Rich Hauswirth, Insurance Champion

I’m fortunate enough to have many close friends who are owners of insurance agencies around the country as well as in Canada.  We’re members of different agents associations and meet more frequently than Margareth would like me to.  We meet to discuss the challenges and opportunities we each face on a daily basis and to compare notes on what is happening in the insurance markets and in risk management overall.

One of my broker friends’ told me recently how he helped to resolve an issue with a business client who was dealing with some excessive claims and associated costs.  He became the clients’ “Champion”.  He reviewed the problems associated with the business made some recommendations and was able to mitigate the amount of the claims.  He was the hero of the hour; he saved his client literally thousands of dollars.

When I think about it, that’s what we do for our customers at Hauswirth & Sons Insurance, each and every day.  We help resolve problems our clients have with what they want to protect.

Each and every day, the computer animated lizard or Flo the grocery girl tells you how much you can save on your car insurance.  Financier Warren Buffet the Chairman of Berkshire-Hathaway, owns Geico Insurance.  Do you really think that Buffet doesn’t have a “team” of risk managers or “Champions” helping him and his company to manage what they own? Of course he does.

All of our protection team members hold a New Jersey Insurance license.  We are obliged by law to attend a minimum of 12 classroom hours of continuing education per year.  Rest assured we attend much more than 12 hours just to stay current.

Unlike the 1-800 Insurance people, Hauswirth & Sons are experienced to help you and your family navigate the confusing maze of today’s insurance jungle.  As your Champion, our staff can transform confusing, frustrating insurance related problems into workable, affordable solutions for you and your loved ones.

We hope that we can show you that we will go that extra mile to earn and keep your business, help you to choose the right insurance product and assist you in understanding complex and confusing insurance information.

How can the Protection team at Hauswirth & Sons Insurance help you today?

Rich & Margareth Hauswirth on Insuring an In-Home Business

It has been estimated that over 300 entrepreneurs are operating an in–home business in Lacey Township alone. An in-home business can be a source of considerable pride, not to mention that it is convenient – the commute is wonderful –   and you get to work for the best boss one could have, yourself.

As a major source of financial security for you and your family, the business  can be one of your greatest assets. Unfortunately, there are risks to working from home.  While you don’t work in a traditional office, the business you run out of your home is really no different than any other business.  Your in-home business faces no shortage of potential disasters: fire, flood, theft, equipment breakdown as well as lawsuits from disgruntled or injured customers and     possibly employees.

First you need to know something a lot of people don’t know about operating this type of business.  Your homeowners insurance does NOT provide coverage for the potential disasters that could impair or shut down your business. Yes, your homeowner’s policy may provide some coverage for computer equipment in your home, usually a maximum of $2,500.  However, if you are sued because of your home based business activities, your homeowner’s policy will NOT protect you.

When some entrepreneurs think about how to start home businesses, the last thing they think of is “Am I insured for this?”

At  Hauswirth and Sons  Insurance we have a special policy for insuring an  in-home business—including tutors, teachers, bookkeeping services, car detailers, party planners, travel agents, adjusters, and more.

A  Home Business Insurance policy includes:

• Coverage for theft or damage to your business property (inventory and equipment!)
• Liability coverage for clients visiting your home on business.
• Liability coverage away from home if others’ property is damaged.
• Liability coverage at a an exhibition or show.
• Up to $1,000,000 in business general liability coverage, both on and off the residence premises.
• Up to $100,000 in business personal property (BPP) limits for protection at home and while temporarily off premises. (up to $50,000 BPP in other states).
• A standard $250 deductible.
• Up to $5,000 per person for medical payments to customers or vendors injured on your premises.
• Optional coverage’s for money and securities.
• Premiums starting at just  $150 for certain  classes of business.

If you  have an in home business or are considering starting one, make sure you call us to help you protect your home and business.

Call us for a Free Quote – 877-329-3261

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Welcome to the 2011 Hurricane Season!

Today begins the official 2011 hurricane season and all that is involved.  Needless to say, there are predictions of increased activity and at the same time Congress is still wondering what to do with flood insurance.  My article is about current flood changes already in the works.

Suffice it to say that our weather patterns are changing and the federal government is looking to find ways to help finance the National Flood Insurance Program.  Recent storms have left the program in serious debt and in order to continue with the flood insurance program the NFIP will have to find ways to increase premiums or spread the cost over a larger group of people, or both.

So a few years back, the National Flood Insurance Program began revising the maps along coastal areas for what will be “new” flood hazard zones.  In essence, they are expanding the existing territories where flood insurance is mandated by banks and other lenders.

Areas in Monmouth County are currently going through this process and within the next 12 months this process will be commencing in Ocean County with Atlantic and Cape May to follow.

WHAT DOES THIS MEAN TO YOU?

Many homes that are not currently in the Special Flood Hazard Area  (but are  in a zone B, C or X which is near the Special Flood Hazard Area) will likely be re-classified into a  new flood hazard zone on the revised maps. Ocean County will start seeing these changes during the year 2012. Do not be surprised when your  bank or mortgage company  notifies you that to be in compliance with your mortgage agreement, you will  now be required to obtain a flood insurance policy to cover the amount of your loan.

In the past we have told you that we are ALL in a flood zone, some more hazardous than others.  All   areas are eligible for flood insurance – but rest assured the premiums vary significantly! If you are in a less  hazardous zone, you can purchase preferred flood insurance at less expensive rates.  What the government is  proposing is a program allowing you to buy in now at a discounted rate before the maps change.   Folks in a these areas,  who choose to purchase a preferred flood insurance policy now, will be “grandfathered” into a less expensive flood zone in the future. You could potentially   save you thousands of dollars over the course of home ownership.

All of this is very confusing.  And of course, the rules are changing and as of the date that I write this article, the flood insurance program is set to expire on September 30, 2011.  The US Senate and the House of Representatives are close to a five year agreement but these changes to the map regulations are still in the works.

We strongly urge you to call us and discuss your individual situation, as to where your home is located and how these changes may affect you personally.

In May 2009, Carvajal, who has a family practice in Hollywood, Fla., ate at Houston’s in North Miami Beach. He ordered the grilled artichokes special, which is a vegetable he has “never seen nor heard of previously,” Caravajal claimed in the suit.

The suit alleges that the server “failed to explain the proper method of consuming an artichoke” including that the “outside portion of the leaf should not be eaten; rather, only the inside portion of the leaf was safely digestible.”

Carajal stated that he suffered severe abdominal pain and discomfort, and went to the hospital where an “exploratory laparotomy” revealed artichoke leaves lodged in his bowel. He lists “disability, disfigurement, mental anguish” and “loss of capacity for the enjoyment of life” as a result of eating the entire artichoke.

The article appeared this morning on CNN.  So as you might imagine, several people have e-mailed CNN asking why the good doctor didn’t ask how to consume the food item while others have indicated they are happy he didn’t order a lobster.

At Hauswirth & Sons Insurance, we make a market in writing restaurant insurance and yes, this would be covered under a restaurant insurance policy.  I’m sure the good doctor has been the butt of many jokes and has most likely lost his appetite for artichokes.

Geri Baier Customer Service Agent

Did you know?  Any lapse in your insurance can be very costly to you?  Never ignore a cancellation notice on your homeowners especially if your bank should be paying the premium.  It is important that you contact the MORTGAGE Company to make sure they have sent in your premium.   Many companies are not allowing us to REWRITE or REINSTATE policies in certain areas once they have cancelled.

Also, please be aware that insurance companies do consider your payment history.  If you always wait to pay your auto insurance invoice when you get the INTENT TO CANCEL letter, you may discover that your renewal premium on your auto is substantially higher.  Anyone can misplace a bill once or even twice, but insurance companies really frown on people who always pay late.

Business Insurance may not be enough. You Need A Disaster Plan!

Let’s play “what if” for a moment. What if your business faces an emergency—flooding, a power outage, fire, a hurricane—today?  How well prepared are you to face an emergency?

Unless your answer to the last question is “very,” you need an emergency plan and supplies.  Unfortunately, many businesses found this out the hard way last year with all of the hurricanes.  Fortunately, it doesn’t take much time or cost much money to create a plan and buy the supplies you need.

Your Emergency Plan

Your employees need to know how to evacuate the building on very short notice. Also, at least two people on your staff should know CPR and be familiar with basic first aid.  Be sure you review your emergency plan—evacuation procedure, etc.—with your staff at least every six months.

Keep a List of Emergency Phone Numbers

As part of your emergency plan you should compile a list of key telephone numbers and post the list in prominent places throughout your company. Your list should have the following numbers:

• Local fire department and police department
• Nearest hospital and ambulance service
• Building security and manager
• Insurance agent
• Utility companies
• Red Cross and Federal Emergency Management Agency (FEMA)
• Small Business Administration
• Local media (to assure your customers that you are still in business)

Emergency Supplies: Have These on Hand!

You should have smoke detectors, which need to be tested periodically, fire extinguishers, burglar alarms, locks on every door, and NOAA weather radios. In addition, you should consider purchasing a multi-KV generator to use when there is a power outage. The generator should be pre-wired to the building’s essential electrical current.

Finally, you should have a disaster kit, which costs less than $100 to assemble. The kit should include the following:

• First-aid kit and blankets
• Flashlights and batteries
• Pencils and pens
• Paper Towels and waterproof plastic bags
• Camera loaded with film and extra film
• Tool kit (at least: wrenches, socket set, gloves, crowbar, screw drivers)
• Bottled water and nonperishable food

Rich Hauswirth, CIC, CPIA Ocean County's Leading Bond Underwriter

Lately, we are seeing a lot of people come to us for a fidelity bond for an estate.  It is a common occurrence and our staff is well versed on the subject of writing bonds for estates.

In Ocean County, as in many other counties in New Jersey, if an individual passes away without a Last Will and Testament, the court can appoint an individual to be the “ Administrator” and over see the disposition of the individual’s assets according to law.  That administrator will have to obtain an administrator’s bond for the full value of the estate and maintain the bond until the estate is settled.

However, consider this:  These bonds are expensive and will be paid for out of the estate proceeds.  The State of New Jersey will decide on who will get the assets of an estate if the individual dies without a will.  And finally, obtaining a Last Will and Testament is easy and can be written so that the executor of a will may not have to be bonded at all and the person’s assets can be divided as the individual sees fit.  Our office deals with many lawyers in the area that can help you draw up a will to suit your needs.

Ranked chronologically they are:

1. 9/11/2001 Terrorist Attacks
2. SARS 2003
3. 2003 US/Canada power outage
4. 2004 Indian Ocean Earthquake and Tsunami
5. Hurricanes Katrina, Rita and Wilma of 2005
6. Financial crisis 2008
7. China Earthquake 2008
8. H 1 N 1 Pandemic of 2009
9. Iceland Volcano eruption of 2010

10.  European and Pakistan floods 2010

Rich Hauswirth

Take out your cell phone or other wireless device and read the last text message you received out loud. Now, ask yourself the question: “would reading this message or responding to it from behind the wheel of a moving vehicle be worth the risk of getting into an accident or worse?” Chances are, it could wait!
That’s what corporate America is saying to its employees who drive company owned vehicles or use their personal vehicles for company business. In fact as a result of a recent accident settlement, a Fortune 500 company told their own employees to turn off ALL personal electronic devices while driving, PERIOD!
A recent court case involved an employee using a company owned cell phone while driving down a highway. The employee was texting and according to police records, the driver did not even see that there was a traffic slow down and hit the car in front. The collision pushed the vehicle into the ditch on the right side of the road, overturning it so that the driver’s side hit and then slid along the roadway — with the driver’s arm trapped between the door and the asphalt. Medical complications eventually forced the injured driver, a widowed mother of four, to have her arm amputated almost up to the shoulder. Police records also revealed that the employee had set her cruise control at 77 miles per hour — in a 70 mph speed zone.
The fact that the company employee was texting on the cell phone and was exceeding the speed limit allowed the lawyers to seek punitive damages in the suit. What’s interesting to note here is that the courts are finding the employer of the person “texting” just as much at fault as the individual who was driving. The settlement in this case amounted to $5.2 Million.
Various State Bar Associations are showing settlements which have recently been as high as $15 to $20 million dollars where accidents involved “texting” and consistent cell phone use. Katherine L. McArthur, a practicing attorney in the State of Georgia and spokesperson for the Georgia Bar Association said she has seen studies showing that cell phone use while driving may actually cause drivers to exhibit greater impairments than those who are legally intoxicated. She also cited statistics from Human Factors, the journal of the Human Factors and Ergonomics Society, indicating that cell phone distraction causes 2,600 deaths and 300,000 injuries in the United States each year.
As of December 30, 2009, federal employees have been banned from texting while driving government-owned vehicles or with government-owned equipment following an executive order signed by President Obama. In Addition, the latest in a series of actions to curb distracted driving, the U.S. Department of Transportation (DOT) has announced it is prohibiting truck and bus drivers from sending text messages while operating commercial vehicles. The ban, which is effective immediately, means that truck and bus drivers who text while driving commercial vehicles may be subject to civil or criminal penalties of up to $2,750, the DOT said