All posts by 22adminan

Insurance Industry

Pool Drain Cover Recall

There have been some unfortunate and tragic incidents related to pool drain covers in the news lately.  Our friends at Philadelphia Insurance’s Loss Control program have advised us of the following Pool Drain Cover Recall that has come as a result of incorrect flow rating by the CPSC:

On May 26th, the U.S. Consumer Products Safety Commission issued a news release stating there is a voluntary recall of several retrofit or replacement drain covers that were installed new or as a result of the “Virginia Graeme Baker Pool & Safety Act” which was effective on Dec 19, 2008.

Per the recall “The drain covers were incorrectly rated to handle the flow of water through the cover, which could pose a possible entrapment hazard to swimmers and bathers.”

Visit CPSC Pool Drain Recall for more information. Each firm below has a website with photos of the recalled drain cover models. Please verify that your pool is not subject to this recall, or if your pool has a recalled drain cover, take immediate steps to have the drain cover(s) replaced.

Eight Manufacturers are cooperating with the recall:

Company Model Information (websites) Dates Sold Remedy
A&A aamfg.com December 2008 –
April 2011		 Replacement or Retrofit
AquaStar aquastarpoolproducts.com December 2008 –
April 2011		 Replacement or Retrofit
Color Match poolfittings.com December 2008 –
April 2011		 Replacement or Retrofit
Custom Molded Products c-m-p.com December 2008 –
April 2011		 Replacement or Retrofit
Hayward Pool Products hayward-pool.com December 2008 –
April 2011		 Replacement or Retrofit
Pentair Water Pool & Spa pentairpool.com June 2009 –
April 2011		 Replacement or Retrofit
Rising Dragon risingdragonplastics.com December 2008 –
April 2011		 Replacement or Retrofit
Waterway waterwayplastics.com December 2008 –
April 2011		 Replacement or Retrofit
California, Homeowners Insurance, Natural Disasters, New Mexico, Tips

Tips to prepare for a wildfire

From our friends at Acuity Insurance comes this information, which we don’t want to have to think about, but it is better to consider this now and be prepared in advance. This summer has shown a preponderance of dry, drought conditions and high temperatures leading unfortunately to terrible fires burning around the Southwest.

Listed here are several suggestions that you can implement immediately. Others need to be considered at the time of construction or remodeling. You should also contact your local fire department, forestry office, emergency management office or building department for information about local fire laws, building codes and protection measures. Obtain local building codes and weed abatement ordinances for structures built near wooded areas.

Find Out What Your Fire Risk Is

Learn about the history of wildfire in your area. Be aware of recent weather. A long period without rain increases the risk of wildfire. Consider having a professional inspect your property and offer recommendations for reducing the wildfire risk. Determine your community’s ability to respond to wildfire.

  • Are roads leading to your property clearly marked?
  • Are the roads wide enough to allow firefighting equipment to get through?
  • Is your house number visible from the roadside?

Learn and teach safe fire practices.

  • Build fires away from nearby trees or bushes.
  • Always have a way to extinguish the fire quickly and completely.
  • Install smoke detectors on every level of your home and near sleeping areas.
  • Never leave a fire, even “just” a cigarette, burning unattended.
  • Avoid open burning completely, and especially during dry season.

Always be ready for an emergency evacuation.

  • Evacuation may be the only way to protect your family in a wildfire.
  • Know where to go and what to bring with you.
  • You should plan several escape routes in case roads are blocked by a wildfire.
Business Insurance, Film Insurance, Insurance Terms, Lighthearted

What does Inland Marine Insurance mean, and what’s with the funny name?

Inland marine covers loss to either your property or the property of others when it is in your care, custody and control, when the property in question is at a non-permanent location, in transport, temporary storage, or mobile. Property in question does not have to be business property (items owned), but may also be personal (guns, golf clubs, skis, etc.) This type of coverage can also be called a floater.
As for how the terms “inland marine” and “floater” came to be, indulge us in a little story:
Over 300 years ago, a collection of European merchants would meet at a coffee house to discuss their business transactions. Many were in the transatlantic cargo and shipping business, moving sugar cane & rum as well as other commodities around. Pirates were a fact of life, as was bad weather. The merchants, to collectively ease the individual pains when one ship or its cargo was lost, would each pay regular, smaller amounts into a fund, in order to “insure” against loss.
As these merchants expanded this concept, they took the original marine insurance idea and applied it to goods on barges in canals (floater) en-route to their final destination, and to ground-based transportation that worked for the marine merchant companies (inland marine).

The town these merchants were in? London
The name of the coffee house? Lloyd’s

Other events of significant note have created the modern insurance industry. Mrs. O’Leary’s cow (the 1871 Chicago fire) was responsible for an entire new insurance industry, starting with something called dwelling fire coverage, or the fire policy. The 1906 San Francisco earthquake (which actually affected an area from LA to Oregon) called for careful definitions of coverages and causes of loss.

Auto Insurance, Insurance Terms

What is “full coverage” with regards to automobile insurance?

Full coverage is NOT a term used by insurance companies or agents, but is a phrase that we run into often that is used by our customers. We may know what you mean by the phrase “full coverage,” but since there is no agreed-upon definition, it is to your advantage to review specific coverages and make sure that you have what you need in your situation. The common usage of the phrase “full coverage” may be to imply that the insured has all of the coverages offered by an insurance company on their policy. This may include but is not limited to:

  • Liability coverage (both bodily injury and property damage – to others)
  • Uninsured/Underinsured Motorist coverage (both bodily injury and property damage – covers people in your vehicle and your vehicle when the other driver is at fault)
  • Medical coverage (immediate payment for injuries to the driver and passengers in your car – without determination of fault or negligence)
  • Comprehensive coverage, with deductible (loss due to theft or damage other than collision)
  • Collision coverage, with deductible (damage to your car from collision, while driving or flip-over)
  • Towing and Roadside Assistance coverage
  • Rental Reimbursement coverage
  • You may also consider specific company-only optional coverages such as:
    • Accidental Death coverage
    • Gap protection coverage
    • New Vehicle replacement coverage
    • Accident forgiveness (first, or minor)
    • Deductible reduction (diminishing deductible)
    • Guaranteed renewal
    • Audio System coverage
    • Special/custom equipment coverage
    • Stated value coverage
    • Agreed value coverage

Check with your agent to make sure you do have “Full Coverage,” in the way that you understand it and whenever possible, specify exactly which of the above you are interested in.

FAQ, Homeowners Insurance, Insurance Terms

What happens if I don’t “schedule” my more expensive belongings?

If you don’t “schedule personal property,” there may be limits on how much coverage you get for “special classifications” of items such as jewelry, watches, silverware, furs, firearms, computers, art and other items or classes. Without Scheduled Personal Property, there are general limits of $1,000 or $2,000. The exact limits of coverage will be shown in Section I of your policy. With a Scheduled Personal Property endorsement, you will typically need to provide both a limit per class desired (blanket), as well as a schedule of individual items with a replacement cost above a certain threshold (scheduled). A scheduled personal property floater usually provides coverage for loss of any type, including accidental loss or “mysterious disappearance.”

Auto Insurance, Business Insurance, FAQ, Homeowners Insurance, Insurance Terms

What is the difference between Replacement Cost and Actual Cash Value (ACV)?

Actual cash value only pays to replace your home or property after subtracting a deduction for depreciation. For a higher premium, you can purchase replacement cost coverage, which pays the actual cost of replacing your home or property at the price of what it would cost to purchase that item new, today. Replacement cost coverage premiums are about 10 percent more than ACV. Replacement cost contents is an “endorsement” you should definitely consider. (Endorsements are “forms” or changes/additions of special coverage to your policy)

Homeowners Insurance, Insurance Terms

How does an umbrella or excess liability work?

If you have assets (property + savings/investments) that are worth more than the liability limits of your homeowner policy, you should consider purchasing an umbrella policy, also known as “excess liability.” Umbrella coverage is called excess because it does not start to pay out until after you have used up the liability insurance in your homeowners or auto policy (depending on the incident). Umbrella liability covers more issues than the other liability policies, including such things a libel and slander. Many companies will require that you have a minimum of $300,000 liability coverage on your home and car before you can purchase an umbrella policy.

Homeowners Insurance, Insurance Terms

What is a blanket limit?

A blanket limit, provided by some companies, on your homeowners insurance, combines the totals available for the individual, normally separate property coverages, into one larger number. Claims can be paid out of the blanket limit, and do not have to be allocated exactly how normal, separate coverages would be. The separate property coverages usually include:

  • The structure of your home (covered at replacement cost, but does not include cost of land)
  • Outlying, non-attached structures on your property
  • Your personal property (possessions)
  • Cost of living expenses if your home suffers a catastrophic loss

In addition to property related coverages, you will also have insurance to cover your liability to others (minimum $100,000) and medical payments to others. These are not contained under a blanket limit.

Business Insurance, Insurance Terms

What is a “Waiver of Subrogation”?

Subrogation means, in a legal sense, one party has the right to “step into the shoes” of another party for the purposes of bringing a claim for damages. Not all types of claims may be subrogated. The most common type that can be subrogated is property damage claims.

Example: Joe is an electrician insured by BIG Insurance Company. He is hired by Amusement Park World to replace light bulbs in the parking lot for the park’s opening in the Spring. Amusement Park World requires Joe to sign a Waiver of Subrogation stating that BIG Insurance Company will not be able to recover (from Amusement Park World) any money paid for damages to Joe’s truck if he hits any of the huge potholes in Amusement Park World’s parking lot (a claim for which they would normally be liable).

A waiver of subrogation clause is placed in a contract to minimize lawsuits and claims among the parties. The result is that the risk of loss is agreed among the parties to lie solely with the insurance company. The risk, once assigned to the insurers (insurance companies) by the parties, is determined to stop there, without allowing the insurer to seek redress (legal cation) from any party who may be “at fault” for the loss/claim. In order to add a Waiver of Subrogation to your insurance policy, you will either need to state the number of parties with whom you have such agreements, or you may purchase a blanket waiver of subrogation that will apply to all entities with whom you have a contract with a waiver of subrogation clause.

Insurers have also begun to refer to the “Waiver of Subrogation” as a “Waiver of Transfer of Rights,” or in its full form, a “Waiver of Transfer of Rights of Recovery Against Others To Us.”