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

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.

Leave fireworks displays to the professionals

For many people, celebrating our country’s independence includes setting off fireworks on and around the Fourth of July.

While we may enjoy a spectacular fireworks display, remember that fireworks are explosives best left in the hands of professionals.

The use of fireworks by consumers is illegal in some states and strictly regulated in all, even where fireworks are labeled for consumer use. Adults planning to use fireworks to celebrate the holiday should first check the legal requirements of their state at USA.gov and take precautions to remain safe. Last year the Consumer Product Safety Commission reported that 60 percent of fireworks-related injuries happened during the 30 days surrounding the July 4 holiday. Between June 22 and July 22, 2012, more than 5,000 people were treated in hospital emergency rooms for fireworks injuries, and six were killed.

While the numbers vary from year to year, in the last 15 years between 8,500 and 9,800 people, on average, were severely injured each year using fireworks. That doesn’t include an additional 40 injuries reported in 2011 by the National Fire Protection Association (NFPA) from 17,800 fires started by fireworks, resulting in an estimated $32 million in direct property damage.

Between the injuries directly related to the handling of fireworks and those caused indirectly by the fires, more than half involve burns to the hands, head and face as well as loss of limbs. Most injuries and fires are associated with malfunctioning fireworks or improper use. Malfunctions can include unexpected detonations, unexpected flight paths and dangerous debris, while improper use can include igniting fireworks too close to someone, lighting them in one’s hand and playing with lit or used fireworks.

According to the American Pyrotechnics Association and National Council on Fireworks Safety, approximately 400 Americans annually will also lose sight in one or both eyes due to “malfunctioning” fireworks.

The U.S. Fire Administration reports that 92 percent of fireworks injuries involve items that are considered legal for consumers to use. In fact, approximately 1,000 of those injuries reported last year involved sparklers and bottle rockets – fireworks that are frequently and incorrectly considered safe for young children. Yet children between ages 10 and 14 are at three times the risk of fireworks injuries as compared with the general population.

Several organizations, including the NFPA, are opposed to the sale and use of consumer fireworks. More information and testimonials about the potential dangers of consumer fireworks is available at the NFPA website.

Fireworks laws vary widely, and warnings issued by the National Safety Council and other agencies advise that the best way to safely enjoy this Fourth of July is to watch a public fireworks display conducted by professionals.

Submitted by Wade Johnson for Cincinnati Insurance Companies

Auto Insurance: Dirty Secrets In Your Policy

If you’re buying your insurance in “15 minutes or less,”
you’re missing something. Your agent should be spending
more than 15 minutes reviewing your individual information
to make sure you’re covered the way you think you are.

Does your policy cover theft? Hail damage? Falling objects? Your pet?

You pay your premiums every month, but may be surprised to see what items are NOT covered by your auto insurance if you don't have a comprehensive policy. Read on for questions to ask about your coverage, to make sure that saving a few bucks on your premium won't cost you hundreds or thousands when you make a claim.

Many people are surprised to learn that their liability only auto insurance policies include car insurance exclusions that limit coverage under certain circumstances. It's important to read your policy carefully, or work with a trusted agent who can make you aware of your policy’s exclusions.

Comprehensive Coverage Is Smart For Most People:

Comprehensive car insurance covers (non-collision) damage, can help pay for your car’s repair, and can help you replace it entirely in the event of a total loss like theft, but does not cover collision, towing/roadside assistance, rental, and personal property.

In terms of optional coverage, comprehensive is one of the last you should give up.  Comprehensive coverage – coverage for anything other than a collision – only amounts to a small portion of your auto insurance bill, but protects you against a wide number of events, including most of those listed below.

Be Aware of These Common Exclusions To Your Standard (Non-Comprehensive) Auto Insurance Policy:

Standard auto policies do not cover theft

• Theft: 23% of auto policies don’t cover theft. If you don’t have comprehensive coverage, your policy doesn’t cover auto theft. With a vehicle stolen every 28 seconds in the U.S. (according tot the FBI), this is an important exclusion to consider when choosing coverage. Yet still, nearly one quarter of auto policies do not include comprehensive coverage, and so are not covered in case of theft. This is a very common misconception. Many people forgo comprehensive coverage as their cars age and depreciate, in order to save money. A friend recently became aware of this exclusion the hard way, after her insurance carrier denied coverage following the theft of her car, reminding me that this is a major exclusion that many people aren’t aware of (especially those who shop for car insurance online and don’t get the guidance of an agent). Her story illustrates the value of not just price shopping, but also reviewing everything with a broker to understand your coverage and gaps. 

• Falling Objects, Fire, Vandalism, Natural Disasters: If you’ve ever had your car keyed, had a branch fall on your hood, or had your car broken into, you’ve leaned this one the hard way. Damage caused to your car (like a key taken to your paint job or slashed tires) by a break-in won’t be covered by your policy unless you have comprehensive coverage. Nor will anything not originally included in your vehicle, such as a detachable GPS or other portable electronics, your laptop, wallet, after-market sound system, etc. These devices may be covered under your home or renter’s insurance instead.

• Glass Damage: Glass damage caused by a break-in, a rock hitting your windshield, or Mother Nature herself, isn’t covered under the average policy.

• Pet: Injury to a pet from an accident you’re involved in may or may not be covered by your policy. Check with your insurer to see if you have this protection available.

• Hail: Almost 70,000 total claims in Colorado alone were filed due to hailstorms last summer, and nearly half of those claims were for vehicles. The Rocky Mountain Insurance Information Association (RMIIA) estimated that more than $85 million of the damages from those storms were vehicle-related. Hail claims are an example of optional coverage that compensates policyholders for weather-related damage. In light of recent reports on increasingly severe weather across the U.S., choosing comprehensive coverage or an added hail policy is likely a smart move.

• Time Limits: If someone is injured, report the claim immediately! Your policy limits the period of time in which you can file a claim, usually beginning from the time you are aware of the damage.

Buying Insurance Online: Beware of Gaps and Exclusions:

With the recent news that Walmart is entering the auto insurance business, many people may be attracted by the claim on their partner site that they offer customized coverage, unbiased provider comparisons, and simplicity in shopping for a policy. This is, however, the same service you get with a reputable independent broker.

What you should consider before buying online is that you’ll have to spend a LOT of your own time reading and educating yourself on your policy coverage and any gaps or exclusions you may be selecting along with the lowest price quote. Without an agent who is well educated in the insurance industry to guide your purchase, you may end up with a good price, but at a higher long-term cost.

Your agent can guide you through the exclusions on your policy and help you to choose one that ensures you’ll be well covered.