At home:

A Look at Condo Insurance

Unlike most homes, part of a condominium is "shared" property, and part of it belongs to the unit owner. Most condo associations provide a certain amount of insurance protection, which sometimes causes confusion over the condo unit owner's individual responsibility. If you, as a condo owner, are trying to evaluate how much "home" insurance you need, here are some points to ponder:

What the Association Covers. Some condo associations insure only the external building, while others assume responsibility for the building and certain fixtures inside each unit. It's a good idea to read your condo association's bylaws and/or master deed to find out its insurance provisions. Once you know what your association covers, you can fill in the gaps with your own insurance.

Your Personal Possessions. Your personal property is your responsibility, not the association's responsibility. Take a detailed inventory of everything you own to estimate how much your possessions are worth. Keep in mind that extra coverage in the form of a floater may be necessary for especially valuable items that call for greater coverage.

Condo Updates. If you have remodeled a room or made any other improvements in your condo, your policy should be updated to reflect those changes.

Loss Assessment Coverage. If your association's insurance comes up short after a disaster destroys commonly shared areas, you and other unit owners may be assessed to pay for the losses. Since loss assessment coverage pays your share of these assessments, it's important to make sure you have the proper amount of protection. Just as renters and homeowners need property and liability coverage, so do condo owners. Please call us or stop by to review your needs, and to clear up any questions you might have about condominium insurance.

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Remodeling Your Home? Call Us

A lot goes into adding on a deck, a new bathroom, or that guest bedroom you've always wanted. However, in the excitement of the project, you may overlook updating your insurance coverage.

You should be aware that additional insurance coverage might be necessary if you remodel. Your homeowners policy will likely cover work you do yourself, the actions of a friend, or loss resulting from a contractor's actions.

However, make sure any contractor you hire is bonded, has liability insurance, and workers compensation insurance just in case a wall comes crashing down or someone takes a nasty fall.

It's smart to evaluate your insurance coverage while your remodeling project is still in its developmental stages. Remember, since additions can increase the value of your home, your insurance policy may need to be adjusted accordingly. Give us a call and one of our qualified insurance professionals would be glad to assess your coverage options.

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Identity Theft: Protection and Prevention

Identity theft—using another person's personal information to commit unlawful activity—has become a crime epidemic in recent years. The Federal Trade Commission (FTC) reports that the number of incidents of identity theft increased approximately 100% in 2002. Identity theft can be emotionally and financially devastating. If you fall victim, it could cost you upwards of $1,000 out-of-pocket to rectify any damage caused by this crime.
Before you become a victim, consider the following steps you can take to help keep your good name—and good credit—protected:

A. If you must give out personal information while making a purchase, be aware of your surroundings and do it discreetly.

B. Order a copy of your credit report now and check it for accuracy. Remember to do this once a year to stay informed of any significant changes in your credit history. You can contact any of the three major credit bureaus (listed below) for a copy. Some states allow one free copy per year but by law, these and other credit bureaus cannot charge you more than $9 for a copy of your report. If you are in the process of disputing a credit issue, you might even be able to obtain a copy for free.

Experian: 888-EXPERIAN
(888-397-3742)
Fraud Department:
888-EXPERIAN
www.experian.com

Equifax: 800-685-1111

Fraud Department: 800-525-6285
www.equifax.com

Transunion: 800-888-4213
Fraud Department: 800-680-7289
www.transunion.com

C. Do not give out personal information over the phone unless you have made the call yourself. This will help ensure that only the people and businesses you have chosen to contact are privy to your information.

D. Purchase a paper shredder to properly destroy any documents, receipts, or pieces of mail that contain information an identity thief might find useful, such as ATM receipts or bank statements.

E. Avoid using your Social Security number unless absolutely necessary. This includes replacing it with another number on your driver's license. Most states now offer the option of choosing an alternate number.

F. Secure your personal computer, using firewall programs, anti-virus software, and secure browsers. Minimizing online access to your personal information can help thwart uninvited guests to your computer.

It Happened—What Do I Do?

If you have become the victim of identity theft, there are ways you can help ensure the process of clearing your name moves smoothly.

1. Contact the Federal Trade Commission's Identity Theft Hotline 1-877-IDTHEFT (877-438-4338).

2. Create a list of all the creditors whom you suspect have received fraudulent information. Keep records of all communications with them, including written transcripts of phone conversations and copies of correspondence.

3. Inform the fraud departments of the three major credit bureaus (numbers listed above), and ask that a "fraud alert" be attached to your file. Although the credit bureaus are not required to offer "fraud alerts," they generally will do so. This temporarily alerts a creditor that fraudulent activity may have been conducted on your accounts.

4. Terminate any accounts you were not responsible for opening, or any existing accounts that were fraudulently used.

5. Report any information you have to the police, and be sure to give them copies of all relevant documents.

Depending on the type of fraud that has been committed, you may need to take some additional steps. For example, if your Social Security number was used under false pretenses, contact your local Social Security office. Or, if an identity thief created a cellular phone account with your billing information, contact the Federal Communications
Commission (FCC).

Education and Reaction

Educating yourself on how to avoid becoming a victim, as well as how to react should you become a victim of identity theft are the first steps in the battle to stop this crime. To learn more about identity theft—and ways to protect yourself—visit the Federal Trade Commission online at www.ftc.gov.

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In the Workplace:

Noise in the Workplace

According to the most recent report by the National Institute for Occupational Safety and Health (NIOSH, 1998), about 30 million workers in the U.S. each year are exposed to hazardous noise on the job. Noise-induced hearing loss is irreversible and is the second most self-reported occupational illness.

Certain industries are prone to higher noise levels and, therefore, pose greater risk of hearing loss to workers. According to NIOSH, industry-specific studies reveal that 90% of workers in some industries, such as mining, are likely to experience hearing impairment by age 52, compared to less than 10% of the general population. Nearly 50% of plumbers and 45% of carpenters reported a perceived hearing loss. A national reporting system for hearing loss in the workplace would create more data for study of this problem, but that may be far in the future.

An Ounce of Prevention

While hearing loss is permanent, it may be easily prevented. Business owners can take several steps to help employees preserve their hearing. The best way is to reduce the hazardous noise level, such as by installing a muffler or an acoustic barrier. Secondly, employers can provide workers with protective devices, such as earmuffs or earplugs, and educate workers about their use.

Noise has a gradual effect on hearing and may go unnoticed. To determine the extent of noise pollution, a business can employ a noise evaluation service to measure sound levels in the workplace. In this way, employers may become aware of which employees are most at risk for hearing damage. With regular hearing tests, signs of hearing loss can be detected early and addressed before severe damage is done. This can go a long way toward avoiding workers compensation claims, higher business insurance costs, and possible Occupational Safety and Health Administration (OSHA) fines.

For more information on occupational hearing loss, or other work-related injuries or illnesses, give us a call. One of our qualified insurance professionals would be glad to answer your questions.

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Loss Prevention

The purpose of having a business insurance and risk management program in place is to provide sufficient protection for your business in the event of a loss.

The cost of implementing a loss prevention program may, at first, appear to be an unnecessary expense. However, a successful program can work toward alleviating the damaging effects of loss and will help save indirect costs, as well as keep insurance premiums at their lowest. Maintaining documentary evidence prior to a loss is important to sustain claimed values if your business should suffer a loss.

When determining the best program for your business, consider the following: What are the potential losses that your business could suffer? What effect could those losses have on your business? How can you reduce your exposure to risk and what is the best blend of risk management, business insurance, and self-insurance for you and your business? Our insurance professionals are trained to assist you in this analysis. Please contact us to discuss further.

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Endorsements and Your Business

Companies may be hard-pressed to find affordable insurance policies that meet all of their business needs and objectives. Businesses concerned with stretching coverage over a wide array of possible risks could potentially broaden those policies by obtaining endorsements. Endorsements address exclusions and limitations under a basic insurance program. There may be many choices available for filling gaps in coverage.

Let's review a few options that may help provide some additional protection:

• Contingent Business Income Insurance. A company's revenue flow could be greatly stemmed in the event an earthquake, storm, or other natural disaster halts any link in the chain of production, i.e., manufacturers, suppliers, and distributors. Contingent business income insurance covers a business for losses that occur under such circumstances.

• Accounts Receivable Endorsement. Suppose a business's accounts receivable records are destroyed by fire or other calamity. An accounts receivable endorsement covers a business for any amounts that are uncollectable as a result of the loss, as well as for the costs of collecting the accounts and recreating the records.

• Peak Season Limit of Insurance. During a company's most productive season(s), higher levels of inventory may need to be maintained to cover increased sales. However, if a catastrophe were to occur, the losses sustained could exceed the amount of insurance carried. A peak season limit of insurance endorsement covers a business for a higher limit of coverage during its particular period(s) of high demand.

• Spoilage Coverage. Businesses that handle perishables must often maintain controlled conditions to prevent spoilage. A spoilage coverage endorsement protects a business against losses caused by power and equipment failure or general contamination resulting from incidents that are beyond the company's control.

• Ordinance or Law Coverage. If a covered peril, such as a fire or tornado, damages a business's property to the extent that the law requires its demolition or complete renovation, ordinance or law coverage provides coverage for the loss. Individuals who own large stakes in real estate may be particularly interested in this endorsement because of the potential for strict building codes and other safety requirements.

• Hired and Non-Owned Auto Liability. Employers that allow their employees to use personal vehicles for business purposes could be held legally responsible for an employee who is involved in an accident while running work-related errands. A hired and non-owned auto liability endorsement helps protect businesses against this risk.

• Coverage for Injury to Leased Workers. Contract or leased workers are a major segment of today's workforce for many businesses. A coverage for injury to leased workers endorsement on a workers compensation policy protects these workers for injuries sustained while on the job.

Tying Loose Ends Together

Gaps in a company's business insurance coverage can potentially create significant risks to its operations and employees. Obtaining a few additional endorsements helps provide an added measure of protection in the event of an unforeseen catastrophe.

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