The Best Worst Thing You Own

Fact: 1 In 22 Fires Is Caused By Something You Have In Your Home Right This Minute.

Laundry is a weekly chore for most of us, but did you know that clothes dryers cause around 15,500 home structure fires, 29 deaths, 400 injuries and $192 million in direct property loss each year? Most dryer fires happen in the winter, so now is the perfect time to make sure that yours is in good shape.

Causes: The #1 cause of home clothes dryer and washer fires is failure to clean. Lint is the biggest culprit. Lint traps do not catch all of the fuzzy stuff, and can gradually build up and catch fire. Lint accumulation and reduced airflow feed on each other to provide conditions ripe for a fire.      

Improper dryer vent practices restrict airflow and lead to lint buildup: the two main preventable causes of clothes dryer fires. If your dryer is installed outside of a basement, it means your dryer has longer vents with twists and turns that allow space for lint to build up. See below for tips on preventing dryer fires.

Laundry habits can also be a risk. It's easy enough to do laundry without reading drying instructions on the tag. We're all guilty of doing this. But sometimes, there are bigger consequences to drying our clothes than shrinking a favorite sweater. Items containing rubber or other materials not meant to be dried at high temperatures, and alcohol or certain sanitizing solutions that are combustible at high heat can cause a fire when exposed to dryer heat. Also, make sure that chapsticks and other plastic-containing items are removed from pockets, hoods with synthetic fur (made of plastic), etc. are removed from your laundry before you put it in the dryer.                              

Is Your Dryer At Risk?: A clothes dryer that is not working properly has an increased risk of catching fire. Signs your dryer might need service:

• Clothes are taking longer than one cycle to dry
• Clothes come out hotter than usual
• There is no visible lint on the lint trap
• Dryer repeatedly stops during a cycle
• The top of the dryer is hot to the touch while running 

Tips To Prevent Dryer Fires (from The Cincinnati Insurance Companies)

1. Have your clothes dryer professionally installed
2. Clean the lint filter before and after each load of laundry
3. Clean lint out of the vent pipe every six months
4. Replace coiled-wire foil or plastic venting with rigid, non-ribbed metal duct
5. Inspect the venting system behind your dryer for restrictions, and make sure the outdoor vent flap opens when the dryer is operating
6. Keep the area around the dryer free of items that can burn
7. Don’t overload the dryer
8. Don’t dry items made of foam, rubber or plastic
9. Have a professional inspect gas dryers annually to assure that supply lines and connections are intact and free of leaks

Smart parents monitor smartphone, tablet gifts

Set ground rules for using smartphones and tablets.

Planning to get your kids a smartphone or tablet this holiday season? 

With schools using technology in classes and kids being exposed to these devices at an early age, the question is often a matter of when, not if. Parents may have questions and concerns about how to keep kids safe online. Here are some tips and resources that can help. Read more of this post

by Kerri Hinkel for The Cincinnati Insurance Companies

Take care when naming your life insurance beneficiary

Communicate with your loved ones about your
life insurance beneficiaries and arrangements.

Purchasing a life insurance policy is an important piece of financial planning. Naming a beneficiary, and changing that beneficiary when necessary, is also a key component of insurance planning. 

Keep these tips in mind when naming a life insurance beneficiary:

Read more of this post

by Ann S. Binzer for The Cincinnati Insurance Companies

5 Tips To Avoid A Cyber Monday Hangover

Photo Credit: Shutterstock

'Tis the season for ugly Christmas sweater parties online shopping. Whether you're hitting Add To Cart on Amazon or Apple or anywhere in between, when you're putting financial information out on the interwebs be careful with where and how you share.

If the rising number of high-profile mega data breaches and cyber hacks -- most recently at Target, eBay, Neiman Marcus, and Home Depot -- taught us consumers anything, it's that sharing isn't always nice (sorry, Mom).

Cyber Monday may be behind us, but holiday gifting has just begun. No matter what you're buying, protect yourself with these 5 tips:

1. Pay with a credit card or system like Paypal rather than a debit card, to protect sensitive personal information and dispute mysterious charges if necessary.
2. Only submit payment information on secure Wifi networks. The public Wifi at the local coffee shop is great, but wait to share any sensitive information until you're surfing on a secure network.
3. Buy through reputable websites with clear contact information. This will help in the case that there is a problem with your order or the charges.
4. Look for the https://. The S stands for secure.
5. Protect personal information. Read a site’s privacy policy and understand what personal information is being requested and how it will be used.

Cyber risk is a growing threat, especially as companies and individuals alike store more (and even more) sensitive information on the cloud, with the advent of awesome, convenient technologies like Apple Pay.

Surely you've received spam or phishing email from a friend or colleague whose email account has been hacked. When you consider that we often receive sensitive information from our banks and doctors, and store passwords in our email folders, this can be a scary thought. 

The good news: Identity Theft coverage is offered under some homeowner's policies. It is usually offered as part as a very comprehensive coverage package, but inclusion of this coverage is priced competitively to policies without the additional protection.

While businesses and individuals alike have been slow to adopt cyber coverage, cyber-specific insurance policies can help reduce potential financial losses from cyber risks and identify theft. Home Depot's data breach cost the company an estimated $62 million, for example, but was offset by $27 million it expects to be reimbursed by its insurance.

More questions on insuring yourself against cyber risk? Give us a call and we're happy to answer them.

Make your gift count: Check out charities

Giving to a charity should not be difficult. Unfortunately, it can be. It is estimated that charity fraud exceeds $20 billion each year…yes, BILLION! 

What can you do to ensure your charitable gift is going to a legitimate charity and being used most effectively? Here are some tips:  Read more of this post


by Don Doyle, Jr. for The Cincinnati Insurance Companies

Your personal umbrella policy: Increased policy limits…and more

Accidents involving common, everyday activities may result in a worst-case scenario. Being held legally liable for injury to another person or damage to their property could exhaust your home or personal auto policy liability limits, and cause financial ruin to your family. A personal umbrella policy works hand in hand with your existing underlying insurance, adding a layer of liability limits to protect you in today’s litigious society.

Read more of this post

by Bill Taylor for The Cincinnati Insurance Companies

Employers prepare for new OSHA reporting rule

Beginning January 1, 2015, employers will have new requirements for reporting workplace fatalities and serious injuries to the federal government. 

A new Occupational Safety and Health Administration rule also revises how records are kept and updates the list of employers partially exempt from record keeping requirements. Even an employer partially exempt from recordkeeping must still adhere to the new reporting requirements.

Read more of this post


by Steve Metzger for The Cincinnati Insurance Companies

Top 10 tricks to protect yourself from cyber crime

Click here for full image

October is normally associated with Halloween and ghosts and goblins, but for the last 10 years it’s been National Cyber Security Awareness month.

As evidenced by the rising number of successful attacks against high-profile targets, cyber crime is on the rise.

With that in mind, here are OpenDNS’ top 10 cyber security tips and tricks to protect yourself.

1. Realize that you are an attractive target to hackers. Don’t ever say “it won’t happen to me.”
2. Practice good password management. Use a strong mix of characters, and don’t use the same password for multiple sites. Don’t share your password with others, don’t write it down, and definitely don’t write it on a sticky note attached to your monitor.
3. Never leave your devices unattended. Take your tablet or phone with you. If you need to leave your computer for any length of time  ̶  no matter how short  ̶  lock it up so no one can use it while you’re gone. If you keep sensitive information on a flash drive or external hard drive, make sure to lock it up as well.
4. Always be careful when clicking on attachments or links in email. If it’s unexpected or suspicious for any reason, don’t click on it. Double check the URL of the website the link takes you to: bad actors will often take advantage of spelling mistakes to direct you to a harmful domain. Think you can spot a phony website? Try the OpenDNS phishing quiz.
5. Sensitive browsing, such as banking or shopping, should be done only on a device that belongs to you, on a network that you trust. Whether it’s a friend’s phone, a public computer or a cafe’s free WiFi  ̶  your data could be copied or stolen.
6. Back up your data regularly, and make sure your anti-virus software is always up to date.
7. Be conscientious of what you plug in to your computer. Malware can be spread through infected flash drives, external hard drives and even smartphones.
8. Watch what you’re sharing on social networks. Criminals can befriend you and easily gain access to a shocking amount of information ̶ where you go to school, where you work, when you’re on vacation  ̶  that could help them gain access to more valuable data.
9. Offline, be wary of social engineering, where someone attempts to gain information from you through manipulation. If someone calls or emails you asking for sensitive information, it’s OK to say no. You can always call the company directly to verify credentials before giving out any information.
10. Be sure to monitor your accounts for any suspicious activity. If you see something unfamiliar, it could be a sign that you’ve been compromised

Cyber security attacks can be scary, but the more safeguards the better. Make cyber security a habit, not just in October. For more information on how to practice cyber security during National Cyber Security Awareness Month and throughout the year, visit Stop.Think.Connect.

Cyber insurance coverage is available to protect you or your business from the financial consequences of cyber crime; contact your local independent insurance agent for information appropriate for your state and situation.

By Helen Kyrios for The Cincinnati Insurance Companies

30 Health Choices All Women Should Make By Age 30

Photo Credit: http://www.womenshealthmag.com

How many of these can you check off this list so far? http://bit.ly/1xR56OQ

Make healthy behaviors a habit while you're still young, and you're more likely to hold onto them throughout your life. 

To that end, here are 30 health choices every woman needs to make by time she reaches the big 3-0. (And if you've already blown out 30 candles but haven't made some of these choices yet, there's still time—better late than never.) Hint: pay special attention to #8.

Preventative care is the best care. Making your health a priority -- getting an annual checkup and well-woman exam, eating healthfully, exercising, drinking plenty of water,

and getting enough sleep go a long way toward keeping you happy and healthy - saving you exponential amounts of time and money over your lifetime. 

Your health insurance plan may even offer discounts for healthy habits. Check with your insurance broker to find out if your plan does so.

When Do You Need Travel Insurance?

Get ‪travel‬ insurance if you're one of these 4 types of traveler:

Business: About 75% of business travelers encounter mishap, costing an average of $1,475, 55% of which falls on the company and 45% of which falls to the individual.  

Health: Some medical insurance plans cover you abroad, others (including Medicare) do not.

Students Studying Abroad: When spending a long period of time in another country, it's worth the peace of mind of having medical treatment, emergency evacuations, lost baggage, trip cancellations, and more. 

You Can't Afford Not To Have It: Consider three things when deciding whether to buy travel insurance: the amount of risk you’re willing to take, the amount of money you could lose, and the amount of money you are willing to accept losing.

Fit one of these travel profiles? Read more here: bit.ly/1BOdVt3.

Prepare your building to weather the cold

Temperature extremes from summer to winter place a heavy burden on the buildings we live in and the places we work. With little warning, gusting winds, heavy snow and bitter temperatures can create a weather event that could collapse your roof, freeze and rupture your piping and cause havoc in your life.

But prudent loss control strategies you implement before winter can protect your home or business and minimize the impact of weather-related property damage, business interruption and other losses.

Cold weather states are not the only places vulnerable to extreme winter weather losses. In reality, property owners in moderate climate states not normally associated with harsh winter weather tend to suffer the most costly losses because they are typically unprepared for extreme conditions. The winter of 2014 was one of the costliest since 1980, with $1.5 billion in insured losses filed between January 1 and February 21, 2014, alone, according to the Insurance Information Institute.

PREPARING BUILDINGS

Be prepared by keeping on top of routine building maintenance. Look for any evidence of previous damage to your building’s structure, paying special attention to damaged roof material or equipment that may need repair or replacement. Also take note of any areas that could be unstable during severe winter weather.

• Maintain roofs in good condition. Repair leaks, secure flashing and clear debris from the roof, roof drains, downspouts and overflow outlets.
• Check that gutters and downspouts are secured to buildings and clear of leaves and debris. Were they iced over during the previous winter? Consider installing heat trace (electric cable or tape) to prevent major icicles and ice dams.
• Assure that all building openings are weather-tight to prevent cold air that could cause water pipes or fire protection systems to freeze. If you recently built an addition or renovated, how were existing utilities – especially water and sprinkler piping – protected from frigid temperatures?
• Test any low-building-temperature alarms.

PREVENTING BUILDING COLLAPSE

Heavy snow, freezing rain or a series of constant rain showers and wind can cause precipitation to accumulate, leading to roof failure. Blocked roof drains and overflows can cause precipitation to accumulate and overload the roof. Many older buildings that were not required to provide secondary overflow drainage, such as scuppers, do not provide adequate drainage when primary drains are blocked.

Collapses can damage the building and its contents, destroy fire protection systems and unleash dangerous live utilities, including electricity and flammable gases. These losses can be made worse by water damage from rain intrusion or broken water piping.

Consult with a qualified contractor to assess your roof condition before you experience a problem.

By Troy Dohmeyer for The Cincinnati Insurance Companies

What is a CLUE report – and why is it costing you money?

You know that credit bureaus maintain detailed credit reports of your personal and confidential credit and loan history. But did you know that there's another report that tracks detailed information about the losses and insurance claims you report on the property you own? The report is called a CLUE Report, which is often insurance carrier shorthand for "loss history."

The Comprehensive Loss Underwriting Exchange database, or CLUE, contains a history of insurance claims and losses on insured individuals' property and automobiles. A CLUE report includes detailed information on every claim made on your property, including: 

•  The date of a loss
•  The type of claim made
•  The amount paid out by the insurance company.

Does CLUE Affect Your Insurance Rates?
Just like your credit report, your CLUE score can help or hinder your ability to get a good deal on your property insurance.

Depending on your carrier's policies, any claim you make will likely end up in the CLUE database. Here's the kicker: sometimes a simple inquiry you make to your insurance company may be noted and added to your CLUE report, even if you don't file a claim - affecting your rates. 

Choose your words wisely when talking to your carrier or a non-independent agent. When you call with a hypothetical question, make sure to be specific that you are making an inquiry only, and not reporting a claim. When you get your insurance through an independent agent or broker, it's less likely that questions you ask them will end up in your CLUE report, since they work for you - not for the carrier. 

How do you get a good CLUE report?
Making fewer claims is the best way to limit damage to your CLUE. Also, hold off on filing claims, especially for smaller losses. Raising your deductible may be one way to help yourself do this - while lowering your premiums as an added bonus. It's much cheaper, in the long run, to pay for less expensive damages out of pocket than to add to your claim history. Save your claims (and a negative entry on your CLUE report) for bigger losses, in order to save money on your insurance rates overall.


Questions? Call Dave at 303-834-1001.

Where to keep key documents…and where NOT to

Here’s a little quiz. Where is your Social Security card right now? What about your passport? Your birth certificate? Choose one:

1. In the safe deposit box at my bank or in a locked file cabinet or fire-rated document chest at home
2. I’m not sure, but they must be around here somewhere
3. In my purse, wallet or briefcase

Read more of this post

by Marty Skidmore for The Cincinnati Insurance Companies

Understanding and controlling business auto costs

It’s easy to understand why prices rise for manufactured or commodity-based products. When prices for raw materials increase, the cost of the product goes up. It’s not as easy to understand the cause of higher prices in a service-based industry such as insurance. Many factors can affect the cost of insuring a business vehicle.

What can you do to hold down your auto insurance premiums?  
Read more of this post

by Mark Rose for The Cincinnati Insurance Companies

Backyard hazards: After-school safety strategies

The start of school signals a seasonal change in routine for many families. Children may spend after-school hours at home with an adult or teen caregiver. Sometimes older children are trusted to be alone for an hour or two until a parent arrives. This change in routine offers a good opportunity to re-evaluate the safety and liability exposures right in your own backyard.

Read more of this post

By Misty Fraley

Does your home insurance cover dog bites?

Make sure your homeowners policy
covers canine liability.

It's an unfortunate reality, but dog bites are far more common – and costly – than most people realize. If your homeowners insurance policy doesn’t cover it, even a minor dog bite could cost you thousands of dollars in medical bills.

Sixty-eight percent of U.S. households, or 83.3 million homes, own a pet, according to a 2013/2014 survey from by the American Pet Products Association.

According to the Centers for Disease Control and Prevention, dogs bite about 4.7 million people every year (half of which are children), adding up to more than $400 million in medical costs. Meanwhile, The average cost per claim nationally has risen more than 45 percent in the last decade (2003-2013).

The nonprofit Insurance Information Institute says the cost of dog-bite claims jumped 53 percent from 2003 to 2011. Dog-bite claims accounted for more than one-third of all homeowners insurance liability claims in 2013 – equaling almost half a million dollars in damages.

Read more about dog bite liability here: http://www.iii.org/issue-update/dog-bite-liability

Are you covered?

If you own a dog, it's essential to find out whether your homeowner’s policy covers canine liability — even if you have a small dog that seems harmless. Most homeowners policies do cover injuries resulting from dog bites. However, check your liability limit - it may not begin to cover the legal fees and additional medical costs associated with a bad bite. Dog owners may want to consider umbrella insurance coverage to give extra liability protection above and beyond the limits on a typical policy.

Some homeowners and renters policies may omit coverage for dogs altogether. Check with your broker to make sure you're covered. If not, your broker can advise you as to what  additional coverage you need.

Dog ownership tips

To reduce the chances of your dog biting someone, the Insurance Information Institute offers these seven tips:

1. Consult with a professional, such as a veterinarian, animal behaviorist or breeder, to learn about suitable breeds of dogs for your household and neighborhood.

2. Spend time with a dog before buying or adopting it. Use caution when bringing a dog into a home with an infant or toddler.

3. Have your dog spayed or neutered. Studies show that dogs are three times more likely to bite if they are not “fixed.”

4. Socialize your dog so it knows how to act around people and animals.

5. Teach children to refrain from disturbing a dog that is eating or sleeping.

6. Play non-aggressive games with your dog, such as fetch. Playing aggressive games like tug-of-war can encourage inappropriate behavior.

7. Never approach a strange dog and always avoid eye contact with a dog that appears threatening

Additional coverages keep you afloat after a flood

My Insurance Doesn’t Cover What?! Understand common misconceptions that can leave you paying for a policy that may not cover you in case of water damage, and additions you can make to your policy to ensure you're covered.

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Ongoing patterns of severe weather mean homeowners and business owners have experienced everything from record snowfalls and tornadoes to recurring storms with wind, hail and record amounts of rainfall – all leading to a record number of flooded homes and businesses.

Water claims under personal or business insurance contracts can be confusing and easily misunderstood, and standard insurance does not cover everything.

Read more of this post

by Michael Sullivan

Hotel Charges $127 for 3 Bottles of Water (and other reasons to read the fine print)

Photo Credit: Thrillist.com

Thrillist.com recently ran this article about a hotel charging a customer $127 (or £75 GBP) for 3 bottles of San Pellegrino during a business meeting at their hotel bar.

Apparently the charge was thanks to the hotel's absurdly high per-person minimum charge policy. Although high, the charge wasn't what bothered the patron enough to email the hotel to complain and to tweet about it, adding #ripoff. His real problem was the sneaky hidden charge. He says the server never notified him of the minimum charge:

“I have no issue if they have a minimum charge, but they need to make it clear. It is the lack of transparency that I have a problem with."

This got us to thinking about reading the fine print.

Most people skim through contracts and Terms of Service for apps (we're looking at you, Android), doctors offices, drawing entries, social media profiles, and yes - even insurance policies - without reading the fine print.

We get it - reading the fine print isn't fun, it's not entertaining, and with so much legal jargon thrown in there, sometimes it's downright headache-inducing to understand. However, by skimming these contracts, we open ourselves up to expensive mistakes. Today it might be $127 for a few bottles of sparkling water. Tomorrow, it might be finding out that theft isn't covered under your auto insurance policy.

I wrote a blog post on Auto Insurance: Dirty Secrets In Your Policy when this happened to a friend earlier this year. She'd unfortunately bought car insurance online, and the carrier's quick-quote site had failed to inform her of the fine print detailing this gap.

Purchasing insurance online seems like a fast, convenient way to speed up an otherwise unappealing task. But it begs the question - why is the lowest quote so cheap? You get what you pay for, and insurance is no different.

An independent insurance agent, like a website quote calculator, does the legwork for you - shopping different carriers for the best price. This is where they differ: an agent makes sure you're getting the best coverage for that price. Meaning? You still don't have to read all of the fine print if you don't want to … But someone that you trust has, and will sum it up for you. Because the worst time to find out that you've been paying a monthly premium for a policy that doesn't cover much is when you file a claim.

Outdoor gatherings: Making memories, not regrets

Everyone wants to be outdoors this time of year. Block parties, family reunions and other functions are often stationed outside. As host, your concerns need to extend beyond hoping for cooperative weather and stocking snacks.

In general, any time you serve alcohol, host a pool party or provide equipment for entertainment, there is an element of potential liability on your part for any injury, and your insurance may not provide coverage.

If you own a backyard pool, you may be liable if someone is injured. Consider who uses your pool. Are children supervised? Do you limit the number of swimmers in the pool at one time? Are there slides or diving boards that could increase the risk of injury? Many insurance companies do not issue policies on properties with these types of pool equipment.

Other child-oriented activities pose hazards as well. There were several reports this year of injuries to children after bounce houses went airborne. While that is not likely to happen, other bounce house injuries are common. Children can knock into each other and cause injury. Whether you purchase or rent inflatables, follow the manufacturer’s instructions for setup and storage, and take common-sense precautions to prevent injury.

Trampolines pose an even bigger risk, and some carriers exclude trampolines from coverage or charge extra premium. The U.S. Consumer Product Safety Commission (CPSC) estimated that in 2012 there were 94,900 hospital emergency room-treated injuries associated with trampolines. The agency also noted 22 deaths in the 10-year period between 2000 and 2009.

As part of its underwriting process, your insurance company may request documentation that safety measures are in place for bounce houses and trampolines.

When you serve alcohol, be especially careful. Slower response times and reduced clarity in judgment make routine games such as lawn darts, horseshoes or football more dangerous. Also, be aware that you may be held liable if a guest drives home from a party intoxicated and injures or kills someone, or damages someone’s property, on the way. Ask your insurance agent whether your potential liability would be covered by your homeowner policy. Coverage for liability arising out of serving alcohol to guests  is referred to as host liquor liability and is not covered by all insurance companies.

Location is another concern. If you rent a shelter, be sure to ask your agent if your homeowner’s liability insurance extends property damage coverage to the rented location.

Most picnics and parties go off without a hitch. However, before you plan a big event, it is a good idea to review your homeowner’s liability coverage with your agent to make sure you are covered should an accident occur.
–Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.

By Melissa Kamp for Cincinnati Insurance Companies

Check coverage before loss of power, utilities

Check your policy before you have utility loss.

Many of us can still remember the effects of Hurricane Ike in September 2008, when the storm caused damage across 11 states. Widespread winds with gusts to hurricane force caused one of the largest power outages in the history of the Midwest, with close to 4 million customers losing power.

Of course, widespread power outages can occur at any time. Whether you are a homeowner with a personal insurance policy or a business owner with a commercial policy, it is important to understand what coverages you may have available before a storm hits.

Homeowners

Most homeowner policies exclude damage caused by utility service failure. An exclusion means that any damage caused by utility service failure is not covered by the policy. However, some insurance companies provide coverage for loss of refrigerated property by endorsement (a policy addition) or under the Additional Coverage section of the homeowner policy.

Coverage is usually limited and provides reimbursement for loss of freezer and refrigerator contents. Your agent can answer questions about what your policy covers.

Business owners

A loss of utilities can be costly. Even if your building is not damaged by a storm, a power outage could cause you to close your doors and prevent you from serving your customers. Business interruption insurance is available, but is not standard to every commercial policy. It  can usually be added for a reasonable cost.

In addition, business interruption insurance may not cover losses from utility service outages. Again, depending on your policy, you may be able to purchase a limited amount of coverage as a coverage extension or through an endorsement to your policy.

Whether you’re a homeowner or business owner, avoid surprises by checking with your agent in advance to assure you have the necessary insurance coverage in the event of a utility outage.

Submitted by Bill Gregory for Cinncinnati Insurance Companies

What Small Businesses Can Learn from ASOS Factory Fire

"Fashion website ASOS remains closed after warehouse is devastated in arson attack," read recent headlines in the Daily Mail and countless other news sources.

Reports stated that all ordering had been suspended after a suspected arson attack at the main warehouse that required more than 50 firefighters (and the evacuation of 500 workers) after the fire spread to four floors at the giant distributions center that holds 70% of the company's $270 million in inventory.

The online clothing retailer is now taking orders again, but says that about 20% of its stock was damaged in the attack. The fire and its aftermath also damaged the business's reputation and required a pause in the company's order taking and fulfillment, probable storage and relocation for its remaining stock, and property damage, among other costly impacts.

So what can small businesses learn from events like the arson attack on fashion giant ASOS?

The Asos fire raised fears that the company could be out of operation for a long time. Combined with the loss to property and stock that a company incurs when a disaster happens, a pause in business operations can be crippling to a company's revenue. Acts of Mother Nature, criminal mischief, or other accidents could find you and your business in a similar boat. Power failure from a storm, flooding, fire, hail, wind, vandalism, and equipment damage are just a few of the instances in which business interruption insurance could save your business from damaging losses.

Business interruption insurance can keep capital coming into your company in the event of such disruptions. It covers the loss of income that a business suffers after a disaster while its facility is either closed or being rebuilt. While property insurance covers only physical damage to the business, a business interruption policy covers the profits that would have been earned, allowing a business to remain in the same financial position it would have been in if no loss had occurred. It can help you with:

•    Profits – Replaces profits that would have been earned, and can keep your business 
    afloat if a loss forces you to close temporarily

•    Fixed Costs – Covers operating expenses and continuing expenses incurred by the
    property while a location is temporarily closed, rebuilt, or relocated (such as mortgage,
    advertising, taxes, and salaries)

•    Temporary Location - Some policies cover the extra expenses for temporary relocation
    and advertising fees 

•    Extra Expenses - Reimbursement for reasonable expenses (beyond the fixed costs) that
    allow a business to continue operation during property repair

Asos is now offering discounts of up to 50% as it resumes taking orders, after the blaze forced the closure of its website for two days. They launched a massive summer sale, in an attempt to woo back customers that were affected by the fire and play damage control on its reputation. That’s two full days of lost revenue, combined with reduced revenue from sale merchandise, in addition to the many other areas of business affected by the fire. To no fault of its own, Asos and other companies who incur similar, unavoidable catastrophe have to account for losses in sales and revenue above and beyond the assets lost in the fire - which can be even more damaging to a company's bottom line.

For a larger company like Asos, while the losses are higher than for smaller business, their ability to bounce back is also higher. They have more working capital, credit, and insurance coverage to work with. An unexpected loss to a poorly insured small business can be crippling. 

Asos gave a statement that it is fully insured for loss of stock and business interruption, which will mitigate the impact the fire has on its business and revenue.

Many business owners don’t have business interruption insurance, even though the protection it affords is extremely valuable in cases like these - where the losses are unexpected and huge.

Cost may be a factor in why business owners pass on this coverage, with policies ranging from $750 and up, depending on business size. However, businesses may want to reconsider interruption coverage, based on statistics showing the increasing number of natural disasters. The total has increased from 400 major incidents to more than 600 in a typical year, according to a recent survey from global insurer Allianz.

Some insurance policies that help companies affected by catastrophic losses, are: 

•    Business Interruption

•    General Liability

•    Property

•    Umbrella Insurance

If you’re curious whether your business insurance coverage adequately protects you, or need to add business income to your coverage, please contact John Jacquat at 303.834.1001, or request a free quote or existing policy review on our website.