NEW! Ask Us Anything: What you need to know about Cam Newton's car accident

(Todd Sumlin/AP/The Charlotte Observer)

Last month, we rolled out an Ask Us Anything column in our newsletter, so that you can send us your insurance "what ifs" and "how abouts," and we'll respond with advice and recommendations on how you can save money and protect all of your most important stuff…. All without having to ask your insurance carrier (who may note even hypothetical questions in your file. We know - sneaky!).

The first question is:  The news about  Cam Newton's car accident made me wonder what the repercussions will be for the driver who hit him. Were I to cause an accident and injure someone, famous or not, can you tell me the policy limits and coverage that I should have to protect me against injury, damage to vehicle, etc.

Our answer:  There’s really no short sweet answer to how much coverage a person should purchase. Some professionals will recommend analyzing your assets and purchasing liability limits that are of a similar value. I believe it is more complicated than that. The Cam Newton accident is a great example as to why. If the driver of this vehicle were found “At-Fault” and liable for the damages he caused, and Cam had been paralyzed (or just simply unable to perform his job any longer due to the accident), the at-fault individual would have been liable for millions of dollars. 

....Let’s see, Cam is 25 years old. In July 2011, NBC Sports posted that Cam Newton was signed to a $22 Million deal, meaning that's his market worth. That's a whole lot of money! Again, if the individual who caused the accident and injury had been found at-fault, and had he ended Newton’s career, he’d be bankrupt. Even if Cam only had to miss a few games, if those injuries cost the driver the salary Cam gets paid per game, that’s still a lot of money. In this case, both parties were lucky, with Cam being released from the hospital with only minor injuries. But it's best to protect yourself against any of these scenarios.

I’m of the belief and hope that it is rare for an insured person to sideline the career or someone like Cam Newton, Peyton Manning, or worse yet, Russell Wilson. That said, the insurance we purchase is there to protect us -- not only from everyone else on the road, but from ourselves and damages we may cause as well. 

So, back to the question at hand: how much coverage is the right amount of coverage?  This is a risk tolerance and a cost analysis question that needs to be answered. What is your net worth, how much “risk” do you want to assume, and how much do you want to pay for the “risk transfer” (insurance jargon - blah!). The bottom line is, it’s a personal preference, and one that takes some thoughtful consideration. The majority of insurance buyers out there will spend 10 times longer determining how to get the most bang for their buck shopping for their next 65” curved LED TV than considering their coverage options. (Check this one out. Pretty sweet. I found that in 4.58 seconds…. BTW, did you know that’s Cam’s 40 yard dash time?)  ;o)

I hope this is somewhat helpful. For further clarification or help determining your personal net worth and the amount of risk you are able to assume vs. transfer to your insurance policy, give me a call. 

 

Have a question yourself? Send us your insurance questions and we’ll share our advice.

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.

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by Steve Metzger for The Cincinnati Insurance Companies

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

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