

• Be a responsible host/hostess. Limit your own alcohol intake so that you will be better able to judge your guests’ sobriety. 

• Offer non-alcoholic beverages and always serve food. Eating and drinking plenty of water, or other non-alcoholic beverages, can help counter the effects of alcohol. 

• Do not pressure guests to drink or rush to refill their glasses when empty. And never serve alcohol to guests who are visibly intoxicated. 

• Stop serving liquor toward the end of the evening. Switch to coffee, tea and soft drinks. 

• If guests drink too much or seem too tired to drive home, call a cab, arrange a ride with a sober guest or have them sleep at your home. 

• Encourage all your guests to wear seatbelts as they drive home. Studies show that seatbelts save lives. 

Thus, if you are hanging out with a small group of friends for cocktails or throwing a big family bash, remember that a good host is a responsible host, and needs to take steps to ensure guests get home safely if they have been drinking. Have a wonderful and safe holiday season!

The problem is most people who cancel their insurance on a recreational vehicle or motorcycle during the winter months do not surrender the tag to PennDot and de-register the vehicle. Thus, they have a registered vehicle without insurance. This situation may result in fines, suspending your vehicle’s registration and suspending your driver’s license. In addition, it may also deny you benefits on your auto insurance!

According to Section 1714 of the PA Motor Vehicle Code, keeping a registered vehicle without insurance prevents the owner from being able to claim first party benefits (ex. medical bills, loss wages), even if they are injured in a vehicle that carriers insurance. This provision is meant to ensure that “one may not receive medical and wage loss benefits unless you have the ability to provide them to another.”

While the law’s intent is commendable, its application raises huge concerns for individuals who have innocently kept the tag on a motorcycle or ATV during the winter months. Also note that this same rule applies for a vehicle that is inoperable or being repaired.

How Can Prevent This Major Problem?

You have 3 options if you want to cancel coverage on a vehicle because:

• it is inoperable or under restoration, OR
• it is used on a seasonal basis, OR
• it is used occasionally (such as a classic, collectible or antique car),

Option 1- You must send the tag back to PennDOT immediately. This will suspend the registration and ensure that the owner is compliant with Title 75. To return the license plate, fill out form MV-141 and send it to the Bureau of Motor Vehicles, Return Tag Unit, P.O. Box 68597, Harrisburg, PA 17106-8597. Form MV-141will be stamped by PennDOT upon receipt and returned to the sender, thus evidencing receipt. As an alternative, you may return the tag directly to any PennDOT agent. 

Option 2 – You can choose to maintain insurance on the vehicle. It is, after all, a very simple solution. If it is possible, you may be able to save money just by reducing liability limits to the minimum legal requirement on that vehicle only.

Option 3- If, and only if, you qualify, you may apply to PennDOT for seasonal registration. If properly handled, you will be able to drop Financial Responsibility (Insurance) during the off-season of a seasonal vehicle. However, due care and diligence in choosing the new expiration date for the registration is of utmost importance. The individual should be clear as to when the registration ceases and make sure the Financial Responsibility matches that date. The vehicle must never be operated during the off-season.

Again, bear in mind that the majority of seasonal registration applications are incorrectly filed. Seasonal registration is more likely to be applicable when you are dealing with recreational vehicles, motorcycles, or trucks or farm vehicles with a gross weight not exceeding 9,000 pounds. It is not applicable to antique, classic and collectible vehicles, or vehicles that are inoperable or under repair/restoration.

To read PennDOT’s Fact Sheet about seasonal registration, click here.

To apply for seasonal registration, click here.

The bottom line is that if you do not have insurance on all registered vehicles, your medical bills and loss wages as a result of an auto accident may not be covered. If you are thinking about cancelling insurance on a vehicle make sure to contact your agent and have them verify your first party benefits will not be compromised.

On October 25^th Gov. Tom Corbett signed a new bill to help young drivers, like myself, from making a call to dad about an accident with a car load of friends. The bill creates new training requirements and rules for junior drivers and mandates the following

Passenger Restrictions: According to statistics from Pennsylvania AAA, the chances a 16-year-old will die in a crash increase 39 percent with one teen passenger; 86 percent with two teen passengers; and 182 percent with three or more teen passengers. The new law allows no more than one passenger under the age of 18, except for immediate family members, for the first six months and no more than three passengers under the age of 18 after the first six months.

More Driver Training: The new law increases the behind-the-wheel training from 50 to 65 hours, including 10 hours at night and five hours of during inclement weather to give junior drivers more experience.

Seat Belt Enforcement: More than half of teen driver and passenger deaths are the direct result of failure to buckle up. Now, drivers and passengers under age 18 must wear seat belts at all times in a moving vehicle and are subject to a $75 ticket for violating the law. The bill also allows a police officer, for the first time, to pull over a teen driver if the officer sees or suspects any driver or passenger under 18 is not buckled up.

The bill is also known as “Lacey’s Law” was named after Lacey Gallagher, 18, from Philadelphia, who was killed in car crash on April 28, 2007. She was a passenger in an SUV with six other teenagers. All of the other teens were injured; none wore seat belts.

This is where your auto policy’s First Party Benefits coverages come into play, often baffling you and making you feel that you are somehow to blame and are being held responsible for an accident you may or may not have caused.

The common misconception is that if an accident is caused by someone else, their insurance should pay for everything.  That isn’t always the case in Pennsylvania, and keep in mind that there are drivers out there who have no insurance at all or are “staying legal for less.” Yikes!

PA First Party coverages step in to financially protect you and your family, regardless of who is at fault in an accident and what kind of insurance they have.

So who is a First Party on your insurance policy.  You are, of course, as a Named Insured and any driver listed on your auto policy.  Also included as First Party are your minor children and any older children and relatives residing in your household who don’t have their own insurance policy.

Now, what is PA First Party coverage?  It includes Medical coverage of at least $5,000.  This is the first insurance to pay your medical expenses if you are injured in an auto accident, regardless of fault and regardless of what auto you are occupying, with some exceptions. Pennsylvania state law requires a minimum of $5,000 in First Party Medical on every auto policy, but you can choose to increase that limit up to $100,000, and even add First Party Extraordinary Medical for an extra $1,000,000 in medical coverage. 

Other optional (not required by law) PA First Party coverages include Income Loss, which replaces your income if you are injured in an auto accident and are unable to work as a result.  There is also Funeral coverage and Accidental Death coverage.  These both act as life insurance if you pass away as a result of an auto accident.  Since many people don’t have life insurance policies for their children and motor vehicle accidents are the leading cause of death for children in the USA, this is an important (and inexpensive) coverage to add to your auto policy.

It’s important to mention that there are exceptions to the First Party coverages, including when you are injured in an auto accident in the course of employment or if you are driving a company car, and each coverage has optional limits, so you can tailor your First Party coverage to suit your specific needs. 

Turning in a claim on your auto insurance for First Party coverages doesn’t cause your premium to increase or count against you as an at fault claim on your policy.  They are usually inexpensive and can provide valuable financial protection for you and your family.

So, don’t count on the other guy’s policy to cover all of your losses in an accident.  You are your own best advocate when it comes to protecting yourself and your family, so review your First Party Benefits coverages with your insurance provider today.

The key component to any successful business is their people and this summer we had the privilege to add another great team member to our family, Beth Kilpatrick. Beth brings a wealth of business and life experience to our team and as you will learn she also has a real passion for her family and helping others.

As a child I loved pretending I worked in a store selling my toys, serving ice cream to people, or actually having a lemonade stand. Needless to say, I’m not pretending anymore and I can really do what I love, helping people. Over the years I have worked in the customer service field and even owned my own business with my husband while staying home with my children. Then I returned to work part-time as a Para-educator at Manheim Twp School District. Now that my children are older, I am excited to make a career change into the world of insurance and jump back into a full-time customer service career.

As a para-educator, I was fortunate to become educated to work with special needs children for 11 years. During those years of working with children, I learned the importance of being patient and understanding. I believe patience and understanding are critical when working with customers, because I appreciate when others show these same qualities towards me. Simply put I believe in the Golden Rule. I expect a customer service representative to be pleasant, knowledgeable, patient, and understanding under any circumstance and that’s what I want to give to my customers.

My husband, Mark and I have been raising our 5 sons in Manheim Township for the last 20 years. Our oldest son Erik is 27 years old, a second grade school teacher at Pequea Elementary, head basketball coach for the JV Penn Manor basketball team, and a new father to my first granddaughter, a beautiful 7 month old named Finley. Next in line are 21 year old twins, Michael and Travis. Michael is a senior attending Shippensburg University with a dual major in International Management, Supply Chain/ Logistics, and a minor in German. He plans on graduating in December 2012. Travis is a senior attending California University of PA with a major in Sports Management and a minor in Parks and Recreation. He will be graduating in December 2011. Fourth in line is Wesley, who is 18 years old and a Freshman attending Slippery Rock University, with a major in Sports Management and minor in coaching. Last but not least, there is Justin who is 13 years old and in eighth grade attending the Manheim Twp Middle School. Justin loves to play baseball, football, and is a devoted Green Bay Packers fan.

Mark and I love traveling to the Caribbean together. As a family, we love to have cookouts on our deck, go to the boys sporting events, spend time with our new addition to the family (Finley), and play a competitive game of Clue.

I currently passed my Life and Health Insurance examination and now I am working on getting my Property and Casualty license. I am learning so much working at Baron Insurance and I look forward to using my knowledge and education to help customers achieve what they’re looking for in a personal insurance agent. I am very excited to be part of the Baron Insurance Group family!

The owner of the car expects the garage to exercise caution while they are in possession of the car.  But sometimes things happen we don’t expect or cannot anticipate.

There are three common ways a Garage Insurance Policy can insure Customer’s Cars; Legal Liability, Direct Primary and Direct Excess.

I’ll start with the easier one to explain, Direct Primary.  Under this form the customer’s car is protected by the garage policy regardless of negligence on behalf of the garage or its employees.  If the garage finishes work and test drives the car, only to have an accident, the garage policy will respond.  If the car is parked in the lot and a tree falls on it, it is protected.  If a flood damages the car, it is protected.  If it is stolen from the lot, or from the inside of the garage, it is protected.  There is no need to prove negligence on the part of the garage or its employees.  If their policy indicates that Customer’s Cars are insured on a Direct Primary basis, the customer’s car is protected regardless, unless the loss is excluded. 

Legal Liability – Under this form, negligence must exist, either on the part of the garage or its employees.  Typically, if an accident is caused by a garage employee there is negligence.  But what about floods, or falling trees, or hail, or even theft?  There would have to be negligence on the part of the garage or its employees for the garage policy to respond. If no negligence can be found, the car owner’s insurance policy will respond to the damage.  Is the garage negligent if a tree falls on a car?  Maybe if the garage parked the car under a tree that was known to be rotten.  Otherwise, it’s possible there is no negligence.  Is the garage negligent if the car is stolen?  Maybe, maybe not.  It might depend on whether the keys were left in the car or locked in the garage.  What about flood?  Can a garage be found negligent if a flash flood destroys your car?  Can a garage be found negligent if a hail storm puts hundreds of dents in your car’s hood?  It’s quite possible the garage policy will not respond to some of these scenarios because no negligence exists on the part of the garage. 

Direct Primary coverage is typically more expensive because it responds more readily. 

A third type of coverage would be Direct Excess.  This is similar to Direct Primary in that it responds regardless of negligence, but only after the car owner’s auto insurance policy responds. 

This blog is not intended to determine which type of coverage is right for your business.  It’s simply to make you aware of your options.  However, it would be a good idea to know which option you are providing your customers.

If I Choose Limited Tort What Am I Giving Up?

Simply put, Limited Tort limits your right to sue. Full Tort does not limit your right to sue, however, Limited Tort prevents you from recovering non-economic losses, such as pain and suffering unless one of the following situations apply…

1. You are seriously injured. “Serious Injury” means an injury resulting in death, serious impairment of body function or permanent disfigurement

2. The person at fault is convicted or accepts Accelerated Rehabilitative Disposition (ARD) for driving under the influence of alcohol or a controlled substance

3. The person at fault is operating a vehicle registered in another state

4. The person at fault has not maintained insurance required by law

5. The person injured as an occupant of a commercial vehicle

6. The person at fault intended to injure themselves or another person

7. The claim for a vehicle defect is against a person in the motor vehicle industry

However, under both Limited and Full Tort, you can collect for economic losses such as unpaid medical bills, unreimbursed lost wages or other out-of-pocket expenses with no restrictions.

What is an Example of the Tort Options?

While sitting at a stop light someone negligently rear-ends your car and you are taken to the hospital for a knee injury. After several knee surgeries you still have knee pain and discomfort caused by the accident and you would like to recover $10,000 for the lifetime pain and suffering.

Since the pain and suffering of the knee injury would be considered a non-economical loss, your tort selection may impact your ability to recover for damages. If you have Full Tort you have no limitation and the right to sue for the $10,000. However, if you have Limited Tort, you may or may not have the right to recover the $10,000. Your ability to recover these non-economical damages would only apply if the situation meets one of the previously mentioned Limited Tort exceptions.

The point of this example is not to demonstrate when Limited Tort does and does not give you the right to sue for non-economic losses. The courts will ultimately decide that. The point is that Limited Tort may be limiting, and Full Tort is not.  

What is the benefit of Limited Tort?

Since you are giving up some of your rights, choosing Limited Tort should reduce your auto insurance premium. Reports show, you could receive up to a 40% reduction in premium for bodily injury, first party benefits and uninsured and underinsured motorist coverage. Note Limited Tort will not reduce comprehensive and collision coverages.

Which Tort Option Should I Choose?

Overall, Limited Tort = limited rights = limited price and Full Tort = full rights = full price. Selecting a Tort option on your auto policy is an important decision that impacts your entire family. The decision is something you need to make yourself after considering all the facts and implications of each option. An agent is a great resource to help provide you with information on these choices so that you can make an informed decision.

This article is intended to help consumers understand Tort choices under PA Motor Vehicle Financial Responsibility Law and is not a substitute for your responsibility to make your own choices under law.

When my husband died I was 24 and neither of us had life insurance. Three weeks prior we learned that FMLA (Family Medical Leave Act) was approaching its 12 week limit and we would lose my husband’s work issued life insurance policy. With his cancer diagnosis, there was no possibility of being approved for any life insurance policy. It was too late.

When I was 22 and marrying my husband I never would have imagined that at 24 I would a) need a life insurance policy or b) that it would be too late to purchase a life insurance policy for my husband. We were both young, active and healthy enjoying our newly married lives. While both of us had experience death and serious illness with our parents, we did not believe we needed to worry about long term planning for quite some time. We both wanted to be established in successful careers and buy a home before making decisions about our long term wishes and financial goals. To us, life insurance was a perk that came with his great new job as an HVAC repairman. We believed that his work life insurance policy would offer us enough protection until we became more established.

In the past year I finally went through the process to place a life insurance policy on myself. I do not own a home. I do not have children. My largest debt are student loans from community college. To the average 20-something it doesn’t seem necessary to have a life insurance policy. Now that I know the costs of funeral expenses, having to process end of life affairs, and the possibility of high medical bills due to death or illness, I know that a life insurance policy is a necessity, not a perk.

Life insurance for myself was simple to obtain and inexpensive. It was a quick and painless process that involved meeting with my insurance agent, having an at home examination, and paying the bill. Now that I have this in place, I know that if I died, my family would have the financial means to be able to pay for my funeral, pay off all of my bills and debt, and have some extra money for what I term the ‘death fund’. This can be everything from affording some time off of work, paying to travel to see family in other areas of the world, going on a vacation to escape it all; whatever the choice, I want my family to have options when I die.

As a young adult, especially if you are married or a parent, life insurance is important to protect yourself against the ‘what ifs’ in life that you hope never happen. The assumption that it will not happen to you is naive, and the best way to protect your family and ensure a more stable future is to speak to your insurance agent about life insurance. Go with someone you trust, and it will make the experience much more pleasant.

Learn more about Brenda on her blog at http://crazywidow.info/. Also support Brenda’s non-profit organization Keepin’ it Kevin to promote awareness and provide research funding for Angiosarcoma cancer.

Sewer, Drain and Sump Pump Backup Coverage

The Backup of sewer, drain and sump pump coverage provides protection when heavy rains overburden sewer systems and sump pumps causing unwelcomed water to enter the home. Not only does a backup cause thousands of dollars of damage but it also can create a major health hazard if raw sewage is involved.

A recent study by Zogby International shows that 67 percent of homeowners believe water damage from a sewer, drain or sump-pump back up would be covered. However, most homeowner and renter polices do not cover this type of loss without specifically adding it to your policy by endorsement. The good news is that this coverage can be added to most homeowner or renter insurance policies for ~$50-$100 per year and it can give you $2,500 to $50,000 of protection.

Do not assume you have this coverage today and make sure to ask your agent about your specific policy and need for this coverage. If you are shopping homeowner insurance make sure to find out if this coverage is included in your quote. This is great example how buying based on the lowest price and not knowing the details of the policy can leave you with some unexpected surprises at claim time.

Flood Insurance Is Available to Everyone

According to the FloodSmart.gov, your home has a greater chance of being damaged by a flood than by fire. However, your homeowner or renter insurance policy does not cover damage to your home or property for a flood. The only way to have coverage for a flood is to buy flood insurance from an insurance agent.

One common myth about flood insurance is that it is only available to homeowners who live in high risk flood areas with mortgages. Actually, any homeowner, renter or condo owner can buy flood insurance. According to FloodSmart.gov, those in low risk areas are also eligible for flood coverage on their building and contents which can start as low as $129 per year. With the average flood claim for 1 inch of water in a 2000 square foot home costing $21,000, the benefits of having flood insurance can add up quickly for any renter or homeowner. Click here to find out how much a flood may cost for your home.

Flood insurance is not designed to be as comprehensive as a homeowner insurance policy but it is simply designed to get you back on your feet. For example, flood insurance can be very limited for damage to basements, walkout basements and crawl spaces and the property that is stored in them. Most flood insurance also has a 30 day waiting period before the policy takes effect. So it is a good idea to start the process early because you will not be able to get coverage the week prior to the next big Lancaster storm.

For more information on the details of flood prevention and flood insurance visit www.fema.gov or www.FloodSmart.gov