Article

Safety concerns for home workers—managing the risk

Working from home has been an emerging trend over the last decade. Covid-19 has accelerated the pace at which employers and employees implement and adopt working-from-home procedures due to health concerns and local restrictions. 

Since the implementation of stay-at-home and work-from-home restrictions, we have all experienced unique situations that require balancing factors while working at home: we have new coworkers; we are dealing with broadband performance, outside noise, children, significant others, and disruption from pets. For some workers, there has been competition for workspace, which has caused some workers to work where they can, when they can. The working conditions we likely considered temporary may become permanent: in a Price Waterhouse Cooper survey, 83% of employers now say the shift to remote work has been successful for their company, compared to 73% in their June 2020 survey.  As a result, working from home may become the new normal.

When it comes to insurance, there are several things employers need to consider with so many employees working from home. Employees face two main types of safety risks working at home: injuries caused by accidents, and injuries and illnesses resulting from ergonomic risk. Injuries caused by accidents may be obvious:  tripping over cables, burns, or falling down stairs. The second type of injury comes in the form of musculoskeletal disorders caused by the lack of proper desks and chairs, or the improper use of their equipment in their home office. It is important to develop a strategy to make sure employees’ home workspaces are properly set up for ergonomic safety.

General work parameters

Employers should begin by updating job descriptions for employees to cover any new expectations and job responsibilities, and the safety expectations while working at home.  Though there may not be significant changes, and only certain employees may have new responsibilities while working from home, it is important to review, and update job descriptions as needed.  

Employers should also consider developing or updating their working-from-home policies and procedures. Employees need to be reminded that they are on the clock the same as if they were working in the office.  Work Hours need definition and remote workers should have their work hours defined and detailed to include lunch hour and breaks.

Workers should be advised on these best practices for working at home.

Ergonomic workspace conditions

  • Determine a dedicated work area where proper office ergonomic principles can be applied as much as possible.
  • If working on a laptop, use an external keyboard and mouse, and properly position your laptop as a monitor.
  • Utilize a proper ergonomic chair with adjustable height, backrest, and armrests. If you must use a kitchen table chair or alternative, use a pillow to raise yourself to a proper working height.
  • Make sure the keyboard and mouse are at or near elbow height and use a footrest to properly support your feet if you raise your chair.
  • Take breaks to change posture and look away from the computer screen.

There are additional risks with employees working from home that employers should be aware of in order to develop a plan for the following exposures:

Walking surfaces and stairs

There could be several potential items that could cause an employee to slip, trip or fall when working at home.  It is important that employees are aware of these risks and work to keep their work areas safe. A few of these examples:

  • Cords, cables, toys and pets causing a tripping hazard
  • Walking up and down stairs, especially when carrying objects
  • Wet surfaces
  • Snow and ice for our northern and east coast locations

Driving on business

Employees may have new responsibilities requiring them to deliver or pick items up for their jobs, such as going to ship a box, get mail or other related tasks; it is critical to specify the scope of work expected from these employees.  When possible, employees should consider using services that will pick up items from their homes and reduce the need to drive to do business-related tasks.

Ergonomics of manual material handling

While working from home, there could be instances where employees may have to move boxes, equipment or furniture to set up or move their home office.  Employees should be trained on safe lifting and consider having any new equipment delivered to its final location to reduce the need to lift and move heavy items.

Electrical safety

There are several potential electrical safety issues that may arise when working at home, especially with several household members working and studying at home at the same time.  Risks include:

  • Extension cords in poor condition or daisy chained (multiple extension cords connected together)
  • Outlets not grounded or overloaded due to multiple pieces of equipment
  • Lack of surge protection for electrical equipment
  • Limited or poor ventilation for electrical equipment

In the event of an injury

When it comes to handling a potential claim, it is important to determine where an employee should go in the event of a non-emergent injury or illness.  It is important to send employees to an in-network medical provider to manage the claim. Employers may need to develop a plan and communicate that to managers and employees because the usual in-network medical provider may not be near the injured worker’s home.

As a result of these exposures, there could be a potential for a workers’ compensation claim if the accident or injury happens in the course of employment.

For any questions concerning claims, please work with your agent or Hanover claim professional. 

When thinking about employees working from home, office ergonomics is one of the first things employers should consider to keep their employees safe, but it is important to know that there are additional exposures that employers should consider. Employers should develop policies, procedures, training and communication for managers and employees to help identify and mitigate these risks while working at home.

The Hanover has resources to help. Please visit our Risk Solutions website for our Ergonomics Interactive Toolkit that your employees can use to evaluate their work area.  If you have additional questions, please contact your agent or your Hanover Risk Solutions professional.

References

“It’s time to reimagine where and how work will get done?” https://www.pwc.com/us/en/library/covid-19/us-remote-work-survey.html

The Home Office: Ergonomic Lessons From the “New Normal.” July 3, 2020. https://journals.sagepub.com/doi/10.1177/1064804620937907

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-076

Safety concerns for home workers—managing the risk

Working from home has been an emerging trend over the last decade. Covid-19 has accelerated the pace at which employers and employees implement and adopt working-from-home procedures due to health concerns and local restrictions. 

Since the implementation of stay-at-home and work-from-home restrictions, we have all experienced unique situations that require balancing factors while working at home: we have new coworkers; we are dealing with broadband performance, outside noise, children, significant others, and disruption from pets. For some workers, there has been competition for workspace, which has caused some workers to work where they can, when they can. The working conditions we likely considered temporary may become permanent: in a Price Waterhouse Cooper survey, 83% of employers now say the shift to remote work has been successful for their company, compared to 73% in their June 2020 survey.  As a result, working from home may become the new normal.

When it comes to insurance, there are several things employers need to consider with so many employees working from home. Employees face two main types of safety risks working at home: injuries caused by accidents, and injuries and illnesses resulting from ergonomic risk. Injuries caused by accidents may be obvious:  tripping over cables, burns, or falling down stairs. The second type of injury comes in the form of musculoskeletal disorders caused by the lack of proper desks and chairs, or the improper use of their equipment in their home office. It is important to develop a strategy to make sure employees’ home workspaces are properly set up for ergonomic safety.

General work parameters

Employers should begin by updating job descriptions for employees to cover any new expectations and job responsibilities, and the safety expectations while working at home.  Though there may not be significant changes, and only certain employees may have new responsibilities while working from home, it is important to review, and update job descriptions as needed.  

Employers should also consider developing or updating their working-from-home policies and procedures. Employees need to be reminded that they are on the clock the same as if they were working in the office.  Work Hours need definition and remote workers should have their work hours defined and detailed to include lunch hour and breaks.

Workers should be advised on these best practices for working at home.

Ergonomic workspace conditions

  • Determine a dedicated work area where proper office ergonomic principles can be applied as much as possible.
  • If working on a laptop, use an external keyboard and mouse, and properly position your laptop as a monitor.
  • Utilize a proper ergonomic chair with adjustable height, backrest, and armrests. If you must use a kitchen table chair or alternative, use a pillow to raise yourself to a proper working height.
  • Make sure the keyboard and mouse are at or near elbow height and use a footrest to properly support your feet if you raise your chair.
  • Take breaks to change posture and look away from the computer screen.

There are additional risks with employees working from home that employers should be aware of in order to develop a plan for the following exposures:

Walking surfaces and stairs

There could be several potential items that could cause an employee to slip, trip or fall when working at home.  It is important that employees are aware of these risks and work to keep their work areas safe. A few of these examples:

  • Cords, cables, toys and pets causing a tripping hazard
  • Walking up and down stairs, especially when carrying objects
  • Wet surfaces
  • Snow and ice for our northern and east coast locations

Driving on business

Employees may have new responsibilities requiring them to deliver or pick items up for their jobs, such as going to ship a box, get mail or other related tasks; it is critical to specify the scope of work expected from these employees.  When possible, employees should consider using services that will pick up items from their homes and reduce the need to drive to do business-related tasks.

Ergonomics of manual material handling

While working from home, there could be instances where employees may have to move boxes, equipment or furniture to set up or move their home office.  Employees should be trained on safe lifting and consider having any new equipment delivered to its final location to reduce the need to lift and move heavy items.

Electrical safety

There are several potential electrical safety issues that may arise when working at home, especially with several household members working and studying at home at the same time.  Risks include:

  • Extension cords in poor condition or daisy chained (multiple extension cords connected together)
  • Outlets not grounded or overloaded due to multiple pieces of equipment
  • Lack of surge protection for electrical equipment
  • Limited or poor ventilation for electrical equipment

In the event of an injury

When it comes to handling a potential claim, it is important to determine where an employee should go in the event of a non-emergent injury or illness.  It is important to send employees to an in-network medical provider to manage the claim. Employers may need to develop a plan and communicate that to managers and employees because the usual in-network medical provider may not be near the injured worker’s home.

As a result of these exposures, there could be a potential for a workers’ compensation claim if the accident or injury happens in the course of employment.

For any questions concerning claims, please work with your agent or Hanover claim professional. 

When thinking about employees working from home, office ergonomics is one of the first things employers should consider to keep their employees safe, but it is important to know that there are additional exposures that employers should consider. Employers should develop policies, procedures, training and communication for managers and employees to help identify and mitigate these risks while working at home.

The Hanover has resources to help. Please visit our Risk Solutions website for our Ergonomics Interactive Toolkit that your employees can use to evaluate their work area.  If you have additional questions, please contact your agent or your Hanover Risk Solutions professional.

References

“It’s time to reimagine where and how work will get done?” https://www.pwc.com/us/en/library/covid-19/us-remote-work-survey.html

The Home Office: Ergonomic Lessons From the “New Normal.” July 3, 2020. https://journals.sagepub.com/doi/10.1177/1064804620937907

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-076

Safety concerns for home workers—managing the risk

Working from home has been an emerging trend over the last decade. Covid-19 has accelerated the pace at which employers and employees implement and adopt working-from-home procedures due to health concerns and local restrictions. 

Since the implementation of stay-at-home and work-from-home restrictions, we have all experienced unique situations that require balancing factors while working at home: we have new coworkers; we are dealing with broadband performance, outside noise, children, significant others, and disruption from pets. For some workers, there has been competition for workspace, which has caused some workers to work where they can, when they can. The working conditions we likely considered temporary may become permanent: in a Price Waterhouse Cooper survey, 83% of employers now say the shift to remote work has been successful for their company, compared to 73% in their June 2020 survey.  As a result, working from home may become the new normal.

When it comes to insurance, there are several things employers need to consider with so many employees working from home. Employees face two main types of safety risks working at home: injuries caused by accidents, and injuries and illnesses resulting from ergonomic risk. Injuries caused by accidents may be obvious:  tripping over cables, burns, or falling down stairs. The second type of injury comes in the form of musculoskeletal disorders caused by the lack of proper desks and chairs, or the improper use of their equipment in their home office. It is important to develop a strategy to make sure employees’ home workspaces are properly set up for ergonomic safety.

General work parameters

Employers should begin by updating job descriptions for employees to cover any new expectations and job responsibilities, and the safety expectations while working at home.  Though there may not be significant changes, and only certain employees may have new responsibilities while working from home, it is important to review, and update job descriptions as needed.  

Employers should also consider developing or updating their working-from-home policies and procedures. Employees need to be reminded that they are on the clock the same as if they were working in the office.  Work Hours need definition and remote workers should have their work hours defined and detailed to include lunch hour and breaks.

Workers should be advised on these best practices for working at home.

Ergonomic workspace conditions

  • Determine a dedicated work area where proper office ergonomic principles can be applied as much as possible.
  • If working on a laptop, use an external keyboard and mouse, and properly position your laptop as a monitor.
  • Utilize a proper ergonomic chair with adjustable height, backrest, and armrests. If you must use a kitchen table chair or alternative, use a pillow to raise yourself to a proper working height.
  • Make sure the keyboard and mouse are at or near elbow height and use a footrest to properly support your feet if you raise your chair.
  • Take breaks to change posture and look away from the computer screen.

There are additional risks with employees working from home that employers should be aware of in order to develop a plan for the following exposures:

Walking surfaces and stairs

There could be several potential items that could cause an employee to slip, trip or fall when working at home.  It is important that employees are aware of these risks and work to keep their work areas safe. A few of these examples:

  • Cords, cables, toys and pets causing a tripping hazard
  • Walking up and down stairs, especially when carrying objects
  • Wet surfaces
  • Snow and ice for our northern and east coast locations

Driving on business

Employees may have new responsibilities requiring them to deliver or pick items up for their jobs, such as going to ship a box, get mail or other related tasks; it is critical to specify the scope of work expected from these employees.  When possible, employees should consider using services that will pick up items from their homes and reduce the need to drive to do business-related tasks.

Ergonomics of manual material handling

While working from home, there could be instances where employees may have to move boxes, equipment or furniture to set up or move their home office.  Employees should be trained on safe lifting and consider having any new equipment delivered to its final location to reduce the need to lift and move heavy items.

Electrical safety

There are several potential electrical safety issues that may arise when working at home, especially with several household members working and studying at home at the same time.  Risks include:

  • Extension cords in poor condition or daisy chained (multiple extension cords connected together)
  • Outlets not grounded or overloaded due to multiple pieces of equipment
  • Lack of surge protection for electrical equipment
  • Limited or poor ventilation for electrical equipment

In the event of an injury

When it comes to handling a potential claim, it is important to determine where an employee should go in the event of a non-emergent injury or illness.  It is important to send employees to an in-network medical provider to manage the claim. Employers may need to develop a plan and communicate that to managers and employees because the usual in-network medical provider may not be near the injured worker’s home.

As a result of these exposures, there could be a potential for a workers’ compensation claim if the accident or injury happens in the course of employment.

For any questions concerning claims, please work with your agent or Hanover claim professional. 

When thinking about employees working from home, office ergonomics is one of the first things employers should consider to keep their employees safe, but it is important to know that there are additional exposures that employers should consider. Employers should develop policies, procedures, training and communication for managers and employees to help identify and mitigate these risks while working at home.

The Hanover has resources to help. Please visit our Risk Solutions website for our Ergonomics Interactive Toolkit that your employees can use to evaluate their work area.  If you have additional questions, please contact your agent or your Hanover Risk Solutions professional.

References

“It’s time to reimagine where and how work will get done?” https://www.pwc.com/us/en/library/covid-19/us-remote-work-survey.html

The Home Office: Ergonomic Lessons From the “New Normal.” July 3, 2020. https://journals.sagepub.com/doi/10.1177/1064804620937907

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-076

Safety concerns for home workers—managing the risk

Working from home has been an emerging trend over the last decade. Covid-19 has accelerated the pace at which employers and employees implement and adopt working-from-home procedures due to health concerns and local restrictions. 

Since the implementation of stay-at-home and work-from-home restrictions, we have all experienced unique situations that require balancing factors while working at home: we have new coworkers; we are dealing with broadband performance, outside noise, children, significant others, and disruption from pets. For some workers, there has been competition for workspace, which has caused some workers to work where they can, when they can. The working conditions we likely considered temporary may become permanent: in a Price Waterhouse Cooper survey, 83% of employers now say the shift to remote work has been successful for their company, compared to 73% in their June 2020 survey.  As a result, working from home may become the new normal.

When it comes to insurance, there are several things employers need to consider with so many employees working from home. Employees face two main types of safety risks working at home: injuries caused by accidents, and injuries and illnesses resulting from ergonomic risk. Injuries caused by accidents may be obvious:  tripping over cables, burns, or falling down stairs. The second type of injury comes in the form of musculoskeletal disorders caused by the lack of proper desks and chairs, or the improper use of their equipment in their home office. It is important to develop a strategy to make sure employees’ home workspaces are properly set up for ergonomic safety.

General work parameters

Employers should begin by updating job descriptions for employees to cover any new expectations and job responsibilities, and the safety expectations while working at home.  Though there may not be significant changes, and only certain employees may have new responsibilities while working from home, it is important to review, and update job descriptions as needed.  

Employers should also consider developing or updating their working-from-home policies and procedures. Employees need to be reminded that they are on the clock the same as if they were working in the office.  Work Hours need definition and remote workers should have their work hours defined and detailed to include lunch hour and breaks.

Workers should be advised on these best practices for working at home.

Ergonomic workspace conditions

  • Determine a dedicated work area where proper office ergonomic principles can be applied as much as possible.
  • If working on a laptop, use an external keyboard and mouse, and properly position your laptop as a monitor.
  • Utilize a proper ergonomic chair with adjustable height, backrest, and armrests. If you must use a kitchen table chair or alternative, use a pillow to raise yourself to a proper working height.
  • Make sure the keyboard and mouse are at or near elbow height and use a footrest to properly support your feet if you raise your chair.
  • Take breaks to change posture and look away from the computer screen.

There are additional risks with employees working from home that employers should be aware of in order to develop a plan for the following exposures:

Walking surfaces and stairs

There could be several potential items that could cause an employee to slip, trip or fall when working at home.  It is important that employees are aware of these risks and work to keep their work areas safe. A few of these examples:

  • Cords, cables, toys and pets causing a tripping hazard
  • Walking up and down stairs, especially when carrying objects
  • Wet surfaces
  • Snow and ice for our northern and east coast locations

Driving on business

Employees may have new responsibilities requiring them to deliver or pick items up for their jobs, such as going to ship a box, get mail or other related tasks; it is critical to specify the scope of work expected from these employees.  When possible, employees should consider using services that will pick up items from their homes and reduce the need to drive to do business-related tasks.

Ergonomics of manual material handling

While working from home, there could be instances where employees may have to move boxes, equipment or furniture to set up or move their home office.  Employees should be trained on safe lifting and consider having any new equipment delivered to its final location to reduce the need to lift and move heavy items.

Electrical safety

There are several potential electrical safety issues that may arise when working at home, especially with several household members working and studying at home at the same time.  Risks include:

  • Extension cords in poor condition or daisy chained (multiple extension cords connected together)
  • Outlets not grounded or overloaded due to multiple pieces of equipment
  • Lack of surge protection for electrical equipment
  • Limited or poor ventilation for electrical equipment

In the event of an injury

When it comes to handling a potential claim, it is important to determine where an employee should go in the event of a non-emergent injury or illness.  It is important to send employees to an in-network medical provider to manage the claim. Employers may need to develop a plan and communicate that to managers and employees because the usual in-network medical provider may not be near the injured worker’s home.

As a result of these exposures, there could be a potential for a workers’ compensation claim if the accident or injury happens in the course of employment.

For any questions concerning claims, please work with your agent or Hanover claim professional. 

When thinking about employees working from home, office ergonomics is one of the first things employers should consider to keep their employees safe, but it is important to know that there are additional exposures that employers should consider. Employers should develop policies, procedures, training and communication for managers and employees to help identify and mitigate these risks while working at home.

The Hanover has resources to help. Please visit our Risk Solutions website for our Ergonomics Interactive Toolkit that your employees can use to evaluate their work area.  If you have additional questions, please contact your agent or your Hanover Risk Solutions professional.

References

“It’s time to reimagine where and how work will get done?” https://www.pwc.com/us/en/library/covid-19/us-remote-work-survey.html

The Home Office: Ergonomic Lessons From the “New Normal.” July 3, 2020. https://journals.sagepub.com/doi/10.1177/1064804620937907

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-076

Article

Protection from unexpected home improvement costs

In 2020, Americans were home more than ever. And, with more hours spent at home, came more desire to update, improve or expand current spaces.

According to Insurance Research Council, one-third of American homeowners renovated their homes since the start of the pandemic. Of these home improvers, 21% spent $100,000 or more.

However, despite all the money spent and hammers swung, only about half of homeowners informed their insurance company of their home improvement projects. As many renovations add value to your home, it is important to connect with your insurance agent or company to ensure you update or add to your home insurance coverage along with your home improvements.  

Coverages to consider

One of the most valuable home insurance options is guaranteed replacement cost, which helps to insure full replacement cost to your rebuild your home. If your renovations add value to your home, you may want to transition to this coverage or increase your limits.

Based on your next home renovation, there are additional coverage options you should consider…

Renovation Action/coverage to consider
Kitchen/bathroom upgrade Service line protection in the event water lines are damaged and equipment breakdown if appliances have unforeseen electrical/mechanical issues
Addition/deck Update coverage to be sure replacement cost reflects added value of home
Home office for business Endorsement of home policy or additional business policy to cover all business-related liability
Finished basement Water backup, especially if a sump pump is in use
Pool Higher liability coverage
Roof/siding Roof/siding restoration to ensure craftsmanship and similar material match the rest of your home in the event of a loss


And don’t forget to protect yourself during the remodeling period. An umbrella policy may be a great option for those tackling home projects that involve contractors and service providers outside of your policy’s coverage limits.

Talk to your independent insurance agent about coverage options – including The Hanover’s high-value Prestige offerings – to protect yourself through your next home, sweet home project.

 

Sources

Bankrate

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.

LC 2021-082

Protection from unexpected home improvement costs

In 2020, Americans were home more than ever. And, with more hours spent at home, came more desire to update, improve or expand current spaces.

According to Insurance Research Council, one-third of American homeowners renovated their homes since the start of the pandemic. Of these home improvers, 21% spent $100,000 or more.

However, despite all the money spent and hammers swung, only about half of homeowners informed their insurance company of their home improvement projects. As many renovations add value to your home, it is important to connect with your insurance agent or company to ensure you update or add to your home insurance coverage along with your home improvements.  

Coverages to consider

One of the most valuable home insurance options is guaranteed replacement cost, which helps to insure full replacement cost to your rebuild your home. If your renovations add value to your home, you may want to transition to this coverage or increase your limits.

Based on your next home renovation, there are additional coverage options you should consider…

Renovation Action/coverage to consider
Kitchen/bathroom upgrade Service line protection in the event water lines are damaged and equipment breakdown if appliances have unforeseen electrical/mechanical issues
Addition/deck Update coverage to be sure replacement cost reflects added value of home
Home office for business Endorsement of home policy or additional business policy to cover all business-related liability
Finished basement Water backup, especially if a sump pump is in use
Pool Higher liability coverage
Roof/siding Roof/siding restoration to ensure craftsmanship and similar material match the rest of your home in the event of a loss


And don’t forget to protect yourself during the remodeling period. An umbrella policy may be a great option for those tackling home projects that involve contractors and service providers outside of your policy’s coverage limits.

Talk to your independent insurance agent about coverage options – including The Hanover’s high-value Prestige offerings – to protect yourself through your next home, sweet home project.

 

Sources

Bankrate

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.

LC 2021-082

Protection from unexpected home improvement costs

In 2020, Americans were home more than ever. And, with more hours spent at home, came more desire to update, improve or expand current spaces.

According to Insurance Research Council, one-third of American homeowners renovated their homes since the start of the pandemic. Of these home improvers, 21% spent $100,000 or more.

However, despite all the money spent and hammers swung, only about half of homeowners informed their insurance company of their home improvement projects. As many renovations add value to your home, it is important to connect with your insurance agent or company to ensure you update or add to your home insurance coverage along with your home improvements.  

Coverages to consider

One of the most valuable home insurance options is guaranteed replacement cost, which helps to insure full replacement cost to your rebuild your home. If your renovations add value to your home, you may want to transition to this coverage or increase your limits.

Based on your next home renovation, there are additional coverage options you should consider…

Renovation Action/coverage to consider
Kitchen/bathroom upgrade Service line protection in the event water lines are damaged and equipment breakdown if appliances have unforeseen electrical/mechanical issues
Addition/deck Update coverage to be sure replacement cost reflects added value of home
Home office for business Endorsement of home policy or additional business policy to cover all business-related liability
Finished basement Water backup, especially if a sump pump is in use
Pool Higher liability coverage
Roof/siding Roof/siding restoration to ensure craftsmanship and similar material match the rest of your home in the event of a loss


And don’t forget to protect yourself during the remodeling period. An umbrella policy may be a great option for those tackling home projects that involve contractors and service providers outside of your policy’s coverage limits.

Talk to your independent insurance agent about coverage options – including The Hanover’s high-value Prestige offerings – to protect yourself through your next home, sweet home project.

 

Sources

Bankrate

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.

LC 2021-082

Protection from unexpected home improvement costs

In 2020, Americans were home more than ever. And, with more hours spent at home, came more desire to update, improve or expand current spaces.

According to Insurance Research Council, one-third of American homeowners renovated their homes since the start of the pandemic. Of these home improvers, 21% spent $100,000 or more.

However, despite all the money spent and hammers swung, only about half of homeowners informed their insurance company of their home improvement projects. As many renovations add value to your home, it is important to connect with your insurance agent or company to ensure you update or add to your home insurance coverage along with your home improvements.  

Coverages to consider

One of the most valuable home insurance options is guaranteed replacement cost, which helps to insure full replacement cost to your rebuild your home. If your renovations add value to your home, you may want to transition to this coverage or increase your limits.

Based on your next home renovation, there are additional coverage options you should consider…

Renovation Action/coverage to consider
Kitchen/bathroom upgrade Service line protection in the event water lines are damaged and equipment breakdown if appliances have unforeseen electrical/mechanical issues
Addition/deck Update coverage to be sure replacement cost reflects added value of home
Home office for business Endorsement of home policy or additional business policy to cover all business-related liability
Finished basement Water backup, especially if a sump pump is in use
Pool Higher liability coverage
Roof/siding Roof/siding restoration to ensure craftsmanship and similar material match the rest of your home in the event of a loss


And don’t forget to protect yourself during the remodeling period. An umbrella policy may be a great option for those tackling home projects that involve contractors and service providers outside of your policy’s coverage limits.

Talk to your independent insurance agent about coverage options – including The Hanover’s high-value Prestige offerings – to protect yourself through your next home, sweet home project.

 

Sources

Bankrate

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.

LC 2021-082

Article

Why are my insurance costs going up?

Stylized close up of a line chart ascending

In today’s market, everyone is feeling the pressures of higher prices. As an insurance expert, you know firsthand how often you are faced with this conversation as it relates to your client’s premium.

And, you know that these premium increases are largely influenced by market trends that impact all customers, even ones without a claim history. These are broad trends, affecting rates for companies of all sizes, in all industries, in all regions.

To help support your conversations with your clients, we’re sharing insights on what’s driving this hard market. As always, we’ll continue to monitor rate trends vigilantly and provide additional thoughts you can share when you have a client that asks "why is my premium going up?"

Jump to: Auto | Property | Workers’ compensation | General liability | Management and executive liability | Professional liability

Understanding social inflation

Over recent years, there has been a rapid and substantial increase in the cost of liability and casualty claims, which in turn has driven up premiums. Known as social inflation, this trend includes significantly increasing jury awards and nuclear verdicts, climbing medical costs, the rolling back of statutes of limitations, more third-party litigation funding, and shifts in litigation and legal practices.

This impacts the premiums for several lines of coverage – particularly general liability and umbrella, commercial auto and directors and officers’ lines of business – due to the direct impact to underwriting losses and reserves of insurance companies, resulting in a higher need for rate.

  • Social inflation - today and historically - holds more greatly impacts liability loss ratios than economic inflation.1
  • The U.S. market is now the center of litigation funding and accounts for over 50% of all global activity producing an internal rate of return between 20-35% for the companies that engage in litigation funding.2
  • Recent industry studies show that the incidence of attorney involvement in auto liability claims has been increasing and the relative costs of resolving these claims are also on the rise.

Auto

What's driving rate trends?

One major factor is the ongoing effort to improve automotive safety, which has resulted in technological innovations, auto design changes, and new regulations regarding airbag usage, that have made cars more expensive to repair when damaged.3

  • According to the National Highway Traffic Safety Administration, U.S. traffic deaths have jumped to the highest rate since 2005, rising 13.1% in the months after coronavirus lockdowns ended.4
  • The Consumer Price Index for auto body work hit a year-over-year high of 11% in September 2022, whereas general inflation rates rose at an annualized rate of a little over 7%.
  • Average wages for automotive technicians and repairers rose a cumulative 12.3% from 2017 to 2021, compared against an 8% increase over the previous four-year period (2013-2017).
  • Litigation continues to drive up the cost of auto insurance. More than half of bodily injury claimants hire attorneys.5
  • With the decriminalization and legalization of medical and recreational use of cannabis in many states, a continued focus is now upon us in this segment. NHTSA’s National Roadside Survey conducted in 2013-2014 found that 20% of surveyed drivers tested positive for potentially impairing drugs.6
  • The continued decriminalization and legalization of marijuana use has led to a 4% uptick in collision claims in the period from 2012 to 2019.

Property

What's driving rate trends?

A combination of rising construction costs, increased prices of materials, and more frequent severe weather events

  • Total reconstruction costs in the U.S. rose more than 9% over the past year.7
  • Annual property loss trend increases, which insurers have to match just to keep rates in sync with loss experience, are running between 5-8%.
  • Replacement cost inflation, from materials like concrete, steel, wood, and roofing, and labor for most trades, is running ahead of reported inflation levels, by up to 3-5 points on average, for each of the last three years.
  • Replacement costs for building materials and labor in just the past year is running between 8-10%.
  • In 2022, there were 18 billion-dollar weather or climate disasters, including hurricanes, tornadoes, wildfires, winter and other severe storms.8
  • Hurricane Ian is positioned to be the second-worst insured loss event in U.S. history after only Hurricane Katrina in 2005.

Workers’ compensation

What's driving rate trends?

Beyond the rising costs of both medicine and care, persistent labor shortages have resulted in inexperienced workers being hired for unfamiliar roles, leading to an increase in the severity of work-related injuries and claims.

  • Although state bureaus are showing decreasing rates for the sixth or seventh year in a row in most states, many factors, including increased benefits, the turmoil of a rapidly changing workforce, changes in claim duration patterns and challenges with medical care are indications of future rate increases.
  • Workers' comp pricing is up 2.3% against a loss trend of 5.5% 9
  • With the varying levels and mix of services needed to treat injuries, medical care prices are predicted to rise 3.6% in 2023.10
  • Medical inflation is now evident in overall workers' comp costs, but prices for physician services and facility costs will be drivers of future cost increases.
  • Physical medicine is a current contributor to overall cost increases.11
  • Enforcing safety in the workplace is a contributing factor to the current reduction in claim frequency. However, the severity of these claims has risen. This, according to experts, will eventually drive up costs.
  • The labor market is still dominated by challenges from non-traditional workers, lower skilled worker shortages, an aging workforce and comorbidities within the labor force. The characteristics of the work force are going to become more evident in future claim severity patterns.
  • For workers affected with COVID-19, the CDC estimates that up to 28% may suffer the symptoms of long COVID.12 Workers' comp claims regarding long COVID are resulting in higher than average medical payments and longer durations of temporary disability. The New York State Insurance Fund projects one-third of workers affected with COVID-19 are suffering from long COVID.13
  • Economic uncertainty, fear of recession, and wage inflation is going to add pressure to the workers’ comp line.

General liability

What's driving rate trends?

A variety of factors – including eroding loss ratios, increased litigation, and difficulty for high-hazard risks to find coverage – are combining to send umbrella rates skyrocketing.

  • Liability rates have been increasing for the last 20 consecutive quarters, with a further expectation that this will continue through 2023.14
  • Companies with high-hazard products or significant premises exposures are finding it difficult to obtain umbrella limits at renewal. Purchasing higher layers of excess is often required to obtain the necessary capacity.15
  • Loss ratios will continue to deteriorate as the industry deals with issues like opioid litigation, abuse claims and changes to the statute of limitations, and overall increases in severity rates.16
  • Forever chemicals, PFAS/PFOA and other emerging risks are driving underwriting concerns for underwriters that may result in tighter terms and conditions.17
  • Treaty reinsurers expect prices to continue to rise for casualty placements in 2023. 18
  • For 2023, carriers are expected to continue rate increases in the excess casualty market with the most significant increases coming in the lead umbrella placement. Like general liability, claim inflation, medical inflation and legal inflation will all continue to affect the umbrella market.

Management and executive liability

What's driving rate trends?

The increased rate of litigation – and costs – of discriminatory employment practices allegations, as well as cyberattacks, including data breaches, ransomware attacks and phishing

  • Rates have been rising since 2019. While publicly traded companies have experienced the greatest rate jumps, private and nonprofit organizations have also seen meaningful rate increases anywhere from 10-50% or more, depending upon size, financial stability and type.
  • In 2022, more than 20,000 instances of compromised business email accounts were reported to the FBI, with estimated losses of $2.4 billion.19
  • There has been an increase in allegations of discriminatory employment practices, heightened by social movements such as #MeToo and Black Lives Matter.
  • Newer claim trends impacting rates include rising defense costs, as well as outsized settlements in proportion to alleged damages.

Professional liability

What's driving rate trends?

Simply put, the complexity of claims, and the cost to defend against them, continues to rise.

  • Lawyers’ professional liability (LPL) – Attorneys handling estates and trust work continue to face claims, with beneficiaries often unhappy with the division of family wealth.
  • Architects and engineers (A&E) – Heightened claim activity continues for public work, specifically schools and hospitals. Work stoppages due to limited or decreased funding has led to delays, cost overruns, change orders and project cancelations, while compressed project timelines and broken contracts have also contributed to the increase in claims.
  • Miscellaneous professional liability (MPL) – The chaotic real estate market has led to heightened competition and increased litigation against agents. A continued trend of bodily injury and property damage claims on MPL policies has also driven up loss costs.
  • Accountants’ professional liability (APL) – Reduced IRS funding has resulted in increased rejections for tax abatements. Pressure within firms to drive revenue outside of standard accounting services has led to increased claim activity as accountants step outside traditional areas of expertise.

 

Questions?

Contact your Commercial Lines regional vice president for further discussion.

 

1. Assured Research, 2. Swiss Re Institute, 3. Verisk, 4. Washington Post, 5. Reuters, 6. The Insurance Research Council, 7. Verisk, 8. National Oceanic and Atmospheric Administration, 9. IBNR Weekly, Febrary 3, 2023, 10. Insurance Newsnet, 11. National Council on Compensation Insurance, 12. Kaiser Family Foundation, 13. Business Insurance, 14. JD Supra, 15. Woodruff Sawyer, 16. Milliman, 17. Carrier Management, 18. Insurance Edge, 19. FBI

 

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.   

Why are my insurance costs going up?

In today’s market, everyone is feeling the pressures of higher prices. As an insurance expert, you know firsthand how often you are faced with this conversation as it relates to your client’s premium.

And, you know that these premium increases are largely influenced by market trends that impact all customers, even ones without a claim history. These are broad trends, affecting rates for companies of all sizes, in all industries, in all regions.

To help support your conversations with your clients, we’re sharing insights on what’s driving this hard market. As always, we’ll continue to monitor rate trends vigilantly and provide additional thoughts you can share when you have a client that asks "why is my premium going up?"

Jump to: Auto | Property | Workers’ compensation | General liability | Management and executive liability | Professional liability

Understanding social inflation

Over recent years, there has been a rapid and substantial increase in the cost of liability and casualty claims, which in turn has driven up premiums. Known as social inflation, this trend includes significantly increasing jury awards and nuclear verdicts, climbing medical costs, the rolling back of statutes of limitations, more third-party litigation funding, and shifts in litigation and legal practices.

This impacts the premiums for several lines of coverage – particularly general liability and umbrella, commercial auto and directors and officers’ lines of business – due to the direct impact to underwriting losses and reserves of insurance companies, resulting in a higher need for rate.

  • Social inflation - today and historically - holds more greatly impacts liability loss ratios than economic inflation.1
  • The U.S. market is now the center of litigation funding and accounts for over 50% of all global activity producing an internal rate of return between 20-35% for the companies that engage in litigation funding.2
  • Recent industry studies show that the incidence of attorney involvement in auto liability claims has been increasing and the relative costs of resolving these claims are also on the rise.

Auto

What's driving rate trends?

One major factor is the ongoing effort to improve automotive safety, which has resulted in technological innovations, auto design changes, and new regulations regarding airbag usage, that have made cars more expensive to repair when damaged.3

  • According to the National Highway Traffic Safety Administration, U.S. traffic deaths have jumped to the highest rate since 2005, rising 13.1% in the months after coronavirus lockdowns ended.4
  • The Consumer Price Index for auto body work hit a year-over-year high of 11% in September 2022, whereas general inflation rates rose at an annualized rate of a little over 7%.
  • Average wages for automotive technicians and repairers rose a cumulative 12.3% from 2017 to 2021, compared against an 8% increase over the previous four-year period (2013-2017).
  • Litigation continues to drive up the cost of auto insurance. More than half of bodily injury claimants hire attorneys.5
  • With the decriminalization and legalization of medical and recreational use of cannabis in many states, a continued focus is now upon us in this segment. NHTSA’s National Roadside Survey conducted in 2013-2014 found that 20% of surveyed drivers tested positive for potentially impairing drugs.6
  • The continued decriminalization and legalization of marijuana use has led to a 4% uptick in collision claims in the period from 2012 to 2019.

Property

What's driving rate trends?

A combination of rising construction costs, increased prices of materials, and more frequent severe weather events

  • Total reconstruction costs in the U.S. rose more than 9% over the past year.7
  • Annual property loss trend increases, which insurers have to match just to keep rates in sync with loss experience, are running between 5-8%.
  • Replacement cost inflation, from materials like concrete, steel, wood, and roofing, and labor for most trades, is running ahead of reported inflation levels, by up to 3-5 points on average, for each of the last three years.
  • Replacement costs for building materials and labor in just the past year is running between 8-10%.
  • In 2022, there were 18 billion-dollar weather or climate disasters, including hurricanes, tornadoes, wildfires, winter and other severe storms.8
  • Hurricane Ian is positioned to be the second-worst insured loss event in U.S. history after only Hurricane Katrina in 2005.

Workers’ compensation

What's driving rate trends?

Beyond the rising costs of both medicine and care, persistent labor shortages have resulted in inexperienced workers being hired for unfamiliar roles, leading to an increase in the severity of work-related injuries and claims.

  • Although state bureaus are showing decreasing rates for the sixth or seventh year in a row in most states, many factors, including increased benefits, the turmoil of a rapidly changing workforce, changes in claim duration patterns and challenges with medical care are indications of future rate increases.
  • Workers' comp pricing is up 2.3% against a loss trend of 5.5% 9
  • With the varying levels and mix of services needed to treat injuries, medical care prices are predicted to rise 3.6% in 2023.10
  • Medical inflation is now evident in overall workers' comp costs, but prices for physician services and facility costs will be drivers of future cost increases.
  • Physical medicine is a current contributor to overall cost increases.11
  • Enforcing safety in the workplace is a contributing factor to the current reduction in claim frequency. However, the severity of these claims has risen. This, according to experts, will eventually drive up costs.
  • The labor market is still dominated by challenges from non-traditional workers, lower skilled worker shortages, an aging workforce and comorbidities within the labor force. The characteristics of the work force are going to become more evident in future claim severity patterns.
  • For workers affected with COVID-19, the CDC estimates that up to 28% may suffer the symptoms of long COVID.12 Workers' comp claims regarding long COVID are resulting in higher than average medical payments and longer durations of temporary disability. The New York State Insurance Fund projects one-third of workers affected with COVID-19 are suffering from long COVID.13
  • Economic uncertainty, fear of recession, and wage inflation is going to add pressure to the workers’ comp line.

General liability

What's driving rate trends?

A variety of factors – including eroding loss ratios, increased litigation, and difficulty for high-hazard risks to find coverage – are combining to send umbrella rates skyrocketing.

  • Liability rates have been increasing for the last 20 consecutive quarters, with a further expectation that this will continue through 2023.14
  • Companies with high-hazard products or significant premises exposures are finding it difficult to obtain umbrella limits at renewal. Purchasing higher layers of excess is often required to obtain the necessary capacity.15
  • Loss ratios will continue to deteriorate as the industry deals with issues like opioid litigation, abuse claims and changes to the statute of limitations, and overall increases in severity rates.16
  • Forever chemicals, PFAS/PFOA and other emerging risks are driving underwriting concerns for underwriters that may result in tighter terms and conditions.17
  • Treaty reinsurers expect prices to continue to rise for casualty placements in 2023. 18
  • For 2023, carriers are expected to continue rate increases in the excess casualty market with the most significant increases coming in the lead umbrella placement. Like general liability, claim inflation, medical inflation and legal inflation will all continue to affect the umbrella market.

Management and executive liability

What's driving rate trends?

The increased rate of litigation – and costs – of discriminatory employment practices allegations, as well as cyberattacks, including data breaches, ransomware attacks and phishing

  • Rates have been rising since 2019. While publicly traded companies have experienced the greatest rate jumps, private and nonprofit organizations have also seen meaningful rate increases anywhere from 10-50% or more, depending upon size, financial stability and type.
  • In 2022, more than 20,000 instances of compromised business email accounts were reported to the FBI, with estimated losses of $2.4 billion.19
  • There has been an increase in allegations of discriminatory employment practices, heightened by social movements such as #MeToo and Black Lives Matter.
  • Newer claim trends impacting rates include rising defense costs, as well as outsized settlements in proportion to alleged damages.

Professional liability

What's driving rate trends?

Simply put, the complexity of claims, and the cost to defend against them, continues to rise.

  • Lawyers’ professional liability (LPL) – Attorneys handling estates and trust work continue to face claims, with beneficiaries often unhappy with the division of family wealth.
  • Architects and engineers (A&E) – Heightened claim activity continues for public work, specifically schools and hospitals. Work stoppages due to limited or decreased funding has led to delays, cost overruns, change orders and project cancelations, while compressed project timelines and broken contracts have also contributed to the increase in claims.
  • Miscellaneous professional liability (MPL) – The chaotic real estate market has led to heightened competition and increased litigation against agents. A continued trend of bodily injury and property damage claims on MPL policies has also driven up loss costs.
  • Accountants’ professional liability (APL) – Reduced IRS funding has resulted in increased rejections for tax abatements. Pressure within firms to drive revenue outside of standard accounting services has led to increased claim activity as accountants step outside traditional areas of expertise.

 

Questions?

Contact your Commercial Lines regional vice president for further discussion.

 

1. Assured Research, 2. Swiss Re Institute, 3. Verisk, 4. Washington Post, 5. Reuters, 6. The Insurance Research Council, 7. Verisk, 8. National Oceanic and Atmospheric Administration, 9. IBNR Weekly, Febrary 3, 2023, 10. Insurance Newsnet, 11. National Council on Compensation Insurance, 12. Kaiser Family Foundation, 13. Business Insurance, 14. JD Supra, 15. Woodruff Sawyer, 16. Milliman, 17. Carrier Management, 18. Insurance Edge, 19. FBI

 

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.   

Why are my insurance costs going up?

In today’s market, everyone is feeling the pressures of higher prices. As an insurance expert, you know firsthand how often you are faced with this conversation as it relates to your client’s premium.

And, you know that these premium increases are largely influenced by market trends that impact all customers, even ones without a claim history. These are broad trends, affecting rates for companies of all sizes, in all industries, in all regions.

To help support your conversations with your clients, we’re sharing insights on what’s driving this hard market. As always, we’ll continue to monitor rate trends vigilantly and provide additional thoughts you can share when you have a client that asks "why is my premium going up?"

Jump to: Auto | Property | Workers’ compensation | General liability | Management and executive liability | Professional liability

Understanding social inflation

Over recent years, there has been a rapid and substantial increase in the cost of liability and casualty claims, which in turn has driven up premiums. Known as social inflation, this trend includes significantly increasing jury awards and nuclear verdicts, climbing medical costs, the rolling back of statutes of limitations, more third-party litigation funding, and shifts in litigation and legal practices.

This impacts the premiums for several lines of coverage – particularly general liability and umbrella, commercial auto and directors and officers’ lines of business – due to the direct impact to underwriting losses and reserves of insurance companies, resulting in a higher need for rate.

  • Social inflation - today and historically - holds more greatly impacts liability loss ratios than economic inflation.1
  • The U.S. market is now the center of litigation funding and accounts for over 50% of all global activity producing an internal rate of return between 20-35% for the companies that engage in litigation funding.2
  • Recent industry studies show that the incidence of attorney involvement in auto liability claims has been increasing and the relative costs of resolving these claims are also on the rise.

Auto

What's driving rate trends?

One major factor is the ongoing effort to improve automotive safety, which has resulted in technological innovations, auto design changes, and new regulations regarding airbag usage, that have made cars more expensive to repair when damaged.3

  • According to the National Highway Traffic Safety Administration, U.S. traffic deaths have jumped to the highest rate since 2005, rising 13.1% in the months after coronavirus lockdowns ended.4
  • The Consumer Price Index for auto body work hit a year-over-year high of 11% in September 2022, whereas general inflation rates rose at an annualized rate of a little over 7%.
  • Average wages for automotive technicians and repairers rose a cumulative 12.3% from 2017 to 2021, compared against an 8% increase over the previous four-year period (2013-2017).
  • Litigation continues to drive up the cost of auto insurance. More than half of bodily injury claimants hire attorneys.5
  • With the decriminalization and legalization of medical and recreational use of cannabis in many states, a continued focus is now upon us in this segment. NHTSA’s National Roadside Survey conducted in 2013-2014 found that 20% of surveyed drivers tested positive for potentially impairing drugs.6
  • The continued decriminalization and legalization of marijuana use has led to a 4% uptick in collision claims in the period from 2012 to 2019.

Property

What's driving rate trends?

A combination of rising construction costs, increased prices of materials, and more frequent severe weather events

  • Total reconstruction costs in the U.S. rose more than 9% over the past year.7
  • Annual property loss trend increases, which insurers have to match just to keep rates in sync with loss experience, are running between 5-8%.
  • Replacement cost inflation, from materials like concrete, steel, wood, and roofing, and labor for most trades, is running ahead of reported inflation levels, by up to 3-5 points on average, for each of the last three years.
  • Replacement costs for building materials and labor in just the past year is running between 8-10%.
  • In 2022, there were 18 billion-dollar weather or climate disasters, including hurricanes, tornadoes, wildfires, winter and other severe storms.8
  • Hurricane Ian is positioned to be the second-worst insured loss event in U.S. history after only Hurricane Katrina in 2005.

Workers’ compensation

What's driving rate trends?

Beyond the rising costs of both medicine and care, persistent labor shortages have resulted in inexperienced workers being hired for unfamiliar roles, leading to an increase in the severity of work-related injuries and claims.

  • Although state bureaus are showing decreasing rates for the sixth or seventh year in a row in most states, many factors, including increased benefits, the turmoil of a rapidly changing workforce, changes in claim duration patterns and challenges with medical care are indications of future rate increases.
  • Workers' comp pricing is up 2.3% against a loss trend of 5.5% 9
  • With the varying levels and mix of services needed to treat injuries, medical care prices are predicted to rise 3.6% in 2023.10
  • Medical inflation is now evident in overall workers' comp costs, but prices for physician services and facility costs will be drivers of future cost increases.
  • Physical medicine is a current contributor to overall cost increases.11
  • Enforcing safety in the workplace is a contributing factor to the current reduction in claim frequency. However, the severity of these claims has risen. This, according to experts, will eventually drive up costs.
  • The labor market is still dominated by challenges from non-traditional workers, lower skilled worker shortages, an aging workforce and comorbidities within the labor force. The characteristics of the work force are going to become more evident in future claim severity patterns.
  • For workers affected with COVID-19, the CDC estimates that up to 28% may suffer the symptoms of long COVID.12 Workers' comp claims regarding long COVID are resulting in higher than average medical payments and longer durations of temporary disability. The New York State Insurance Fund projects one-third of workers affected with COVID-19 are suffering from long COVID.13
  • Economic uncertainty, fear of recession, and wage inflation is going to add pressure to the workers’ comp line.

General liability

What's driving rate trends?

A variety of factors – including eroding loss ratios, increased litigation, and difficulty for high-hazard risks to find coverage – are combining to send umbrella rates skyrocketing.

  • Liability rates have been increasing for the last 20 consecutive quarters, with a further expectation that this will continue through 2023.14
  • Companies with high-hazard products or significant premises exposures are finding it difficult to obtain umbrella limits at renewal. Purchasing higher layers of excess is often required to obtain the necessary capacity.15
  • Loss ratios will continue to deteriorate as the industry deals with issues like opioid litigation, abuse claims and changes to the statute of limitations, and overall increases in severity rates.16
  • Forever chemicals, PFAS/PFOA and other emerging risks are driving underwriting concerns for underwriters that may result in tighter terms and conditions.17
  • Treaty reinsurers expect prices to continue to rise for casualty placements in 2023. 18
  • For 2023, carriers are expected to continue rate increases in the excess casualty market with the most significant increases coming in the lead umbrella placement. Like general liability, claim inflation, medical inflation and legal inflation will all continue to affect the umbrella market.

Management and executive liability

What's driving rate trends?

The increased rate of litigation – and costs – of discriminatory employment practices allegations, as well as cyberattacks, including data breaches, ransomware attacks and phishing

  • Rates have been rising since 2019. While publicly traded companies have experienced the greatest rate jumps, private and nonprofit organizations have also seen meaningful rate increases anywhere from 10-50% or more, depending upon size, financial stability and type.
  • In 2022, more than 20,000 instances of compromised business email accounts were reported to the FBI, with estimated losses of $2.4 billion.19
  • There has been an increase in allegations of discriminatory employment practices, heightened by social movements such as #MeToo and Black Lives Matter.
  • Newer claim trends impacting rates include rising defense costs, as well as outsized settlements in proportion to alleged damages.

Professional liability

What's driving rate trends?

Simply put, the complexity of claims, and the cost to defend against them, continues to rise.

  • Lawyers’ professional liability (LPL) – Attorneys handling estates and trust work continue to face claims, with beneficiaries often unhappy with the division of family wealth.
  • Architects and engineers (A&E) – Heightened claim activity continues for public work, specifically schools and hospitals. Work stoppages due to limited or decreased funding has led to delays, cost overruns, change orders and project cancelations, while compressed project timelines and broken contracts have also contributed to the increase in claims.
  • Miscellaneous professional liability (MPL) – The chaotic real estate market has led to heightened competition and increased litigation against agents. A continued trend of bodily injury and property damage claims on MPL policies has also driven up loss costs.
  • Accountants’ professional liability (APL) – Reduced IRS funding has resulted in increased rejections for tax abatements. Pressure within firms to drive revenue outside of standard accounting services has led to increased claim activity as accountants step outside traditional areas of expertise.

 

Questions?

Contact your Commercial Lines regional vice president for further discussion.

 

1. Assured Research, 2. Swiss Re Institute, 3. Verisk, 4. Washington Post, 5. Reuters, 6. The Insurance Research Council, 7. Verisk, 8. National Oceanic and Atmospheric Administration, 9. IBNR Weekly, Febrary 3, 2023, 10. Insurance Newsnet, 11. National Council on Compensation Insurance, 12. Kaiser Family Foundation, 13. Business Insurance, 14. JD Supra, 15. Woodruff Sawyer, 16. Milliman, 17. Carrier Management, 18. Insurance Edge, 19. FBI

 

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.   

Why are my insurance costs going up?

In today’s market, everyone is feeling the pressures of higher prices. As an insurance expert, you know firsthand how often you are faced with this conversation as it relates to your client’s premium.

And, you know that these premium increases are largely influenced by market trends that impact all customers, even ones without a claim history. These are broad trends, affecting rates for companies of all sizes, in all industries, in all regions.

To help support your conversations with your clients, we’re sharing insights on what’s driving this hard market. As always, we’ll continue to monitor rate trends vigilantly and provide additional thoughts you can share when you have a client that asks "why is my premium going up?"

Jump to: Auto | Property | Workers’ compensation | General liability | Management and executive liability | Professional liability

Understanding social inflation

Over recent years, there has been a rapid and substantial increase in the cost of liability and casualty claims, which in turn has driven up premiums. Known as social inflation, this trend includes significantly increasing jury awards and nuclear verdicts, climbing medical costs, the rolling back of statutes of limitations, more third-party litigation funding, and shifts in litigation and legal practices.

This impacts the premiums for several lines of coverage – particularly general liability and umbrella, commercial auto and directors and officers’ lines of business – due to the direct impact to underwriting losses and reserves of insurance companies, resulting in a higher need for rate.

  • Social inflation - today and historically - holds more greatly impacts liability loss ratios than economic inflation.1
  • The U.S. market is now the center of litigation funding and accounts for over 50% of all global activity producing an internal rate of return between 20-35% for the companies that engage in litigation funding.2
  • Recent industry studies show that the incidence of attorney involvement in auto liability claims has been increasing and the relative costs of resolving these claims are also on the rise.

Auto

What's driving rate trends?

One major factor is the ongoing effort to improve automotive safety, which has resulted in technological innovations, auto design changes, and new regulations regarding airbag usage, that have made cars more expensive to repair when damaged.3

  • According to the National Highway Traffic Safety Administration, U.S. traffic deaths have jumped to the highest rate since 2005, rising 13.1% in the months after coronavirus lockdowns ended.4
  • The Consumer Price Index for auto body work hit a year-over-year high of 11% in September 2022, whereas general inflation rates rose at an annualized rate of a little over 7%.
  • Average wages for automotive technicians and repairers rose a cumulative 12.3% from 2017 to 2021, compared against an 8% increase over the previous four-year period (2013-2017).
  • Litigation continues to drive up the cost of auto insurance. More than half of bodily injury claimants hire attorneys.5
  • With the decriminalization and legalization of medical and recreational use of cannabis in many states, a continued focus is now upon us in this segment. NHTSA’s National Roadside Survey conducted in 2013-2014 found that 20% of surveyed drivers tested positive for potentially impairing drugs.6
  • The continued decriminalization and legalization of marijuana use has led to a 4% uptick in collision claims in the period from 2012 to 2019.

Property

What's driving rate trends?

A combination of rising construction costs, increased prices of materials, and more frequent severe weather events

  • Total reconstruction costs in the U.S. rose more than 9% over the past year.7
  • Annual property loss trend increases, which insurers have to match just to keep rates in sync with loss experience, are running between 5-8%.
  • Replacement cost inflation, from materials like concrete, steel, wood, and roofing, and labor for most trades, is running ahead of reported inflation levels, by up to 3-5 points on average, for each of the last three years.
  • Replacement costs for building materials and labor in just the past year is running between 8-10%.
  • In 2022, there were 18 billion-dollar weather or climate disasters, including hurricanes, tornadoes, wildfires, winter and other severe storms.8
  • Hurricane Ian is positioned to be the second-worst insured loss event in U.S. history after only Hurricane Katrina in 2005.

Workers’ compensation

What's driving rate trends?

Beyond the rising costs of both medicine and care, persistent labor shortages have resulted in inexperienced workers being hired for unfamiliar roles, leading to an increase in the severity of work-related injuries and claims.

  • Although state bureaus are showing decreasing rates for the sixth or seventh year in a row in most states, many factors, including increased benefits, the turmoil of a rapidly changing workforce, changes in claim duration patterns and challenges with medical care are indications of future rate increases.
  • Workers' comp pricing is up 2.3% against a loss trend of 5.5% 9
  • With the varying levels and mix of services needed to treat injuries, medical care prices are predicted to rise 3.6% in 2023.10
  • Medical inflation is now evident in overall workers' comp costs, but prices for physician services and facility costs will be drivers of future cost increases.
  • Physical medicine is a current contributor to overall cost increases.11
  • Enforcing safety in the workplace is a contributing factor to the current reduction in claim frequency. However, the severity of these claims has risen. This, according to experts, will eventually drive up costs.
  • The labor market is still dominated by challenges from non-traditional workers, lower skilled worker shortages, an aging workforce and comorbidities within the labor force. The characteristics of the work force are going to become more evident in future claim severity patterns.
  • For workers affected with COVID-19, the CDC estimates that up to 28% may suffer the symptoms of long COVID.12 Workers' comp claims regarding long COVID are resulting in higher than average medical payments and longer durations of temporary disability. The New York State Insurance Fund projects one-third of workers affected with COVID-19 are suffering from long COVID.13
  • Economic uncertainty, fear of recession, and wage inflation is going to add pressure to the workers’ comp line.

General liability

What's driving rate trends?

A variety of factors – including eroding loss ratios, increased litigation, and difficulty for high-hazard risks to find coverage – are combining to send umbrella rates skyrocketing.

  • Liability rates have been increasing for the last 20 consecutive quarters, with a further expectation that this will continue through 2023.14
  • Companies with high-hazard products or significant premises exposures are finding it difficult to obtain umbrella limits at renewal. Purchasing higher layers of excess is often required to obtain the necessary capacity.15
  • Loss ratios will continue to deteriorate as the industry deals with issues like opioid litigation, abuse claims and changes to the statute of limitations, and overall increases in severity rates.16
  • Forever chemicals, PFAS/PFOA and other emerging risks are driving underwriting concerns for underwriters that may result in tighter terms and conditions.17
  • Treaty reinsurers expect prices to continue to rise for casualty placements in 2023. 18
  • For 2023, carriers are expected to continue rate increases in the excess casualty market with the most significant increases coming in the lead umbrella placement. Like general liability, claim inflation, medical inflation and legal inflation will all continue to affect the umbrella market.

Management and executive liability

What's driving rate trends?

The increased rate of litigation – and costs – of discriminatory employment practices allegations, as well as cyberattacks, including data breaches, ransomware attacks and phishing

  • Rates have been rising since 2019. While publicly traded companies have experienced the greatest rate jumps, private and nonprofit organizations have also seen meaningful rate increases anywhere from 10-50% or more, depending upon size, financial stability and type.
  • In 2022, more than 20,000 instances of compromised business email accounts were reported to the FBI, with estimated losses of $2.4 billion.19
  • There has been an increase in allegations of discriminatory employment practices, heightened by social movements such as #MeToo and Black Lives Matter.
  • Newer claim trends impacting rates include rising defense costs, as well as outsized settlements in proportion to alleged damages.

Professional liability

What's driving rate trends?

Simply put, the complexity of claims, and the cost to defend against them, continues to rise.

  • Lawyers’ professional liability (LPL) – Attorneys handling estates and trust work continue to face claims, with beneficiaries often unhappy with the division of family wealth.
  • Architects and engineers (A&E) – Heightened claim activity continues for public work, specifically schools and hospitals. Work stoppages due to limited or decreased funding has led to delays, cost overruns, change orders and project cancelations, while compressed project timelines and broken contracts have also contributed to the increase in claims.
  • Miscellaneous professional liability (MPL) – The chaotic real estate market has led to heightened competition and increased litigation against agents. A continued trend of bodily injury and property damage claims on MPL policies has also driven up loss costs.
  • Accountants’ professional liability (APL) – Reduced IRS funding has resulted in increased rejections for tax abatements. Pressure within firms to drive revenue outside of standard accounting services has led to increased claim activity as accountants step outside traditional areas of expertise.

 

Questions?

Contact your Commercial Lines regional vice president for further discussion.

 

1. Assured Research, 2. Swiss Re Institute, 3. Verisk, 4. Washington Post, 5. Reuters, 6. The Insurance Research Council, 7. Verisk, 8. National Oceanic and Atmospheric Administration, 9. IBNR Weekly, Febrary 3, 2023, 10. Insurance Newsnet, 11. National Council on Compensation Insurance, 12. Kaiser Family Foundation, 13. Business Insurance, 14. JD Supra, 15. Woodruff Sawyer, 16. Milliman, 17. Carrier Management, 18. Insurance Edge, 19. FBI

 

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.   

Article

4 tips to protect your keyless car

Key-free ignition devices, known as key fobs, were designed to help prevent auto theft. A recent spike in vehicle thefts, however, is in part due to this same technology.

According to a New York Times article, reported vehicle thefts in New York City in 2020 climbed to 6,858 – up from 3,988 the year before. Forgetfulness with key fobs - such as leaving the device in the car or keeping the radio signal it creates turned on - is one of the main reasons for this spike.

Taking proper precautions can help ensure your fob is a convenience for you and not helping would-be car thieves take the wheel of your car.

1. Secure the fob.

At home, store your key fobs away from your vehicle to prevent the radio signal it creates from giving those nearby easy access. If you are able, turn off your key fob signal when you are not using it to deter those trying to capture your signal.

2. Lock it down.

Whether you are leaving your vehicle for 10 seconds or longer, lock it up until you get back. More than half of the reported 2020 New York City vehicle thefts occurred while the car was still running. Take the extra steps to lock all doors and windows, turn off your vehicle and take the key fob with you.

3. Strengthen app-based passwords.

Some vehicles use phone apps as a convenient way to open your car. If you use one of these apps, make sure you use strong passwords and never share these passwords – or your phone with this app – with anyone.

4. Use common sense.

Practice safe habits such as keeping valuables out of sight and parking in well-lit areas to help deter vehicle theft, regardless of the car’s technological capabilities.

Have peace of mind knowing The Hanover offers protection options for you in the event of motor vehicle theft. Talk to your independent insurance agent to learn more.

Sources

New York Times

Forbes

Popular Mechanics

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-017

4 tips to protect your keyless car

Key-free ignition devices, known as key fobs, were designed to help prevent auto theft. A recent spike in vehicle thefts, however, is in part due to this same technology.

According to a New York Times article, reported vehicle thefts in New York City in 2020 climbed to 6,858 – up from 3,988 the year before. Forgetfulness with key fobs - such as leaving the device in the car or keeping the radio signal it creates turned on - is one of the main reasons for this spike.

Taking proper precautions can help ensure your fob is a convenience for you and not helping would-be car thieves take the wheel of your car.

1. Secure the fob.

At home, store your key fobs away from your vehicle to prevent the radio signal it creates from giving those nearby easy access. If you are able, turn off your key fob signal when you are not using it to deter those trying to capture your signal.

2. Lock it down.

Whether you are leaving your vehicle for 10 seconds or longer, lock it up until you get back. More than half of the reported 2020 New York City vehicle thefts occurred while the car was still running. Take the extra steps to lock all doors and windows, turn off your vehicle and take the key fob with you.

3. Strengthen app-based passwords.

Some vehicles use phone apps as a convenient way to open your car. If you use one of these apps, make sure you use strong passwords and never share these passwords – or your phone with this app – with anyone.

4. Use common sense.

Practice safe habits such as keeping valuables out of sight and parking in well-lit areas to help deter vehicle theft, regardless of the car’s technological capabilities.

Have peace of mind knowing The Hanover offers protection options for you in the event of motor vehicle theft. Talk to your independent insurance agent to learn more.

Sources

New York Times

Forbes

Popular Mechanics

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-017

4 tips to protect your keyless car

Key-free ignition devices, known as key fobs, were designed to help prevent auto theft. A recent spike in vehicle thefts, however, is in part due to this same technology.

According to a New York Times article, reported vehicle thefts in New York City in 2020 climbed to 6,858 – up from 3,988 the year before. Forgetfulness with key fobs - such as leaving the device in the car or keeping the radio signal it creates turned on - is one of the main reasons for this spike.

Taking proper precautions can help ensure your fob is a convenience for you and not helping would-be car thieves take the wheel of your car.

1. Secure the fob.

At home, store your key fobs away from your vehicle to prevent the radio signal it creates from giving those nearby easy access. If you are able, turn off your key fob signal when you are not using it to deter those trying to capture your signal.

2. Lock it down.

Whether you are leaving your vehicle for 10 seconds or longer, lock it up until you get back. More than half of the reported 2020 New York City vehicle thefts occurred while the car was still running. Take the extra steps to lock all doors and windows, turn off your vehicle and take the key fob with you.

3. Strengthen app-based passwords.

Some vehicles use phone apps as a convenient way to open your car. If you use one of these apps, make sure you use strong passwords and never share these passwords – or your phone with this app – with anyone.

4. Use common sense.

Practice safe habits such as keeping valuables out of sight and parking in well-lit areas to help deter vehicle theft, regardless of the car’s technological capabilities.

Have peace of mind knowing The Hanover offers protection options for you in the event of motor vehicle theft. Talk to your independent insurance agent to learn more.

Sources

New York Times

Forbes

Popular Mechanics

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-017

4 tips to protect your keyless car

Key-free ignition devices, known as key fobs, were designed to help prevent auto theft. A recent spike in vehicle thefts, however, is in part due to this same technology.

According to a New York Times article, reported vehicle thefts in New York City in 2020 climbed to 6,858 – up from 3,988 the year before. Forgetfulness with key fobs - such as leaving the device in the car or keeping the radio signal it creates turned on - is one of the main reasons for this spike.

Taking proper precautions can help ensure your fob is a convenience for you and not helping would-be car thieves take the wheel of your car.

1. Secure the fob.

At home, store your key fobs away from your vehicle to prevent the radio signal it creates from giving those nearby easy access. If you are able, turn off your key fob signal when you are not using it to deter those trying to capture your signal.

2. Lock it down.

Whether you are leaving your vehicle for 10 seconds or longer, lock it up until you get back. More than half of the reported 2020 New York City vehicle thefts occurred while the car was still running. Take the extra steps to lock all doors and windows, turn off your vehicle and take the key fob with you.

3. Strengthen app-based passwords.

Some vehicles use phone apps as a convenient way to open your car. If you use one of these apps, make sure you use strong passwords and never share these passwords – or your phone with this app – with anyone.

4. Use common sense.

Practice safe habits such as keeping valuables out of sight and parking in well-lit areas to help deter vehicle theft, regardless of the car’s technological capabilities.

Have peace of mind knowing The Hanover offers protection options for you in the event of motor vehicle theft. Talk to your independent insurance agent to learn more.

Sources

New York Times

Forbes

Popular Mechanics

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-017

Article

Building and property managers and the New York Labor Law

manhattan street

The New York Labor Law addresses the liability of building owners and property managers for injuries sustained by employees, contractors and employees hired by contractors who make repairs and/or improvements to your property. This includes contractors hired by your tenants. This also includes those hired to do repairs such as an uninsured handyman.[3]  The New York Labor Law holds the building owner or property manager strictly liable for the injuries to a contractor or their employees resulting from anything involving gravity. This could be a fall or being struck by falling items on your property while performing repairs and/or improvements. This could also mean a trip and fall from a sidewalk crack or pothole.[2]

Some additional considerations:

  • There is no minimum height to define how far a victim could fall: a fall can be 20 feet or 2 feet.
  • Can involve a fall from heights or a fall on the ground, such as falling in a pothole or down a slope.
  • Applies to all accidents occurring within the state boundaries, regardless of whether the worker and/or the employer are NY residents.
  • Includes anyone who has an ownership right to the property
  • Includes any party who initiates a work project, such as tenant who remodels leased space or grantee of easement who enters property to make repairs.
  • Includes all types of contractors such as general contractors, subcontractors, sole proprietors, independents or others who have been assigned, or took on the obligation to perform the work, even if they delegated it to another before the injury occurred.

     
    Pedestrians walk under scaffolding on a city street

     

Claims and references under the scaffolding law are increasing as are awards granted to plaintiffs. It is not uncommon for awards to reach $2.5 million per claim.[1]

How can you help protect your company from labor law claims?

When hiring a contractor, ALWAYS:

  • Consult an attorney familiar with NY construction contract law for specific legal advice, and have your attorney review the contract language, including any hold harmless and indemnification clauses, to ensure that the contract best meets your needs.                          
  • Be sure the contractor’s general liability policy is for at least $1,000,000 or more per occurrence, depending upon the circumstances. You should also be named as an Additional Insured on the contractor’s general liability coverage, making you an additional insured for premises/operations and products/completed operations on a primary and noncontributory basis. Further, the subcontractor’s insurance should be from an insurance carrier “admitted” to do business in New York State and carry a minimum of an AM Best rating of A-. Consult with your insurance agent for more information about insurance requirements.
  • Before the work is started, always have your contractor provide you with a Certificate of Insurance for General Liability and Workers’ Compensation. The Certificate of Insurance should name you, the building owner or property manager, as an Additional Insured on the Contractor’s policy.
  • In addition, the contract should state that it is the responsibility of the contractor to maintain a safe workplace. Never allow a contractor to start work on your property without a written contract that includes indemnification for all claims arising out of the work.
  • Never loan or allow a contractor to use your ladders or tools. All equipment needed to complete the repair and/or improvement is the responsibility of the Contractor.
  • Avoid supervising any work that you hired a contractor to perform. Offering specific directions to an employee of the contractor could jeopardize the “hold harmless provision” of the contract you entered into with the contractor.
  • Require the contractor you hire to contractually prohibit subcontracting to others without prior written approval and complete replication of CRT requirements. 
     
    Paper contract

When hiring a contractor, NEVER:

  • Hire ANYONE without a written contract. You should consult with an attorney for the specific requirements necessary. 
  • Have leases developed without the guidance of an attorney familiar with NY state laws.

As a property owner:

  • Make sure you have solid lease agreements with your tenants.   Consult with your attorneys to ensure you have all the legal protections necessary.
  • Ensure you also maintain a current Certificate of Insurance for your tenants. The Certificate of Insurance should have you and/or the building manager named as an Additional Insured on your tenant’s policy. Also, a diary system is needed for tracking policy renewal dates to avoid any missed renewal cycles.

 

References

[1]  The Costs of Labor Law 240 on New York’s Economy and Public Infrastructure, Final Report to New York Civil Justice Institute , December 31, 2013, Submitted by: Michael R. Hattery, PhD , Director of Local Government Studies, The Nelson A. Rockefeller Institute of Government, University at Albany, State University of New York , 411 State Street Albany, NY 12203.
[2[New York City Administrative Code Sidewalk Rules, https://www1.nyc.gov/html/dot/html/infrastructure/19-152.shtml.
[3] New York City Labor Law, http://public.leginfo.state.ny.us/lawssrch.cgi?NVLWO:, search LAB-Article 10-240.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

171-10075      LC 2020-505

Building and property managers and the New York Labor Law

The New York Labor Law addresses the liability of building owners and property managers for injuries sustained by employees, contractors and employees hired by contractors who make repairs and/or improvements to your property. This includes contractors hired by your tenants. This also includes those hired to do repairs such as an uninsured handyman.[3]  The New York Labor Law holds the building owner or property manager strictly liable for the injuries to a contractor or their employees resulting from anything involving gravity. This could be a fall or being struck by falling items on your property while performing repairs and/or improvements. This could also mean a trip and fall from a sidewalk crack or pothole.[2]

Some additional considerations:

  • There is no minimum height to define how far a victim could fall: a fall can be 20 feet or 2 feet.
  • Can involve a fall from heights or a fall on the ground, such as falling in a pothole or down a slope.
  • Applies to all accidents occurring within the state boundaries, regardless of whether the worker and/or the employer are NY residents.
  • Includes anyone who has an ownership right to the property
  • Includes any party who initiates a work project, such as tenant who remodels leased space or grantee of easement who enters property to make repairs.
  • Includes all types of contractors such as general contractors, subcontractors, sole proprietors, independents or others who have been assigned, or took on the obligation to perform the work, even if they delegated it to another before the injury occurred.

     
    Pedestrians walk under scaffolding on a city street

     

Claims and references under the scaffolding law are increasing as are awards granted to plaintiffs. It is not uncommon for awards to reach $2.5 million per claim.[1]

How can you help protect your company from labor law claims?

When hiring a contractor, ALWAYS:

  • Consult an attorney familiar with NY construction contract law for specific legal advice, and have your attorney review the contract language, including any hold harmless and indemnification clauses, to ensure that the contract best meets your needs.                          
  • Be sure the contractor’s general liability policy is for at least $1,000,000 or more per occurrence, depending upon the circumstances. You should also be named as an Additional Insured on the contractor’s general liability coverage, making you an additional insured for premises/operations and products/completed operations on a primary and noncontributory basis. Further, the subcontractor’s insurance should be from an insurance carrier “admitted” to do business in New York State and carry a minimum of an AM Best rating of A-. Consult with your insurance agent for more information about insurance requirements.
  • Before the work is started, always have your contractor provide you with a Certificate of Insurance for General Liability and Workers’ Compensation. The Certificate of Insurance should name you, the building owner or property manager, as an Additional Insured on the Contractor’s policy.
  • In addition, the contract should state that it is the responsibility of the contractor to maintain a safe workplace. Never allow a contractor to start work on your property without a written contract that includes indemnification for all claims arising out of the work.
  • Never loan or allow a contractor to use your ladders or tools. All equipment needed to complete the repair and/or improvement is the responsibility of the Contractor.
  • Avoid supervising any work that you hired a contractor to perform. Offering specific directions to an employee of the contractor could jeopardize the “hold harmless provision” of the contract you entered into with the contractor.
  • Require the contractor you hire to contractually prohibit subcontracting to others without prior written approval and complete replication of CRT requirements. 
     
    Paper contract

When hiring a contractor, NEVER:

  • Hire ANYONE without a written contract. You should consult with an attorney for the specific requirements necessary. 
  • Have leases developed without the guidance of an attorney familiar with NY state laws.

As a property owner:

  • Make sure you have solid lease agreements with your tenants.   Consult with your attorneys to ensure you have all the legal protections necessary.
  • Ensure you also maintain a current Certificate of Insurance for your tenants. The Certificate of Insurance should have you and/or the building manager named as an Additional Insured on your tenant’s policy. Also, a diary system is needed for tracking policy renewal dates to avoid any missed renewal cycles.

 

References

[1]  The Costs of Labor Law 240 on New York’s Economy and Public Infrastructure, Final Report to New York Civil Justice Institute , December 31, 2013, Submitted by: Michael R. Hattery, PhD , Director of Local Government Studies, The Nelson A. Rockefeller Institute of Government, University at Albany, State University of New York , 411 State Street Albany, NY 12203.
[2[New York City Administrative Code Sidewalk Rules, https://www1.nyc.gov/html/dot/html/infrastructure/19-152.shtml.
[3] New York City Labor Law, http://public.leginfo.state.ny.us/lawssrch.cgi?NVLWO:, search LAB-Article 10-240.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

171-10075      LC 2020-505

Building and property managers and the New York Labor Law

The New York Labor Law addresses the liability of building owners and property managers for injuries sustained by employees, contractors and employees hired by contractors who make repairs and/or improvements to your property. This includes contractors hired by your tenants. This also includes those hired to do repairs such as an uninsured handyman.[3]  The New York Labor Law holds the building owner or property manager strictly liable for the injuries to a contractor or their employees resulting from anything involving gravity. This could be a fall or being struck by falling items on your property while performing repairs and/or improvements. This could also mean a trip and fall from a sidewalk crack or pothole.[2]

Some additional considerations:

  • There is no minimum height to define how far a victim could fall: a fall can be 20 feet or 2 feet.
  • Can involve a fall from heights or a fall on the ground, such as falling in a pothole or down a slope.
  • Applies to all accidents occurring within the state boundaries, regardless of whether the worker and/or the employer are NY residents.
  • Includes anyone who has an ownership right to the property
  • Includes any party who initiates a work project, such as tenant who remodels leased space or grantee of easement who enters property to make repairs.
  • Includes all types of contractors such as general contractors, subcontractors, sole proprietors, independents or others who have been assigned, or took on the obligation to perform the work, even if they delegated it to another before the injury occurred.

     
    Pedestrians walk under scaffolding on a city street

     

Claims and references under the scaffolding law are increasing as are awards granted to plaintiffs. It is not uncommon for awards to reach $2.5 million per claim.[1]

How can you help protect your company from labor law claims?

When hiring a contractor, ALWAYS:

  • Consult an attorney familiar with NY construction contract law for specific legal advice, and have your attorney review the contract language, including any hold harmless and indemnification clauses, to ensure that the contract best meets your needs.                          
  • Be sure the contractor’s general liability policy is for at least $1,000,000 or more per occurrence, depending upon the circumstances. You should also be named as an Additional Insured on the contractor’s general liability coverage, making you an additional insured for premises/operations and products/completed operations on a primary and noncontributory basis. Further, the subcontractor’s insurance should be from an insurance carrier “admitted” to do business in New York State and carry a minimum of an AM Best rating of A-. Consult with your insurance agent for more information about insurance requirements.
  • Before the work is started, always have your contractor provide you with a Certificate of Insurance for General Liability and Workers’ Compensation. The Certificate of Insurance should name you, the building owner or property manager, as an Additional Insured on the Contractor’s policy.
  • In addition, the contract should state that it is the responsibility of the contractor to maintain a safe workplace. Never allow a contractor to start work on your property without a written contract that includes indemnification for all claims arising out of the work.
  • Never loan or allow a contractor to use your ladders or tools. All equipment needed to complete the repair and/or improvement is the responsibility of the Contractor.
  • Avoid supervising any work that you hired a contractor to perform. Offering specific directions to an employee of the contractor could jeopardize the “hold harmless provision” of the contract you entered into with the contractor.
  • Require the contractor you hire to contractually prohibit subcontracting to others without prior written approval and complete replication of CRT requirements. 
     
    Paper contract

When hiring a contractor, NEVER:

  • Hire ANYONE without a written contract. You should consult with an attorney for the specific requirements necessary. 
  • Have leases developed without the guidance of an attorney familiar with NY state laws.

As a property owner:

  • Make sure you have solid lease agreements with your tenants.   Consult with your attorneys to ensure you have all the legal protections necessary.
  • Ensure you also maintain a current Certificate of Insurance for your tenants. The Certificate of Insurance should have you and/or the building manager named as an Additional Insured on your tenant’s policy. Also, a diary system is needed for tracking policy renewal dates to avoid any missed renewal cycles.

 

References

[1]  The Costs of Labor Law 240 on New York’s Economy and Public Infrastructure, Final Report to New York Civil Justice Institute , December 31, 2013, Submitted by: Michael R. Hattery, PhD , Director of Local Government Studies, The Nelson A. Rockefeller Institute of Government, University at Albany, State University of New York , 411 State Street Albany, NY 12203.
[2[New York City Administrative Code Sidewalk Rules, https://www1.nyc.gov/html/dot/html/infrastructure/19-152.shtml.
[3] New York City Labor Law, http://public.leginfo.state.ny.us/lawssrch.cgi?NVLWO:, search LAB-Article 10-240.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

171-10075      LC 2020-505

Building and property managers and the New York Labor Law

The New York Labor Law addresses the liability of building owners and property managers for injuries sustained by employees, contractors and employees hired by contractors who make repairs and/or improvements to your property. This includes contractors hired by your tenants. This also includes those hired to do repairs such as an uninsured handyman.[3]  The New York Labor Law holds the building owner or property manager strictly liable for the injuries to a contractor or their employees resulting from anything involving gravity. This could be a fall or being struck by falling items on your property while performing repairs and/or improvements. This could also mean a trip and fall from a sidewalk crack or pothole.[2]

Some additional considerations:

  • There is no minimum height to define how far a victim could fall: a fall can be 20 feet or 2 feet.
  • Can involve a fall from heights or a fall on the ground, such as falling in a pothole or down a slope.
  • Applies to all accidents occurring within the state boundaries, regardless of whether the worker and/or the employer are NY residents.
  • Includes anyone who has an ownership right to the property
  • Includes any party who initiates a work project, such as tenant who remodels leased space or grantee of easement who enters property to make repairs.
  • Includes all types of contractors such as general contractors, subcontractors, sole proprietors, independents or others who have been assigned, or took on the obligation to perform the work, even if they delegated it to another before the injury occurred.

     
    Pedestrians walk under scaffolding on a city street

     

Claims and references under the scaffolding law are increasing as are awards granted to plaintiffs. It is not uncommon for awards to reach $2.5 million per claim.[1]

How can you help protect your company from labor law claims?

When hiring a contractor, ALWAYS:

  • Consult an attorney familiar with NY construction contract law for specific legal advice, and have your attorney review the contract language, including any hold harmless and indemnification clauses, to ensure that the contract best meets your needs.                          
  • Be sure the contractor’s general liability policy is for at least $1,000,000 or more per occurrence, depending upon the circumstances. You should also be named as an Additional Insured on the contractor’s general liability coverage, making you an additional insured for premises/operations and products/completed operations on a primary and noncontributory basis. Further, the subcontractor’s insurance should be from an insurance carrier “admitted” to do business in New York State and carry a minimum of an AM Best rating of A-. Consult with your insurance agent for more information about insurance requirements.
  • Before the work is started, always have your contractor provide you with a Certificate of Insurance for General Liability and Workers’ Compensation. The Certificate of Insurance should name you, the building owner or property manager, as an Additional Insured on the Contractor’s policy.
  • In addition, the contract should state that it is the responsibility of the contractor to maintain a safe workplace. Never allow a contractor to start work on your property without a written contract that includes indemnification for all claims arising out of the work.
  • Never loan or allow a contractor to use your ladders or tools. All equipment needed to complete the repair and/or improvement is the responsibility of the Contractor.
  • Avoid supervising any work that you hired a contractor to perform. Offering specific directions to an employee of the contractor could jeopardize the “hold harmless provision” of the contract you entered into with the contractor.
  • Require the contractor you hire to contractually prohibit subcontracting to others without prior written approval and complete replication of CRT requirements. 
     
    Paper contract

When hiring a contractor, NEVER:

  • Hire ANYONE without a written contract. You should consult with an attorney for the specific requirements necessary. 
  • Have leases developed without the guidance of an attorney familiar with NY state laws.

As a property owner:

  • Make sure you have solid lease agreements with your tenants.   Consult with your attorneys to ensure you have all the legal protections necessary.
  • Ensure you also maintain a current Certificate of Insurance for your tenants. The Certificate of Insurance should have you and/or the building manager named as an Additional Insured on your tenant’s policy. Also, a diary system is needed for tracking policy renewal dates to avoid any missed renewal cycles.

 

References

[1]  The Costs of Labor Law 240 on New York’s Economy and Public Infrastructure, Final Report to New York Civil Justice Institute , December 31, 2013, Submitted by: Michael R. Hattery, PhD , Director of Local Government Studies, The Nelson A. Rockefeller Institute of Government, University at Albany, State University of New York , 411 State Street Albany, NY 12203.
[2[New York City Administrative Code Sidewalk Rules, https://www1.nyc.gov/html/dot/html/infrastructure/19-152.shtml.
[3] New York City Labor Law, http://public.leginfo.state.ny.us/lawssrch.cgi?NVLWO:, search LAB-Article 10-240.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

171-10075      LC 2020-505

Article

Prepare your boat for the next storm

Boats are sturdy modes of transportation, but even the most seasoned boater with the sturdiest watercraft must keep one eye on weather forecasts to avoid serious damage.

When strong storms are in your forecast – especially tropical storms and hurricanes – you need to have a plan.

Consider some tips to help minimize the potential of damage to your boat:

 

Watch the weather. Check in often to see what storms might be brewing. The National Oceanic and Atmospheric Administration gives real time updates and can track storms coming to an ocean near you.

Land, ho! Have a plan to bring your boat out of the water and stored in a safe location. If your boat is docked at a marina, communicate well ahead of any storms to coordinate how to safely and timely haul it away from dangerous waters. Talk to your independent agent about hurricane haul out coverage. This protection offered by The Hanover provides coverage to haul out and return your boat to water in the event of a hurricane.

Lower fetch for moor success. If hauling your boat out of the water is not an option, knowing where to park your boat can be crucial. When mooring your boat, know what location sees the least amount of fetch such as canals and hurricane holes, which are narrow inlets and coves surrounded by structures such as trees that can block the wind.

Secure that trailer. Place concrete blocks under the frame, take some air out of the tires, insert the plug and then fill it halfway with water. Lastly, strap the boat to the trailer.

Reduce windage concerns. Strip the boat of all canvas anywhere on board, as these may be damaged by high winds. When the wind gets above 60 knots, it can exploit small weaknesses in the canvas and cause widespread damage.

Anchors away. If your boat is still in the water, consider setting multiple anchors. Use two or three anchors tactically positioned – or consider doubling or tripling your anchors’ attachment points to heavy, fixed points on land.

Change out old dock lines. Be proactive about replacing older dock lines. Consider installing chafing gear or adding mooring compensators or snubbers to reduce the tension these lines face during storms.

Keep those extras from sailing away. Secure all portions of your boat from taking on water, but also consider taking all items not securely screwed down, such as fishing rods, flags, grills and life-rings.

Bring valuables ashore. Remove any valuables, including bedding, fishing equipment and any important boating documents (i.e. your registration) on land until the storm passes. Take out any electronic equipment that can be removed, in case of shorting out if water gets in your boat.

Talk to an independent agent about how The Hanover has coverage options to protect your boat, and help keep it in shipshape condition, as well as savings options when you bundle your coverage with The Hanover.

Sources:

Boats.com

West Marine

Tallahassee Democrat

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-214

Prepare your boat for the next storm

Boats are sturdy modes of transportation, but even the most seasoned boater with the sturdiest watercraft must keep one eye on weather forecasts to avoid serious damage.

When strong storms are in your forecast – especially tropical storms and hurricanes – you need to have a plan.

Consider some tips to help minimize the potential of damage to your boat:

 

Watch the weather. Check in often to see what storms might be brewing. The National Oceanic and Atmospheric Administration gives real time updates and can track storms coming to an ocean near you.

Land, ho! Have a plan to bring your boat out of the water and stored in a safe location. If your boat is docked at a marina, communicate well ahead of any storms to coordinate how to safely and timely haul it away from dangerous waters. Talk to your independent agent about hurricane haul out coverage. This protection offered by The Hanover provides coverage to haul out and return your boat to water in the event of a hurricane.

Lower fetch for moor success. If hauling your boat out of the water is not an option, knowing where to park your boat can be crucial. When mooring your boat, know what location sees the least amount of fetch such as canals and hurricane holes, which are narrow inlets and coves surrounded by structures such as trees that can block the wind.

Secure that trailer. Place concrete blocks under the frame, take some air out of the tires, insert the plug and then fill it halfway with water. Lastly, strap the boat to the trailer.

Reduce windage concerns. Strip the boat of all canvas anywhere on board, as these may be damaged by high winds. When the wind gets above 60 knots, it can exploit small weaknesses in the canvas and cause widespread damage.

Anchors away. If your boat is still in the water, consider setting multiple anchors. Use two or three anchors tactically positioned – or consider doubling or tripling your anchors’ attachment points to heavy, fixed points on land.

Change out old dock lines. Be proactive about replacing older dock lines. Consider installing chafing gear or adding mooring compensators or snubbers to reduce the tension these lines face during storms.

Keep those extras from sailing away. Secure all portions of your boat from taking on water, but also consider taking all items not securely screwed down, such as fishing rods, flags, grills and life-rings.

Bring valuables ashore. Remove any valuables, including bedding, fishing equipment and any important boating documents (i.e. your registration) on land until the storm passes. Take out any electronic equipment that can be removed, in case of shorting out if water gets in your boat.

Talk to an independent agent about how The Hanover has coverage options to protect your boat, and help keep it in shipshape condition, as well as savings options when you bundle your coverage with The Hanover.

Sources:

Boats.com

West Marine

Tallahassee Democrat

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-214

Prepare your boat for the next storm

Boats are sturdy modes of transportation, but even the most seasoned boater with the sturdiest watercraft must keep one eye on weather forecasts to avoid serious damage.

When strong storms are in your forecast – especially tropical storms and hurricanes – you need to have a plan.

Consider some tips to help minimize the potential of damage to your boat:

 

Watch the weather. Check in often to see what storms might be brewing. The National Oceanic and Atmospheric Administration gives real time updates and can track storms coming to an ocean near you.

Land, ho! Have a plan to bring your boat out of the water and stored in a safe location. If your boat is docked at a marina, communicate well ahead of any storms to coordinate how to safely and timely haul it away from dangerous waters. Talk to your independent agent about hurricane haul out coverage. This protection offered by The Hanover provides coverage to haul out and return your boat to water in the event of a hurricane.

Lower fetch for moor success. If hauling your boat out of the water is not an option, knowing where to park your boat can be crucial. When mooring your boat, know what location sees the least amount of fetch such as canals and hurricane holes, which are narrow inlets and coves surrounded by structures such as trees that can block the wind.

Secure that trailer. Place concrete blocks under the frame, take some air out of the tires, insert the plug and then fill it halfway with water. Lastly, strap the boat to the trailer.

Reduce windage concerns. Strip the boat of all canvas anywhere on board, as these may be damaged by high winds. When the wind gets above 60 knots, it can exploit small weaknesses in the canvas and cause widespread damage.

Anchors away. If your boat is still in the water, consider setting multiple anchors. Use two or three anchors tactically positioned – or consider doubling or tripling your anchors’ attachment points to heavy, fixed points on land.

Change out old dock lines. Be proactive about replacing older dock lines. Consider installing chafing gear or adding mooring compensators or snubbers to reduce the tension these lines face during storms.

Keep those extras from sailing away. Secure all portions of your boat from taking on water, but also consider taking all items not securely screwed down, such as fishing rods, flags, grills and life-rings.

Bring valuables ashore. Remove any valuables, including bedding, fishing equipment and any important boating documents (i.e. your registration) on land until the storm passes. Take out any electronic equipment that can be removed, in case of shorting out if water gets in your boat.

Talk to an independent agent about how The Hanover has coverage options to protect your boat, and help keep it in shipshape condition, as well as savings options when you bundle your coverage with The Hanover.

Sources:

Boats.com

West Marine

Tallahassee Democrat

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-214

Prepare your boat for the next storm

Boats are sturdy modes of transportation, but even the most seasoned boater with the sturdiest watercraft must keep one eye on weather forecasts to avoid serious damage.

When strong storms are in your forecast – especially tropical storms and hurricanes – you need to have a plan.

Consider some tips to help minimize the potential of damage to your boat:

 

Watch the weather. Check in often to see what storms might be brewing. The National Oceanic and Atmospheric Administration gives real time updates and can track storms coming to an ocean near you.

Land, ho! Have a plan to bring your boat out of the water and stored in a safe location. If your boat is docked at a marina, communicate well ahead of any storms to coordinate how to safely and timely haul it away from dangerous waters. Talk to your independent agent about hurricane haul out coverage. This protection offered by The Hanover provides coverage to haul out and return your boat to water in the event of a hurricane.

Lower fetch for moor success. If hauling your boat out of the water is not an option, knowing where to park your boat can be crucial. When mooring your boat, know what location sees the least amount of fetch such as canals and hurricane holes, which are narrow inlets and coves surrounded by structures such as trees that can block the wind.

Secure that trailer. Place concrete blocks under the frame, take some air out of the tires, insert the plug and then fill it halfway with water. Lastly, strap the boat to the trailer.

Reduce windage concerns. Strip the boat of all canvas anywhere on board, as these may be damaged by high winds. When the wind gets above 60 knots, it can exploit small weaknesses in the canvas and cause widespread damage.

Anchors away. If your boat is still in the water, consider setting multiple anchors. Use two or three anchors tactically positioned – or consider doubling or tripling your anchors’ attachment points to heavy, fixed points on land.

Change out old dock lines. Be proactive about replacing older dock lines. Consider installing chafing gear or adding mooring compensators or snubbers to reduce the tension these lines face during storms.

Keep those extras from sailing away. Secure all portions of your boat from taking on water, but also consider taking all items not securely screwed down, such as fishing rods, flags, grills and life-rings.

Bring valuables ashore. Remove any valuables, including bedding, fishing equipment and any important boating documents (i.e. your registration) on land until the storm passes. Take out any electronic equipment that can be removed, in case of shorting out if water gets in your boat.

Talk to an independent agent about how The Hanover has coverage options to protect your boat, and help keep it in shipshape condition, as well as savings options when you bundle your coverage with The Hanover.

Sources:

Boats.com

West Marine

Tallahassee Democrat

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC 2021-214

Infographic

Steer clear of deer

 

Vehicles are not the only ones that travel by road sometimes. Deer on the road pose a danger to drivers. The reason is simple: car accidents. By knowing what to look for to avoid them, and what to do if you encounter one, you can keep yourself and your car safer.

And, while a repair could mean “big bucks,” the right auto coverage doesn’t have to cost a lot of “doe.” Talk to your independent insurance agent about parts coverage, new/newer car replacement, and other options from The Hanover.

Sources:

LC August 2018-356

Steer clear of deer

 

Vehicles are not the only ones that travel by road sometimes. Deer on the road pose a danger to drivers. The reason is simple: car accidents. By knowing what to look for to avoid them, and what to do if you encounter one, you can keep yourself and your car safer.

And, while a repair could mean “big bucks,” the right auto coverage doesn’t have to cost a lot of “doe.” Talk to your independent insurance agent about parts coverage, new/newer car replacement, and other options from The Hanover.

Sources:

LC August 2018-356

Steer clear of deer

steer clear of deer infographic

 

Vehicles are not the only ones that travel by road sometimes. Deer on the road pose a danger to drivers. The reason is simple: car accidents. By knowing what to look for to avoid them, and what to do if you encounter one, you can keep yourself and your car safer.

And, while a repair could mean “big bucks,” the right auto coverage doesn’t have to cost a lot of “doe.” Talk to your independent insurance agent about parts coverage, new/newer car replacement, and other options from The Hanover.

Sources:

LC August 2018-356

Infographic transcript

When

  • October to December is peak deer mating season
  • Dusk and dawn are peak deer activity times

Watch for

  • Deer x-ing signs - slow down when you see one
  • Multiple deer - they rarely travel alone
  • Eyes - reflect in headlights
  • Salt on roads - safety for drivers, tasty to deer

Avoiding deer

  • Use high beams or bright headlights
  • Move to center lane of highway with deer hazard signs

See a deer?

  • Do honk and drive straight ahead
  • Don't swerve or slam on brakes

Hit a deer?

Do

  • Move to a safe location before calling police
  • Turn on hazard lights
  • Call police
  • Keep your seat belt on

Don't 

  • Approach the animal
  • Assume the car is safe to drive

 

Steer clear of deer

steer clear of deer infographic

 

Vehicles are not the only ones that travel by road sometimes. Deer on the road pose a danger to drivers. The reason is simple: car accidents. By knowing what to look for to avoid them, and what to do if you encounter one, you can keep yourself and your car safer.

And, while a repair could mean “big bucks,” the right auto coverage doesn’t have to cost a lot of “doe.” Talk to your independent insurance agent about parts coverage, new/newer car replacement, and other options from The Hanover.

Sources:

LC August 2018-356

Infographic

Home safety, home savings

 

Safety devices can help you save your home from intrusion, fire and costly water damage. But they can save you money, too, when your home is insured with The Hanover. Talk to your independent insurance agent to learn more.

Source: Insurance Information Institute

Home safety, home savings

 

Safety devices can help you save your home from intrusion, fire and costly water damage. But they can save you money, too, when your home is insured with The Hanover. Talk to your independent insurance agent to learn more.

Source: Insurance Information Institute

Home safety, home savings

Infographic illustrating how the installation of home safety devices can save homeowners money on their insurance with The Hanover

 

Safety devices can help you save your home from intrusion, fire and costly water damage. But they can save you money, too, when your home is insured with The Hanover. Talk to your independent insurance agent to learn more.

Source: Insurance Information Institute

Transcript

Save on your Hanover homeowners policy when you install:

 

Central fire alarm

• detects fire, smoke and heat

• alerts alarm company

Fire is the most costly homeowner’s claim – averaging nearly $44,000

 

Central burglar alarm

• detects home intrusion

• alerts alarm company

 

Temperature monitoring

• detects when the temperature of the home is outside an acceptable range

• alerts alarm company and homeowner

 

Water detection sensor

• detects home water leaks

• alerts alarm company and homeowner

 

Automatic water shut-off

• automatically turns off water when a leak is detected

• notifies homeowner – and allows remote shut-off

Water is the 2nd most common homeowner’s claim

 

Mounted generator

• fueled by natural gas or propane

• automatically starts in event of power outage

Home safety, home savings

Infographic illustrating how the installation of home safety devices can save homeowners money on their insurance with The Hanover

 

Safety devices can help you save your home from intrusion, fire and costly water damage. But they can save you money, too, when your home is insured with The Hanover. Talk to your independent insurance agent to learn more.

Source: Insurance Information Institute

Article

Outdoor dining ― keeping your employees, customers and property safe

The below guidance is intended to address physical premises exposures, and does not address COVID related safety practices. For COVID-related health and safety practices, please visit CDC.gov/coronavirus.

Note: Prior to implementing any outdoor dining, consult with your local jurisdiction (town, village, city, etc.) on the requirements for outdoor dining and any permits that need to be obtained. The below guidance is intended to supplement your local requirements.

Worker’s compensation and general liability – keeping employees and customers safe

  • The construction of any tents and/or temporary wooden structures should be completed by professional contractors with proper risk transfer controls in place (click here to view our contract management advisory).
  • Tents and temporary wooden structures should be inspected regularly by a qualified person to ensure structural integrity and securement.
  • Umbrellas and any standing coverings should be properly secured and removed during high winds.
  • Consider using highly visible railings or other enclosures to clearly outline the dining area from the parking lot and any area of vehicle travel.
  • Vehicle traffic barriers or other devices should be used to protect the area and designate areas of vehicle travel – consult with your local public works department for the appropriate solutions for your area.
  • If creating walking surfaces, avoid the use of loose materials such as sand and gravel, and use textured or non-slip surface materials.
  • Develop a maintenance plan to keep all walking and surface areas free of litter and debris to reduce the potential for a trip and fall hazard.
  • Ensure sufficient clearances and walkways in accordance with the Americans with Disabilities Act (ADA).
  • Ensure adequate lighting is placed around all walking surfaces and properly secured.
  • Any curbing, platforms, or raised surfaces should be painted yellow and/or with a reflective coating to reduce the potential for trips and falls.
  • Place clear signage/markings/lighting around any storm drains, manholes, utility boxes and other areas that can create trip and fall hazards.
  • Tape down or provide coverings for all cords running along the ground. Ensure all cords or other items in a walkway are secured and do not create a tripping hazard.
  • In cold climates, the dining area should not be placed in areas where water can pool or drain from gutters and freeze, thereby causing a slip and fall hazard. Regular salting of all walking surfaces should be completed before and during dining operations,

Property – reducing the potential for damage

  • The use of heating devices should be restricted to self-contained propane and electric heaters that are UL listed and in good operating condition.
  • Heating devices should be set up and operated per the manufacturer’s instructions, as well as placed with a 3ft clearance on all sides from any combustibles, overhangs/umbrellas, banners, tables, “dining bubbles”, patrons, etc.
  • Customers should be made aware of heater placement and instructed not to touch/move heaters. If a heater is to be moved, this should be done by a staff member trained in the operation of the unit.
  • Open flame heaters, fire places, fire pits, torches, etc. should be avoided.
  • Fire extinguishers should be properly placed and secured around the dining area for use in an emergency.
  • Generators should be avoided due to the ignition potential and carbon monoxide exposure.
  • All electrical devices used for heating, lighting, sound, etc. must be exterior rated and GFCI protected.
  • If parking lot traffic is being rerouted, ensure signage, barricades and markings are clear to avoid any vehicles making contact with the building and/or temporary structures.
  • Do not block fire hydrants and fire department building connections with any tables, structures, or other items so that they can be easily accessed by the fire department in an emergency.

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-566

Outdoor dining ― keeping your employees, customers and property safe

The below guidance is intended to address physical premises exposures, and does not address COVID related safety practices. For COVID-related health and safety practices, please visit CDC.gov/coronavirus.

Note: Prior to implementing any outdoor dining, consult with your local jurisdiction (town, village, city, etc.) on the requirements for outdoor dining and any permits that need to be obtained. The below guidance is intended to supplement your local requirements.

Worker’s compensation and general liability – keeping employees and customers safe

  • The construction of any tents and/or temporary wooden structures should be completed by professional contractors with proper risk transfer controls in place (click here to view our contract management advisory).
  • Tents and temporary wooden structures should be inspected regularly by a qualified person to ensure structural integrity and securement.
  • Umbrellas and any standing coverings should be properly secured and removed during high winds.
  • Consider using highly visible railings or other enclosures to clearly outline the dining area from the parking lot and any area of vehicle travel.
  • Vehicle traffic barriers or other devices should be used to protect the area and designate areas of vehicle travel – consult with your local public works department for the appropriate solutions for your area.
  • If creating walking surfaces, avoid the use of loose materials such as sand and gravel, and use textured or non-slip surface materials.
  • Develop a maintenance plan to keep all walking and surface areas free of litter and debris to reduce the potential for a trip and fall hazard.
  • Ensure sufficient clearances and walkways in accordance with the Americans with Disabilities Act (ADA).
  • Ensure adequate lighting is placed around all walking surfaces and properly secured.
  • Any curbing, platforms, or raised surfaces should be painted yellow and/or with a reflective coating to reduce the potential for trips and falls.
  • Place clear signage/markings/lighting around any storm drains, manholes, utility boxes and other areas that can create trip and fall hazards.
  • Tape down or provide coverings for all cords running along the ground. Ensure all cords or other items in a walkway are secured and do not create a tripping hazard.
  • In cold climates, the dining area should not be placed in areas where water can pool or drain from gutters and freeze, thereby causing a slip and fall hazard. Regular salting of all walking surfaces should be completed before and during dining operations,

Property – reducing the potential for damage

  • The use of heating devices should be restricted to self-contained propane and electric heaters that are UL listed and in good operating condition.
  • Heating devices should be set up and operated per the manufacturer’s instructions, as well as placed with a 3ft clearance on all sides from any combustibles, overhangs/umbrellas, banners, tables, “dining bubbles”, patrons, etc.
  • Customers should be made aware of heater placement and instructed not to touch/move heaters. If a heater is to be moved, this should be done by a staff member trained in the operation of the unit.
  • Open flame heaters, fire places, fire pits, torches, etc. should be avoided.
  • Fire extinguishers should be properly placed and secured around the dining area for use in an emergency.
  • Generators should be avoided due to the ignition potential and carbon monoxide exposure.
  • All electrical devices used for heating, lighting, sound, etc. must be exterior rated and GFCI protected.
  • If parking lot traffic is being rerouted, ensure signage, barricades and markings are clear to avoid any vehicles making contact with the building and/or temporary structures.
  • Do not block fire hydrants and fire department building connections with any tables, structures, or other items so that they can be easily accessed by the fire department in an emergency.

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-566

Outdoor dining ― keeping your employees, customers and property safe

The below guidance is intended to address physical premises exposures, and does not address COVID related safety practices. For COVID-related health and safety practices, please visit CDC.gov/coronavirus.

Note: Prior to implementing any outdoor dining, consult with your local jurisdiction (town, village, city, etc.) on the requirements for outdoor dining and any permits that need to be obtained. The below guidance is intended to supplement your local requirements.

Worker’s compensation and general liability – keeping employees and customers safe

  • The construction of any tents and/or temporary wooden structures should be completed by professional contractors with proper risk transfer controls in place (click here to view our contract management advisory).
  • Tents and temporary wooden structures should be inspected regularly by a qualified person to ensure structural integrity and securement.
  • Umbrellas and any standing coverings should be properly secured and removed during high winds.
  • Consider using highly visible railings or other enclosures to clearly outline the dining area from the parking lot and any area of vehicle travel.
  • Vehicle traffic barriers or other devices should be used to protect the area and designate areas of vehicle travel – consult with your local public works department for the appropriate solutions for your area.
  • If creating walking surfaces, avoid the use of loose materials such as sand and gravel, and use textured or non-slip surface materials.
  • Develop a maintenance plan to keep all walking and surface areas free of litter and debris to reduce the potential for a trip and fall hazard.
  • Ensure sufficient clearances and walkways in accordance with the Americans with Disabilities Act (ADA).
  • Ensure adequate lighting is placed around all walking surfaces and properly secured.
  • Any curbing, platforms, or raised surfaces should be painted yellow and/or with a reflective coating to reduce the potential for trips and falls.
  • Place clear signage/markings/lighting around any storm drains, manholes, utility boxes and other areas that can create trip and fall hazards.
  • Tape down or provide coverings for all cords running along the ground. Ensure all cords or other items in a walkway are secured and do not create a tripping hazard.
  • In cold climates, the dining area should not be placed in areas where water can pool or drain from gutters and freeze, thereby causing a slip and fall hazard. Regular salting of all walking surfaces should be completed before and during dining operations,

Property – reducing the potential for damage

  • The use of heating devices should be restricted to self-contained propane and electric heaters that are UL listed and in good operating condition.
  • Heating devices should be set up and operated per the manufacturer’s instructions, as well as placed with a 3ft clearance on all sides from any combustibles, overhangs/umbrellas, banners, tables, “dining bubbles”, patrons, etc.
  • Customers should be made aware of heater placement and instructed not to touch/move heaters. If a heater is to be moved, this should be done by a staff member trained in the operation of the unit.
  • Open flame heaters, fire places, fire pits, torches, etc. should be avoided.
  • Fire extinguishers should be properly placed and secured around the dining area for use in an emergency.
  • Generators should be avoided due to the ignition potential and carbon monoxide exposure.
  • All electrical devices used for heating, lighting, sound, etc. must be exterior rated and GFCI protected.
  • If parking lot traffic is being rerouted, ensure signage, barricades and markings are clear to avoid any vehicles making contact with the building and/or temporary structures.
  • Do not block fire hydrants and fire department building connections with any tables, structures, or other items so that they can be easily accessed by the fire department in an emergency.

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-566

Outdoor dining ― keeping your employees, customers and property safe

The below guidance is intended to address physical premises exposures, and does not address COVID related safety practices. For COVID-related health and safety practices, please visit CDC.gov/coronavirus.

Note: Prior to implementing any outdoor dining, consult with your local jurisdiction (town, village, city, etc.) on the requirements for outdoor dining and any permits that need to be obtained. The below guidance is intended to supplement your local requirements.

Worker’s compensation and general liability – keeping employees and customers safe

  • The construction of any tents and/or temporary wooden structures should be completed by professional contractors with proper risk transfer controls in place (click here to view our contract management advisory).
  • Tents and temporary wooden structures should be inspected regularly by a qualified person to ensure structural integrity and securement.
  • Umbrellas and any standing coverings should be properly secured and removed during high winds.
  • Consider using highly visible railings or other enclosures to clearly outline the dining area from the parking lot and any area of vehicle travel.
  • Vehicle traffic barriers or other devices should be used to protect the area and designate areas of vehicle travel – consult with your local public works department for the appropriate solutions for your area.
  • If creating walking surfaces, avoid the use of loose materials such as sand and gravel, and use textured or non-slip surface materials.
  • Develop a maintenance plan to keep all walking and surface areas free of litter and debris to reduce the potential for a trip and fall hazard.
  • Ensure sufficient clearances and walkways in accordance with the Americans with Disabilities Act (ADA).
  • Ensure adequate lighting is placed around all walking surfaces and properly secured.
  • Any curbing, platforms, or raised surfaces should be painted yellow and/or with a reflective coating to reduce the potential for trips and falls.
  • Place clear signage/markings/lighting around any storm drains, manholes, utility boxes and other areas that can create trip and fall hazards.
  • Tape down or provide coverings for all cords running along the ground. Ensure all cords or other items in a walkway are secured and do not create a tripping hazard.
  • In cold climates, the dining area should not be placed in areas where water can pool or drain from gutters and freeze, thereby causing a slip and fall hazard. Regular salting of all walking surfaces should be completed before and during dining operations,

Property – reducing the potential for damage

  • The use of heating devices should be restricted to self-contained propane and electric heaters that are UL listed and in good operating condition.
  • Heating devices should be set up and operated per the manufacturer’s instructions, as well as placed with a 3ft clearance on all sides from any combustibles, overhangs/umbrellas, banners, tables, “dining bubbles”, patrons, etc.
  • Customers should be made aware of heater placement and instructed not to touch/move heaters. If a heater is to be moved, this should be done by a staff member trained in the operation of the unit.
  • Open flame heaters, fire places, fire pits, torches, etc. should be avoided.
  • Fire extinguishers should be properly placed and secured around the dining area for use in an emergency.
  • Generators should be avoided due to the ignition potential and carbon monoxide exposure.
  • All electrical devices used for heating, lighting, sound, etc. must be exterior rated and GFCI protected.
  • If parking lot traffic is being rerouted, ensure signage, barricades and markings are clear to avoid any vehicles making contact with the building and/or temporary structures.
  • Do not block fire hydrants and fire department building connections with any tables, structures, or other items so that they can be easily accessed by the fire department in an emergency.

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-566

Article

Social media marketing: are you following copyright law?

The explosive growth of digital marketing on social media has encouraged inventive ways for advertisers to reach out to their audiences. This newer form of advertising is defined as “The marketing of goods and services via digital technologies.”[8] Digital marketing is different from traditional advertising because it is unique to our social media preferences and browsing history. Digital marketing is a growing business, in fact, eMarketer estimates that roughly 70% of the population will make a purchase digitally this year.[3]

One method digital marketers employ to reach potential buyers is to use “influencers.” A social media influencer is an individual who utilizes a variety of social media platforms to express their opinions on specific brands or products, consequently influencing their captive audience. [2]

Companies can work with influencers in a variety of ways, including paying them to use their videos or to create posts which promote a company’s products. These videos or posts often include tutorials using a product. Influencer marketing is becoming a large portion of marketing budgets; in fact, the influencer marketing industry was set to grow to approximately $9.7B in 2020. [7]

However, there are risks that businesses should consider before making the transition to digital marketing via influencers.

Intellectual property or IP is one of those risks that should be reviewed to ensure there are no infringements that could lead to costly claims for violating intellectual property or Federal Trade Commission (FTC) laws. IP is defined as a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.[6]  Many social media posts include music and songs or pictures that are the intellectual property of others; misuse without permission can lead to copyright infringement claims, which can be costly. One high-profile example: Katy Perry has been sued for $150,000 for posting a photo of herself on her Instagram page; that picture was taken by and is owned by someone else who is now suing Perry.[4]

IP is owned by the creator, who must grant permission to use their property (often there is a cost associated with this use).  IP compliance is a major risk among digital marketers and influencers; according to a study published in 2020 only 14% of influencer posts sampled were fully compliant with FTC copyright guidelines.[7]

Each time a company works with an influencer on social media by sharing posts or videos, the company becomes liable for the contents of that post including any IP infringements. Influencers may share pictures taken by someone else who is the owner of that IP or they may play music while making a video; if they do not have permission to use that owner’s picture or that song from the owner of the music, they and the company who has hired them can be held liable and have to pay damages.  Companies must also disclose that the influencer posts are paid advertisements.  In addition, whether companies use influencers or other methods of digital advertising, if they use copyrighted or licensed material of others then they need to make sure they obtain written permission from the owner.

While these instances of copyright infringement may have been accidental, they can be costly. Awards to the owner of IP are based on the number of instances of infringement. These generally average between $750 to $30,000 but can also go as high as $150,000 or even more. [1] So, avoiding copyright infringement is important when advertising with social media and hiring influencers.

When advertising on social media it is generally best to assume items such as songs, pictures or art work, and video are protected by copyright and take steps to protect your company from claims of copyright infringement. The owner of that item may grant permission to use their work, but you must locate the owner (or Performance Rights Organization such as ASCAP or BMI) and reach out to them before using their work. An owner may also request that they be compensated for the use of their property. If you are entering into a contract to use copyrighted material it may be best to work with legal counsel to fully understand the risks and for contract review.

If you are unable to get permission to use IP that belongs to another, there are some sources of material that can be purchased for use and some that are in the public domain and free to use. These two options will require some research but doing it upfront is better than having an unexpected claim later.

It is also suggested that your company develop a social media policy to ensure all employees understand the importance of maintaining compliance in this area and to document controls that are in place to protect your company. The policy should, at a minimum, include roles and responsibilities, applicable regulations and legal risks, security risks, accountability, and how to report concerns. Working with legal counsel to develop such a policy is suggested for those companies that engage in digital marketing.

 

References

  1. 17 U.S. Code 504© (1-2). Remedies for infringement: Damages and profits.
  2. Crook, I. (2018, November 14). What is a Social Media Influencer (And How Do I Become One?). From AppInstitute: https://appinstitute.com/social-media-influencer/#:~:%20text-A%20social%20media%20influencer%20is%20an%20individual%20who,%20The%20concept%20of%20an%20influencer%20is%20simple%20%E2%80%93.
  3. Garcia, K (2018, April 4). In-Store Sales Still Rule, but Digital Helps. From eMarketer.com: https://www.emarketer.com/content/in-store-sales-still-rule-but-digital-helps.
  4. Honaker, W.H. (2020, May 26). SUED OVER SOCIAL MEDIA PHOTOS: WHAT MUSICIANS CAN LEARN FROM KATY PERRY’S COURT CASE. From Music Connection: https://www.musicconnection.com/sued-over-social-media-photos-whaat-musicians-can-learn-from-katy-perrys-court-case/.
  5. Kemp, S. (2020). Digital 2020 reports. New York: Hootsuite.
  6. Oxford Online Dictionary. (2020) Intellectual Property. From https://www.lexico.com/en/definition/intellectual_property.
  7. The State of Influencer Marketing 2020: Benchmark Report. Copenhagen, Denmark: Influencer Marketing Hub.
  8. What is digital marketing? Definition and examples. (2020,April 16). From Market Business News: https://marketbuinessnews.com/financial-glossary/digital-marketing/.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-569

Social media marketing: are you following copyright law?

The explosive growth of digital marketing on social media has encouraged inventive ways for advertisers to reach out to their audiences. This newer form of advertising is defined as “The marketing of goods and services via digital technologies.”[8] Digital marketing is different from traditional advertising because it is unique to our social media preferences and browsing history. Digital marketing is a growing business, in fact, eMarketer estimates that roughly 70% of the population will make a purchase digitally this year.[3]

One method digital marketers employ to reach potential buyers is to use “influencers.” A social media influencer is an individual who utilizes a variety of social media platforms to express their opinions on specific brands or products, consequently influencing their captive audience. [2]

Companies can work with influencers in a variety of ways, including paying them to use their videos or to create posts which promote a company’s products. These videos or posts often include tutorials using a product. Influencer marketing is becoming a large portion of marketing budgets; in fact, the influencer marketing industry was set to grow to approximately $9.7B in 2020. [7]

However, there are risks that businesses should consider before making the transition to digital marketing via influencers.

Intellectual property or IP is one of those risks that should be reviewed to ensure there are no infringements that could lead to costly claims for violating intellectual property or Federal Trade Commission (FTC) laws. IP is defined as a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.[6]  Many social media posts include music and songs or pictures that are the intellectual property of others; misuse without permission can lead to copyright infringement claims, which can be costly. One high-profile example: Katy Perry has been sued for $150,000 for posting a photo of herself on her Instagram page; that picture was taken by and is owned by someone else who is now suing Perry.[4]

IP is owned by the creator, who must grant permission to use their property (often there is a cost associated with this use).  IP compliance is a major risk among digital marketers and influencers; according to a study published in 2020 only 14% of influencer posts sampled were fully compliant with FTC copyright guidelines.[7]

Each time a company works with an influencer on social media by sharing posts or videos, the company becomes liable for the contents of that post including any IP infringements. Influencers may share pictures taken by someone else who is the owner of that IP or they may play music while making a video; if they do not have permission to use that owner’s picture or that song from the owner of the music, they and the company who has hired them can be held liable and have to pay damages.  Companies must also disclose that the influencer posts are paid advertisements.  In addition, whether companies use influencers or other methods of digital advertising, if they use copyrighted or licensed material of others then they need to make sure they obtain written permission from the owner.

While these instances of copyright infringement may have been accidental, they can be costly. Awards to the owner of IP are based on the number of instances of infringement. These generally average between $750 to $30,000 but can also go as high as $150,000 or even more. [1] So, avoiding copyright infringement is important when advertising with social media and hiring influencers.

When advertising on social media it is generally best to assume items such as songs, pictures or art work, and video are protected by copyright and take steps to protect your company from claims of copyright infringement. The owner of that item may grant permission to use their work, but you must locate the owner (or Performance Rights Organization such as ASCAP or BMI) and reach out to them before using their work. An owner may also request that they be compensated for the use of their property. If you are entering into a contract to use copyrighted material it may be best to work with legal counsel to fully understand the risks and for contract review.

If you are unable to get permission to use IP that belongs to another, there are some sources of material that can be purchased for use and some that are in the public domain and free to use. These two options will require some research but doing it upfront is better than having an unexpected claim later.

It is also suggested that your company develop a social media policy to ensure all employees understand the importance of maintaining compliance in this area and to document controls that are in place to protect your company. The policy should, at a minimum, include roles and responsibilities, applicable regulations and legal risks, security risks, accountability, and how to report concerns. Working with legal counsel to develop such a policy is suggested for those companies that engage in digital marketing.

 

References

  1. 17 U.S. Code 504© (1-2). Remedies for infringement: Damages and profits.
  2. Crook, I. (2018, November 14). What is a Social Media Influencer (And How Do I Become One?). From AppInstitute: https://appinstitute.com/social-media-influencer/#:~:%20text-A%20social%20media%20influencer%20is%20an%20individual%20who,%20The%20concept%20of%20an%20influencer%20is%20simple%20%E2%80%93.
  3. Garcia, K (2018, April 4). In-Store Sales Still Rule, but Digital Helps. From eMarketer.com: https://www.emarketer.com/content/in-store-sales-still-rule-but-digital-helps.
  4. Honaker, W.H. (2020, May 26). SUED OVER SOCIAL MEDIA PHOTOS: WHAT MUSICIANS CAN LEARN FROM KATY PERRY’S COURT CASE. From Music Connection: https://www.musicconnection.com/sued-over-social-media-photos-whaat-musicians-can-learn-from-katy-perrys-court-case/.
  5. Kemp, S. (2020). Digital 2020 reports. New York: Hootsuite.
  6. Oxford Online Dictionary. (2020) Intellectual Property. From https://www.lexico.com/en/definition/intellectual_property.
  7. The State of Influencer Marketing 2020: Benchmark Report. Copenhagen, Denmark: Influencer Marketing Hub.
  8. What is digital marketing? Definition and examples. (2020,April 16). From Market Business News: https://marketbuinessnews.com/financial-glossary/digital-marketing/.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-569

Social media marketing: are you following copyright law?

The explosive growth of digital marketing on social media has encouraged inventive ways for advertisers to reach out to their audiences. This newer form of advertising is defined as “The marketing of goods and services via digital technologies.”[8] Digital marketing is different from traditional advertising because it is unique to our social media preferences and browsing history. Digital marketing is a growing business, in fact, eMarketer estimates that roughly 70% of the population will make a purchase digitally this year.[3]

One method digital marketers employ to reach potential buyers is to use “influencers.” A social media influencer is an individual who utilizes a variety of social media platforms to express their opinions on specific brands or products, consequently influencing their captive audience. [2]

Companies can work with influencers in a variety of ways, including paying them to use their videos or to create posts which promote a company’s products. These videos or posts often include tutorials using a product. Influencer marketing is becoming a large portion of marketing budgets; in fact, the influencer marketing industry was set to grow to approximately $9.7B in 2020. [7]

However, there are risks that businesses should consider before making the transition to digital marketing via influencers.

Intellectual property or IP is one of those risks that should be reviewed to ensure there are no infringements that could lead to costly claims for violating intellectual property or Federal Trade Commission (FTC) laws. IP is defined as a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.[6]  Many social media posts include music and songs or pictures that are the intellectual property of others; misuse without permission can lead to copyright infringement claims, which can be costly. One high-profile example: Katy Perry has been sued for $150,000 for posting a photo of herself on her Instagram page; that picture was taken by and is owned by someone else who is now suing Perry.[4]

IP is owned by the creator, who must grant permission to use their property (often there is a cost associated with this use).  IP compliance is a major risk among digital marketers and influencers; according to a study published in 2020 only 14% of influencer posts sampled were fully compliant with FTC copyright guidelines.[7]

Each time a company works with an influencer on social media by sharing posts or videos, the company becomes liable for the contents of that post including any IP infringements. Influencers may share pictures taken by someone else who is the owner of that IP or they may play music while making a video; if they do not have permission to use that owner’s picture or that song from the owner of the music, they and the company who has hired them can be held liable and have to pay damages.  Companies must also disclose that the influencer posts are paid advertisements.  In addition, whether companies use influencers or other methods of digital advertising, if they use copyrighted or licensed material of others then they need to make sure they obtain written permission from the owner.

While these instances of copyright infringement may have been accidental, they can be costly. Awards to the owner of IP are based on the number of instances of infringement. These generally average between $750 to $30,000 but can also go as high as $150,000 or even more. [1] So, avoiding copyright infringement is important when advertising with social media and hiring influencers.

When advertising on social media it is generally best to assume items such as songs, pictures or art work, and video are protected by copyright and take steps to protect your company from claims of copyright infringement. The owner of that item may grant permission to use their work, but you must locate the owner (or Performance Rights Organization such as ASCAP or BMI) and reach out to them before using their work. An owner may also request that they be compensated for the use of their property. If you are entering into a contract to use copyrighted material it may be best to work with legal counsel to fully understand the risks and for contract review.

If you are unable to get permission to use IP that belongs to another, there are some sources of material that can be purchased for use and some that are in the public domain and free to use. These two options will require some research but doing it upfront is better than having an unexpected claim later.

It is also suggested that your company develop a social media policy to ensure all employees understand the importance of maintaining compliance in this area and to document controls that are in place to protect your company. The policy should, at a minimum, include roles and responsibilities, applicable regulations and legal risks, security risks, accountability, and how to report concerns. Working with legal counsel to develop such a policy is suggested for those companies that engage in digital marketing.

 

References

  1. 17 U.S. Code 504© (1-2). Remedies for infringement: Damages and profits.
  2. Crook, I. (2018, November 14). What is a Social Media Influencer (And How Do I Become One?). From AppInstitute: https://appinstitute.com/social-media-influencer/#:~:%20text-A%20social%20media%20influencer%20is%20an%20individual%20who,%20The%20concept%20of%20an%20influencer%20is%20simple%20%E2%80%93.
  3. Garcia, K (2018, April 4). In-Store Sales Still Rule, but Digital Helps. From eMarketer.com: https://www.emarketer.com/content/in-store-sales-still-rule-but-digital-helps.
  4. Honaker, W.H. (2020, May 26). SUED OVER SOCIAL MEDIA PHOTOS: WHAT MUSICIANS CAN LEARN FROM KATY PERRY’S COURT CASE. From Music Connection: https://www.musicconnection.com/sued-over-social-media-photos-whaat-musicians-can-learn-from-katy-perrys-court-case/.
  5. Kemp, S. (2020). Digital 2020 reports. New York: Hootsuite.
  6. Oxford Online Dictionary. (2020) Intellectual Property. From https://www.lexico.com/en/definition/intellectual_property.
  7. The State of Influencer Marketing 2020: Benchmark Report. Copenhagen, Denmark: Influencer Marketing Hub.
  8. What is digital marketing? Definition and examples. (2020,April 16). From Market Business News: https://marketbuinessnews.com/financial-glossary/digital-marketing/.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-569

Social media marketing: are you following copyright law?

The explosive growth of digital marketing on social media has encouraged inventive ways for advertisers to reach out to their audiences. This newer form of advertising is defined as “The marketing of goods and services via digital technologies.”[8] Digital marketing is different from traditional advertising because it is unique to our social media preferences and browsing history. Digital marketing is a growing business, in fact, eMarketer estimates that roughly 70% of the population will make a purchase digitally this year.[3]

One method digital marketers employ to reach potential buyers is to use “influencers.” A social media influencer is an individual who utilizes a variety of social media platforms to express their opinions on specific brands or products, consequently influencing their captive audience. [2]

Companies can work with influencers in a variety of ways, including paying them to use their videos or to create posts which promote a company’s products. These videos or posts often include tutorials using a product. Influencer marketing is becoming a large portion of marketing budgets; in fact, the influencer marketing industry was set to grow to approximately $9.7B in 2020. [7]

However, there are risks that businesses should consider before making the transition to digital marketing via influencers.

Intellectual property or IP is one of those risks that should be reviewed to ensure there are no infringements that could lead to costly claims for violating intellectual property or Federal Trade Commission (FTC) laws. IP is defined as a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.[6]  Many social media posts include music and songs or pictures that are the intellectual property of others; misuse without permission can lead to copyright infringement claims, which can be costly. One high-profile example: Katy Perry has been sued for $150,000 for posting a photo of herself on her Instagram page; that picture was taken by and is owned by someone else who is now suing Perry.[4]

IP is owned by the creator, who must grant permission to use their property (often there is a cost associated with this use).  IP compliance is a major risk among digital marketers and influencers; according to a study published in 2020 only 14% of influencer posts sampled were fully compliant with FTC copyright guidelines.[7]

Each time a company works with an influencer on social media by sharing posts or videos, the company becomes liable for the contents of that post including any IP infringements. Influencers may share pictures taken by someone else who is the owner of that IP or they may play music while making a video; if they do not have permission to use that owner’s picture or that song from the owner of the music, they and the company who has hired them can be held liable and have to pay damages.  Companies must also disclose that the influencer posts are paid advertisements.  In addition, whether companies use influencers or other methods of digital advertising, if they use copyrighted or licensed material of others then they need to make sure they obtain written permission from the owner.

While these instances of copyright infringement may have been accidental, they can be costly. Awards to the owner of IP are based on the number of instances of infringement. These generally average between $750 to $30,000 but can also go as high as $150,000 or even more. [1] So, avoiding copyright infringement is important when advertising with social media and hiring influencers.

When advertising on social media it is generally best to assume items such as songs, pictures or art work, and video are protected by copyright and take steps to protect your company from claims of copyright infringement. The owner of that item may grant permission to use their work, but you must locate the owner (or Performance Rights Organization such as ASCAP or BMI) and reach out to them before using their work. An owner may also request that they be compensated for the use of their property. If you are entering into a contract to use copyrighted material it may be best to work with legal counsel to fully understand the risks and for contract review.

If you are unable to get permission to use IP that belongs to another, there are some sources of material that can be purchased for use and some that are in the public domain and free to use. These two options will require some research but doing it upfront is better than having an unexpected claim later.

It is also suggested that your company develop a social media policy to ensure all employees understand the importance of maintaining compliance in this area and to document controls that are in place to protect your company. The policy should, at a minimum, include roles and responsibilities, applicable regulations and legal risks, security risks, accountability, and how to report concerns. Working with legal counsel to develop such a policy is suggested for those companies that engage in digital marketing.

 

References

  1. 17 U.S. Code 504© (1-2). Remedies for infringement: Damages and profits.
  2. Crook, I. (2018, November 14). What is a Social Media Influencer (And How Do I Become One?). From AppInstitute: https://appinstitute.com/social-media-influencer/#:~:%20text-A%20social%20media%20influencer%20is%20an%20individual%20who,%20The%20concept%20of%20an%20influencer%20is%20simple%20%E2%80%93.
  3. Garcia, K (2018, April 4). In-Store Sales Still Rule, but Digital Helps. From eMarketer.com: https://www.emarketer.com/content/in-store-sales-still-rule-but-digital-helps.
  4. Honaker, W.H. (2020, May 26). SUED OVER SOCIAL MEDIA PHOTOS: WHAT MUSICIANS CAN LEARN FROM KATY PERRY’S COURT CASE. From Music Connection: https://www.musicconnection.com/sued-over-social-media-photos-whaat-musicians-can-learn-from-katy-perrys-court-case/.
  5. Kemp, S. (2020). Digital 2020 reports. New York: Hootsuite.
  6. Oxford Online Dictionary. (2020) Intellectual Property. From https://www.lexico.com/en/definition/intellectual_property.
  7. The State of Influencer Marketing 2020: Benchmark Report. Copenhagen, Denmark: Influencer Marketing Hub.
  8. What is digital marketing? Definition and examples. (2020,April 16). From Market Business News: https://marketbuinessnews.com/financial-glossary/digital-marketing/.

 

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

 

LC 2020-569

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