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Most of us have said something in the past that we wish we could take back. Years ago, we could hope that once said, the words went no further. These days, your comments can last for years, and be shared among millions. With so many of us using Twitter, Facebook and other social media, ill-advised words and videos can spread at blazing speed.
Hurtful Words Can Be CostlyBullying Facebook updates, accusatory tweets, teasing posts, or videos revealing private information about someone can expose you to liability under slander, libel or invasion of privacy laws. The most recent public example of this is the guilty verdict against the New Jersey college student who posted video of his college roommate, creating ridicule that led to the roommate’s tragic suicide. What if your child was accused of one of these crimes? You may be surprised to find that a standard Maine homeowners insurance policy wouldn’t provide protection for this.
A Small Coverage Addition Makes a Big DifferenceMaine homeowners policies provide liability protection against bodily injury and property damage due to negligence. Damage to someone’s reputation doesn’t fall into either category. That’s why our South Portland Maine Insurance agency recommends that our clients choose Personal Injury coverage. What is Personal injury insurance? It protects you against accusations of slander, libel, defamation of character and invasion of privacy. It can pay the damages in a civil suit, and more important, the legal costs of defense. Personal injury coverage is usually an add-on endorsement. The cost is usually about $25 per year – a bargain for up to $500,000 in protection.
Talk to Your Children About Online BehaviorOf course, the best defense against these kinds of accusations is to stay away from risky behavior. Talk to your children about social media, how they use it and what’s expected of them. Let them know how their behavior could impact their own reputation – not to mention your insurance. Some parents choose to actively monitor their children’s computer activities. Various commercial software programs are available to parents who want to closely monitor what their children’s online activities.
No matter what you choose to do, we should all encourage respectful discourse and behavior – online and “IRL” (In Real Life). For more information about Personal Injury Insurance in Maine, contact a Noyes Hall & Allen agent at 207.799.5541.
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Trends
6 Best Practices to Deal With Maine’s Rising Property Insurance Rates
Most insurance companies doing business in Maine would like to forget 2011. Maine narrowly escaped many of the disasters that plagued other Northeastern states (one Maine insurance executive tells of nervously, repeatedly “refreshing” the online map of Hurricane Irene’s storm track). Still, virtually every insurer was affected because they do business in those neighboring states.
Remember the terrible flooding in Vermont? Hurricane Irene in southern New England? The tornadoes in Central Massachusetts? Widespread power outages from falling snow-covered tree limbs? Insurance companies do. They paid all those claims.
Many people don’t know that insurance companies also buy insurance – called reinsurance – to protect themselves from financial disaster. Reinsurance spreads the cost of risk throughout the world, leveling loss experience. Reinsurance works: despite the recession and the heavy losses, insurance companies remain financially solvent and able to pay claims.
Unfortunately, 2011 set a world record for disasters . Losses were $105 billion, the highest number ever. About 1/3 of those losses, and 4 of the top 10 events, were in the US. That means that reinsurance companies are now increasing the rates that insurance companies pay for property reinsurance. Of course, that translates to higher homeowners and business property rates for you and me. So, what can you do?
6 Ways to Help Offset Rising Property Insurance Costs
- Don’t overinsure. Your Maine business property insurance agent or homeowners insurance agent can help you determine the insurable replacement cost of your property, so you can adjust your protection accordingly.
- Compare rates. There are 2 ways to do this: call around yourself; or consult a Trusted Choice independent insurance agent. This kind of insurance agent represents several insurance companies, and can compare prices and coverage for you.
- Get the discounts you deserve. Don’t pay too much by failing to get the business or homeowners insurance discounts you’ve earned. Have you recently replaced your roof, electrical, heat or other system? Installed an alarm or a generator? All of these improvements may qualify for discounts. Talk to your agent, and ask if there are other discounts available.
- Combine and save. Most insurers give a discount when they insure both your property and vehicles. That goes for business or personal insurance. If you own coastal, seasonal or secondary property, some preferred insurance companies will accept you if they insure your primary home, too. This can rescue you from paying higher non-standard rates with another insurance company.
- Choose deductibles wisely. If you’ve owned your property for a long time, you may have more financial ability to repair small losses (it’s not a good idea to file multiple, small claims anyway). If so, ask your agent how much you could save by increasing your property deductible.
- Maintain your property. It should go without saying, but deferred maintenance leads to claims, and claims lead to higher premiums. Replace your roof or heating system before it causes a loss. Clear leaves from your gutters every fall to prevent ice dams. Regular paint and upkeep can prevent trouble later.
Maine property insurance rates are expected to rise for some time. In times like this, it makes even more sense to develop a relationship with a local agent. In the area of Portland Maine, insurance agents are plentiful. Find one whose professional advice you trust, and who represents many preferred insurance companies. If you have questions about your personal or business property insurance, contact our experienced agents at 207.799.5541.
When an Employee Layoff Goes Bad
Bill runs a café on the West Side. Since a nearby hi-tech facility had a major layoff, lunch business has dropped 25%. In fact, Bill had to let Willie, one of his waiters go last week. Now, Bill’s wife Elaine stands in the kitchen with a concerned expression on her face and an official-looking letter in her hand. Willie hired an attorney and filed a lawsuit alleging wrongful termination and discrimination.
Elaine calls the café’s insurance agent. Good news! Bill & Elaine followed their agent’s recommendation by adding Employment Practices Liability Insurance (EPLI) to their portfolio of coverage last year. When the agent explained that the average cost of defending a groundless lawsuit is $20,000, they knew they couldn’t afford the risk. Their agent explained that the insurance company would respond on their behalf, hire a lawyer if necessary, and pay any damages if they are found liable. Bill and Elaine just avoided a huge expense one that could have forced them to close their business.
Are you smart, like Bill and Elaine? Has your insurance agent recommended EPLI coverage to you? If not, you might consider:
5 Myths About Employment Practices Lawsuits
1. Employee Lawsuits Are Rare
Employment related lawsuits happen more than you think. Six in ten employers in the U.S. have faced an employment-related lawsuit in the past 5 years.
2. Only Large Employers Get Sued For Employment Practices
Nationwide, more than 40% of employment-related practices claims are brought against employers with fewer than 100 employees.
3. Employee Lawsuits Don’t Happen in Maine
Think again. The Maine Human Rights Commission or Maine Workers’ Compensation Board handle more than 800 employment-related practices complaints every year.
4. It’s Covered by Liability or Workers’ Comp Insurance
Unless you have specifically purchased EPLI coverage, the costs of defense or damages are NOT covered by standard Workers Comp, General Liability or Professional Liability insurance policies.
5. EPLI Insurance is Expensive
Depending upon the type of business you operate, Maine Employment-Related Practices Insurance costs as little as $30 per employee per year – or $0.58 per weekly payroll period.
What does EPLI Cover?
- Legal Representation to defend you against claims from current, former or prospective employees, including:
- discrimination (age, sex, disability, race, religion, etc.)
- wrongful termination
- sexual harassment or hostile work environment
- Damages you’re legally obligated to pay.
- Court costs and related expenses.
- Some policies also offer counsel with an employment law professional to help you during the hiring employment and termination process.
If you have employees, your business is at risk. For answers to your Maine employment liability insurance questions or Maine workers compensation insurance questions, call Noyes Hall & Allen at 207-799-5541.
Maine Insurance Dept.: ME Car Insurance Rates Remain Low
Maine drivers pay some of the best auto insurance rates in the U.S., according to this press release from the Maine Insurance Department. While the individual rankings seem to differ from study to study, it’s clear that Maine’s car insurance and motorcycle insurance rates are in the bottom 20%.
Why Are Maine Auto Insurance Rates Low?
A lot of factors go into the rates each of us pays for car insurance or motorcycle insurance. Your location, driving record, the type of vehicle you drive, your age and gender – even your credit score – all play a part. So, it’s impossible to generalize. But, based upon our experience as a Greater Portland Maine independent insurance agency, we have a theory why Mainers pay lower auto insurance rates. We think it has a lot to do with Maine’s culture of responsible behavior. Mainers are less litigious, and more likely to buy insurance themselves, than other Americans. That helps keep insurance rates low for all of us.
How Do Your Maine Auto Insurance Rates Compare?
Insurance companies change their rates and underwriting rules constantly. The only way to tell if you’re paying a good auto insurance rate or motorcycle insurance rate is to compare. Fortunately, we are an independent agency representing many different auto insurance companies. We also represent Progressive and Dairyland, some of the top motorcycle insurers in Maine. We do the shopping for you, and can present multiple quotes at one time. If you want to do your own research first, you can even get Maine car insurance quotes from 5 different companies at once on our web site. There’s no pressure or obligation to buy (although we’re always ready to answer any questions).
If you live in Greater Portland or elsewhere in Southern Maine and have insurance questions, contact Noyes Hall & Allen at 207.799.5541. An experienced local insurance agent is ready to provide personal service.
Recent Law: Texting & Driving Illegal in Maine
As of this week, Maine is the 33rd state to ban texting while driving. The recently enacted law includes a minimum $100 fine for drivers caught sending electronic messages including texts, emails or instant messages from a mobile device. The law stops short of banning hand-held cellphone use by drivers. Several Atlantic states, including Connecticut, New York and New Jersey prohibit drivers from using hand-held devices.
It remains to be seen whether Maine auto insurance rates increase for drivers who are caught texting while driving. More likely, scofflaws may lose Maine Auto Insurance Discounts if their MVR (motor vehicle record) shows a violation.
It’s unclear how Maine commercial vehicle insurance policies might be affected if a business’ fleet drivers are ticketed for texting & driving. In general, commercial underwriters have a higher threshold for violations before surcharging a policy.
If you have questions about your personal auto or business vehicle insurance, contact Noyes Hall & Allen Insurance agency in South Portland at 207-799-5541. You can also request a Maine car insurance quote or a Maine business insurance quote on our web site.
Progressive Snapshot Debuts in Maine. 5 Questions To Ask to See if It’s Right for You
Progressive Insurance’s Snapshot auto insurance discount launches in Maine today, featuring rates up to 30% less than before. Our South Portland, Maine insurance agency has been certified to sell this ground-breaking safe driving and low-mileage auto insurance discount. It features a small device that you install in your vehicle, which monitors your driving habits and may provide an auto insurance discount depending upon the results.
Our March 15 blog post featured a detailed explanation of Progressive’s Snapshot auto insurance discount, along with our opinion about it. We received a lot of compliments about that review, from other agents, vendors – even Progressive itself.
Is it Right For You?
The answers to these 5 questions will probably tell you.
1. Do you avoid driving regularly between midnight and 4am?
2. Do you avoid driving in heavily congested traffic?
3. Do you drive fewer than 8,000 miles a year?
4. Are you a “patient driver” (rarelybrake hard or accelerate rapidly)?
5. Will you plug a device into your car that automatically reports your driving information directly to your insurance company?
If you answered “yes” to 2 or 3 of the first 4 questions, Snapshot may be a good fit for you. If you answered “no” to question 5, forget it; you can only earn Snapshot discounts by installing (and leaving) the device in your vehicle. Remember, Snapshot is optional, and you can choose which of your vehicles you want to enroll in the discount program.
Your Maine Progressive insurance agent can advise you best. If you live in the Portland, Maine auto insurance market, call Noyes Hall & Allen at 207-799-5541. If you’re outside our market area, call your local Progressive agent.
Game Changer: Pay as You Drive Car Insurance in Maine – Is Progressive Snapshot a Good Deal for You?
Let’s face it. Everyone thinks they’re a better-than-average driver. Most people think they drive fewer miles than the norm. And lots of us think that we’re paying too much for insurance because we subsidize those who are more aggressive, less attentive, less responsible drivers than we are. Soon, we will have a chance to put our money where our mouth is.
For years, green organizations like the Better World Club, consumer advocates and transportation planners have called for lower insurance rates for people who drive less than average. Some call it ‘pay as you drive”; others call it “usage-based insurance”.
We’ve been watching this issue for years. We’ve shared our reservations about pay as you drive insurance and its cost – not only in dollars, but in lack of professional advice and lost privacy. While the concept sounded intriguing, we haven’t found a product we were comfortable recommending to our clients.
Until now.
“This is Our iPod”
Progressive Insurance is bringing its Snapshot auto insurance to Maine next month. With this product, they’ve refined the concept and addressed many of the concerns that we identified with the previous generation of usage based insurance.
Progressive says “this is our iPod”, a product that will change the way people buy and use car insurance. With Snapshot, Progressive offers discounts for quantity (driving less) and quality (driving better).
We think that usage-based Maine auto insurance has a good chance to redefine how car insurance is rated, and empower consumers as never before. It rewards safe driving habits by offering car insurance discounts for risk-reducing behaviors such as gradual starts and stops, driving fewer miles, and staying off the roads during the most dangerous hours.
Progressive appears to have respected the line between information gathering and privacy invasion. They’ve also removed the cost uncertainty that concerned us in the first generation product. Finally, they’ve integrated a cool feedback tool that allows drivers to self-monitor and compare their driving to others on the road.
We haven’t been fully briefed on Snapshot auto insurance, but these are some of the coolest rumored features:
Discounts!
Depending on your driving behaviors, you may earn up to a 30% auto insurance discount. You’re eligible for your first discount after 30 days. Your “final” discount will be set after your first 6 month policy term. Because the discount is based upon individual vehicle data, a different discount percentage will probably apply to each of your vehicles.
Voluntary and Flexible
You will be able to choose whether or not you want Snapshot or traditional rating. You’ll even be able to choose which vehicles you want to be rated in Snapshot. Let’s say you drive from South Portland to Augusta every day, but your spouse stays home to care for your toddler. You might choose traditional rating for the commute vehicle, and Snapshot for the other.
Truly Rewards Responsible Behavior
Maybe you’re a safe driving advocate, gas mileage fanatic or carpool rider. Maybe you use public transit or commute by bike. Snapshot is the first Maine car insurance that rewards your green behavior with green in your pocket.
We think that this may lead to safer roads, however marginally at first. Snapshot drivers are likely to try to reduce their car insurance rates by driving less and driving more safely. Who knows, maybe classes like Maine Clean Communities EcoDriving Workshop (offered in April for fleet drivers) will become popular with individuals, too?
Professional Advice
Snapshot is not a good idea for everyone. Because it will be sold by an independent Maine insurance agent, you will be able to talk with a professional about your situation, and determine if it’s a likely fit for you. If it’s not, an independent agent has other options for you.
No Up-front Cost
Unlike the first generation of pay as you drive car insurance, you don’t have to pay for the monitoring equipment. Progressive gives it to you; when your monitoring period (about 6 months) is over, you simply mail it back to them in a prepaid envelope.
Cool Monitoring Tools
You can view your driving data up to the minute online. This just cries for an an update to the Progressive iPhone app. You will be able to see if you are tracking to get a discount within ten days of installing your device. Progressive will report how your driving compares to others. They will report how you drive, when you drive, and how much you drive. You’ll be able to use this feedback to improve your driving – and get a lower car insurance rate.
Sounds Good. What are the Drawbacks?
Privacy Concerns
The devil of this concept has always been in the details of monitoring and reporting. Just what information does Snapshot capture? With whom is it shared? The Snapshot device is not a GPS. It doesn’t record where you drive – only how and when. It records mileage, speed and time driven. It also uses an accelerometer (the way Toyota’s “glass of water” iPhone app does) to measure hard braking and jack rabbit starts. It transmits this information to Progressive via cell signal.
Progressive says they will not share this information with any third parties. But what if their data is subpoenaed following an accident? We have no doubt that the data would be provided. – and possibly become public information. And, while the device doesn’t have a GPS, it does use cellular technology. It’s not too crazy to think that one could identify where your vehicle is or was by what cell tower picked up your Snapshot signal. Whether that’s good or bad might depend on whether you’re trying to recover your stolen car or whether someone accuses you of causing an accident, and reports your license plate number to the police.
Privacy Rights Clearinghouse, a consumer privacy advocacy group, has testified their objections to pay as you drive insurance in the past. The publisher of Privacy Journal also expressed concern in this USA Today article. But as long as Snapshot remains an “opt in only” product, you can simply say no if you think the cost of your lost privacy outweighs the insurance discount.
How Do You Know if You’re a Good Candidate?
Don’t drive much? Have more vehicles than drivers? Have a “toy” for the weekends, or a truck that you only use for yard work and dump runs? Chances are good that usage based insurance will save you money.
Have Questions?
If you live in the Greater Portland area, contact Noyes Hall & Allen Insurance at 799-5541. If you live elsewhere, call your Maine independent agent who sells Progressive products. You can also see Progressive’s Snapshot page for more information.
Is Mold Covered by Maine Homeowners Insurance?
Mold is nasty. It’s hazardous to health, hard to eradicate, and may be undetected for a long time. Even worse, Maine Homeowners Insurance policies provide very little protection against mold damage.
The standard homeowners policy excludes damage from mold, fungus and wet rot. Then, it gives back a small amount of coverage – often $5,000 – for mold damage in very limited cases. Even if the cause of the mold is covered, your policy excludes mold damage unless it was hidden. In other words, you shouldn’t expect much help from your home insurer. And, we know of no other insurance source either.
OUTLINE* OF MOLD COVERAGE UNDER
MAINE HOMEOWNERS POLICIES
Determining how an insurance policy responds – or doesn’t – to mold is tricky, even for experienced local insurance agents. It’s impossible to tell whether you’ll have coverage until an adjuster sees the damage. If you discover mold in your home, contact your local Maine insurance agency to discuss it. They can help you report an insurance claim to your insurer. They can also help explain your policy coverage and exclusions. An agent can also advocate for you if your claim is unfairly denied.
For answers to questions about your home, condo, or Maine business property, contact your agent at Noyes Hall & Allen Insurance at 207-799-5541.
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*This outline is for discussion purposes only, and is not meant to imply or deny coverage. Refer to your policy for actual coverage wording.
Real Claims: Is Your Property Insurance Ready?
In the last week of the year, everyone in the news, sports and entertainment world seems to present a “year in review”. We thought we would look at some of the claims our clients had in 2010. We’ll start with property insurance, in the hopes that it might help you manage risks and make decisions about your own Maine homeowners insurance or business property insurance.
When you report an insurance claim to Noyes Hall & Allen, we categorize them and engage your insurer for proper handling. Here’s a comparison of the property claims we initiated in the past 3 years. They give a good indication of the protection that your insurance provides.
2010 – Four Strong Winds
If wind damaged your home, or tree limbs fell on your property last year, you were in good company. In a typical year, wind claims represent 10% of the total property claims reported to us. In 2010, it was 36%. From February to August to December, the coast of Maine was blasted by unusually strong winds.
2009 – The Water Was Wide
People usually think of fire insurance when they insure their property. But water damage is the most common property insurance claim in Maine. Normally, 35% of homeowners and business property claims report water damage. In 2009, it was almost double that amount. Frozen pipes, leaking pipes, ice dams, toilets, tubs and sinks overflowing – even burst washing machine hoses – are all covered by most Maine insurance policies. We saw them all in 2009. Fortunately, it was a quiet year for claims overall. The clear winter resulted in 15% fewer claims than usual.
2008 – Fire and Rain
Although 2008 brought a normal number of claims, we saw an unusual number of winter fires – typically the most expensive claims – and lightning damage from summer storms. Fire and lightning losses occurred at 3 times the usual rate.
What Deductible Should I Carry?
As these graphs show, property losses happen all too often. This means that you should choose a property deductible carefully. Pick the highest one that you can afford to pay out of pocket in case of a loss, in order to get the best insurance discounts available.
The table below shows the average cost of different types of insurance claims in our agency in 2010. Use this information to help you determine the best deductible for your budget.
For specific advice about your insurance situation, contact your Noyes Hall & Allen agent at 207-799-5541.
Maine Workers’ Compensation Insurance Forecast and Recap
The National Association of Insurance Commissioners (NAIC) recently released their annual report of Workers’ Compensation results, and the picture isn’t pretty.
Payroll Reductions
Maine business insurance agents already know that their clients struggled to balance expenses with revenues reduced by the recession. Between layoffs, furloughs and attrition, reduced payrolls caused U.S. workers’ compensation premiums to drop 11.4% from 2008 to 2009. While a slight reduction in rates caused some of that decrease, most of it was payroll-driven.
New England fared slightly better than average, with a 10.8% decrease. Our state actually did better than New England. Maine workers compensation insurance premiums were 10.2% lower in 2009 than 2008.
Increased Losses
The workers’ compensation loss ratio (losses incurred to premium earned) increased nearly 7% in 2009. Although not uncommon during an economic recession, this is not a positive sign for the health of the workers’ comp insurance market. The New England states’ pure loss ratios were worse than average, at 73.1%. Maine’s pure loss ratio was better than the New England average, but worse than the national average, at 70%.
The Maine Workers’ Comp Forecast
Most insurance analysts believe that the workers’ comp market is in a precarious position. Relatively good loss ratios are deteriorating, and the uncertainty of national health care reform, medical cost increases, and employment and economic growth (or lack thereof) concern underwriters. The result may be upward pressure on Maine workers’ comp rates over the next few years. That’s bad news for employers.
If you have questions about your Maine workers comp experience modification, workplace safety, or workers’ compensation insurance in general, contact Noyes Hall & Allen Insurance at 207-799-5541.