Here comes the sun.

‘Going green’ is no longer a fad, and more and more people are installing solar panels on homes and property. They are using solar to heat water, to generate electricity or for other tasks are an option for the environmentally aware homeowner or tenant who wishes to save on ongoing costs or energy consumption and is comfortable with the up-front investment.

Solar panels, like any other exterior part of your home, will have ongoing operational and maintenance upkeep that would be part of the decision making process. Another item to consider, which is often missed, is insurance.

The value of your home or building will increase by the cost of the solar panels, which means that your insurance premiums will likely increase some amount. But before you dash out and start installing, there may be other insurance implications around your solar panels you should consider.

Have you considered…?

The installation of solar panel systems can pose previously non-existent new risks to the property. Here are a just a few things for you to think about:

• If the panels are angled, a heavy windstorm can rip them off and potentially damage another property, or even worse, another person. This could easily bring liability losses, which your home insurer may decline to cover, because you did not tell them about the panels or because 3rd party damage occurred outside of your property.
• If the panels are angled, a heavy windstorm can also push the panel into the roof enough to damage the building and cause roof leaks, etc.
• Installation of panels itself, if installed incorrectly, can cause result in damage to the roof that could lead to potential leaking.
• Panels, and their components, add an additional element of electrical risk. These elements do present potential fire hazards that did not exist when underwriters wrote your policy.

 Questions to ask BEFORE beginning the installation:

• Will your policy require that panels be installed by someone who is ULC Certified?
• If a snow or hail storm damages the panels, or your system gets vandalized or pillaged, who will cover the losses?
• If your system malfunctions and, despite required precautions, and causes electrical damage to connecting grid elements, who covers that damage?

Buyer beware

As always, it is up to you, the homeowner, to know and identify where you are at risk. For most of us, however, we don’t know what we don’t know, so it is important to seek out help from the experts.

Review your plan with your insurance advisor to see what potential implications exist before you make any significant changes to your property. Some brokers have insurance programs designed specifically for solar projects and they are managed by people who understand the solar industry.

Water happens

 In a recent report released by The Insurance Bureau of Canada, analysts estimate losses related to water damage cost insurance companies and Canadian policyholders at least $1.7 billion every year. This makes water damage one of the leading causes of property damage nationwide, and has prompted industry analysts to state that “water is the new fire”. 

 Typically, your homeowner policy covers water damage caused by:

• If water suddenly and accidentally escapes from a water main, an issue with a plumbing, heating, sprinkler or air-conditioning system or a container inside your home for holding water. 
• If water suddenly and accidentally escapes from a container outside your home for holding water, unless it is caused by freezing.
• If water enters your home through an opening which has been created suddenly and accidentally by an event covered in your insurance policy.
• If water enters your home through your roof because of accumulation of ice or snow on the roof or eaves trough.

But other sources of water damage such as floods, burst water mains or pipes can happen without warning, even if you don”t live near a river, or any number of bodies of water. One heavy rainstorm can change everything because water damage can come in all different shapes and sizes.

 Floods

Floods occur whenever rain or melting snow produces more water than the land can readily absorb, or the sewage system can process. Because this kind of flooding tends to happen quickly, and without warning, it is important to be prepared.

Use the following tips to protect your family and belongings from floods:

•  Keep an up-to-date home inventory and other important papers in a secure place. If you must evacuate, take these items with you. Also, keep exact copies in a place away from home, such as a bank safety-deposit box.
• Check portable radios and flashlights. Make sure you have new batteries on hand.
• Be alert to downed electrical wires and gas leaks. Electricity travels through water, so report downed wires as soon as possible. The damage may not be obvious if the equipment was under water or exposed to moisture.
• Document the damage with photos, and contact your insurance representative as soon as possible. Whenever possible, keep roulette evidence of damage and loss for the claims adjuster.

Standard homeowners insurance does not cover flood damage; however, in certain cases, flood insurance is available for commercial insurance risks. If your home has been renovated to convert your basement into a living space, the potential damage due to flooding could be even more costly.

 If you are unsure as to the level of flood damage coverage that you may (or may not!) have on your policy, be sure to read through your policy or contact your insurance broker to verify.

Seepage

As Seepage losses are considered to be maintenance concerns. As such, seepage losses are not covered under a typical policy, as they are not considered “Sudden and Accidental”. 

For example:  There is no coverage when water enters your basement through a crack in the foundation or your roof leaks and there is no visible damage to the roof.

Freezing

If you have freezing coverage on your policy, it is important to understand what your responsibilities are as the policy holder in order to ensure that coverage of the property remains valid.  

If you are leaving your property unoccupied for 4 consecutive days or more during the winter (i.e. Going away on a week’s vacation, heading south for the winter), it is required that you take one of the following measures, in order to ensure coverage:

• Turn your water main valve off and drain your water intake lines.
• Maintain an acceptable temperature in the home to avoid any possible freezing, and have the property checked daily by a trusted person.
• Have your heating system connected by a monitored heating alarm to a station providing 24 hr service

 Are you covered?

NEVER assume that you have enough coverage, always check with your insurance broker. If you have any concerns about your coverage, or would like us to review your policyholder responsibilities with you, please contact us and we will be happy to speak with you.

Business and supply chain interruption, natural disasters and fire and explosion have been identified by more than 500 corporate and industrial insurance experts across the Allianz Group as key risks that companies in particular regions and sectors face in 2013.

Fire has sparked new interest, moving up on the risk manager’s agenda from tenth in 2011 to third in 2012, notes Allianz Risk Barometer 2013, a survey conducted last fall by Allianz Global Corporate & Specialty (AGCS) and released yesterday. (Although there were 529 respondents from 28 countries, since multiple answers for up to industries were possible, 843 answers were delivered.)

“Its resurgence in this year’s survey shows that companies should not compromise their fire protection systems due to economic pressures,” says Thomas Varney, head of risk consulting, Americas for AGCS, which provides insurance and risk management support across the spectrum of marine, aviation and corporate business. [emphasis added]

With the holiday season upon us, and the party circuit in full swing, “‘tis the season” for safeguarding against costly insurance claims that can arise from hosting functions linked to your company.

Even for smaller companies, there are great risks associated from serving alcohol. Whether it be a holiday party, new year’s celebration or just an informal get together with employees, you need to know when you are liable.

Before you start planning a party it is a smart idea to sit down with an insurance professional to determine exactly what is at stake when you are playing host to employees and clients. It is important for business owners to educate themselves on what they need to keep an eye out for.

Perhaps the most risky aspect of any business party is alcohol. Whether it is served at a bar, in the office, or at a private residence, you and your company could be held responsible for the actions of guests that consume alcohol. The scope of what you are potentially on the hook for when serving alcohol always seems to be increasing, so talk with a commercial insurance broker and determine a more risk-friendly party idea.

• Moving the party to a breakfast or lunch function is going to make the absence of alcohol less noticeable for those that would normally imbibe.
• Consider making the party a themed get together such as a skating party or another such activity that is fun but isn’t conducive to drinking.
• Make sure that if you don’t serve alcohol, you put that extra money into serving lavish food and premium non-alcoholic beverages to keep people focused on what they have and not the alcohol that isn’t present.

Before you use your office space for a party or play the host this season, make sure that you are prepared for any incident. Feel free to contact us to if you have any questions regarding your liability as a business owner, or a homeowner, when it comes to holiday celebrations.

~ Posted on canadianunderwriter.ca/news on 2012-04-23

Two-thirds of drivers in the Greater Toronto Area (GTA) say they would likely try pay-as-you-drive (PAYD) insurance if it were available, notes a study by the Pembina Institute, a non-profit think tank that promotes sustainable energy solutions.

The institute’s study offers policy options on how to avoid traffic congestion in the GTA, canvassing the opinions of 1,001 area drivers whose one-way commutes to Toronto took more than half an hour.

Of the approximately 66% of respondents who were open to trying PAYD insurance, 85% indicated they would change commuting habits to find another way to get to work if they had the insurance.

The Pembina Institute report suggests examining “a pilot project for PAYD insurance, ensuring that it is at minimum revenue neutral, but provides strong incentives for drivers to leave the car at home in favour of other cost-effective options.”

PAYD insurance is not currently available in Canada, although Aviva Canada offered a pilot program in Ontario from 2005 to 2010. The Pembina report notes 6,000 Ontarians participated in Aviva’s program, with an average premium savings of 19%.

In the United States, Progressive Insurance offers optional PAYD insurance in 39 states, with an average savings for customers of 10 % to 15%.

The insurance option is most likely to be popular among people who drive less than 10,000 km per year, the report states.

“For insurance companies to offer the program, it needs to have public support — which has been demonstrated by the [Insurance Bureau of Canada] poll as well as by this survey,” the institute reports. It also must be cost-effective and operational at a large scale.

“As the tracking devices can be expensive, the province could implement legislation to reward participating companies, such as tax credits that would be phased out once a specific number of vehicles are covered by PAYD insurance.”

Claims costs for Ontario auto insurers remain high despite the gains realized as a result of the provincial reforms in 2010, notes the Insurance Bureau of Canada’s (IBC) submission to the Ontario Committee Hearings on Auto Insurance on May 28.

“While the September 2010 reforms were a needed first step in reducing the pressure on no fault injury costs, claims costs are still out of control,” IBC’s vice president for Ontario Ralph Palumbo told the hearings.

The Standing Committee on General Government passed a motion Apr. 16 to strike the select committee, which is holding public hearings to propose recommendations to the minority government.

Palumbo listed four reasons why claims costs remain high, namely mediation backlogs, an increase in catastrophic injury claims, an increase in bodily injury costs and the persistence of auto insurance fraud.

“First, there is an excess of 30,000 unresolved claims cases awaiting dispute resolution at [Financial Services Commission of Ontario, FSCO] and these have undetermined costs,” Palumbo said. “Depending on how these cases are decided, it could re-ignite the accident benefits costs spiral.

“I cannot stress strongly enough how this backlog is a major risk to insurance premium stability. Claimants don’t know what their benefits will be and insurers don’t know how much their claims are going to cost.”

Second, Palumbo said, the number of catastrophic injury claims is rising faster than other claims. Between 2004 and 2010, the number of no-fault injury claims rose 28%, while the count for large claims has more than doubled.

Hospitalizations from motor vehicle accidents are down 12% and yet auto insurers are being presented with many more catastrophic injury claims, Palumbo said. “This is a mystery.”

Third, bodily injury (BI) claims costs on casinos in australia the tort side are increasing rapidly. Palumbo said latest available figures show that the frequency of these claims has been rising, as has the average claims cost. BI claims represent more than $2 billion in annual costs.

“It is very concerning that the volume and average cost of these types of claims appear to be rising so rapidly, Palumbo said. “BI is on the same track accident benefits were before the 2010 reforms and more needs to be done to assess the causes and what can be done to alter this concerning trend.”

Finally, fraud persists in the Ontario auto insurance system.

“Many [insurers] are currently in the process of preparing responses to a FSCO [Statutory Accident Benefits Schedule] questionnaire about their internal practices to address fraudulent and abusive claims,” Palumbo said. “Companies have taken significant steps to enhance their claims management process — for some companies this has meant wholesale restructuring of their claims departments. As well, consumers are becoming more educated.

“We want to continue this momentum because society as a whole will benefit from fighting this crime.”

If you have been operating a business out of your home under the assumption your home owner’s insurance has you covered, you might want to read the fine print.

Many small and home-based business owners who run their business from a home office do so thinking that the have business coverage, but when is the last time you actually read through your entire policy with your business needs in mind?

Owning your home and owning a business that operates from your home don’t always fall under the same insurance coverage, and if you run into trouble you might be left out in the cold, both physically and financially.

Some home insurance policies might cover small home offices that don’t involve a lot of clients visiting you, online casino there but it’s a fine line between coverage and losing everything. Typical home insurance policies generally do not cover business liabilities such as:

• the products you store,
• pollution risks,
• errors and omissions ,or
• loss of business income.

Those are just a few potential powder kegs you might be storing in that home office.

Even if you already have comprehensive home insurance you need to look into commercial insurance. Don’t take risks that can be harmful to both your business and your home by ignoring these risk factors.  Insurance policies can be difficult to understand, even for simple matters and if you don’t completely understand what you are signed up for, contact your broker for a policy review.

Blog originally posted on February 20, 2012  By Durham Business Times Blogging Team

You’re a smart small business owner. You pay attention to your customers needs. You pay attention to your bottom line. How closely do you pay attention to the weather?

In the winter, January through March are prime season for icy conditions and that means you are taking on extra risk as a business or property owner. Slippery walkways result in a great deal of insurance claims each year, but if you aren’t properly covering your own tail when it comes to slip and fall lawsuits, you could find your profit margin cooling off very drastically.

In addition, the working groups have been asked to develop a consumer engagement and education strategy so people will be aware of the claims system and thus not susceptible to misinformation provided by fraudsters.

Finally, the working groups will consider the development of a single Web portal for Ontario auto insurance claimants. The portal would be a source of consumer information and education on matters such as approved protocols for treatments on specific auto related injuries.

These and other recommendations are part of an extensive report issued by The Ontario Auto Insurance Anti-Fraud Task Force, which the Ontario government established in July 2011 casino to determine the scope and nature of automobile insurance fraud and make recommendations about ways to reduce it. The Insurance Bureau of Canada (IBC) issued a press release saying it was “pleased” with the interim report.

“To have a real impact on Ontario”s efforts to eliminate insurance fraud, we need to address the underlying factors that contribute to the problem,” said Ralph Palumbo, IBC”s vice president of Ontario. “The Task Force has accurately identified those factors, as well as other issues that require further examination.”

In addition to endorsing the recommendations in the Task Force report, IBC is advocating for the imposition of tougher criminal and civil penalties for identity fraud and theft.

The recommendations in the task force will go now go to three separate working groups for further review. The Task Force established a working group to look at each one of the following topic areas related to auto insurance fraud:

• prevention, detection, investigation and enforcement;
• regulatory practices in the automobile insurance system; and
• consumer engagement and education.

The steering committee overseeing the work of the Task Force and its three working groups will issue a final report due by Fall 2012.

The full interim report can be viewed at:  http://www.fin.gov.on.ca/en/autoinsurance/interim-report.html