Courtesy of iii.org

Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.

1. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
2. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in.
3. The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

Extra expense insurance

Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without the purchase of business interruption insurance.

Courtesy of iii.org

Whether you’re hosting a Super Bowl party for 50 or greeting the New Year with a few friends, if you’re planning to serve alcohol at your home take steps to limit your liquor liability and make sure you have the proper insurance.

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Courtesy of iii.org

The holidays are a time of giving and receiving gifts, but would you be able to replace those gifts if they were destroyed in a fire or other disaster? A home inventory is the best way to protect your personal possessions, yet only 50 percent of homeowners said they had an inventory in a 2016 Insurance Information Institute (I.I.I.) survey. That’s where Know Your Stuff®, the free, award-winning home inventory app can help.

The I.I.I.’s Know Your Stuff® home inventory app allows you to enter information on mobile or desktop and syncs across all your devices so you can access it anywhere, at any time. It can help you:

• Purchase enough insurance to replace the items you own, if they are stolen or damaged.
• Get insurance claims settled faster.
• Substantiate losses or charitable donations for tax purposes.
• Keep track of items that require maintenance or repair.
• Declutter and organize your home.

“With the average property damage and liability claim costing more than $9,000 and about one in 15 insured homes having a claim each year, it’s important for homeowners to protect their assets,” said Loretta Worters, a vice president with the I.I.I. “Renters should also consider taking a home inventory.”

To simplify the task of creating an inventory, the Know Your Stuff® app allows you to take photographs of your possessions and organize them according to the room in which the items are located.

With the Know Your Stuff® Home Inventory app, you get:

• Secure free cloud storage of your inventory data. You can also store and manage all your insurance policy information, including contact information for your insurance professional and your policy numbers.
• Downloadable reports for easy recordkeeping and claims filing.
• A tool that is backed by the expertise of the I.I.I., a leading independent insurance research and communications organization.

Know Your Stuff® also allows you to keep track of multiple properties and insurance policies. An opt-in service provides integrated weather alerts for your area as well as updates and tips on how to prepare your home against severe weather.

Courtesy of iii.org

The pet insurance industry got its start almost a century ago in Sweden where about half that country’s pets are now insured. In North America, Veterinary Pet Insurance Co., a subsidiary of Nationwide, sold its first pet insurance policy in 1982 to cover the dog playing Lassie on television.

The North American Pet Health Insurance Association (NAPHIA) reports North America’s pet health insurance sector posted record growth in 2017, with combined gross written premiums hitting $1.2 billion. This represents a 23 percent increase in gross written premiums over 2016. The total number of pets insured in the U.S. and Canada reached 2.1 million at year-end 2017 up by 17 percent from 2016. According to NAPHIA, there are 12 major pet insurance companies in North America.

Pet ownership in the United States

Sixty-eight percent of U.S. households, or about 85 million families, own a pet, according to the 2017-2018 National Pet Owners Survey conducted by the American Pet Products Association (APPA). This is up from 56 percent of U.S. households in 1988, the first year the survey was conducted.

NUMBER OF U.S. HOUSEHOLDS THAT OWN A PET, BY TYPE OF ANIMAL

Pet Number Dog 60.2 Cat 47.1 Freshwater fish 12.5 Bird 7.9 Small animal 6.7 Reptile 4.7 Horse 2.6 Saltwater fish 2.5

Source: American Pet Products Association’s 2017-2018 National Pet Owners Survey.

View Archived Tables

TOTAL NUMBER OF PETS OWNED IN THE UNITED STATES, BY TYPE OF ANIMAL

(millions)

Pet Number Freshwater fish 139.3 Cat 94.2 Dog 89.7 Bird 20.3 Saltwater fish 18.8 Small animal 14.0 Reptile 9.4 Horse 7.6

Source: American Pet Products Association’s 2017-2018 National Pet Owners Survey.

View Archived Tables

TOTAL U.S. PET INDUSTRY EXPENDITURES, 2007-2017 (1)

Year Expenditure 2007 $41.2 2008 43.2 2009 45.5 2010 48.4 2011 51.0 2012 53.3 2013 55.7 2014 58.0 2015 60.3 2016 66.8 2017 69.4 (2)

(1) Includes food, supplies and over-the-counter medicine, veterinarian care, live animal purchases and grooming and boarding.
(2) Estimate.

Source: American Pet Products Association’s 2017-2018 National Pet Owners Survey.

BASIC ANNUAL EXPENSES FOR DOGS AND CATS (1)

Expense Dog Cat Surgical vet $474 $245 Routine vet 257 182 Food 235 235 Food treats 72 56 Kennel boarding 322 164 Vitamins 58 46 Groomer/grooming aids 84 30 Toys 47 30

Courtesy of iii.org

You may have read the recent story featured in the I.I.I. Daily about raccoon damage and homeowners insurance. The gist: raccoons got into a house and caused $80,000 worth of damage. The homeowners were surprised to learn that their insurance wouldn’t cover any of it.

So what’s the deal with animal damage and insurance?

Homeowners insurance

Let’s start with the easy stuff. If your dog Fido rips through your couch or pees all over the wall, you’re out of luck. Standard homeowners policies won’t cover any damage to your house or personal property caused by a pet. And”pet” is a pretty broad term. Doesn’t matter if it’s a Shih Tzu or a Clydesdale horse, pets are any animal you own.

What about animals that aren’t pets, like deer or birds or – God forbid – rats? That’s where things get interesting.

Building damage: You probably aren’t covered for any damage to the building caused by birds, rodents, insects, or vermin. There also probably won’t be coverage for any nesting or infestation. Insurance policies can vary widely, however, so make sure you ask your agent what is and isn’t considered a rodent or vermin (some insurers will say raccoons are vermin, some will say they’re not). The specific details of your policy will determine your coverage.

Damage to the building from other wild animals could be covered, though. If a moose runs through the sliding door to your deck, the damaged door would be covered.

Personal property damage: Unfortunately, your personal property is probably not covered no matter what kind of animal does the damaging. If a moose runs through your sliding door and wreaks havoc on grandma’s china, then you’re covered for damage to the door, but not the china.

Liability: You go to your friend’s house and bring Fido for a dog playdate. Fido then rips through your friend’s couch. Are you covered? Yes. Homeowners liability protection will cover the damage to other people’s property caused by your pets. Just not your property. Friendship saved.

Personal auto insurance

A squirrel chews through the wiring in your car. Fido dents your door chasing after a squirrel. A moose rams your car in a fit of rage, smashing the windshield. (Why do I keep thinking of moose scenarios?)

Does personal auto insurance cover animal damage? Yes, if you have optional comprehensive coverage. If you only have collision coverage, then you’re not covered.

Collision only covers damage when a car overturns or hits another car or object. Comprehensive covers…more or less everything else: damage from falling objects, fire, explosions – and birds and animals.

So if you paid the extra premium for comprehensive coverage (like most Americans do), then you’re covered for damage from chewing squirrels, incautious Fidos, and rampaging moose (meese?).