Penn State controversy affects business insurance industry

The current controversy surrounding Penn State is just one of many incidences that are causing insurance carriers and underwriters to more closely scrutinize sexual abuse and molestation coverage and the practices and procedures of the businesses trying to attain this form of coverage.

Universities are by no means the only institutions being affected by this coverage change. Any business related to minors, elderly or disabled persons should be certain to obtain liability coverage for claims of this nature. Sexual abuse and molestation coverage should be of primary concern to the following industries, or industries of this nature:

  • Daycares and private schools
  • Non-profit organizations
  • Churches
  • Camps and athletic programs
  • Assisted living facilities/ Nursing homes

Although sexually related criminal acts may result in legal penalty to the individual(s), your company may also be brought to suit for hiring an employee who committed such an act.

Sexual abuse and molestation coverage can be included in the following types of policies in your business’s general liability coverage  and/or directors and officers coverage. It is critical for business owners to consult with their insurance provider to ensure they possess adequate coverage for the type of exposures your business engages in.

Top 5 things first time home buyers should know before purchasing insurance

1)      Not all homeowners insurance policies are the same

Although many policies appear somewhat similar, they do not necessarily provide the same coverage. Homeowners insurance policies often include a section know as exclusions and limitations, which specifies certain hazards or situations your insurance company will not provide coverage for. 

Just as there are some items and circumstances that your insurance company will not provide coverage for, you also have the option to provide some additional coverages to supplement your policy, known as endorsements.

For a further explanation of the types of endorsements available, visit our Homeowners Insurance Products page or watch our You Tube video, Understanding Your Home Insurance Policy.

2)      Know the financial stability of the insurance company

As a Florida homeowner, it is critical that you insure your home with a financially reputable insurance company.  Choosing a homeowners insurance company with strong financial strength ensures that the company will be able to pay your claim in the event of a loss. One of the most respected insurance company rating systems is known as A.M. Best. When determining which homeowners insurance company to insure your home with, do your research and discuss your hesitations, questions, etc. with your insurance agent.

Learn more about Florida Homeowners Insurance Company Ratings .

3)      Flood insurance

Many homeowners believe their standard insurance policy covers flooding; however, this is not necessarily true. In fact, Florida homeowners insurance policies ALWAYS exclude flooding; however, flood insurance can be purchased for building and/or contents. Flood insurance policies are purchased separately from your homeowners insurance policy and are not implemented until 30 days after the purchase date (unless for closing). Rates for flood insurance vary significantly.

You can learn more by watching our You Tube video:  Florida Flood Insurance

4)      Scheduling items/valuables

Additional coverage should be provided for higher value personal property. In order to provide this additional coverage, it is advised that you “schedule” these items on you homeowners insurance policy. Items you may want to consider scheduling include, but are not limited to: jewelry, fire arms, sports equipment, fine arts, fur, collections (i.e. coins, trading cards, etc.).

5)      Discounts

You may be eligible for discounts if: You combine your auto insurance with your home insurance, you get a wind mitigation inspection on your home and qualify for  wind mitigation discount(s), your home is monitored by a security system, you live in a gated community

Ask your insurance provider if you are eligible for any of the discounts listed above.