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Category: Risk Management

How to Plan for New Risk and Insurance Needs in 2026

Posted on by Jon Blankenship

Starting a new year often brings along resolutions for personal growth, business goals, and financial health but it should also include a plan for new risk and insurance needs. As we look toward 2026, it’s essential to extend this forward-thinking approach to how we manage risk. The world is changing at an unprecedented pace, bringing new challenges that can impact our families, homes, and businesses. Being proactive about your insurance planning is no longer just good practice – it’s a fundamental part of securing your future.

Identifying Emerging Risks in 2026

A solid insurance plan starts with a clear understanding of the risks you face. While traditional risks like fire, theft, and auto accidents remain, the landscape is expanding. To properly prepare for 2026, you need to look beyond the obvious and consider the evolving threats that could affect you.

Changing Weather Patterns and Extreme Events

Changes to weather patterns are becoming more apparent each year. An increase in the frequency and severity of extreme weather events – such as tornadoes, wildfires, floods, and droughts – poses a significant threat to properties and businesses. Homeowners may find their properties are now in high-risk flood or fire zones, even if they weren’t previously.

For businesses, the risks are just as severe. Supply chain disruptions caused by a hurricane on the other side of the country can halt operations. A severe drought could impact agricultural outputs and resource availability. It’s crucial to assess your geographical vulnerability and understand how these large-scale environmental shifts could directly or indirectly affect your financial stability.

The Evolving Cybersecurity Battlefield

Digital risks are no longer a concern limited to large corporations. With our increasing reliance on technology, everyone is a potential target. In 2026, cyber threats are expected to be more sophisticated than ever. Phishing scams, ransomware attacks, and data breaches can lead to devastating financial loss and identity theft for individuals.

For businesses, the stakes are even higher. A single data breach can result in massive financial penalties, reputational damage, and loss of customer trust. Remote work arrangements, while offering flexibility, have also expanded the potential entry points for cybercriminals. Every organization, regardless of size, must treat cybersecurity as a primary operational risk.

Economic and Geopolitical Shifts

Global economic uncertainty continues to shape our financial realities. Inflation, interest rate fluctuations, and market volatility can impact everything from your investment portfolio to the cost of rebuilding your home after a loss. Geopolitical instability can create ripple effects across industries, leading to supply chain breakdowns and unpredictable market conditions.

These macroeconomic trends can influence your insurance needs. For example, high inflation may mean your current coverage limits are no longer sufficient to cover replacement costs. Business interruption insurance becomes even more critical when supply chains are fragile and dependent on global stability.

Evaluating Your Current Insurance Coverage

Once you have identified potential new risks, the next step is to review your existing insurance portfolio. An insurance policy that was perfect five years ago might have significant gaps today. A thorough review helps ensure your protection aligns with your current reality.

The Annual Insurance Check-Up

Treat your insurance review like an annual health check-up. Set aside time to go through each of your policies, including home, auto, life, health, and any business-related coverage. Don’t just look at the premium; dive into the details.

Pay close attention to:

  • Coverage Limits: Is your dwelling coverage on your homeowner’s policy high enough to rebuild your home at today’s construction costs? Has the value of your business assets increased?
  • Deductibles: Are your deductibles at a level you can comfortably afford to pay out-of-pocket in an emergency?
  • Exclusions: What does your policy not cover? Standard homeowner’s policies, for instance, typically exclude damage from floods and earthquakes. You may need separate policies for these risks.

Mind the Gaps in Your Protection

As you review your policies, compare them against the list of emerging risks you identified. You may discover significant gaps.

For individuals, a common gap is the lack of flood insurance. Many people mistakenly believe their standard home policy covers flooding. Another is personal cyber insurance, which can help you recover from identity theft or online fraud.

For businesses, gaps often appear in business interruption coverage. Does your policy cover interruptions caused by a supplier’s failure or a utility outage? Is your cyber liability insurance robust enough to handle the costs of a major data breach, including notification costs, credit monitoring, and legal fees?

Exploring Innovative Insurance Solutions

The insurance industry is adapting to meet the demands of our changing world. As you plan for 2026, explore some of the innovative products and riders that can provide more tailored protection.

Parametric Insurance

Unlike traditional insurance that pays out based on the actual loss incurred, parametric insurance pays a pre-agreed amount when a specific trigger event occurs. For example, a policy might pay out a set sum if a hurricane of a certain category makes landfall in your area or if an earthquake of a specific magnitude is recorded.

This model allows for faster, more straightforward payouts, providing immediate liquidity to help you start the recovery process without waiting for a lengthy claims adjustment. It can be an excellent supplement to traditional property insurance, especially for businesses concerned with cash flow after a natural disaster.

Usage-Based and Telematics Insurance

For auto insurance, telematics programs continue to gain popularity. These usage-based insurance (UBI) policies use data from your smartphone or a device installed in your car to track your driving habits. Safer drivers can earn significant discounts on their premiums. This not only saves you money but also incentivizes safer driving behaviors. As technology improves, UBI is becoming more accurate and personalized.

Specialized Cyber Insurance

Cyber insurance is evolving beyond basic liability coverage. Modern policies can be customized to cover a wide range of risks. For individuals, this might include coverage for cyberbullying, online extortion, and recovering a stolen digital identity. For businesses, policies now often include access to a breach response team, public relations services to manage reputational damage, and coverage for regulatory fines.

Your Next Steps for a Secure 2026

Navigating the complexities of risk and insurance in a changing world can feel overwhelming. However, taking deliberate, proactive steps now will provide you with peace of mind and financial security for the years to come. The goal is not to predict the future with perfect accuracy but to build a resilient financial foundation that can withstand unexpected events.

But you’re not alone! Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to support your 2026 planning.

Holiday Parties and Hidden Risks: Are You Covered for Potential Liabilities?

Posted on by Jon Blankenship

The holiday season is a time for festive cheer, warm gatherings, and creating lasting memories with friends and family. But as a host, holiday parties and hidden risks can ruin a good time. You are responsible for more than just the playlist and appetizers. Behind the celebration is a layer of personal liability risks that many people overlook.

Understanding these potential risks is the first step toward protecting yourself, your home, and your guests. This blog will walk you through common liabilities associated with holiday parties, offer practical tips for safe hosting, and explain how insurance can provide a crucial safety net.

The Uninvited Guest: Understanding Host Liability

When you open your doors to guests, you assume a degree of responsibility for their safety and well-being. This concept, often called “social host liability,” can have significant financial and legal consequences if something goes wrong. The risks are not just theoretical; a simple slip or an over-served guest can lead to serious problems.

Let’s explore the most common liability risks you face when hosting a holiday get-together.

Slips, Trips, and Falls

Your home can become an obstacle course during a busy party. Wet floors from snowy boots, a misplaced rug, a stray extension cord for holiday lights, or a poorly lit staircase can easily cause a guest to slip and fall. If a guest is injured on your property due to what could be considered a hazardous condition, you could be held liable for their medical bills and other damages.

Property Damage

More people in your home means a higher chance of accidental damage. A guest might knock over an expensive vase, a child could draw on your new sofa, or a fire could start from a candle left too close to the curtains. While some damage is minor, significant incidents could leave you with a hefty bill for repairs or replacement. Your liability extends to your guests’ property as well; if someone’s coat is stolen from the coat rack, you might be considered responsible.

Alcohol-Related Incidents

This is one of the most significant areas of risk for party hosts. In many states, social host liability laws hold you responsible for accidents caused by guests who became intoxicated at your party. If an over-served guest gets into a car accident after leaving your home, you could be sued for injuries or damages they cause. This includes DUIs, property damage, and even tragic fatalities. The liability doesn’t stop at the driveway.

How to Be a Safe and Savvy Holiday Host

Mitigating risk doesn’t mean canceling your party. It means being proactive and thoughtful. By implementing a few simple strategies, you can create a safer environment for everyone and reduce your personal liability.

Prepare Your Home for Guests

  • Clear the Way: Shovel and salt your walkways, driveway, and porch. Inside, secure rugs, tape down electrical cords, and ensure all areas are well-lit.
  • Create Safe Zones: If you have pets that are nervous around crowds, secure them in a separate room. Designate off-limit areas, especially if you have delicate items or potential hazards.
  • Fire Safety First: Check your smoke detectors. Use flameless candles when possible, and keep any real flames far from flammable materials like curtains, wrapping paper, and your Christmas tree.

Serve Alcohol Responsibly

  • Food is Your Friend: Always serve plenty of food, especially high-protein snacks. This helps slow the absorption of alcohol.
  • Offer Alternatives: Provide a fun and festive selection of non-alcoholic beverages like mocktails, sparkling cider, and flavored seltzers. Make sure water is readily available.
  • Don’t Play Bartender: Avoid pre-mixing drinks to be extremely strong. Consider hiring a professional bartender who is trained to recognize signs of intoxication and can politely cut off guests.
  • Set a Last Call: Stop serving alcohol at least one hour before you expect the party to end. Switch to coffee, tea, and water.

Plan for Safe Departures

  • Arrange Transportation: Encourage guests to use ride-sharing services or designate a sober driver. Keep the numbers for local taxi services handy.
  • Offer a Place to Stay: If a guest has had too much to drink, do not let them drive. Offer them your guest room or a couch for the night.
  • Be Firm: Be prepared to take away a guest’s keys if you believe they are unfit to drive. Their temporary frustration is far better than a potential accident.

Your Financial Safety Net: Insurance Coverage

Even with the best precautions, accidents can happen. This is where your insurance policies become your most important defense. Having the right coverage ensures that a holiday mishap doesn’t turn into a long-term financial disaster.

Homeowners or Renters Insurance

Your standard homeowners or renters insurance policy is your first line of defense. It typically includes personal liability coverage, which can help pay for legal fees, medical bills, and other damages if someone is injured on your property and you are found legally responsible. Check your policy to understand your coverage limits. Most standard policies offer between $100,000 and $300,000 in liability protection.

Personal Umbrella Policy

For an extra layer of protection, consider a personal umbrella policy. This is supplemental liability insurance that kicks in when the liability limits on your home or auto insurance are exhausted. For a relatively low annual cost, an umbrella policy can provide an additional $1 million or more in coverage. This can be invaluable in a major lawsuit, such as one resulting from a serious car accident caused by an intoxicated guest.

Event-Specific Insurance

If you are hosting a very large event, especially at a rented venue, you might need to purchase special event insurance. This type of policy can cover liabilities associated with the specific event, including alcohol-related incidents (liquor liability) and potential property damage to the venue. Some venues may even require you to have this coverage.

Host with Peace of Mind

The holidays should be about celebration, not stress. By taking practical steps to ensure your guests’ safety and verifying you have the right insurance coverage, you can protect yourself from unexpected liabilities. Before you send out the invitations, take a moment to review your insurance policies and speak with your agent. A quick conversation now can give you the peace of mind to enjoy the season and host a party that’s memorable for all the right reasons.

Still have questions? Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to get the answers you need.

Understanding Common Personal Insurance Policy Exclusions

Posted on by Jon Blankenship

When you buy an insurance policy, you want to feel like you’re buying peace of mind. You trust that if something goes wrong, your coverage will be there to help you recover financially. But what happens when you file a claim, only to find out your policy doesn’t cover the specific situation? This frustrating experience often comes down to: personal insurance policy exclusions. 

Understanding what your policy doesn’t cover is just as important as knowing what it does. This blog will walk you through common personal insurance policy exclusions, explain some key terms, and empower you to make smarter decisions about your coverage.

What Are Insurance Exclusions and Why Do They Exist?

An insurance exclusion is a specific condition, event, or circumstance that your policy does not cover. If a loss occurs due to an excluded peril (the event or cause of the claim), the insurance company will not pay for the damages.

Insurers use exclusions for several important reasons:

  • To Manage Risk: Some risks are too widespread, catastrophic, or predictable for an insurer to cover affordably. Events like war or floods fall into this category.
  • To Prevent Fraud: Policies exclude intentional acts to discourage people from deliberately causing damage to collect an insurance payout.
  • To Avoid Covering Maintenance: Insurance is designed for sudden and accidental losses, not for routine upkeep or predictable wear and tear.
  • To Keep Premiums Affordable: By excluding certain high-risk activities or events, insurers can offer more affordable coverage for common, everyday risks.

Key Insurance Terms to Know

Before we dive into specific policies, let’s clarify some common terms you’ll see on policies.

  • Endorsement or Rider: An add-on to your policy that either adds, modifies, or removes coverage for specific situations. For example, you can add a rider to your home policy to cover jewelry or fine art.
  • Waiting Period: A set amount of time after your policy starts before certain benefits become available. This is common in health and disability insurance.
  • Sub-limit: A specific dollar limit on a particular type of loss. Your policy might have a $200,000 overall limit, but a sub-limit of only $2,500 for stolen electronics.
  • Named-Peril vs. Open-Peril:
      • A named-peril policy only covers losses caused by the specific events listed in the policy (e.g., fire, theft, windstorm).
      • An open-peril (or “all-risk”) policy covers everything except what is specifically excluded. Open-peril policies offer broader protection.
  • Actual Cash Value (ACV) vs. Replacement Cost:
      • ACV pays for the cost of the damaged item minus depreciation. You get what the item was worth at the time of the loss.
      • Replacement Cost pays the full cost to replace the item with a new one of similar kind and quality, without deducting for depreciation.

Common Exclusions by Policy Type

Let’s break down the typical exclusions you’ll find in major personal insurance lines.

Auto Insurance Exclusions

Your auto policy is designed to cover accidents and unforeseen events, but not everything that happens in or to your car is covered.

  • Intentional Acts: If you deliberately damage your own vehicle or cause an accident on purpose, your insurer won’t cover it.
  • Business Use: Standard personal auto policies exclude using your vehicle for commercial purposes, like ridesharing (Uber/Lyft) or food delivery. You need a separate commercial policy or a specific endorsement for this.
  • Racing or High-Performance Driving: Any damage that occurs while racing, practicing for a race, or participating in a high-speed driving event on a track is excluded.
  • Driving Under the Influence (DUI): While your liability coverage may still protect victims if you cause an accident while intoxicated, your insurer may refuse to cover damage to your own vehicle. They will likely cancel your policy afterward.
  • Wear and Tear: Oil changes, new tires, brake pad replacements, and engine trouble from lack of maintenance are not covered.
  • Custom Parts and Equipment: Modifications like expensive rims, spoilers, or custom sound systems are usually not covered unless you add a specific endorsement.

Homeowners and Renters Insurance Exclusions

Homeowners policies protect your dwelling and personal property from many risks, but they have significant limitations.

  • Flood and Earthquake: These are standard exclusions on almost every homeowners and renters policy. You must purchase separate flood insurance (often through the National Flood Insurance Program) and earthquake insurance policies.
  • Mold: Many policies limit or entirely exclude coverage for mold removal unless the mold is the direct result of a covered peril, like a burst pipe. Even then, coverage is often capped.
  • Pest Infestations: Damage from termites, rodents, or other pests is considered a maintenance issue and is not covered.
  • Intentional Damage: If a homeowner intentionally damages their own property, the claim will be denied.
  • Business Operations: Running a business from your home can create liability risks that a standard policy won’t cover. You may need a business owner’s policy or an endorsement.
  • Sewer Backup: Water damage from a backed-up sewer or drain is a common exclusion. You can usually purchase a water backup endorsement to add this coverage.

How to Spot and Address Coverage Gaps

Being proactive is the best way to avoid surprises. Use this checklist to review your policies and minimize gaps in your coverage.

  • Read Your Declarations Page: This one-page summary outlines your coverage limits, deductibles, and endorsements. It’s the best place to start.
  • Schedule Valuable Items: If you own expensive jewelry, art, or collectibles, their value likely exceeds the sub-limits in your home policy. Schedule them with a personal articles floater for full coverage.
  • Ask About Riders: Talk to your agent about endorsements that fill common gaps, like water backup or business use coverage.
  • Keep Maintenance Records: Good records can help prove that a loss (like a roof leak) was caused by a sudden event, not neglect.
  • Consider an Umbrella Policy: An umbrella policy provides an extra layer of liability protection above the limits of your home and auto policies.
  • Get Specialty Coverage: Don’t rely on your homeowners policy to cover a flood or your personal auto policy for your delivery business. Buy the right specialty insurance for the risk.

Shopping for Better Coverage

You have more power than you think. When buying or renewing insurance, don’t be afraid to ask questions!

  • Compare Multiple Quotes: Different insurers have different appetites for risk. One company may have an exclusion that another is willing to cover with an endorsement.
  • Ask Your Agent Specific Questions: Don’t just ask, “Am I covered?” Be specific:
      • “What are the biggest exclusions I should be aware of in this policy?”
      • “Is my home-based business covered for liability?”
      • “Does this policy cover water damage from a sump pump failure?”
      • “What are the sub-limits on electronics, jewelry, firearms, etc.?”

Your Annual Policy Review

An insurance policy is not a “set it and forget it” purchase. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to get started on your personal insurance review.

 

Why Your Business Needs Employment Practices Liability Insurance (EPLI)

Posted on by Jon Blankenship

If you’re a business owner, manager, or HR leader, you focus on building a great team and a positive culture. Yet, even with the best intentions, employee-related claims can arise unexpectedly. Defending against allegations of wrongful termination, discrimination, or harassment can be financially crippling, even if the claims are baseless. This is where Employment Practices Liability Insurance (EPLI) becomes a critical part of your risk management strategy.

What is EPLI?

EPLI is a specialized type of management liability insurance that protects businesses against claims made by employees, former employees, or even job applicants. These claims allege that their legal rights as employees have been violated. Unlike more common policies like general liability, which covers bodily injury or property damage, EPLI specifically addresses a wide range of employment-related risks.

The Growing Risk Landscape for Employers

The modern workplace is more complex than ever, and the legal landscape is constantly shifting. Several factors are increasing the frequency and cost of employment claims.

  • Rising Claim Frequency: Employees are more aware of their rights than ever before. This awareness, combined with a more litigious social climate, has led to a steady rise in employment-related lawsuits filed against companies of all sizes.
  • Remote and Hybrid Work Dynamics: The shift to remote and hybrid work models has introduced new complexities. Issues like digital communication, perceived inequities in opportunities, and challenges in monitoring performance can easily lead to claims of discrimination, harassment, or unfair treatment.
  • Evolving Laws and Regulations: Federal, state, and even local employment laws are in a constant state of flux. New legislation related to pay equity, family leave, and discrimination protections creates new compliance burdens and potential liabilities for employers who fail to keep up.

What Does EPLI Typically Cover?

An EPLI policy is designed to cover the costs associated with employment-related lawsuits, including legal defense fees, settlements, and judgments. While policies vary, most provide coverage for the following types of claims:

  • Wrongful Termination: Allegations that an employee was fired in violation of the law or their employment contract.
  • Discrimination: Claims that an employer made decisions based on protected characteristics like age, race, gender, religion, disability, or national origin.
  • Harassment: Includes claims of sexual harassment as well as harassment based on other protected categories, creating a hostile work environment.
  • Retaliation: Allegations that an employer punished an employee for legally protected activities, such as reporting harassment, acting as a whistleblower, or requesting accommodation for a disability.
  • Wage-and-Hour Claims: Some policies offer a sub-limit (a smaller amount of coverage) for the defense costs associated with claims alleging violations of wage and hour laws, such as unpaid overtime or misclassification of employees. Note that coverage for the actual unpaid wages is typically excluded.
  • Third-Party Claims: This valuable extension provides coverage for harassment or discrimination claims brought by non-employees, such as customers, clients, or vendors. This is especially important for businesses with significant public interaction.

Real-World Claim Scenarios

It’s easy to think “this won’t happen to us,” but employment claims can stem from everyday situations.

  • The Small Business Scenario: A small business with 15 employees lets go of a team member for performance issues. The team member, who is over 50, files an age discrimination lawsuit, claiming younger, less-experienced colleagues were retained. The startup must now pay tens of thousands in legal fees to defend itself, even though its decision was performance-based.
  • The Mid-Size Business Scenario: A mid-sized manufacturing company receives a complaint that a manager is making inappropriate jokes, creating a hostile work environment. Before HR can complete its investigation, the employee quits and sues for constructive discharge and sexual harassment. EPLI would cover the defense costs and any potential settlement.
  • The Miscommunication Scenario: During a friendly chat, a manager tells a pregnant employee, “You’ll have your hands full with the new baby! We can scale back your duties when you return.” Though well-intentioned, the employee interprets this as a demotion and files a pregnancy discrimination claim.

The key takeaway is that you don’t have to be wrong to be sued. The cost of defending a claim alone can be devastating for a business without proper insurance coverage.

Who Needs EPLI the Most?

While every business with employees has exposure, some face a higher degree of risk.

  • Startups and Fast-Growing Companies: Rapid hiring and evolving internal processes can lead to inconsistencies and HR oversights.
  • Businesses with High Turnover: Industries with frequent hiring and firing naturally see more claims related to termination.
  • Multi-State Employers: Navigating a patchwork of different state and local employment laws significantly increases compliance risk.
  • Customer-Facing Industries: Restaurants, retail stores, and hospitality businesses have higher exposure to third-party claims from the public.
  • Nonprofits: Board members and the organization itself can be targets of employment lawsuits, and limited budgets make defending these claims particularly challenging.

What EPLI Doesn’t Cover

It’s equally important to understand what is typically excluded from an EPLI policy. Common exclusions include:

  • Claims related to the Employee Retirement Income Security Act (ERISA).
  • Workers’ compensation claims (these are covered by a separate workers’ comp policy).
  • Bodily injury or property damage (covered by general liability).
  • Penalties and fines imposed by law.
  • Claims arising from deliberate fraud or intentional wrongdoing.

Proactive Risk Management Can Reduce Your Premiums

Insurers reward businesses that take proactive steps to minimize their employment risks. Implementing strong HR practices not only protects your company but can also lead to more favorable EPLI premiums.

  • Employee Handbook: Maintain a comprehensive, up-to-date employee handbook that clearly outlines company policies, procedures, and expectations. Have every employee sign an acknowledgment of receipt.
  • Regular Training: Conduct mandatory anti-harassment, anti-discrimination, and diversity training for all employees and managers.
  • Clear Documentation: Document everything—performance reviews, disciplinary actions, and termination reasoning. Consistent documentation is your best defense.
  • Complaint Hotline: Establish a formal, confidential process for employees to report concerns without fear of retaliation.
  • Consistent Processes: Apply all HR policies and procedures consistently across all employees to avoid any appearance of favoritism or discrimination.

Understanding Your Policy: Limits, Pricing, and Coordination

When purchasing EPLI, you’ll need to decide on coverage limits and a retention (deductible). These are influenced by several factors:

  • Industry: Certain industries (like hospitality or healthcare) are considered higher risk.
  • Claim History: A history of prior employment claims will increase your premium.
  • Employee Count & Turnover: More employees and higher turnover mean greater exposure.
  • Location: Operating in states with employee-friendly laws can impact pricing.

Finally, it’s important to see how EPLI fits with your other management liability policies. Claims can sometimes trigger coverage under multiple policies. For instance, a lawsuit against a company executive for an employment-related decision could potentially involve both your EPLI and your Directors & Officers (D&O) policy. Coordinating these policies ensures there are no gaps in your coverage.

Review Current Coverage

Ready to learn more about the EPLI risks and options for your business? Contact Brandon Patterson on our team at brandon@ownbyinsurance.com and the options you can choose from to get covered.

Fall Flood Insurance Risks: Why the Right Coverage Matters Most This Season

Posted on by Jon Blankenship

As autumn arrives and leaves begin their colorful transformation, many homeowners focus on seasonal preparations like winterizing their homes and clearing gutters. However, one critical aspect often gets overlooked: flood insurance risks coverage.

Fall presents unique flooding challenges that can catch property owners off guard, making this season particularly important for evaluating your flood protection. The first thing to note is that most Home Insurance policies exclude coverage for flooding. So, what else do you need to know, and how can you get covered?

Why Fall Creates Perfect Flooding Conditions

Increased Precipitation Patterns

Fall weather systems bring distinct flooding challenges. As warm air masses collide with cooler temperatures, atmospheric conditions create more intense precipitation events. The National Weather Service reports that autumn accounts for approximately 25% of annual flood-related insurance claims, despite representing just three months of the year.

Rainfall patterns become less predictable during fall months. Unlike summer’s brief afternoon thunderstorms or winter’s steady precipitation, autumn storms often arrive as prolonged systems that saturate soil and overwhelm drainage systems. These extended weather events create cumulative flooding effects that can persist for days or weeks.

Hurricane Season Overlap

Hurricane season officially runs from June through November, with peak activity occurring between August and October. Fall hurricanes present unique risks because they often combine with existing weather fronts, creating compound flooding scenarios.

Recent data from the National Hurricane Center shows that 40% of hurricane-related flood damage occurs during September and October storms. These late-season hurricanes frequently interact with cooling air masses, producing extraordinary rainfall amounts over wide geographic areas.

Hurricane Florence in 2018 exemplifies this pattern. Despite weakening to a tropical storm, Florence dumped over 30 inches of rain across North Carolina during September, causing catastrophic inland flooding far from coastal areas. Many affected properties had never experienced flooding and lacked adequate insurance coverage.

Ground Conditions and Drainage Challenges

Autumn’s changing landscape creates additional flood vulnerabilities. Fallen leaves clog storm drains, gutters, and natural waterways, reducing their capacity to handle normal water flow. A single heavy rainfall event can quickly overwhelm compromised drainage systems.

Soil conditions also shift during fall. As vegetation dies back and root systems become less active, soil loses its natural water absorption capacity. Compacted ground from summer drought conditions may struggle to absorb autumn precipitation, leading to increased surface runoff.

Geographic Risks Beyond Traditional Flood Zones

Inland Flooding Patterns

Many people associate flood insurance with coastal properties or homes near major rivers. However, fall flooding frequently affects inland areas through flash floods and urban flooding scenarios. The Federal Emergency Management Agency (FEMA) reports that 20% of flood claims come from properties outside high-risk flood zones.

Inland communities face particular vulnerability during fall because they often lack robust flood preparedness infrastructure. Mountain regions experience sudden snowmelt combined with rainfall, creating flash flood conditions. Urban areas struggle with overwhelmed storm water systems as autumn precipitation exceeds summer design capacities.

The Insurance Coverage Gap

Standard Homeowners Policies Don’t Cover Floods

One of the most critical misconceptions about property insurance involves flood coverage. Standard homeowners and renters insurance policies specifically exclude flood damage. This exclusion applies regardless of flood cause – whether from hurricane storm surge, river overflow, or urban drainage failure.

Insurance industry surveys reveal that 85% of homeowners incorrectly believe their standard policies include flood protection. This knowledge gap leaves millions of properties financially vulnerable to fall flooding events.

National Flood Insurance Program Basics

The National Flood Insurance Program (NFIP) provides the primary source of flood coverage for American properties. Administered by FEMA, the NFIP offers standardized policies available through licensed insurance agents nationwide.

NFIP coverage includes two main components:

  • Building coverage protects the structure and permanently installed items
  • Contents coverage protects personal belongings and movable property

However, NFIP policies require a 30-day waiting period before coverage becomes effective. This timing requirement makes fall preparation particularly important, as you cannot purchase coverage when severe weather threatens your area.

Private Market Alternatives

Private flood insurance has expanded significantly over the past decade, offering alternatives to NFIP coverage. Private insurers often provide higher coverage limits, additional protection options, and sometimes more competitive pricing.

Companies like Neptune, Palomar, and Wright National offer private flood policies with features like:

  • Coverage amounts exceeding NFIP limits
  • Replacement cost coverage for personal property
  • Additional living expenses during displacement
  • Business interruption coverage for commercial properties

Review Current Coverage

Start by examining your existing insurance policies. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to clarify exactly what flood-related coverage you currently have – or don’t have – and the options you can choose from to get covered.

Insurance for NEMT Companies: Protecting Your Business and Patrons

Posted on by Jon Blankenship

Running a non-emergency medical transport (NEMT) company means taking on unique responsibilities. You’re not just moving people from point A to point B – you’re caring for vulnerable patients who depend on safe, reliable transportation to reach medical appointments that could impact their lives.

This specialized role comes with distinct risks that standard business insurance won’t cover. From vehicle accidents involving wheelchair-accessible vans to liability claims from patient injuries, NEMT companies face challenges that require specific insurance protection.

In this guide, we’ll explore the specific risks your NEMT business faces and the insurance coverages that can protect you, your employees, and the patients you serve.

Understanding NEMT Business Risks

Vehicle-Related Risks

NEMT vehicles spend more time on the road than typical commercial vehicles, increasing accident exposure. Your drivers navigate various weather conditions, traffic patterns, and unfamiliar routes while operating specialized equipment like wheelchair lifts and stretchers.

Consider this scenario: Your driver is transporting an elderly patient to dialysis when another vehicle runs a red light and crashes into your van. The patient suffers additional injuries, your vehicle sustains $40,000 in damage, and your driver requires medical treatment for whiplash. Without proper coverage, this single incident could financially devastate your business.

Patient Care Liability

Unlike standard transportation services, NEMT companies provide care during transport. You’re responsible for patient safety from pickup to drop-off, including proper securement in wheelchairs, assistance with mobility devices, and monitoring during the journey.

Imagine your employee fails to properly secure a patient’s wheelchair, causing them to fall during transport and break their hip. The resulting medical bills, rehabilitation costs, and potential lawsuit could reach hundreds of thousands of dollars.

Employment-Related Risks

Your drivers handle intimate patient care tasks, access personal health information, and work in patients’ homes. This creates exposure to discrimination claims, privacy violations, and allegations of inappropriate conduct.

Regulatory Compliance Risks

NEMT companies must comply with Department of Transportation regulations, Americans with Disabilities Act requirements, and state medical transport licensing. Non-compliance can result in fines, license suspension, or lawsuit vulnerability.

Essential Insurance Coverage for NEMT Companies

Commercial Auto Insurance

Standard personal auto policies won’t cover your business activities. Commercial auto insurance provides crucial protection for your fleet and operations.

Coverage components include:

  • Liability protection for bodily injury and property damage
  • Collision and comprehensive coverage for your vehicles
  • Medical payments for injured passengers
  • Uninsured/underinsured motorist protection

NEMT companies typically need higher liability limits than standard commercial vehicles due to patient vulnerability. Consider minimum limits of $1 million per occurrence, though many companies carry $2-5 million for adequate protection.

Real-world example: A NEMT van rear-ends another vehicle while transporting three dialysis patients. All passengers suffer neck injuries requiring ongoing treatment. With $1 million in liability coverage, the insurance company handles medical expenses, lost wages, and legal fees, protecting your business assets.

General Liability Insurance

This foundational coverage protects against claims arising from your business operations, including patient injuries that occur outside vehicle accidents.

Protection includes:

  • Slip and fall injuries at your facility
  • Patient injuries during loading/unloading
  • Property damage at patient locations
  • Advertising injury claims

Scenario: While helping a patient into their home, your employee accidentally knocks over and breaks an expensive personal item. General liability insurance covers the replacement cost, preventing an out-of-pocket expense that could strain your cash flow.

Professional Liability Insurance

Also called errors and omissions (E&O) insurance, this coverage protects against claims alleging negligent performance of professional services.

Coverage applies to:

  • Failure to follow patient care protocols
  • Medication administration errors
  • Improper patient handling techniques
  • Documentation mistakes affecting patient care

Case study: Your company’s care plan requires a patient to arrive at dialysis by 10 AM, but traffic delays cause a 30-minute late arrival. The patient misses their treatment, experiences complications, and claims your negligence caused their deteriorated condition. Professional liability insurance covers legal defense costs and potential settlements.

Workers’ Compensation Insurance

Required in most states, workers’ compensation protects employees injured on the job while shielding you from related lawsuits.

NEMT-specific considerations:

  • Repetitive lifting injuries from patient transfers
  • Back injuries from wheelchair securement
  • Stress-related conditions from patient care responsibilities
  • Vehicle accident injuries

Example: Your driver injures their back while operating a wheelchair lift for a 300-pound patient. Workers’ compensation covers medical treatment, rehabilitation, and partial wage replacement during recovery, while preventing the employee from suing your company.

Cyber Liability Insurance

NEMT companies handle sensitive patient health information, making them attractive targets for cybercriminals. Data breaches can result in massive fines, notification costs, and reputation damage.

Protection includes:

  • Data breach response costs
  • Regulatory fines and penalties
  • Credit monitoring for affected patients
  • Business interruption from cyber attacks

Commercial Property Insurance

This coverage protects your physical business assets, including your facility, medical equipment, and office contents.

Considerations for NEMT companies:

  • Wheelchair lifts and medical equipment in vehicles
  • Specialized communication systems
  • Patient records and computers
  • Building improvements for accessibility compliance

Work with Specialized Agents

Insurance agents familiar with NEMT operations understand your unique risks and can recommend appropriate coverages. They’ll help you navigate complex requirements and find competitive pricing from insurers who understand your industry.

Brandon Patterson from our team has experience with these risks and is ready to help you. Contact him today at brandon@ownbyinsurance.com to get the coverage info you need!

Insurance Risks Every Dental Practice Must Know

Posted on by Jon Blankenship

Operating a dental practice can be an impactful and rewarding career, but it comes with its fair share of challenges and vulnerabilities. Having the right dental practice insurance coverage for your dental practice is not just a legal or business formality – it’s a vital safeguard for your practice’s longevity and reputation. From malpractice claims to cyber threats, dental practices face unique risks that could jeopardize their operations if not addressed proactively.

This blog outlines the key risks dental practices should be aware of and how insurance coverage can mitigate them, ensuring peace of mind for both your business and your patients.

Be Specific When Seeking Dental Practice Insurance

Dental practices operate in an environment where precision and patient trust are paramount. However, even with the highest standards of care, unexpected issues can arise. Malpractice claims, natural disasters, or even an employee lawsuit could severely disrupt your practice—or worse, lead to permanent closure. Insurance coverage acts as a safety net, ready to protect what you’ve worked so hard to build.

By understanding your practice’s unique vulnerabilities, you can take proactive steps to secure the right policies, ensuring that you are prepared for whatever comes your way.

Key Risks Dental Practices Should Address

1-Malpractice Claims

No matter how skilled you are, mistakes can happen in patient care. Misdiagnoses, procedural errors, or perceived negligence could lead to malpractice lawsuits, costing you both financially and reputationally.

How Insurance Helps
Professional liability insurance (also known as medical malpractice insurance or “MedMal”) is essential for helping cover legal costs, settlements, or judgments associated with these claims. A robust policy ensures that one misstep doesn’t threaten your entire practice.

Risk Mitigation Tips

  • Document patient records meticulously.
  • Stay updated on the latest industry best practices and continuing education.
  • Communicate transparently with patients about procedures and risks.

2-Property Damage

Dental practices are equipped with expensive machinery and facilities designed to deliver precise care. Events like fires, floods, or earthquakes can cause costly damage, disrupting your ability to serve patients. And some of these perils may not be covered by standard property insurance policies.

How Insurance Helps
Commercial property insurance covers damages to your building, equipment, and other assets due to covered perils like natural disasters or theft. Tailoring this policy to include coverage for specialized dental equipment is crucial, and making sure specific risks like flooding are covered can be critical depending on your level of risk.

Risk Mitigation Tips

  • Conduct regular maintenance on equipment and infrastructure.
  • Install fire alarms, security cameras, and robust cybersecurity measures.
  • Ensure policy limits accurately reflect your practice’s property value.
  • Understand what might be excluded from your policies and how much risk you have for those exclusions.

3-Cyber Threats

With patient data becoming increasingly digitized, dental practices face a growing threat of cyberattacks. Data breaches can expose sensitive information, leading to lawsuits, regulatory fines, and loss of patient trust.

How Insurance Helps
Cyber liability insurance may help protect against costs related to data breaches, including customer notifications, data recovery, legal fees, and public relations efforts. It’s an essential layer of protection in the digital age.

Risk Mitigation Tips

  • Implement secure, encrypted systems for storing and transmitting patient data.
  • Train employees regularly on cybersecurity protocols.
  • Invest in a reliable cybersecurity infrastructure with regular software updates.

4-Employee-Related Liabilities

Your team is integral to your success, but employment practices carry risks. Disputes over pay, discrimination claims, or workplace injuries can lead to legal entanglements or compensation claims.

How Insurance Helps

  • Workers’ compensation insurance covers medical expenses and lost wages for employees injured on the job.
  • Employment practices liability insurance (EPLI) addresses claims such as harassment or wrongful termination.

Risk Mitigation Tips

  • Foster a workplace culture of respect and compliance with labor laws.
  • Regularly update employee handbooks with clear policies and procedures.
  • Document all employment-related actions thoroughly.

5-Business Interruption

What happens if a natural disaster, pandemic, or unforeseen event forces your practice to shut down temporarily? Loss of income during this time can be devastating.

How Insurance Helps
Business interruption insurance compensates you for lost income and ongoing expenses, like rent and payroll, during periods of temporary closure due to covered events.

Risk Mitigation Tips

  • Develop a business continuity plan to reduce recovery time.
  • Diversify revenue streams, such as offering tele-dentistry or selling dental care products.
  • Regularly review and update your insurance coverage to align with your practice’s evolving risks.

Ensure Peace of Mind for Your Practice

There’s no one-size-fits-all solution when it comes to protecting your dental practice. Every practice faces a unique combination of risks, and securing the right insurance coverage is the foundation of a strong risk management strategy.

Don’t wait until an incident occurs. Contact Brandon Patterson on our team today to discuss your coverages. Call 865.453.1414 or email brandon@ownbyinsurance.com.

 

Understanding Insurance Risks for Property Managers

Posted on by Jon Blankenship

Managing properties comes with a unique set of responsibilities and risks. Whether you’re overseeing residential units, commercial spaces, or mixed-use properties, unexpected issues can arise, from legal disputes to natural disasters. Without adequate insurance and proactive risk management, these challenges can quickly become costly problems. Let’s review some of the key insurance risks for property managers, why insurance is essential, and how to protect your business and assets with the right coverage.

Key Risks for Property Managers

Liability Risks

Property managers are responsible for ensuring that the buildings they oversee are safe for tenants, visitors, and employees. However, accidents like slip-and-fall incidents, faulty building maintenance, or injuries caused by negligence can lead to lawsuits. Even if you’re not directly at fault, you could still be held liable.

Example:
Imagine a tenant reports a cracked step leading to the front door, but repairs are delayed. One rainy day, a tenant falls on the step, causing a significant injury. Without liability insurance, the medical bills and legal fees could fall entirely on the property management company.
Mitigation Tip:
Liability insurance, specifically general liability coverage, shields you against claims of bodily injury or property damage. However, your team must be proactive – frequently inspect properties and promptly address maintenance requests.

Property Damage

Damage, whether from fire, vandalism, or malfunctioning equipment, is always a threat. While you can take measures to prevent some of these issues, unpredictable incidents can leave properties unusable, reducing income and saddling you with restoration costs.

Example:
A kitchen fire in one of your rental units could result in thousands of dollars in damages – not just to the tenant’s unit but also the wiring or plumbing that impacts adjacent apartments.
Mitigation Tip:
Having the correct commercial property insurance is a must. This type of coverage can help protect against repair costs and might even account for revenue lost during the downtime caused by repairs during a covered claim.

Tenant-Related Risks

Tenants can be unpredictable. From unpaid rent to legal disputes over claims of unfair treatment, tenant management requires attentiveness and foresight. Any misstep could result in financial strain or damage to your reputation.

Example:
A tenant disputes their security deposit withholding over property damage they caused. Without proper documentation or tenant-related legal expense insurance, you might face court fees and additional costs.
Mitigation Tip:
Monitoring tenant behavior by conducting regular inspections and keeping thorough records can protect you in contentious situations. Consider securing tenant discrimination or rent guarantee insurance to ensure stability even in difficult circumstances.

Natural Disasters

Wildfires, earthquakes, flooding – depending on your geographical location, your properties may face unpredictable environmental risks. Even with diligent preparation, recovery can be expensive without specialized coverage.

Example:
A record-breaking storm damages roofs and floods parking garages. Repairs stretch weeks, leaving units uninhabitable and tenants dissatisfied.
Mitigation Tip:
Standard property insurance often excludes specific natural disasters, requiring separate flood or earthquake policies. Evaluate your vulnerability with your insurance agent and invest in coverage that responds to your risks.

Being proactive is critical to ensure that your property management has the right protection in place. Other steps to be prepared include:

  • Conduct Comprehensive Risk Assessments
    • Evaluate each property for potential hazards. Assess whether proper safety measures are in place, such as functional smoke detectors, lighting in common areas, and secure locks. Regular assessments can help you identify vulnerabilities before they escalate into significant issues.
  • Build Strong Contracts with Tenants and Vendors
    • Clear contracts protect you and your business. Outlining responsibilities (e.g., maintenance and repair requests) reduces misunderstandings and potential disputes. Partnering with insured vendors ensures you’re not liable for damages caused by their mistakes.
  • Maintain Detailed Documentation
    • Keep meticulous records of inspections, repair requests, communication with tenants, and lease agreements. This documentation can serve as evidence in disputes or insurance claims.
  • Partner with a Reliable Insurance Agent or Broker
    • Insurance policies can be complicated, but an experienced agent can guide you toward the coverage that suits your needs. Work with someone who understands the intricacies of property management to fill in any gaps in your coverage.

Taking the Next Step

Risks are inevitable, but with proper planning and insurance, property managers can protect their investments and ensure smooth operations. Now is the time to review your policies. Are your properties covered for all potential risks? Are there gaps that could expose you to liability?

Talk with Brandon Patterson on our team today about your risks and options. Contact him by calling 865.453.1414 or emailing brandon@ownbyinsurance.com.

Risks to Ponder When Considering Insurance for Alarm Installers

Posted on by Jon Blankenship

Alarm installers, whether operating in residential or commercial markets, play a vital role in ensuring safety and security. However, the work they perform and the services they provide expose them to a wide range of risks. Without proper insurance for alarm installers, these risks can have significant financial and legal implications, potentially jeopardizing the long-term success of their business.

To safeguard their operations, alarm installers must understand the specific hazards associated with their profession and the coverage options available to mitigate them. Below, we explore critical risks to consider and why tailored coverage is a must for alarm installation professionals.

Common Risks Faced by Alarm Installers

Alarm installation professionals are exposed to numerous risks during day-to-day operations. These include both external exposures and potential liabilities arising from their own business activities. Here are the key challenges they face:

Liability Claims

Mistakes in installation or failure of installed systems can expose alarm installers to claims of negligence. For example, if an alarm system fails during a break-in due to improper installation, the client may hold the installer accountable. General liability insurance can help cover legal fees, settlements, and damages arising from such claims.

Property Damage

Whether on a customer’s premises or off-site, damage to property is a plausible risk. Accidentally damaging walls, electrical systems, or valuables while installing equipment can leave installers liable for the cost of repairs. Investing in property coverage protects against these incidents.

Employee Theft

While rare, cases of employees stealing from client premises can harm the installer’s reputation and finances. Third-party crime coverage specifically addresses this risk, protecting businesses from losses resulting from employee theft of client property.

Bodily Injury

Accidents can occur during installations, leading to injuries among employees or clients. An installer may drop heavy equipment causing harm, or a client may trip over tools on-site. Workers’ compensation insurance can cover employees, while general liability insurance addresses third-party bodily injury claims.

Cyber Liability

With alarm systems increasingly connected to online platforms, exposure to cyber threats is higher than ever. Hackers may target alarm systems to gain unauthorized access or disrupt operations. Cyber liability coverage can mitigate risks related to data breaches or cyberattacks, covering costs like regulatory fines, legal fees, and data recovery.

Commercial Auto

Alarm installation businesses often rely on vehicles to transport tools and equipment, making them vulnerable to auto-related incidents. Commercial auto insurance covers accidents, theft, and damage involving company vehicles, ensuring that transport-based operations remain uninterrupted.

Inland Marine

Protecting tools and equipment during transportation is critical for alarm installers. Inland marine insurance acts as a “floater” policy, covering items in transit or stored at off-site locations. This ensures that critical equipment is protected, whether being moved between job sites or stored temporarily.

Tailoring Alarm Installer Insurance for Residential and Commercial Installers

The risks and associated coverage needs may differ slightly between residential and commercial alarm installers.

  • Residential Installers face unique risks related to customer interaction within private homes, such as accidental property damage or liability claims arising from defective home installations.
  • Commercial Installers, on the other hand, may encounter larger-scale risks working in commercial properties, including advanced cybersecurity challenges or employee theft involving high-value assets.

It’s vital for alarm installers to consult with specialized insurance providers to tailor a plan that comprehensively addresses their specific needs.

Recommended Insurance Coverage for Alarm Installers

To manage these risks effectively, alarm installation businesses should consider the following insurance options:

  • General Liability Insurance to address claims of negligence, bodily injury, or property damage.
  • Property Insurance to protect business-owned tools, equipment, and inventory.
  • Third-Party Crime Coverage to safeguard against client property theft by employees.
  • Cyber Liability Insurance for protection against data breaches and other cyber threats.
  • Workers’ Compensation Insurance to cover employees in the event of workplace injuries.
  • Commercial Auto Insurance to ensure the safety and reliability of business vehicles.
  • Inland Marine Insurance to cover tools and equipment during transit or storage off-site.

By investing in the right mix of coverage, alarm contractors can mitigate financial uncertainties and focus on delivering exceptional services to their clients.

Take Steps to Ensure Your Alarm Installer Insurance Coverage

Insurance is not just a safety net; it’s a fundamental part of running a resilient and professional alarm installation business. Understanding the array of risks inherent in the industry enables alarm contractors to proactively secure the right protection and safeguard their reputation and bottom line.

Why Fire Control Devices Are Essential for Property Protection

Posted on by Ownby Insurance Service

Fire hazards are an unfortunate reality for both homeowners and business owners with property. While many believe that fire emergencies are rare or unlikely, the truth is that fires can occur unexpectedly, leaving devastation in their wake. In fact, around half a million structure fires occur in the U.S. each year. The best way to lower risks, minimize damage, and protect lives is to prioritize fire control devices. These systems may provide advanced monitoring, control, and alert capabilities to mitigate risk and potentially prevent catastrophic losses.

Fires pose a threat not only to property but also to lives, making fire prevention and control a responsibility that cannot be overlooked. For homes, fires often start from kitchen mishaps, heating equipment, or electrical malfunctions, while businesses face additional risks from machinery, stored materials, or flammable chemicals.

The Role of Fire Control Devices

Fire control devices fall into three main categories – monitoring, control, and alert – and they work together as a comprehensive defense against fire emergencies. Below, we explore how each category operates to reduce the risk of fires in homes and commercial spaces.

1. Monitoring Fires with Detection Devices

Fire monitoring devices are designed to notice fire risks early so that action can be taken immediately.

  • Smoke Alarms are the most common monitoring system in homes and serve as a critical first line of defense. They detect smoke particles in the air and sound an alarm before a fire grows.
  • Fire Detection Systems in commercial settings are more sophisticated, incorporating sensors that detect temperature changes, smoke, and even gas leaks. Advanced systems send warnings directly to property managers or emergency services, allowing rapid response.

Early detection saves lives and reduces the damage caused by fire, giving firefighters and property owners a significant time advantage to address the issue.

2. Controlling Fires with Professional Systems

Once a fire starts, fire control systems work to suppress and manage it, aiming to prevent its spread and limit damage.

  • Fire Sprinkler Systems automatically activate and release water to control flames as soon as a fire is detected. These are effective in both homes and businesses and are proven to reduce fire fatalities and property loss.
  • Fire Suppression Systems are typically found in commercial spaces or facilities with expensive equipment at high risk of fire damage. They use agents like foam, gas, or chemicals instead of water to put out fires where water might cause additional harm (such as in data centers or kitchens).

Having systems like these installed ensures that fires can be quickly contained, preventing more extensive damage and keeping individuals safe. Some businesses – like restaurants – may have requirements around the installation, maintenance, and inspection of these systems.

3. Alert Systems for Enhanced Communication

An often overlooked but equally important aspect of fire safety is having reliable alert systems in place to notify the right people at the right time.

  • Wired Alarm Systems connect fire alarms throughout a building, making them effective in large properties where immediate evacuation is crucial.
  • Monitored Fire Alarm Systems provide the added benefit of direct communication with emergency responders. When triggered, these systems alert a monitoring service that can dispatch the fire department, even if no one is on-site to call for help.

Alert systems don’t just save lives – they also ensure faster emergency response, minimizing the risk of total loss.

Taking the Next Steps

Fires don’t make exceptions; they can affect residential and commercial properties alike. The proactive use of fire monitoring, controlling, and alerting devices not only provides a safeguard for what matters most but also ensures compliance with modern safety standards.

Take the time to assess your property and determine how fire control devices can be implemented or upgraded. Investing in these systems today can save lives, reduce property destruction, provide long-term peace of mind, and might even help reduce your costs for insurance coverage.