Teens love trends. But, as a parent of a teen, you may not love some of these trends related to their driving habits. Fortunately, you, along with The Hanover SafeTeen program, can help keep them on a safe path.

Learn more at our Safeteen webpage.

Sources:

National Highway Traffic Safety Administration

Insurance Institute for Highway Safety

Teen Driver Source

Rocky Mountain Insurance Information Association

CBSNews.com

LC August 2018-402

Feel confident when buying or leasing that new car. With new car replacement coverage, if your new car is totaled within one year or 15,000 miles of purchase, whichever comes first, you'll get its full replacement cost without deduction for depreciation.

Water damage — resulting from backed up drains or failed pumps — is one of the most common homeowners insurance claims. It's also the third most costly claim behind fire and liability lawsuits. Many homeowners don't know that water damage incidents like these are often not covered by a basic home policy. That's why it's important to make sure you are protected — from basement to roof — with a water backup endorsement.

Umbrella insurance kicks in where your home and auto policies leave off. With a policy of $1 million of coverage starting at about as little as $20 a month, financial experts agree that umbrella insurance is one of the most cost-efficient ways to protect your family and assets. An umbrella policy typically covers the following:

How big of an umbrella do you need? Use our online umbrella calculator to get an idea and then consult an independent insurance agent for additional guidance. For more information, watch this short video to learn more about umbrella coverage and review the list of 15 every-day activities that suggest you need umbrella coverage.
 

LC 2017-537

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.

Here's a statistic that may surprise you: over half of homes in the U.S. are underinsured*. This is largely because home insurance policies are often believed to provide coverage based on a home's market value, as opposed to its replacement cost. Understanding the difference between these two concepts is a key factor in making sure your coverage is up to the high standards of your home.

Replacement cost is essentially the amount it would take to rebuild your home from scratch. This figure includes factors like similar materials and the same degree of craftsmanship. But there are non-material costs to consider as well, such as permits, fees, debris removal, contractor labor, overhead and profit. As a result, a home's replacement cost often (and sometimes greatly) exceeds market value. By making sure your home is insured for its replacement cost, you will be getting the coverage you truly need should you ever suffer a total loss.

* Marshall & Swift/Boeckh

Choosing the right car seat, installing it correctly and using it every trip can make all the difference in saving a life. The tips above offer pointers for parents about rear-facing infant, forward-facing and booster seats.

A product recall can have long-lasting and costly consequences for your business – affecting your reputation, productivity, employee morale and bottom line. "Thirty years ago if you had a little problem, you were not going to get discovered. Now the chances of getting caught are significant, and it can be the end of your company," said David Acheson, consultant and former associate commissioner for foods at the U.S. Food and Drug Administration, in a Fortune magazine article.

There are several steps you can take to help prevent a product recall. In addition, having the right insurance coverage in place can help minimize the impact.

Know your industry

Familiarize yourself with product safety standards and regulations within your industry – and remember they may change with evolving trends

• Know the product safety standards and regulations within your industry
• Establish a compliance team to ensure you meet standards and laws
• Train employees to be sure they know product safety is a top priority

Scrutinize and verify all partners and processes within your supply chain

• Fully assess manufacturing partners, particularly foreign companies, before doing business with them, including checking claims and litigation history, requesting references, testing products manufactured for others, and confirming company's financials and insurance coverage
• Inspect all third-party parts, materials or ingredients before using them in your products
• Require that suppliers meet quality standards, pass quality audits by independent third parties, and sign contracts that hold them responsible for errors

Establish and conduct robust quality controls

• Perform quality checks at multiple points of the manufacturing process
• Have the quality control program audited by an independent third party
• Create an open culture so employees feel comfortable raising safety concerns

Be prepared

• Have a plan in place should a complaint or claim be filed against your company
• Retain records that allow traceability throughout the supply chain
• Perform mock recalls to test recall plans
• Consult your independent insurance agent to be sure you have the right coverage in place to help you recover from a product recall

Disclaimer: This article is provided for informational purposes only and does not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice.

Here's a surprising statistic: in our experience more than 80 percent of our clients with professional exposures fail to buy or are declining professional liability insurance along with their business owner's policy (BOP) or commercial package policy (CPP).

While there have been significant changes to the ways businesses interact with customers over the last 15 years — from the birth and explosion of social media to a burgeoning "consulting" class — many businesses have been slow to recognize their professional risks. Some simply choose not to buy it, mistakenly believing their general liability policy will cover their professional service risks.

Professional services create risk

So, who needs professional liability (also known as errors and omissions (E&O)? Short answer – an increasing number of small businesses. These questions can help identify potential vulnerabilities and the need for professional liability coverage:

Assessing the need for professional liability risk:

1. Does the business perform any consulting work, training or provide any advice for customers?
2. Is the business involved in work requiring special licenses?
3. Does the business design, recommend, install or test products?
4. Has the business had any customer allege non-performance of products or services?
5. Have any customers withheld payment due to a contract dispute?

A "yes" answer to any of these questions indicates the business would be best protected by adding professional liability protection to their insurance program.

Here are just a few scenarios of when this coverage would have protected the professional and the business:

• Wedding planner who ran out of food halfway through the reception.
• Local hardware store thats demo resulted in a customer damaging his house.
• Software developer whose code was hacked.
• Retirement adviser whose consultation caused a client to lose 10 percent of her life savings.
• Interior designer who ordered the wrong materials, delaying the project.
• Travel agent booking the wrong type of accommodations for honeymooners.
• A public notary whose expired stamp prevents an adoption from going through.
• Nutritionist whose program failed to help a client lose weight as implied.
• Real estate agent who provides incorrect information about a listing.

The most expensive cost of liability insurance? Not having any.

It is more important than ever for small business owners to understand the tremendous need to carry professional liability insurance. As many as 52 percent of all civil lawsuits target small business professionals. In today's highly litigious world, small business owners simply can't be without this coverage.

The fact is, with annual premiums typically costing between $500 and $1,500 for a small business owner, professional liability coverage is certainly less expensive than a lawsuit. A study done by the Institute for Legal Reform found a frivolous lawsuit can cost from $2,000 to $5,000 in legal fees alone, well more than the cost of protection.

The Hanover’s Professional Advantage offers broad protection for a wide range of personal, business, and professional service providers.

About the author

Chip Hamann serves as The Hanover's small commercial chief underwriting officer. In this role, he leads a team responsible for determining the underwriting strategy, state management, product and point of sale offerings. He also oversees the field underwriting teams. He and his team partner with actuarial, product, technology, corporate underwriting and marketing to continually assess and evolve The Hanover's underwriting strategy and best practices to help position The Hanover as a carrier of choice for agents in small commercial.
 

Sources:
Court Statistics
U.S. Chamber of Commerce
Forbes

This material contains suggested guidance and is provided for informational purposes only. It does not guarantee any particular outcome and is not intended as an endorsement of any of the entities mentioned therein.