MassOne Insurance - Greenfield MA, South Deerfield Mass, Shelburne Falls Massachusetts

General Insurance/Auto Insurance

What is the Safe Driver Insurance Plan?
Did I Notify My Insurer?
Am I Protected Against Insurance Fraud?
How Do I Control My Car Insurance Costs?
Can I Make My New Driver Affordable?
Can I Make My New Driver Safer?
What Automobile Insurance Discounts are Available in Massachusetts?
What Do Those Letters Behind My Agent's Name Mean?
What's a Waiver?
What is Personal Injury?

Commercial Insurance

How Can I Control My Business Insurance Costs?
What are Certificates of Insurance?
Office Functions and Alcohol — What is the Liability?

GENERAL INSURANCE/AUTO INSURANCE

What is the Safe Driver Insurance Plan?

The Safe Driver Insurance Plan (SDIP) is a program mandated by state law that encourages safe driving by rewarding drivers who do not cause an accident or incur a traffic law violation and by making sure that high-risk drivers pay a greater share of insurance costs. The SDIP premium adjustment is the last step in the rating process after all discounts and rating factors have been applied.

Under the SDIP, you incur points for traffic violations and at-fault accidents within the policy Experience Period, the six-year period immediately preceding the policy effective date. You earn a credit point for each year during the policy Experience period for which you had no traffic violations or at-fault accidents. If the first (oldest) traffic violation during the policy Experience Period is a minor non- criminal traffic violation, you do not incur surcharge points for this traffic violation, but you do not earn a credit step for that year.

Calculating your SDIP Step
Your SDIP step is calculated using a starting Step of 15, and your driving record during the policy Experience Period. Beginning at the neutral Step 15, add Surcharge Points for any Surchargeable Incident and subtract a Credit Point for each incident-free year of driving. The result is your SDIP Step. Each accident or violation remains on your record for six years from the surcharge date. No points are applied to incidents in the sixth year of the policy Experience Period.

Save with Credit Points
Driving safely and avoiding surchargeable incidents can save you up to 45% on certain coverages. One credit point is subtracted for each year in which you do not cause an accident or incur a traffic violation. You get a credit point for any incident-free year of driving completed during your policy Experience Period as an out-of-state-driver. The Clean Slate Rule can help you if you resolve to drive better. If you have a bad driving history with many surchargeable incidents and are paying a high surcharge premium, you can earn credit points by maintaining three consecutive years of incident-free driving. If you do not cause any accidents or incur traffic violations for the three consecutive years preceding the policy effective date and your SDIP step is 15 or higher, your SDIP Step will be set at 14, a credit step.

What is a Surcharge?
You incur surcharge points if you:
1) cause an at-fault accident, or
2) are convicted of, or pay a fine for a traffic law violation, or are assigned to an alcohol education program.

At-Fault Accidents: You incur surcharge points if you are more than 50% at fault for an accident. You incur three surcharge points for Minor At-Fault Accidents. A claim payment of over $500 up to and including $2,000 for Collision or Damage to Someone Else's Property is considered a Minor At-Fault Accident. If the claim payment is over $2,000, it is a Major At-Fault Accident.

Traffic Violations: If you are convicted or, and/or pay a fine for violating certain motor vehicle laws in Massachusetts or out-of-state, or you are required to participating in an alcohol education program, the court will notify the Merit Rating Board. The violation and surcharge points will be added to your driving record. Minor traffic violations include infractions such as: speeding, operating a vehicle without a valid inspection sticker and failure to obey traffic lights. Some examples of major traffic violations include operating under the influence of liquor or narcotics, leaving the scene of an accident and refusing to stop for a police officer. If you disagree with a traffic violation, you must appeal it through the court system, as indicated on the back of the citation violation. Traffic violations cannot be appealed to the Division of Insurance Board of Appeal or the Merit Rating Board.

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Did I Notify My Insurer?

You take the time and money to identify what you need to insure, what company you wish to protect, reading and understanding the various policies that cover you and your possessions. Isn't the importance of telling your agent or insurance company about a loss obvious? Surprisingly, no, it isn't. The Notification Obligation

Fulfilling the coverage promise of an insurance policy is all about communication. An insurer makes a promise to protect you against certain types of loss, but it can't follow-through unless it knows about a loss. Prompt notification is so important that it is a formal policy provision and your failing to meet its requirements could result in you losing the protection you paid for.

Depending upon the policy, items having to do with notification may be under a separate policy part or spread among several areas. However, a policy typically requires you to do the following:

Contact the agent or insurer as quickly as practical - the practical requirement replaced the previous use of "possible," since some companies unreasonably denied coverage because notification was not instantaneous. The difference between words may seem minor, but it gives you some consideration for circumstances that could affect how quickly you contact your agent or insurer about a loss.

Identify Yourself - Perhaps one day your insurer will be able to recognize your voice over the phone and immediately pull up your file. Until then, be prepared to at least tell your insurer your full name (or, if different, the name the insurance policy is under) and the policy number.

Give adequate details - What, When Where, Why and How. It's important that the insurer has enough information to take proper action, including giving you instructions on how to have your loss handled. This information forms the basis of opening a claim file, assigning the loss to a claims person and beginning investigation of the claim.

Give the insurer copies of any communications regarding a loss or possible loss (such as a threat of a lawsuit) - You should not guess about whether a legal notice or request to be paid for damages is important, even when an actual lawsuit has yet to be filed. Send a copy of the information to your insurer and let them decide. Prompt Notification helps Everyone

Complete and quick communication about losses gives you the best chance to get needed coverage and gives your insurer an opportunity to handle a possible claim efficiently. It also allows the insurer to control issues that could let lawsuits get out of control, such as the ability to offer payment for medical expenses or to contact and question witnesses.

Don't hesitate! Contact your agent or insurer and get your loss handled.

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Am I Protected Against Insurance Fraud?

What Is Fraud?
Every person who assumes the responsibility of carrying insurance to protect against their liability to others and to protect their property is affected by insurance fraud. While you and your insurer may disagree about a number of issues; when it comes to fraud; you are both victims. But you are not helpless victims. As an insurance consumer, it is important for you to know some basic information that may protect you from becoming a victim of insurance fraud.

The American Heritage College dictionary defines fraud as:

a deception deliberately practiced to secure unlawful gain.

In common terms, insurance fraud is lying to or deceiving an insurer in order to make money or to become insured. Some common fraud schemes include:

* "padding" (inflating the true amount of) a claim

lying or hiding (concealing) important information when applying for insurance
* submitting false claims
* "staging" accidents
* faking theft claims
* engaging in arson for profit

As a consumer, fraud should concern you since the cost is passed directly on to you in the form of higher insurance rates. You can play an important role in reducing fraud.

Fighting Auto Insurance Fraud
Persons attempting to commit insurance fraud often do so by deceiving innocent drivers during actual accidents or by involving innocent drivers in "staged" accidents. Do the following in order to minimize this risk:

* Drive defensively, keeping space between you and surrounding cars,
* When traffic slows, begin braking before the car in front of you does,
* Be careful when turning into a lane that allows two or more autos to turn left at the same time. Victims of insurance fraud are often people who float across the line when turning and then are intentionally sideswiped by a person who is "staging" an accident.
* If you are in an accident, write down license numbers of all cars involved in the accident, get the names and contact information of all persons involved and their insurers. Count the number of passengers in the other cars and get their names, addresses and any other pertinent information.
* Call the police and get a police report even if the damage is minimal. DO NOT let another driver talk you out of calling the police.

* Carry a disposable camera in your glove compartment and take pictures of the damage to the vehicles and of all drivers and passengers in the cars.

Fighting Homeowners Insurance Fraud
It is far more difficult to involve an innocent party in homeowner fraud. However a homeowner can help himself and help deter fraudulent claims by properly maintaining their home; removing or repairing items that could present trip hazards to outside parties. Also, if someone is hurt in your home or premises, be certain that you get full information and make certain that a person gets any needed treatment. Carefully document any incident, including all impressions about likely injury. Have a healthy skepticism over any information on medical bills or claims.

Report suspicious actions such as a friend who asks you to store valuable property and you then find that the person has reported a theft to his insurer or a fire has occured at their home.

Think of insurance fraud as money out of your pocket-because it is. According to the US Chamber of Commerce, fraud adds 25% to property and casualty insurance rates.

If you are involved in an accident and you are suspicious that fraud may be involved, call the National Insurance Crime Bureau at 1-800-835-6423.

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How Do I Control My Car In$urance Costs?

You may be frustrated with car insurance premiums that creep upward with each renewal. Factors that can affect car insurance premiums include the following:

* Your insurance company's overall loss experience (due to more claims)
* The increased value of newer model cars, particularly SUVs
* Increases in judgment amounts awarded in auto lawsuits
* Increased business processing and administrative expenses
* Auto loans lasting longer, meaning increased auto repair costs for older cars

Since these factors are beyond your control, it may be worthwhile to address ways that may lower your car insurance costs.

Begin by gathering your insurance records and any other car-related information. Next, determine if circumstances have changed since you last dealt with your coverage. Once this information is handy, call your agent and discuss relevant items such as:

* If you have your home and auto insurance with the same company, are you getting a discount?
* Does my coverage take full advantage of the discounts offered by my company?
* I have more than one car; am I getting a credit?
* Does it make sense to change my deductibles?
* Do my cars really need physical damage coverage insurance? (An important consideration for older vehicles)
* Do lifestyle choices such as drinking or smoking affect my premium?
* My son or daughter is on the honor roll, does this affect my premium?
* Did you know that my car has special security features?
* Did you know that my son took Driver's Education?
* Does the company have accurate information on how often and how far I drive?
* Am I with a standard carrier or do I qualify for any preferred program?
* Is my vehicle charged an additional premium because of its type or performance?

Do I qualify for a loss-free history or policy longevity discount?

Giving your agent accurate information helps you get the best available premium. Provide your agent with complete details about your driving history. It’s important to be clear about who drives your cars and how they’re used. Finally, use your agent as a resource for handling errors about your account or which may be shown in your driver records.

The cost of your car insurance may double by adding a young driver to your policy. This article focuses on ways to control a young driver's impact on your insurance premium.

Reducing your insurance premiums

* Have your child complete a driver training class, balancing its cost against premium savings and gaining a more competent young driver.
* Ask your insurer if it gives discounts to students with good grades.
* Find a company that bases its premium on the car your new driver usually drives instead of assigning him or her to the most expensive vehicle.
* Does your child have to drive to school? If so, expect your company to charge a higher premium for the increased amount of driving.
* Build a long-term relationship with your insurer. Some companies reward longevity by forgiving a driver's first accident or minor traffic violation.
* Make sure your new driver understands that poor driving habits can result in higher premiums or a canceled policy.
* Increase your physical damage deductibles or, for older vehicles, eliminate this coverage.
* If your child owns a vehicle, he or she should have a separate policy. However, if you share the cost of the car and its insurance, it may make sense to also own or co-own the vehicle. Your ownership interest lets you take advantage of a multiple-car discount.
* Think carefully about giving a young driver his or her own car. Coverage for young drivers who have full-time access to a vehicle is very expensive. Make sure you balance convenience against cost.

Important: don’t pursue lower premiums blindly. It's important that your young driver is protected from the financial consequences of causing a serious accident. Further, you may need to protect yourself since you could also be sued for an accident caused by your son or daughter. You might consider getting higher limits of liability by purchasing an umbrella policy. Talk to an insurance professional about more strategies to keep your new driver affordable.

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Can I Make My New Driver Safer?

A new driver can send a parent’s stress-level soaring. So let's focus on ways to control a young driver's impact on your peace of mind.

Keeping your young driver safer

* Consider preparing your child with a course in defensive driving as a tool for avoiding accidents and increasing confidence.
* Require your young driver to understand, sign and comply with the Youthful Operator Driver Safety Agreement.
* Be a proper model by using seat belts and never using alcohol or drugs.
* Provide your child with a well-maintained vehicle, equipped with safety devices such as air bags and anti-lock brakes. Also, avoid vehicles that are vulnerable to serious damage during collisions or to "rolling over."
* Control your child's driving privileges...don't hesitate to curtail or revoke them in response to poor behavior.
* Set high driving standards and test your young driver.
* Be certain that he or she can properly pass vehicles, maintain a correct distance, park, merge and exit, change lanes, make turns, obey speed limits and be aware of pedestrians.
* Make sure your child understands traffic laws and has a healthy respect for the power of the automobile.
* Don't let your child become licensed until he or she passes YOUR driving test which must include the ability to drive under adverse conditions (dark, fog, rain, ice, snow, rush-hour traffic, etc.).

Another good idea is to talk to an insurance expert about other strategies to keep your new driver safer.

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What Automobile Insurance Discounts are Available in Massachusetts?

In Massachusetts, the following discounts are available:

Age 65 or Older — A 25% premium discount for all coverages will be applied after all other discounts and rating factors but prior to the application of the Safe Driver Insurance Plan rating step if: 1) the principal operator is 65 years or older; 2) there are no inexperienced drivers (0-6 years of driving experience); and 3) the automobile is not customarily used in business.

Passive Restraint — A 25% discount applied to the premium paid for Parts 2, 3, 6 and 12 is available if your automobile is equipped with an air bag or automatic seat belts.

Annual Mileage — A 10% discount applied to the premium paid for Parts 1-8 and Part 12 is available if your verified annual mileage falls between 0-5000 miles. A 5% discount off the premium paid for Parts 1-8 and Part 12 is available if your verified annual mileage falls between 5001-7500 miles. Antiques are not eligible for this discount.

Anti-Theft — Anti-theft discounts of up to 36% of the premium paid for Part 9 are available for automobiles with various types of qualifying anti-theft devices. Your insurance company or agent can provide you with a list of the qualifying anti-theft devices and the corresponding discounts available.

Multiple Cars — A 5% discount applied to the premium paid for compulsory coverages (Parts 1, 2 & 4) and, if selected, optional coverages (Parts 5, 7, 8 & 9) is available if: 1) an individual or married couple own two or more automobiles insured by the same company; and 2) there are no inexperienced operators. The discount applied only to automobiles that: 1) have no listed inexperienced operators; and 2) are not customarily used in business.

Driver's Education — A 10% discount applied to the premium paid for Parts 1, 2, 4, 5 and 7 is available for the first three years after an inexperienced driver has completed an approved training course.

Public Transit — A 10% public transit discount applied to the premium paid for Parts 4 and 7 (up to a maximum of $75 per eligible vehicle) is available if: 1) you provide your insurer with evidence of purchase of 11 months of commuter passes from qualified transit systems; and 2) you do not drive your automobile to work or school more than 10 days or more per month. Your insurance company or agent can provide you with a list of the qualified transit systems.

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What Do Those Letters Behind My Agent's Name Mean?

Are you confused by seeing an insurance agent's name towing a long string of letters? Well, that's understandable. The public is familiar with the abbreviations used by lawyers, professors, scientists and doctors. Although not as well-known as M.D. or PhD, Insurance Land has its share of such abbreviations, called professional designations. These designations indicate that the individual has completed different courses or programs. The insurance business is complex and full of changes, so it's very important that agents try to keep up to date on subjects that affect their business and their customers.

Driven To Learn
The need to keep current is so important that an agent's pursuit of knowledge is mandatory. Most states require that an agent be licensed in order to sell insurance policies or even to give insurance advice. Different states also require that its licensed agents maintain a long-term commitment to learning. In such states, agents must complete a number of hours of training or education in order to have their licenses renewed.

Another incentive for continued learning is provided by certain insurance programs. Once a participant qualifies for a designation, he or she may also be required to pursue continuing education in order to remain in good standing. Finally, many agents are personally motivated to keep current in their insurance knowledge. Naturally, these factors result in agents who have completed programs which award designations.

Common Insurance Designations
The following is a short reference of the more common insurance designations. We won't attempt to describe them here in order to give you and your agent something else to talk about:

ACSR Accredited Customer Service Representative
AIC Associate In Claims
AIM Associate In Management
ARM Associate in Risk Management
AU Associate in Underwriting
CFP Chartered Financial Planner
ChFC Chartered Financial Consultant
CIC Certified Insurance Consultant
CLU Chartered Life Underwriter
CPCU Chartered Property Casualty Underwriter
CPIW Certified Professional Insurance Woman
FLMI Fellow Life Management Institute

What If I Don't See Any Designations?
This brief article is just to share a tidbit on designations, not to distract you from what is important. There are persons with designations who, for various reasons, decide not to use them. Further, while a designation MAY indicate a greater level of expertise, the bottom line is experience. A trail of letters behind a person's name is not nearly as important as whether that person helps you with your insurance needs. So talk to your agent, ask plenty of questions and listen to the responses. If the agent has helped you understand something about insurance or has helped you get affordable protection against losses....then you have had contact with an insurance professional.

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What's A Waiver?

To "waive" something is to intentionally give up some right or interest. Given that fact, it makes perfect sense that "waive" rhymes with "wave". Whether you're waiving or waving, you're saying goodbye. In the case of a waiver, you may be "saying" farewell to a right to hold another party accountable for their acts.

Waivers are being used more often and they benefit the person or organization that asks you to sign one. A popular reason for using a waiver is to avoid the legal consequences of sponsoring an activity or event such as the following:

* playing school or community league sports
* church related sports groups
* intramural sports
* sports clinics
* field days
* bicycle races
* sky-diving classes
* motorcycle training
* horse riding
* school, church or other association field trips
* joining an aerobics class.

What Happened to Permission Slips?
The use of permission slips has decreased along with the willingness to assume responsibility for a given activity. Permission slips are ineffective when faced with a chance of being sued. Therefore, parties sponsoring events experienced a type of evolution in the forms they used to protect themselves:

1. Permission slips allowing participation in an activity or event

2. Permission slips including authority to act in emergencies (but the party may still be accountable for their action)

3. Permission slips waiving any right to sue for actions occurring during an emergency

4. Waivers for suing over any accident arising from both routine and emergency aspects of an activity

6. Waivers for suing over any accident arising from both the routine and emergency aspects of an activity AND agreeing to assume the sponsor's legal responsibility for the event.

Better Waived Than Sorry?
Sometimes, waivers are like advertising...they're only effective when you believe in them. For instance, the person signing the waiver may add a comment that he or she has only signed the waiver as a formality, or under duress or protest. Often there are flaws connected with the waiver, such as incorrect or even illegal wording. For instance, a parent is required to sign a waiver for possible injuries to a child when some law doesn't permit a parent to waive a minor's rights. Another example is when state law may hold someone liable for certain acts, regardless of any waiver or agreement. Other things affect the enforceability of waivers such as:

* who is sponsoring the activity (profit or non-profit organization)
* the age of the persons being required to waive their rights (minors, adults, seniors)
* the nature of the activity (short trip to museum or horseback riding)
* the ability of the person waiving their rights to understand their actions
* the details surrounding any injury
* whether the parties affected by the waiver benefit equally from its use (for instance, a dangerous team-building exercise where an employee is required to participate or face termination)
* the qualifications of the staff holding the event

Read Before Waiving
Waivers are sometimes unavoidable, unless you choose to skip the event or activity. Other times, waivers are used when they are unnecessary. The problem is in that wide, fuzzy, middle-ground. It's in such instances that you should take the time to read and understand a waiver before signing. It may even make sense to get competent, professional legal advice. Perhaps you can't avoid assuming some risk or giving up your rights, but at the minimum, read before you sign so that you understand what could happen.

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What is Personal Injury?

While you might be familiar with the terms "bodily injury" and "property damage" which refer to accidentally harming others or their property (respectively), there is another source of loss faced by most persons called "personal injury." Unlike events that result in a person suffering a serious injury or property that is damaged or destroyed, personal injury usually involves interference with another person's legal rights or hurting another person's reputation. Typically, personal injury includes the following acts:

* False arrest, detention or imprisonment - Example: A homeowner locks a teen she suspects of stealing in a bedroom for an hour until the police arrive and it turns out the teen did nothing wrong:
* Malicious prosecution - Example: A gentleman accuses his neighbor of stealing a laptop from his home and files charges with the police;
* The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor - Example: A boarder comes home from work and finds his room's door padlocked. The homeowner/landlord did it after the boarder, for the third night in a row, plays his stereo loudly;
* Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services - Example: A homeowner is the president of her PTA and she also publishes articles for the association on her Website. After an argument with another PTA officer, the president recounts the incident on her site and includes some insults and false items about the person; or,
* Oral or written publication of material that violates a person's right of privacy - Example: A woman is visiting a friend. During the visit, she overhears her friend's conversation with her doctor. The next day, the person reveals to others that the friend, a young, single female, is having medical problems due to an unexpected pregnancy.

Naturally these are the type of incidents that could result in lawsuits. However, they are also the sort of events that are excluded from coverage by the typical homeowners policy. The major reason for their exclusion is that they are deliberate acts rather than being accidental. One way to get some coverage for such losses is to purchase personal umbrella coverage. It may be worthwhile to discuss your possible need for personal injury coverage with an insurance professional.

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COMMERCIAL INSURANCE

How Can I Control My Business Insurance Costs?

Many business insurance customers may have complaints such as the following:

* Why have my insurance costs gone up so much in the past couple years when I haven’t had any claims?
* Doesn’t anyone in this state offer affordable business insurance?
* Why doesn’t my insurer write this type of insurance in my state?
* I’ve only had two claims, why won’t anyone insure me?

Businesses price their products to cover the costs of production, plus sales and marketing expenses. Prices also reflect some post-sales costs such as repair or replacement under warranty. At one time many industries began pricing their products below their true costs. The strategy was based on the assumption that increased sales would make up the difference. The strategy wasn’t successful. It hasn’t worked for the auto industry, the computer industry or the insurance industry.

The problems of the insurance industry became apparent about three years ago. Individual companies were just beginning to alter pricing as part of the solution. Then the terrorist attack of September 11, 2001 changed everything. Suddenly, a catastrophe beyond imagination hit this country and the insurance industry in a very significant way. Workers Compensation, a coverage that had never experienced a loss of this magnitude, was struck by a catastrophic loss. Property losses, business income losses, liability losses, life insurance claims, every type of policy was affected by this horrific event. What started to be a gradual correction became a sudden and violent change. Now the industry has to handle many more claims being presented many years after their policies have expired. In the case of pollution, asbestos and employment practices, the industry is being asked to handle losses that policies weren’t designed to even cover.

Well, what can a business owner due to minimize their high insurance cost? Before considering sacrificing the amount of protection you carry to save money, consider alternatives. Some other solutions would be:

1. Review your coverage:

a. Take a close look at your insurance. Could you increase the deductibles to lower your premium?

b. Are you carrying physical damage coverage on commercial vehicles that aren’t worth it?

c. Are you insuring items you could replace out of pocket? Are there pieces of equipment that are insured when they could be replaced from operating funds without submitting a claim?

2. Review your exposures:

a. Could you reduce the premium by installing an alarm system or fire protection system? Would these premium savings offset the cost of the system?

b. Could you implement safety programs that would reduce the cost or make the insurance company more interested in providing coverage? For example: driver safety programs, back to work programs, safety training in proper use of equipment and job functions.

3. Identify your insurance goals:

a. Do you need an insurance company that can provide loss control services?

b. Do you need an insurance company that can provide claim-handling services for your Workers Compensation insurance?

c. Do you need an insurance company that will allow you to make payments by phone or on-line 24/7?

d. Do you need an insurance company that has a local agent/representative that can assist you in your insurance solutions?

Shopping and price are not the only issues in insurance. What you don’t know can cost you more in the long run than you could ever save in premiums. Discuss your situation with an insurance professional and make the choice that works for you.

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What are Certificates of Insurance?

Business transactions frequently require insurance and a Certificate of Insurance as proof of compliance. A certificate is not the same as the policy. It can’t alter an insurance policy, so requests to "endorse the certificate of insurance" are inappropriate. A certificate is a separate document used to comply with a common contract requirement to verify certain types and amounts of insurance.

Certificate holders, the entity requiring the certificate, often demand being named "additional insureds." This requires an endorsement to the policy and it gives them coverage for injury or damage resulting from the contract. A lease of premises is a common example. The tenant is required to add the property owner to their insurance coverage as an additional insured. If a customer is injured on the premises and sues both the property owner and the tenant, the tenant's liability policy would provide coverage for both parties.

Construction contracts require certain forms of insurance, certain limits be maintained, hold harmless agreement and additional insured requirements. A "hold harmless" agreement is a contract provision that states how much responsibility each party accepts for damages arising out of the agreement.

The Certificate of Insurance can confirm that the appropriate policies were issued and that the other requirements were also met. It is important to have a system for monitoring receipt of the Certificates of Insurance BEFORE any sub-contractors are allowed to begin work. If Certificates are not obtained or kept current, when the contractor’s Workers Compensation and General Liability policies are audited, the payroll for the sub-contractors without Certificates will be included with the contractor's resulting in an additional premium charge.

Ask your insurance agent to help determine if you should be obtaining Certificates of Insurance from your business relationships. In addition, when you’re required to provide a Certificate, send your agent a copy of the contract. The contract allows the agent to assist you in determining what liabilities you are accepting and what can be done to modify your insurance program to best protect your financial well-being.

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Office Functions and Alcohol — What is the Liability?

The office picnic, Christmas party, and client party are all examples of company events that may involve alcohol. Can a business be held responsible for injuries that result from serving alcohol? Is the current insurance program sufficient to address this concern or is it necessary to purchase special insurance?

Individual states govern the answer. Typically, state Dram Shop (liquor) Laws set the standard for liability for injury or damage arising from serving alcohol. The laws vary among states, but often indicate liability exists when serving someone that is underage or visibly intoxicated. In states that do not have Dram Shop Laws, the civil court system sets the standards based on each case. Even in these states, courts often follow the same line of reasoning used in Dram Shop Laws.

The Commercial General Liability policy excludes coverage for Liquor Liability but only if the insured is 'in the business of' selling, serving, or manufacturing alcoholic beverages. If the event offers alcohol without a charge, it could be stated that the insured is not 'in the business of' selling or serving. If persons have to pay, even if the charge is only to offset the alcohol’s expense, could create a different legal situation.

When hosting an event that includes liquor, some businesses have decided that hiring a bartender will reduce their risk of being held liable. This step at least offers the benefit of another party being held primarily responsible and reducing the amount the business might be required to pay. The main issue is obtaining a Certificate of Insurance from the bartender to confirm that he or she carries an adequate level of Liquor Liability insurance. The certificate should be obtained PRIOR to the event. Otherwise, it may be too late when you find out that there isn't a policy or that the limits are insufficient.

Society is less tolerant of drinking and driving. An impaired driver who causes an auto accident is much more likely to be sued. Besides the driver, the lawsuit will probably be extended to include a business that provided alcohol. Why, because such a business is considered as contributing to the loss and is called on to share (or fully bear) the cost of injury or damage. The Commercial General Liability policy could provide the necessary defense for the business, if it is not 'in the business of' providing or selling the alcohol.

The solution is to discuss the types of events your business sponsors or hosts with your agent to determine if you need to purchase special coverage. This discussion may also help you take steps to reduce potential lawsuits. Some businesses may find it easiest and safest to ban drinking during business hours, including business lunches, dinners or other events. Your insurance agent and legal counsel can assist you in determining ways to protect your assets.

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