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Category: Commercial Insurance

Workmanship, Materials, and Recall – Oh My!

Posted on by Ownby-Client-Login

Trade contractors have a lot of factors under their control, and many that aren’t as well. So, what happens when there is an issue with their work? Depending on the issue, Contractors Errors & Omissions (E&O) Insurance might come into play. This coverage is meant to protect them from damages that result from their work, and often covers:

  • Faulty Workmanship
  • Defective Materials
  • Recall of Work
  • Design Services (usually limited)

Let’s drill down into each of these.

Faulty workmanship can happen, even to experienced contractors. These issues can cause delays in building, reinstallation/repair costs, and potentially loss of income. If your client were to take action against you for these losses, an E&O policy may help protect your financial interests.

Defective materials are usually going to be out of your control, but they can still cause problems directly for the contractor. If you install these materials and they’re found to be defective, there may still be liability for you. And again, an E&O policy may respond. The same could apply if items you worked on had recalls, and this is different from product recall policies in that damages may not be caused by bodily injury or property damage.

Design service issues could result from your decisions about a project. Perhaps you decided on the type of materials or size of certain materials. If those materials are determined to have caused an issue, you may be held as the responsible party. That could again result in a financial claim where an E&O policy would be involved.

So, what are your exposures as a trade contractor and how do/would your current policies address them? Reach out to our specialist Brandon Patterson at brandon@ownbyinsurance.com or 865.453.1414 and he will walk through these coverages with you.

Log Cabin Risks That Impact Rate

Posted on by Ownby-Client-Login

They’re beautiful to look at and often fit right in with the natural landscape that surrounds them. But did you know that log cabins have some very specific risks when it comes to insurance? You’ll still find many of the factors that impact a non-log home’s insurance pricing, but here are some other factors you may not have realized impact log cabin insurance:

Properties of Wood
The wood used in construction of your log home is a factor that insurance underwriters take into account. Using larger logs (thicker than 8 inches in diameter) actually reduces your risk, as they are more resistant to wind, fire, and other damage. However, their replacement cost is higher. The wood’s resistance to fire is actually measured by a “fire resistance rating”, which actually estimates, “the period of time a building element, component or assembly maintains the ability to confine a fire, continues to perform a given structural function, or both…”

Damage and Protection of Wood
Speaking of the wood, there are obviously some traits about the material that make it more susceptible to certain kinds of damage. One of the most obvious is damage from wood-destroying insects and birds, including termites, carpenter bees, woodpeckers, and more. Typically, homeowners insurance will not cover insect or pest damage. Many people don’t find this out until they have a claim – often an expensive one – that gets denied. In addition, caring for the wood on your log home is important, as rotting wood is often excluded and “lack of homeowner maintenance” can cause claims to be denied. Staining and sealing the wood on your log cabin on a regular basis is a key piece of that maintenance.

Foundation
Log cabins have various foundation types, from concrete slabs to strips to pads (or tiers). The reason this matters is because of the potential for subsidence (gradual caving in or sinking). The sturdier your foundation, the less risk will be factored into your cost for insurance.

Roofing Material
Although many log homes now use asphalt shingle or even metal roof materials, some people like the look of a more traditional wood shingle. Unfortunately, these materials may be more susceptible to risks like fire, wind, and water damage. This will result in higher insurance rates.

What other factors will your log home encounter in the insurance underwriting process? Contact us at 865.453.1414 and we’ll discuss your specific risks and how you can find the best policy for your property.

A Guide to Preventing Slips and Falls Around Your Business

Posted on by Ownby Insurance Service

Whether you actually hurt yourself or just suffer from a bruised ego, slipping and falling is always a nasty shock. At home, you can usually just dust yourself off and forget about it, but if you own a business, slips and falls suddenly become much more serious. Maintaining a safe business property for your employees and customers becomes paramount, both to give them a great experience, and to prevent any big insurance claims from knocking at your door.

Reduce your business’s potential for hazardous slips and falls by implementing these safety tips:

Secure Stairways and Ramps

Stay up to date with your city’s local building codes, and install the proper handrails along every stairway and ramp. Even tiny platforms comprised of 1 or 2 steps should have some kind of banister in place. This gives stability to your pedestrians and helps protect you if someone falls in those areas and decides to pursue legal action against you. Also consider lining your stairs and ramps with a non-slip material.

Maintain Walkways and Lawn Areas

Remove obstructions from any walking paths that your employees or customers have to use. It is also important to repair uneven, broken, or bumpy surfaces in the parking lot or on the sidewalk. In the winter, make sure your sprinkler systems are turned off and drained to prevent leaks and icy patches around your establishment.

Keep Safety in Mind All the Time

Aside from covering the basics to keep your business up to code, just make it a habit to look for potential slipping/falling hazards located all around your business.

  • Maintain adequate lighting in all areas where pedestrians will be walking.
  • Keep “Wet Floor” signs in areas where your employees can conveniently access them to warn people away from spills.
  • Repair torn carpet, loose or missing floor tiles, and other flooring materials as soon as you can after they are damaged.
  • If you live in an area with heavy snowfall, establish a snow removal plan for parking lots, sidewalks, and dumpster areas.
  • Keep emergency phone numbers posted in areas where people can see them easily.
  • Stay stocked up on first-aid kits and keep them in plain site. These emergency resources help you and your staff minimize the damage of a bad fall.

When an employee or a customer takes a fall at your business, the consequences have the potential to be dire. Prevent them as much as you can by keeping the area clean and maintained. People will be safer and your business will look better for your efforts! Overall, make sure you are protected by a solid insurance policy that will cover your company if someone gets hurt anyway. You can never be too secure!