Allen Insurance Group Newsletter April 2018

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April 18, 2018
   
  Driving for a Fee? 
Thinking of making money through ride sharing by driving for UBER or LYFT? This could present a real problem for you with regards to your PERSONAL AUTO POLICY.  
 
WE WANT TO SHARE WITH YOU THE INFORMATION PROVIDED BY TRUSTED CHOICE, AN INSURANCE COMMUNICATION FIRM.
 
Ride sharing is becoming more common around the state and the nation. Capitalizing on the new "sharing economy" and to a certain extent the coolness factor, this simple concept is thriving. Drivers for Transportation Network Companies (TNCs), however, are generally little informed of the impact this activity has on insurance, and the fact that they may not be covered under a number of circumstances. 
 
Q: What is ride sharing?
A: In the new sharing economy, ride sharing allows vehicle owners to transport passengers in their own cars for a fee or a "donation."
  • Drivers sign up with a service that charges a fee to connect passengers with drivers via a website or smart phone app.
  • Passengers arrange rides and pay with a credit card usingthe app.
Q: Why is ride sharing an issue?
A: Most standard personal auto policies exclude coverage for "public or livery conveyance"in other wordsthe use of the vehicle to transport passengers for a fee. Some policies have even stronger exclusions that exclude any coverage when the driver is available for hire. Other restrictions could apply, so even if you don't see a specific exclusion, you should not assume that there is coverage under the personal auto policy. Regulators in many states have been issuing consumer alerts to warn the public about possible implications when signing up as a driver - or as a passenger - with the ride sharing apps.
 
Q: What if my Transportation Network Company tells me I'm covered when I drive for them?
A: An increasing number of TNCs are indicating that they are going to cover the driver's commercial exposure for liability and collision coverage. Some may also offer Uninsured/Underinsured motorist coverage, something that can protect you when you are involved in an accident with an at-fault driver who had insufficient coverage or no coverage at all (which happens all too frequently). You should ask your TNC:
  • What they would provide, and
  • Whether their coverage would be primary.
Q: How do I know if I'm covered as a driver?
A: If you are considering becoming a driver for a TNC, you should:
  • Find out what the TNC will cover for your commercial exposure, including when coverage starts and when it ends, and
    • Talk to us about what your personal auto policy may cover if you are involved in an accident.
Although insurance issues are often downplayed by TNCs, the coordination between the commercial and the personal auto policies can pose challenges. The timing and circumstances of the accident will have a bearing on whether coverage is afforded or not. At this time, coverage gaps still exist in a number of circumstances.
 
Q: Can you give an example?
Examples are a great way to get a better understanding between you and the TNC and/or the insurer and to identify potential gaps. At the minimum, you should find out how the TNC will cover you when:
  • You are available for hire (logged into the app) but not transporting a passenger
  • You are "logged in" and transporting a passenger
  • You are logged out and not transporting a passenger
  • You are logged out after dropping off your last passenger, and heading home
Q: Is this issue settled?
A: No. New laws to address proper insurance coverage amongst other things are being discussed and adopted in many states, but the issue is not yet fully settled. Some personal auto insurers are gradually revisiting the issue and considering new ways to close those gaps in insurance.
 
Allen Insurance Group  302-654-8823
Rain Cloud
  
Water and Sewer Backup
With all the rain and rising water levels, you may want to revisit your policy for coverage for Water & Sewer Back Up and, of course, determine if you need Flood Insurance.
 
Water & Sewer Back Up is a Homeowner's endorsement that is not automatically included. Coverage can range from $5,000 to $25,000 and the annual cost is usually under $50.
 
Whether you are in a flood zone or not, you can purchase flood coverage. Give us a call and we can help you determine your flood zone and provide you with the cost of the coverage.
 
 
 
What is Cyber Liability coverage and why do I need it?           

Every business has PII (Personal Identifiable Information).  If you collect personal information such as social security numbers, banking information, driver's licenses, medical information, payment card information, customer information, and employee information you are exposed to cyber liability.

Now imagine you lose a laptop or business smart-phone; or receive a call from a customer that a credit card was improperly used after a visit to your store. What do you do now?  Who do you call?  What are the fines?
 
Consider these real-life claim examples and whether your business could afford losses such as these:
 
A dental practice had patient records exposed costing the practice $33,000 for breach response and notification to affected individuals.
 
A restaurant suffered a breach of payment card information costing $24,000 in audit expenses and $75,000 in fines and penalties from the payment card brands.
 
A travel agency suffered a breach costing $27,000 in audit, fines and legal expenses.
 
A movie theater was fined $5,000 for non-compliance.
 
A retail store was fined $39,000 after spending more than $10,000 on a forensic audit.
 
A bowling alley was fined over $60,000 for a breach of payment card information.
 
Depending on your type of business and eligibility, premiums will vary but the average policy for $100,000 of coverage is around $200 a year.
Give us a call for more information 302-654-8823
Allen Insurance Group, since 1932  
 
We have provided insurance coverage for individuals, businesses and group benefits within our Tri-state area since 1932.
 
Our coverage lines include:
 
Personal:  Homeowners - Tenants - Automobile - Umbrella Liability -        
                    Boats - Cycles - Life Insurance - Disability - Long Term Care
 
Business: General Liability - Property - Automobile - Umbrella Liability -
                   Workers Compensation - Equipment - Professional Liability
 
Employee Benefits:  Group Medical - Dental - Vision - Life - Disability -
                                      Retirement Plan - Voluntary Products
 
For information  visit our website at www.AllenInsurance.com

 
Allen Insurance Group
302-654-8823  allen@alleninsurance.com  800-486-1244
www.AllenInsurance.com
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