Whether a Rolex watch, an engagement ring or grandma’s authentic art deco earrings, it’s important to have insurance to protect your jewelry’s value.

Jewelry is one of the world’s oldest archaeological artifacts, having been used for centuries across cultures to mark social status, store wealth and symbolize personal meaning.

In the 21st century, it’s common to own designer jewelry collections, engagement and wedding rings, and antique heirlooms. Whether a Rolex watch, an engagement ring or grandma’s authentic art deco earrings, it’s important to have insurance to protect your jewelry’s value.

Why insure jewelry?

Jewelry is covered under most homeowners and renters insurance policies, but many have exclusions and coverage limits. A basic policy may have limits as low as $1,500. While theft is typically a covered peril, damage or accidental loss may not be.

A jewelry rider (floater) or specialty jewelry insurance policy can offer added protection. Coverage is more comprehensive and normally insures the replacement value. This may involve an appraisal.

Additionally, jewelry insurance often offers coverage for “disappearances,” or losses where the timeline cannot be reconstructed, as well as worldwide travel coverage for loss or damage. That means if you lose your diamond earring while swimming in the ocean in Bora Bora, a specialty jewelry policy will keep you from ugly-crying over the loss.

How to protect jewelry

Even with a jewelry policy in place, it’s important to keep your items safe.

• Store them securely. Keeping jewelry in a home safe may feel more secure than shoving it in the bottom of the sock drawer, but many retail safes can be just as insecure. Thieves can easily lift a lightweight safe and chuck it down the stairs or out the window and make a run with it. Instead, use a heavy, well-made safe bolted into the wall or floor in a hidden area on a lower level of the home. The investment in a high-quality safe can be worth its weight in all your gold for the protection it offers.
• Take precautions when traveling. Speaking of safes, when traveling, assess the hotel room safe before putting items in it. While the safest place for jewelry when you’re traveling is to keep it at home, if the room safe doesn’t seem up to snuff, try asking hotel staff to keep items in the hotel’s master safe.
• Regular upkeep is key. Of course, jewelry isn’t much fun when it’s always locked away and out of sight. It is meant to be worn after all, but before you sport it out and about, inspect pieces to ensure clasps work and prongs are keeping stones in place. Make sure jewelry can’t break easily or fall off before heading out the door. This is especially important for older, antique pieces or heirlooms that have passed through many hands.
• Don’t flaunt it. Not everyone can tell if your Tiffany & Co. piece is designer or not — and that’s a good thing. When traveling with jewelry, avoid transporting items in branded containers (like that iconic blue box). When having a piece repaired or altered, try bringing it to the jeweler it was purchased from to limit how many people know about the piece.
• Keep appraisals up to date. The only thing worse than a jewelry loss might be not receiving proper compensation for it. Specialty insurers typically cover jewelry for up to 150% of the value. Have jewelry appraised to ensure it’s covered for the right amount.
• Stay on top of jewelry inflation. To account for jewelry inflation, appraisals should be updated at least every three to five years. Appraisals should be conducted and verified by a professional. Documentation verifying authenticity, photos and any related receipts should also be saved to ensure proper valuation.
• Jewelry insurance isn’t one and done. It’s important to reevaluate your jewelry insurance policy. Every year, take an inventory of all your jewelry. Then contact your agent for a policy review.

Jewelry should be worn and stored in the safest ways possible. Talk to your insurance agent about your best options for loss protection. Full replacement of your jewelry set in the event of a loss will keep you looking like a million!

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2021 Applied Systems, Inc. All rights reserved.

Identifying Your Business Risk Liabilities

Construction is a high-risk business, from the types of work being done to the financial uncertainty of payments and potential for lawsuits. Insurers and surety companies view risk in terms of exposure to possible losses. Some losses have a higher probability of occurring than others, and some will have greater consequences for your business.

What are the risk categories to consider?

When identifying and analyzing risk, it’s helpful to see how risks fit into categories. Here are some you should consider as you begin to identify your own project risks. Use this checklist to look at your construction business through a risk liability lens.

• Technical risks — poor design, insufficient site investigation, inadequate specifications or unavailability of materials
• Logistical risks — lack of equipment, spare parts, fuel, labor or transportation
• Construction risks — uncertainty of supplies, worksite injuries and accidents, negligence, construction defects, and weather and seasonal uncertainty
• Contractual risks — legal and regulatory issues, and contract and labor disputes
• Financial risks — cost escalation, delays in payment, rising interest rates, lack of sales or unmanaged growth
• Project risks — improper management, inadequate allocation of resources, and unrealistic schedules or schedule changes
• Political risks — zoning disputes, lack of funding for public projects or political unrest
• Competitive risks — pressure to underbid a competitor, lack of profitability or being overextended
• Ethical risks — pressure to engage in political games or win bids using questionable tactics that could put current and future contract engagements at risk

Categories and sub-categories of risk

Now that you’ve made notes on the categories of risk for your construction business, take the next step. Write down your risk areas and organize them. This checklist will help you identify specific liabilities.

• Write a description of each risk.
• What’s the likelihood that the risk will occur (low, medium, high)?
• What’s the potential impact on your business (low, medium, high)?
• How would the risk affect your workers or subcontractors?
• How would it affect scheduling?
• How would it affect the quality of materials?
• What about the safety of the job site?
• What actions can be taken to mitigate the risk (options to correct or transfer the risk elsewhere)?
• What are the early warning signs of liability (several recurring accidents, invoices rarely go out on time, contracts are incorrect)?
• What methods would be used to communicate the risk, once recognized?
• Who owns the risk category and what methods are used to handle risks previously reported to the owner?
• What contingency plans or written guides are in place?
• How are the steps of the written plan communicated (formal training)?

Consider how critical each of these areas is to the success of the job. You may and it helpful to create a table that lists each project area and its relative importance (low, medium, high).

Sample risk exposure and business impact assessment

Once you’ve figured out the risks, liabilities, and potential business impact, move on to assembling a risk management team to figure out the details of your risk management plan. Use a risk management team checklist to help you and your team develop your plan. For more information on OneGroup’s risk management capabilities, click here.

If you have any questions, please feel free to reach out at your convenience.

For more information please contact Brett Findlay, Vice President Business Risk Specialist at (315) 280-6376 or BFindlay@OneGroup.com

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2020 Applied Systems, Inc. All rights reserved.

Insurance aims to transfer risk from one party to another, typically from a business or individual to an insurance company.

Risk can be anything from a fire destroying your property to the death of a business partner. Insurance aims to transfer risk from one party to another, typically from a business or individual to an insurance company.

While any business requires a degree of risk-taking, the real question is whether you can afford to take on the liability of specific risks. A risk that is outside your experience wheelhouse, or could cause a catastrophic loss, poses a higher probability of financial ruin to your business.

Some activities, events or services can put you at a greater risk for financial loss. These include:

• Construction projects
• Manufacturing operations
• Lease agreements
• Real estate managers
• Professional services
• Third-party service providers and subcontractors
• Venture capitalists and investments
• Business startups
• Mergers and acquisitions
• Suppliers
• Vendors
• Technology

What is a CRT?

Contractual Risk Transfer is a legally binding way to transfer risk from one party to another. CRTs identify problematic business risks and transfer those risks from one business to another using a written agreement. Usually, the business most qualified to handle or control the risk assumes the financial and legal risk of liability associated with the operation or exposure.

CRTs can help offset insurance costs and create a trust bond between the companies doing business. CRTs put known risk on the table and divide it in a way that makes both businesses feel comfortable.

What is the function of a contractual risk agreement?

It is intended to legally transfer the risk of financial loss, bodily injury or property damage to the responsible party. This helps your business avoid paying to the negligence of others that may cause a lawsuit against your business.

Insurance companies tend to shy away from operations and exposures to you or your business that you cannot always control. These typically include services and activities mentioned above such as leasing properties you own, hiring contractors, hiring service providers, working with vendors and suppliers, etc. These activities create hazards/risks to your operations that the insurance carrier may not want to insure or if they are willing to insure, may result in higher premiums due to the increase in exposure to loss. Having a written agreement with these parties to contractually transfer the risk of loss to these other parties will make your business more favorable to your insurance carrier.

Walkway injury: a CRT example

An assisted living residential facility houses elderly residents in a sizeable apartment-style building. The facility hires a third-party maintenance service to handle its landscaping, including walkway and driveway maintenance. The housing staff can’t oversee or inspect the daily landscaping and walkway maintenance. They won’t know if there are immediate hazards on the property, leaving them open to liability.

The facility and the maintenance service enter into a contractual risk agreement that transfers the outdoor maintenance liability from the facility to the maintenance company. The maintenance service promises a specific standard of care and holds the facility harmless if there is a lawsuit. More importantly, they agree to provide defense and indemnification to the facility if the facility is sued for the acts, omissions or negligence of the maintenance service in performing these services.

Later in the year, one of the residents slips and falls on the sidewalk during a visit. The family sues the facility for poor walkway maintenance. The facility’s liability passes to the third-party maintenance service, leaving them with less risk to defend against.

An experienced lawyer specializing in business contracts and risk mitigation can help you draft a CRT agreement like the one in this example.

Who needs CRT protection?

A CRT can be an invaluable tool for most businesses, especially in high-risk operations or when there’s a reliance on third-party service providers. Making sure you’re not responsible for oversights or errors made by a service provider (like in the maintenance service example) can help protect your company from liability outside of your control.

A contract that clearly defines the scope of work and which party is responsible for the hazards associated with the work, could save your business time and expenses in litigation. It could even save your working relationship with that vendor or provider. Being upfront and clear about who’s willing to take on specific risks before they are part of a lawsuit makes the path to a settlement much more manageable.

CRTs are prevalent in the high-risk construction industry. But as insurance markets harden and nuclear verdicts become more commonplace, CRTs are becoming more important in other industry sectors.

What’s in a CRT?

An average risk transfer agreement usually includes the following:

• A hold harmless agreement or indemnification clause outlining each party’s responsibilities, including a duty to defend in court if negligence, personal injury or a property damage lawsuit arises
• An insurance procurement clause that specifies who is responsible for obtaining insurance, including the policy types, limits and duration
• A waiver of subrogation clause stating that if the other party’s insurance policy pays a claim related to your business liability, their insurance company waives the right to sue you to recoup damages, even if you were partially responsible
• An additional insured clause stating the other party’s liability insurance policy will name you as an additional insured on a primary and non-contributing basis for that “other party’s” negligence. Being listed on their policy offers some benefits, like a duty to defend clause in a lawsuit.

CRT considerations

Involve a seasoned contract attorney familiar with your state laws and industry risks. They’ll answer your questions and help protect your business interests before you enter into any signed agreements.

• Avoid overly broad agreements.
• Specify the scope of work and each party’s responsibilities.
• Verify that your contract language complies with your state laws. (A local court could void improper contract language, leaving you responsible. This is especially important when businesses are located in different states.)
• Confirm your state laws regarding negligence and fault. (Some states do not allow you to transfer losses that are partly your fault.)

Ask your insurance agent to review the other company’s insurance policy to ensure adequate coverage. It doesn’t help to be named as an additional insured on an insurance policy that doesn’t afford proper protection.

Call for advice — before you sign

CRTs don’t replace insurance; they supplement insurance programs and help solve some of your trickier risks. If you think a CRT might be a solution for your business, contact the risk trio: your insurance agent, lawyer and accountant. They can offer a comprehensive view of how a CRT could affect your financial, tax and legal liability.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2023 Applied Systems, Inc. All rights reserved.

One of the joys of winter for many people is the thrill of snowmobile adventures.

But accidents can happen to even the most careful sled drivers. Make sure you have adequate insurance to cover the costs of any potential damage or injuries.

Snowmobiling can be an exhilarating but risky winter sport. Today’s high-powered machines can weigh as much as 600 pounds, reach speeds as high as 200 miles per hour and cost well over $10,000. Property damage and injuries from snowmobiling accidents can be severe.

Snowmobiles aren’t usually included under your homeowners or auto insurance policy, so you will likely need separate coverage.

Policies can provide coverage for damages to the machine and personal injury, as well as your legal liability if you’re responsible for another person’s injuries or property damage.

Liability coverage

Some states require you to have liability insurance for your snowmobile, which helps cover costs if you damage someone else’s property or injure someone else in an accident. Even if your state doesn’t require this coverage, it’s a good idea to have it.

The amount of coverage depends on the limits you set when you buy your policy. Minimum liability coverage may be sufficient if an accident doesn’t involve serious injuries or extensive property damage.

But if the costs of the accident exceed your coverage limits, you’ll be responsible for paying the rest out of your own pocket. An umbrella policy can provide additional coverage beyond the limits of your existing policies.  

Collision coverage

Collision coverage helps pay for the cost of repairs if you damage your snowmobile in an accident, whether you hit a rock or collide with another snowmobile on the trail.

Comprehensive coverage

Comprehensive coverage can help pay for repairs or replacement if your sled is stolen or damaged by something other than a collision. Covered risks may include sinking through the ice on a frozen lake or river, along with:

• Fire
• Hail
• Hitting an animal
• Smoke
• Theft
• Vandalism
• Damage from a falling object

Additional optional coverages

You may want to consider several additional kinds of insurance for your snowmobile, including but not limited to the following:

• Accessories and custom parts/equipment. Accessory coverage is for items or extra equipment installed on the snowmobile that weren’t factory installed, like windshields, special paint, engine performance equipment, skid plates, storage bags or GPS, and safety apparel like helmets.
• Medical payments. Medical coverage pays for hospital bills, regardless of fault, if you, your passengers, or anyone involved in a snowmobile accident is injured.
• Roadside assistance. If you get stranded on the trail due to a dead battery, mechanical problem or other issue, roadside assistance coverage lets you call for help and hitch a ride to the nearest repair facility, at no cost to you.
• Transport trailer. If the trailer you use to haul your snowmobile is damaged, stolen or totaled, repairing it or buying a new one could set you back financially. Investing in trailer insurance can protect you from this expense.
• Uninsured/underinsured motorist bodily injury and/or property damage. This type of coverage protects you or someone riding your snowmobile for bodily injury, property damage and financial loss resulting from some other snowmobiler who hits you and has no insurance or liability limits less than your own policy.

Cost

The cost of insurance for your snowmobile varies depending on the coverage you buy and the type of machine you drive, as well as where you live and ride and some other factors.

Reach out to your insurance professional for more information about your snowmobile insurance options so you can be sure to get the right type and level of coverage.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2020 Applied Systems, Inc. All rights reserved.

Business interruption insurance is a type of coverage that can offer peace of mind if your business has to close due to a catastrophic event.

Although it’s not a policy that can be purchased separately, it can be added to your property insurance or business owners policy.

Planning for the unexpected

2 AM, the phone rings, a fire has erupted at your place of business. As you drive to the scene of the event, your mind is racing and your heart is thumping. Oh, that sinking feeling. Four years of investing and non-stop working to make that business into something good, and now this happens! Just as you’ve landed the biggest order of your career.

It’s disastrous, sure, but that disaster doesn’t have to spell the end of your business. That’s why you need to plan for the unexpected.

Your commercial property insurance or business owners policy will work wonders, by fixing the damage and replacing the lost property in record time. By record time, think in terms of weeks, not days, hours or minutes. Any major disaster will make it impossible for you and your employees to remain on the premises as the repairs are underway. To stay in business, to pay your bills and your employees, you’ll need to get (or make sure you have) business interruption insurance.

Disaster recovered

Property insurance primarily covers your building and the assets within it. What you need right now is to cover your missing revenue and your other business related expenses.

Business interruption insurance covers:

• Lost Income: Profits you would’ve earned during the interruption
• Rent or lease payments: Payments owed to your landlord on your damaged location
• Temporary relocation: Costs associated with moving to and renting a new location
• Employee payroll: Wages for your workers
• Taxes: Federal or local taxes that are due
• Loan payments: Outstanding payments due to creditors
• Losses caused by damage that prevents access to your building: Missing income due to authorities imposing curfews or evacuations in the area where your business is located

Without business interruption insurance, you could be faced with the difficult decision to rent a temporary worksite or permanently close your doors. 40% of businesses don’t reopen after a disaster, and another 25% fail within a year according to the Federal Emergency Management Agency (FEMA.)

Coverage eligibility

There are factors that can impact your eligibility for a business interruption policy. If your business is strictly home based, you may not qualify for coverage. The following can also impact eligibility:

• Industry or classification
• Previous claims
• Location

You’ve invested so much into building your business. It’s important to protect your investment and business interruption insurance can give you that added security to keep your business running for many years to come.

Don’t forget to review your policies periodically with your insurance broker as your business evolves to ensure you always have the right coverages in place.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2019 Applied Systems, Inc. All rights reserved.

As the weather gets colder, driving conditions become difficult. Follow these tips to stay safe while you’re driving on ice and snow this winter season.

Driving in snow and ice requires quick reflexes, patience and a little bit of know-how.

If you can’t avoid driving in wintry conditions, make sure you and your vehicle are both ready for the challenge. Also, try to time your trip so that you follow snowplows and ice/sand trucks rather than leading the way.

Do you have the right tires?

Worn tires are particularly dangerous on slippery roads. You may want to consider winter tires if you live in an area where driving in ice and snow is a regular occurrence rather than simply a once-in-a-while event.

According to Edmunds, winter tires are specially designed to stay pliable and grippy at lower temperatures but need to be replaced far sooner than standard tires: They “have lost almost all of their capability” when they are down to a tread depth of 6/32-inch.

Safety tips

Here are 15 winter driving tips to keep in mind:

• Take a few minutes to fully clear your car of ice and snow before starting off. Not only will you have better visibility, but it’s also the law in some places. Motorists have been seriously hurt and even killed in accidents caused by chunks of ice and snow flying off other vehicles at high speeds.
• Drive slowly and leave yourself enough room to safely stop. Increase your following distance to six to eight seconds. Also, don’t try to beat out yellow lights.
• Use low gears to maintain traction, especially on hills.
• Don’t use overdrive or cruise control on icy roads.
• Don’t pass snowplows or sand trucks. Take extra care when passing other vehicles on wintry roads.
• Keep your windshield clean and make sure your windshield washer system has ample anti-icing fluid. Before you start your trip, make sure the fluid jets aren’t blocked and that your wipers aren’t frozen to the windshield.
• Defog the inside of your windows by running your air conditioner. You should choose the fresh-air option rather than recirculated air.
• Even during daylight hours, drive with your lights on to increase your visibility. Make sure your headlights and taillights are clean and clear of snow.
• Brake carefully to prevent skidding. If you feel your wheels starting to lock up, gently ease off the brakes rather than slamming down on them.
• Watch out for black ice — a thin, slippery glaze that can make the road appear merely wet or even totally clear and dry, depending on the light.
• Stay in your lane, especially when visibility is poor.
• Be especially careful on bridges, overpasses, off-ramps, shady spots and infrequently traveled roads, which tend to freeze first (refer to the black ice warning above).
• Train yourself to respond properly to skids: If you begin to slide, turn into the direction your rear wheels are sliding. If the back end of your vehicle is sliding to the right, for example, turn your steering wheel to the right. Don’t overcompensate or attempt sudden swerves.
• Keep your gas tank topped up in the wintertime to reduce the amount of water vapor that could potentially condense and sink into your fuel pump and fuel lines. This can block fuel flow to the engine.
• Don’t get overconfident. Even if you drive a lot in poor conditions and have a car with 4-wheel drive and snow tires, accidents still happen. Safe winter drivers must remain alert at all times.

Make sure you have the right insurance to protect you and your vehicle

Before you venture out in adverse weather, know the steps you can take to help make sure you arrive at your destination safely. Also, make sure your auto insurance is up to date. Talk to your insurance agent about your current coverage and discuss any recommended changes to help protect your vehicle (and wallet) from winter hazards.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2019 Applied Systems, Inc. All rights reserved.