Meet Dave. Like one in 10 Americans, he owns a boat. Dave and his family spend an average of 14 weekends on the water. Like 95 percent of recreational boat owners, his craft is less than 26’ long. He understands not only the capabilities of his vessel, but his piloting and navigating skills, as well. Plus, with boating accidents on the increase year after year, he has properly insured his boat and related equipment with a variety of affordable coverage options.

This is a look at the preparation and precaution that makes Dave a responsible sailor, the same steps you can easily take if you own a boat.

First:

• He took a safe boating course – boating safety courses are proven to greatly reduce the chances of a future accident, and give him the confidence and the wisdom to navigate safely. Plus, courses such as those offered by United States Power Squadrons®, can help him save on the insurance.
• He’s staying shipshape – before hitting the water, he has contacted the U.S. Coast Guard Auxiliary to get a vessel safety check free of charge.
• His boat, and its contents, are covered – with a watercraft physical damage endorsement, Dave has protection for his trailer, equipment, and his family’s personal items on board as well.

On the day of his voyage:

• He’s made a “float plan” – by informing someone on land of his travel plans, necessary aid could reach Dave faster in the event he experiences an accident in an area out of range of any communication. This fillable form provides a checklist of details to help you complete your own float plan.
• He’s completed a checklist of essentials – he understands the importance of equipment such as flotation devices, tools, flares, fire extinguishers and other safety implements.
• He has monitored the weather – he has checked before his trip to learn of any impending weather events or craft advisories. Plus, he’s always on the lookout for darkening clouds or sudden temperature drops, which will clue him to get back to land.

Now, that he’s on the water…

• He’s wearing a life jacket – unfortunately, this puts him in the minority. It is estimated that only 25 percent of occupants on boats wear a life jacket, despite their proven success of greatly reducing the chance of drowning in the event of an accident. And, in the event of a major incident, he has umbrella coverage, to protect him against major costs stemming from a liability claim.

• He’s staying “dry” – it should go without saying that alcohol and boating don’t mix. But companies like The Hanover can further incentivize boaters to stay sober by helping them save on their insurance premium. This article from the U.S. Coast Guard can help you learn more about what constitutes impaired boating, and the wide ranging affects it can have.
• He’s not taking anything for granted – just because Dave is insured doesn’t mean the other boaters on the water are. That’s why he’s made sure to have an uninsured and underinsured water liability endorsement on his policy. It’s protection for himself, his boat, and his occupants in the event of a claim involving a less responsible boater.

Look out for leaks

Talk to your independent insurance agent today to make sure you and your boat are not just staying safe, but staying protected, with a broad range of boat insurance options from The Hanover.

Sources:
United States Coast Guard
DiscoverBoating.com

LC 2018-184

Umbrella insurance is a protection option that provides coverage beyond the limits of your homeowners or auto insurance policy. For example, in the event of a costly legal judgment against you, your umbrella policy would cover the excess costs once your home and auto policies have been reached. 

What does an umbrella policy cover?

Umbrella insurance covers defense costs, judgments and court costs in the event you’re sued, and protects against liability related to non-bodily and bodily injuries. An umbrella policy typically covers the following:

• Personal injury
• Bodily injury to others
• Property damage
• Slander
• Defamation
• Libel
• Invasion of privacy
• Defense costs
• Legal settlements
• Wrongful eviction
• Wrongful entry

Why do I need an umbrella policy?

Most of us participate in activities every day that put us at risk. Simply owning a car or an automobile increases your risk of being sued. Many Americans buy no more than $300,000 in homeowners liability and $500,000 in auto liability insurance. A personal umbrella policy can provide you with $1 million in additional liability coverage, with limits up to $10 million available. Read 15 everyday activities that suggest you need an umbrella policy to learn more.

How does umbrella insurance work?

In the event you face a lawsuit, your umbrella policy will kick in when the liability limits of your home and auto policies run out.

Take this scenario, for example. You host a summer barbecue pool party, attended by family and friends. One of your friends brings a guest, and that guest slips and falls on your pool’s deck. She breaks her arm and gets a concussion, and decides to sue you for her medical bills. In court, the jury awards her a judgment of $1 million. If your homeowners liability policy limit is $300,000, you still owe her $700,000.

After you pay your homeowner’s insurance deductible, your policy pays the $300,000 limit. Your umbrella coverage would then pay the remaining $700,000 of the judgment, plus any legal expenses you incurred. With umbrella protection, all you pay out-of-pocket of this $1 million judgment is your insurance deductible.

How much does umbrella insurance cost?

The cost of a personal umbrella policy starts at about $20 a month $1 million of protection. With The Hanover’s already competitive home and auto products, adding an umbrella policy is an affordable, winning combination.

How much umbrella insurance do I need?

Personal umbrella insurance policies range from $1 million to $10 million. Our umbrella calculator makes it easy for you to see what could be at risk, by showing the difference between your total assets and your policy’s current liability limits. While state laws and restrictions may vary, it is a great way to see the potential impact an accident could have on your finances and determine how much umbrella coverage you may need.

How do I get an umbrella insurance quote?

For an umbrella insurance quote, contact your local independent insurance agent.

Find an agent near you.

Does my business need commercial umbrella insurance?

Every business should consider supplementing its standard insurance coverage with an umbrella policy. Today, any business can be sued, and juries often award large settlements. Your policy limit on your general liability and commercial auto policies might be lower than the judgment award, leaving your business to pay the remaining settlement amount out of pocket. That could put you out of business. Commercial umbrella coverage can fill the gap and protect your company from financial disaster with flexible limits up to $25 million, at affordable rates. Your independent insurance agent will work with you to customize your commercial umbrella policy quote as part of a total business insurance solution to meet your specific commercial insurance needs and fit your budget. Read five reasons why your business may need umbrella insurance to learn more.

Consult an independent insurance agent to customize a commercial umbrella policy for total business protection.

Is umbrella insurance worth it?

Umbrella insurance is one of the most cost-efficient ways to protect your family and assets. Take a look at these potential risks to see common scenarios in which umbrella insurance will come in handy.

To customize an umbrella policy that’s right for you, talk to your local independent insurance agent or visit hanover.com for more information and a listing of agents in your area.

LC OCT 2018-508

Nearly one in eight U.S. motorists is driving around uninsured and putting insured drivers at greater risk in the event of an auto accident, according to a study.

The study, directed by the Insurance Research Council (IRC) and co-sponsored by The Hanover Insurance Group, found that 13 percent of all U.S. motorists were uninsured in 2015, up from 12.3 percent in 2010, following a seven-year decline from a high of 14.9 percent in 2003.

When an uninsured driver is at fault in an accident, insured drivers or their insurance companies often are left to pay for the resulting physical damage and health costs. Similarly, an underinsured driver may not have high enough policy limits to cover all costs of damage.

“The results of the survey sound an alarm,” said Daniel Halsey, president, personal lines, at The Hanover. “Uninsured motorists represent a significant risk to insured drivers.”

Halsey said the average cost of an uninsured motorist claim is about $20,000, excluding any physical damage to the vehicle.

Despite the fact that 49 states require car insurance, some drivers choose to drive without coverage. The number of uninsured motorists varies by state, ranging from a low of 4.5 percent of all drivers in Maine to a high of 26.7 percent in Florida, according to the IRC.

Mississippi, New Mexico, Michigan and Tennessee are with Florida in the top five states based on rate of uninsured motorists, while North Carolina, Massachusetts, New York, and Maine have the lowest rates.

Despite the recent increase in the countrywide rate, several states experienced significant declines. Oklahoma’s UM rate in 2015 was 10.5 percent –15.4 percentage points lower than in 2012. New Mexico’s fell from 29.8 percent in 2006 to 20.8 percent in 2015.

However, twice as many states saw their UM rate increase as decrease from 2010 to 2015.

“While some states saw significant drops in their uninsured motorists rates, overall, the rate is increasing nationwide,” said Elizabeth A. Sprinkel, senior vice president of the IRC. “This can mean added risk for all motorists.”

The Hanover used the results to urge drivers to discuss uninsured/underinsured motorist coverage with their independent agents. Generally, it is a good idea for motorists to have the same amount of uninsured and underinsured motorist coverage as bodily injury coverage, according to the insurer.

Th IRC study, Uninsured Motorists, 2017 Edition, examined data collected from 14 insurers representing approximately 60 percent of the private passenger auto insurance market in 2015.

March 2018

Home and auto insurance rates are on the rise – in every region of the country and across the whole property and casualty insurance industry. Wonder how you might save on insurance?

Should you receive a premium increase, there are several options you can consider to help maximize your insurance dollars and maintain the coverage you need should the unexpected occur.

1. Consult your independent insurance agent. 

Your agent can review of your policies and make recommendations on how you might reduce your premium. Review our benefits of working with an independent insurance agent infographic for more information on how an agent can help ensure you have the right combination of coverage, value and price.

2. Review your deductibles. 

The deductible on your auto deductible from $250 to $1,000 or homeowners deductible from $1,000 to $2,500 could reduce your premium by about $20 or more a month. That’s money back in your pocket. Or, if you do not already have one, you might consider putting it toward an umbrella policy. With a policy of $1 million of coverage starting at as little as $20 a month, financial experts agree that an umbrella offers the best value for the dollars you spend on insurance. Learn more about how an umbrella policy protects your family and your assets.

3. Evaluate your coverage and limits. 

Remember, as your life changes, your insurance needs also evolve, and you may need more or less coverage, or higher or lower limits. For example, the Insurance Information Institute recommends that you “consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective.” Kelley Blue Book, your bank or a local auto dealer can give you a sense of what your vehicle is worth.

4. Combine your home and auto accounts.

Most carriers, including The Hanover, offer total account discounts. So, having your home, auto and other personal policies with one insurance company will help keep your premiums down. This short video provides more details on how consolidating your policies with one insurance company can help you save money – and even provide more robust coverage.

5. Take advantage of discounts.

Have a child who just left for college? You may qualify for a student away from home discount on your auto policy. Does your child do well in school? You could qualify for the good student auto discount. More of a homebody? You might be eligible for a low mileage discount. Have a home security system? That should help reduce your home insurance rates. Live in a gated or over-55 community? That, too, could offer savings on your home insurance rate. Your life circumstances continue to change. So, when you sit down with your independent insurance agent, ask if there are any new discounts that you qualify for that could help bring down your rates. The Insurance Information Institute offers more ways to save on home and auto rates.

6. Avoid risks that increase your rates.

Having certain pets, installing a swimming pool with a diving board, and putting a trampoline in your backyard are three ways you can quickly increase your home insurance rates or make you ineligible for insurance with certain carriers. Driving a lot of miles can impact your auto premiums. Consult your independent insurance agent on what risks may raise your rates.

7. Assess the full financial picture.

If you have a small fender bender or sustain minor damage to your home, in the long run, it may be more cost efficient to pay for the repairs out of pocket as claims can increase your premiums.

8. Be safe and loyal.

Many insurance companies, including The Hanover, recognize safe driving and customer loyalty with coverage options such as second chance accident forgiveness and deductible dividends. Jumping from insurance carrier to insurance carrier could offer small immediate savings, but you could lose valuable loyalty credits.

Many factors determine what your insurance rates are - and why they may go up. Often, it is not what you are doing, but what other drivers and homeowners are doing that has a negative impact on premiums across the board. Review our home and auto trends infographics to learn more about why rates are on the rise.

While saving money is alluring to most, remember that you don’t want to cut your insurance protection so much that should something happen, you do not have the coverage limits you need to get your car back on the road or your home rebuilt. Your independent insurance agents can provide guidance on the pros and cons of adjusting your coverage to reduce your premiums. Your independent insurance agents can provide guidance on the pros and cons of adjusting your coverage to reduce your premiums.

You've probably heard that a new car loses value the second you drive it off the lot. Unfortunately, it's true.

So, consider what would happen if your new car ended up totaled in an accident, or because a tree fell on it during a storm. The amount in insurance coverage you would receive would be equal to the value of the car at the time of the accident and not the full replacement cost of the same vehicle new. The result could be a difference between your coverage and what it would cost to replace your car. It's a difference that you would pay out of your pocket.

Fortunately The Hanover can offer a way to help. Actually, two.

Protecting cars, protecting value

Totaling your car is bad enough without paying out of pocket. Contact your independent insurance agent today to learn about new and newer car replacement coverage.

LC 2017-538

There are almost as many options for auto insurance as there are for autos themselves. Yet, not everyone needs everything – some people want blind spot monitoring, others might want the moonroof, still others may just want the basics. The same goes for insurance.

For most drivers, basic coverage is not enough. And, if you’ve taken out a loan to buy your car, your lender probably requires additional coverage. However, the benefits of additional auto insurance options aren’t quite as self-evident as a heated leather seat. Here are four add-on options that are the most valuable, no matter how valuable your car is.

1. Deductible dividends

If you’re a safe driver, this option rewards you for maintaining your good driving habits. For example, The Hanover’s deductible dividends option reduces your auto deductible by $100 each year you stay safe. As a result, if you do get in an accident that results in a claim, you’ll be paying less out of pocket.

2. Uninsured/underinsured motorist coverage

According to a recent study conducted by the Insurance Research Council (and co-sponsored by The Hanover), 1 in 8 U.S. motorists are un- or underinsured. In some states, that figure is double. And if one of these drivers hits you, you could end up paying out of pocket for damage to your car – or worse. Uninsured/underinsured motorist coverage is affordable protection against these potentially devastating expenses.

3. Accident forgiveness

They say safety is no accident. Nonetheless, even the safest of drivers can end up in a crash, and end up with higher insurance payments as well. Accident forgiveness protection can help you keep your rate down if you haven’t had an at-fault accident in a certain window of time. For example, The Hanover’s second chance accident forgiveness goes into effect for customers with three years of clean driving, regardless of whether you were a Hanover customer the whole time.

4. Gap insurance

If you’ve taken out a loan to purchase your car, loan/lease gap coverage is a must-have. In the event your car is totaled in an accident, most insurance policies will cover you for the equivalent of the car’s worth at the time of the claim. But, as the saying goes, cars lose value the instant you drive them off the lot. Since you are still paying back a loan based on your car’s original value, the resulting difference can be significant – and you’d be paying it. Unless you own your car outright, make sure you have gap insurance.

When it’s time to buy

A little knowledge is nice, but there’s no replacement for expertise. So, when you are ready to upgrade your current policy or buy a new one, talk to your independent insurance agent, who can help you choose the ideal options for your auto. Except for the moonroof – that one’s your call.

LC June 2018-291

There are almost as many options for auto insurance as there are for autos themselves. Yet, not everyone needs everything – some people want blind spot monitoring, others might want the moonroof, still others may just want the basics. The same goes for insurance.

For most drivers, basic coverage is not enough. And, if you’ve taken out a loan to buy your car, your lender probably requires additional coverage. However, the benefits of additional auto insurance options aren’t quite as self-evident as a heated leather seat. Here are four add-on options that are the most valuable, no matter how valuable your car is.

• Deductible dividends
  If you’re a safe driver, this option rewards you for maintaining your good driving habits. For example, The Hanover’s deductible dividends option reduces your auto deductible by $100 each year you stay safe. As a result, if you do get in an accident that results in a claim, you’ll be paying less out of pocket.
• Uninsured/underinsured motorist coverage
  According to a recent study conducted by the Insurance Research Council (and co-sponsored by The Hanover), 1 in 8 U.S. motorists are un- or underinsured. In some states, that figure is double. And if one of these drivers hits you, you could end up paying out of pocket for damage to your car – or worse. Uninsured/underinsured motorist coverage is affordable protection against these potentially devastating expenses.
• Accident forgiveness
  They say safety is no accident. Nonetheless, even the safest of drivers can end up in a crash, and end up with higher insurance payments as well. Accident forgiveness protection can help you keep your rate down if you haven’t had an at-fault accident in a certain window of time. For example, The Hanover’s second chance accident forgiveness goes into effect for customers with three years of clean driving, regardless of whether you were a Hanover customer the whole time.
• Gap insurance
  If you’ve taken out a loan to purchase your car, loan/lease gap coverage is a must-have. In the event your car is totaled in an accident, most insurance policies will cover you for the equivalent of the car’s worth at the time of the claim. But, as the saying goes, cars lose value the instant you drive them off the lot. Since you are still paying back a loan based on your car’s original value, the resulting difference can be significant – and you’d be paying it. Unless you own your car outright, make sure you have gap insurance.

When it’s time to buy

A little knowledge is nice, but there’s no replacement for expertise. So, when you are ready to upgrade your current policy or buy a new one, talk to your independent insurance agent, who can help you choose the ideal options for your auto. Except for the moonroof – that one’s your call.

LC June 2018-291

According to the National Highway Traffic Safety Administration, there are more than 5 million reported auto accidents each year. While we hope you aren’t in one, here are tips on what to do if you are.

What if I may have caused the car accident?

If you believe you are the at-fault driver, it is crucial for you to remain calm and handle the situation in an amicable way.

How will it affect your insurance?

Your insurance rate may not be impacted immediately, but it could be in the future. Typically, your rate will not increase at the time of your claim, but it may go up when your policy renews. In most cases, the surcharge is lowered after three years of clean driving.

Suggested steps to take directly after a car accident

• Call 911 or the police, explain the situation and notify them of any injuries
• If safe to do so, move your vehicles to a safe location
• Exchange relevant information with the other driver including, name, address, phone number, insurance company and insurance policy number
• Take photos of scene and any damage
• Contact your insurance agent or company
• File an accident report – this could help you with your insurance claim down the line

Is there coverage that could offset out-of-pocket costs?

Some insurers offer some form of accident forgiveness coverage, which keeps your insurance premium from going up because of an at-fault accident. The Hanover, in particular, offers second chance accident forgiveness, which applies if you’ve had no at-fault accidents in the previous 36 months, regardless of who your previous insurer was. (Many insurers insist on 36 months solely with their company to qualify.)

Underinsured motorist coverage extends coverage to include property and bodily damage caused by a motorist with inadequate insurance protection. Underinsured motorist coverage is designed to provide for damages above the limit of the at-fault party's policy coverage.

Before you hit the road

Contact your independent insurance agent to be sure you have the right combination of coverage, value and price. The Hanover offers a robust suite of auto protection options designed to help give you maximum peace of mind when you are behind the wheel.

Sources

Value Penguin

Professionals answer questions about how small businesses should be supported and what to expect in the coming year.

Q: What is the top challenge facing small businesses in the coming year?

Owning a small business today is significantly different than it was 25 years ago. Life has become more complex, which means more risks for a business owner. Data breaches, importing and exporting goods through online markets, leasing equipment, evolving, changing regulatory environment and using independent contractors are just a few examples of newer exposures that small businesses have that require unique expertise beyond basic insurance coverage.

Q: What is one technology trend small businesses should be embracing going into 2019?

With small businesses conducting more business transactions online than ever before, business owners have to be more aware of the types of customer information they are collecting. While technology enhancements bring more ease and convenience, they also bring more data-related risks. We always recommend small businesses have cyber security protections in place to ensure they are able to respond if faced with a data breach. Many insurance solutions can help small businesses manage these risks providing valuable coverages and services to address a wide range of risks.

Q: Small business owners are often tied up with so many different responsibilities that take time away from their core competencies. What aspects of their business do you recommend them outsourcing, and what aspects do you think they should keep in-house?

Business owners know they need to plan strategic initiatives and source financing well in advance to ensure the success of their businesses. In the event of a loss to their small business, owners want to make sure they are properly covered in this complex business environment. We see the best business owners assembling teams of experts to help them plan. By tapping into specialists like lawyers, financial planners and insurance agents, business owners can focus on running and building their businesses, testing new products and services, researching new trends, or building new capabilities that will help drive their future success.

Q: What’s a recent trend you believe will continue to impact small businesses into the new year?

The Hanover recently conducted a study with Forbes Insights surveying small business owners. Our research showed that cyber and data breach claims continue to be a top concern for small business owners. It’s more important than ever to consult outside expertise and develop a plan to manage a data breach in the event one is to occur. And by partnering with their independent insurance agent, business owners can be sure they not only have the right insurance protection but also have access to risk management services to help plan, prevent or mitigate losses.

Q: What is your company doing to support small businesses?

We understand that no day is the same for a small business owner and flexibility is important. We continue to invest in insurance solutions to keep up with evolving risks small businesses face and align digital solutions for enhanced customer service. Working with leading independent insurance agents, we offer our small business clients insurance expertise, counsel and essential protection so they may focus more of their energies on their businesses. We also offer valuable complimentary and discounted services for business owners, such as background checks, worker safety training and business continuity planning.

About the author
Michael R. Keane serves as president, core commercial at The Hanover. In this role, he leads the company's core commercial businesses, which includes small commercial, middle market and technology. With more than 20 years of experience in the insurance industry, Michael's strong industry acumen has made him a proven leader in the property and casualty space.

When employees go out on a covered disability or medical leave, employers have a legal obligation to help them return to work. However, many of these situations are complicated. Following best practices can help employees return to work — and avoid costly and time-consuming employee disability discrimination lawsuits.

California, a state with some of the nation's strictest employment regulations, recommends taking these steps to getting an injured or ill worker back on the job.¹

1. Contact the employee on a covered leave in a timely fashion. Explain the company's leave policy and provide any forms the employee may need to complete. While the employee is out, stay in touch, respectfully letting the person know the company is available to answer questions.
2. Discuss with the employee the "essential functions" of the job. This will help put in place a plan to cover the employee's absence while also better understanding what accommodations the employee may need when returning to work. Suggest to the employee that this information be shared with the medical professional overseeing treatment. This list of tasks will aid the physician in determining when the person may safely return to work and if accommodations will be needed. "When in doubt, reach out," recommends Eric Marler from The Hanover Insurance Group's management liability claims team. "Proactively communicating with employees using trackable methods such as email and certified mail is an easy, but effective, way for employers to protect themselves against employee disability discrimination cases. Courts want to see that employers engaged in a timely, good faith, interactive process to help employees successfully return to work. And, in our claims experience, written documentation often plays a key role in resolving these matters and in some cases influencing the settlement amount."
3. Obtain documentation, such as work capacities and restrictions from the employee's medical care provider and be ready to make reasonable accommodations to help the employee return to work. Examples of reasonable accommodations include, allowing time off for follow-up medical appointments, providing new equipment, restructuring responsibilities to those that are safe for the employee and considering a part-time schedule. For additional guidelines about reasonable accommodations, visit the Equal Employment Opportunity Commission.
4. Implement and assess accommodations once the employee returns to work to be sure the return-to-work plan is successful, is continuing to help the employee recover and no additional accommodations are needed.
5. Institute an official return-to-work program. Our return-to-work program toolkit provides sample forms, guidelines, a checklist and more to help get you started.

Employee disability discrimination claims are the third most common cause of complaints or suits filed with the EEOC.

Back to work is a win-win

Getting employees back to work safely, in a timely manner and in accordance with federal and state laws is a win-win. Employees preserve their full earning capacity while employers retain the employees experience and productivity, and are less likely to be involved in an employee disability discrimination claim or lawsuit.

Sources:

¹ Helping Injured Employees Return to Work, California Department of Industrial Relations