Are You Safe From Employee Lawsuits?

Employment Practices liability continues to be a concern to employers. Litigation costs associated with a constantly increasing number of lawsuits can easily set a company back tens of thousands of dollars per claim.
Allegations typically include discrimination, sexual harassment, wrongful discharge, breach of contract, libel, and slander. These claims can come from current, past, or prospective employees.
Fortunately, Employment Practices Liability insurance is available to protect you from such claims. Please contact us if you would like information about this policy's availability, coverage parameters, and cost. It's important to remember that General Liability insurance does not cover these kinds of employment-related lawsuits.

 For more information, call the office and ask for Dan. 614-459-6500.

Lock Up When You Leave

According to the U.S. Department of Justice's Bureau of Justice Statistics, over 2 million burglaries have been reported each year since 2000. It is predicted that one out of every 10 homes will be burglarized this year.
Over 62% of residential burglaries occur during daylight hours. July is the month with the highest number of burglaries. The fewest are reported in February. By region, the South is home to most burglaries, followed by the West, Midwest and Northeast, and the average loss from a residential burglary is $1,607.
While there are several different ways burglars enter homes, one of the most common means of prevention is the most simple: keeping doors locked. A majority of "break-ins" may be better described as "walk-ins"-- burglary opportunities created by property owners who neglect to lock their doors.
Simply keeping doors locked at all times in the first and most important step in burglary prevention.

Contact us for information on insurance that will cover a "break-in".
614-459-6500. Ask for Dan!

Wear and Tear Exclusion, Mechanical Breakdown Exclusion, and the PAP

Wear and Tear Exclusion, Mechanical Breakdown Exclusion, and the PAP

QUESTION:

                While driving along a country road, the insured lost control of his car and ended up in a ditch. There was no immediate damage to the driver or the car, but our insured burned up his transmission while rocking the car from forward to reverse trying to get out of the ditch.

                The insured argued that the proximate cause of the burned-out transmission was the fact that he lost control and landed in the ditch. Thus, he argued that the damaged transmission should be covered under the policy’s collision peril. Is the burned-out transmission a covered loss under the personal auto policy?

ANSWER:

                Two things are wrong with the insured’s argument. First, there is no question as to whether the car actually collided with anything. After all, there was no damage to the car when it landed in the ditch.

                Assuming a collision, a question remains as to whether the collision was the proximate cause of the burned-out transmission. In this case, it is easy to see that the damage to the transmission as not a natural result of colliding with the ditch. When the car came to rest in the ditch, the insured could have chosen to leave it there and call a tow truck. If he had done so, the damage to the transmission would have been avoided. His decision to rock the car caused the damage independently of any collision.

                The next consideration is whether the transmission damage might be covered under the other than collision coverage of the personal auto policy. This covers any physical damage to the auto that is not defined as collision and is not excluded.

                The wear and tear and mechanical breakdown coverage does not apply here because the transmission damage was caused by the insured’s mistake of rocking the car back and forth. It is similar to an insured not changing their oil and driving their car with the old oil in it. It is not gradual wear and tear; it is the insured’s mistake. Not covered.

                Was this loss accidental? Yes. The insured meant to rock the car to get it out of the ditch, not to damage the transmission.

                The insured may recover under the other than collision coverage of the personal auto policy.