The recent horrific events in Boston have brought about much talk of Terrorism Insurance, so we wanted to explain how it works:

The Terrorism Risk Insurance Act (TRIA) was signed into law in November 2002 to create a federal “backstop” for insurance claims related to acts of terrorism, providing a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism. Prior to 9/11, terrorism was included in most commercial insurance policies in the United States. After 9/11, many insurers decided to exclude terrorism from their contracts.

Under TRIA, the attack must be certified as an “act of terrorism”. Part of the definition for a terrorist act in the federal law states that the attack must have been “committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.” The definition requires that the attack be committed by foreign interests; an attack like the Oklahoma City bombing would not be covered by TRIA because it would be classified as “domestic terrorism”.

Basically, this act provides insurance coverage for terrorist acts; if terrorism insurance is not purchased and the act is deemed terrorism, the claim will be denied under the business’ policies. If officials don’t certify the bombings as a terrorist act, the business’ standard policy would apply.

Whether the Marathon bombings are deemed an “Act of Terrorism” will have significant financial implications for area businesses. Some businesses won’t have insurance coverage for building damage or lost income after their businesses were closed for over a week. For businesses that were affects by the Marathon Bombing, it is recommended that the owners gather documentation, contact their insurance carriers/brokers and retain professionals, such as accountants and attorneys.

If you have questions about TRIA, please call us today: 781-444-3050

Steven Aronson spoke to the ACT Committee of the IIABA at the annual ACORD LOMA Conference at The MGM Grand in Las Vegas. He addressed the crowd on the topic of Change for insurance agencies – how to plan for successful adoption and implementation of change for Independent Insurance Agencies. His successful transformation of Aronson Insurance in Newton and Needham was used as an example. We must try new things. Can’t be afraid to make mistakes. If it’s not broken … break it.

Motorcycle Safety Awareness Month is a national initiative aimed at getting motorists and motorcyclists to “share the road” with each other.” The initiative aims to encourage riders to always wear helmets and other protective gear, never drink alcohol and ride, be properly licensed, get training and purchase the right insurance coverage.

Motorcycles are by their nature far less crashworthy than closed vehicles. They are also less visible to other drivers and pedestrians and less stable than four-wheel vehicles. Operating a motorcycle requires a different combination of physical and mental skills than those used in driving four-wheel vehicles. Motorcyclists and their passengers are more vulnerable to the hazards of weather and road conditions than drivers in closed vehicles.

In 2011 motorcycle fatalities rose 2.1 percent to 4,612 from 4,518 in 2010.In 2010, 55 out of every 100,000 registered motorcycles was involved in a fatal crash, compared with only 9 out of every 100,000 passenger cars, according to the National Highway Traffic Safety Administration (NHTSA). Motorcyclists were about 30 times more likely than passenger car occupants to die in a crash per vehicle mile traveled in 2010 and five times more likely to be injured, according to NHTSA. (Note: statistics on fatal motorcycle crashes are also available from the Insurance Institute for Highway Safety).

If you are in the market for motorcycle insurance, you must carry a minimum amount of liability coverage; this covers bodily injury and property damage that you may cause to other people involved in an accident. It does not cover you or your motorcycle. An additional option within your liability insurance is first-party medical coverage, in the event you want to be reimbursed for bodily injury expenses you incurred while on your motorcycle. You may also be able to purchase coverage for medical bills received from an injured party, ranging from $2,000 to $25,000. Other coverages available to motorcycle owners are: collision (covering damage to your motorcycle); comprehensive (covering damage caused by events other than a collision, such as fire, theft or vandalism); and uninsured/underinsured motorist coverage (covering damages to you and your property caused by another driver who either does not have insurance or whose insurance is inadequate).

Many factors can affect how much you will pay in motorcycle insurance premiums, including:

Driver’s age and driving record
Where the driver lives
Model, style (sports bike vs. cruiser) and age of the motorcycle
Number of miles the motorcycle is driven each year
Where the motorcycle is stored

Call us today for any questions regarding Motorcycle Coverage and remember to drive responsively!

http://www.iii.org/facts_statistics/motorcycle-crashes.html

NO MORE SNOW! By now we’ve seen our fair share of snow, but something we may not be thinking about is what happens when all of the snow melts? Did you know that flooding is the most common natural disaster in the US, yet many homeowners remain unprotected. Melting snow here in New England creates a high flood risks. In fact, as little as two inches of water can cause devastating damage to your home, and most homeowners policies will not cover this.

Homes in low risk areas account for 25% of all flood claims. Homes in a high risk area have a 1 in 4 chance.

Here are some interesting facts:

– Floods and flash floods happen in all 50 states.
– Everyone lives in a flood zone.
– Most homeowners insurance does not cover flood damage.
– Just an inch of water can cause costly damage to your property.
– A car can be carried away by just two feet of floodwater.
– Hurricanes, winter storms and snowmelt are often overlooked causes of flooding.
– Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month for 30 years. Compare that to $100,000 in flood insurance; which is about $33 a month in premium.
– If you live in a moderate-to-low risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $129 a year (around $11 a month).
– It takes 30 days after purchase for a policy to take effect, so it’s important to buy insurance before the floodwaters start to rise.
– In a high-risk area, your home is more than twice as likely to be damaged by flood than by fire.
– Anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding.
– The average annual U.S. flood losses in the past 10 years (2002-2011) were more than $2.9 billion.
– Since 1978, the National Flood Insurance Program has paid over $36.9 billion for flood insurance claims and related costs (as of 12/31/10).
– Over 5.5 million people currently hold flood insurance policies in more than 21,000 communities across the U.S.

Call us today to find out about flood insurance!

We wanted to share this awesome infographic from Arbella Insurance about Restaurant Pitfalls and where to spot them!  No matter how responsible a restaurant owner you are and how thoroughly trained the staff is, the restaurant biz is complex and accidents happen!  With a kitchen full of staff and a dining room full of guests, it is crucial to be prepared and insure your business in case any one of these unfortunate incidents occurs.

Check them out: http://www.arbella.com/insurance/business-insurance/restaurant-pitfalls-infographic

Here are facts about this weekend’s match-up:

• This is the Patriots 9^th AFC Championship game and second straight against the Baltimore Ravens.  (We beat them 23-20 in last year’s game)
• The Patriots are 5-1 all-time against the Ravens in Foxborough, including 4-1 @ Gillette Stadium.
• The first meeting between these two teams was on October 6, 1996, where the Pats won 46-38.  The 84 total points scored by both teams in that game rank as the second-highest total number of points in a game in Pats history.
• The Patriots have a 7-1 record in AFC Championship Games, including a 4-0 record at home overall and a 3-0 record at Gillette Stadium.
• Brady needs 4 more postseason touchdowns to move Past Joe Montana and Brett Favre for the all-time lead.
• With a win this weekend, the Patriots will advance to their 8^th Super Bowl, matching Dallas and Pittsburgh for the most Super Bowl appearances.
• And if the Pats win this weekend, they will be the 8^th Super Bowl team to return to the Super Bowl after suffering a loss at the Super Bowl the previous year.
• As it stands… the Patriots now have a 14-3 (.824)all time record in home playoff games.  Let’s hope it continues this weekend!