Category Archives: Health & Safety

Commercial insurance, diseases and epidemics

In a previous article, we discussed how personal insurance policies address communicable diseases and epidemics. In this article, we’ll look at how commercial insurance policies handle these issues.

Between 1918 and 1919 the so-called Spanish influenza pandemic* killed at least 50 million people worldwide and infected about 500 million people – or about 1/3 of the entire world’s population at the time.

While the Spanish flu’s destructiveness has been an outlier over the last several decades, epidemics and pandemics on a smaller scale do still happen (avian flu, swine flu, Ebola, etc.).

How could disease outbreaks impact commercial property and general liability insurance?

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Continue reading Commercial insurance, diseases and epidemics

Personal insurance: diseases and epidemics

In this article, we discuss how personal insurance policies address communicable diseases and epidemics. In a later article, we’ll look at how commercial insurance policies address these issues.

Measles are back with a vengeance. It’s gotten so bad in one New York county that the local government tried to ban unvaccinated children from public spaces.

Little known fact to people outside the insurance world: many personal insurance policies address communicable diseases and epidemics. Let’s walk through some of them.

Homeowners liability insurance: probably not covered

If you crack open your handy HO-3 standard homeowners policy and flip to Section II – Liability Coverages, you’ll notice that the transmission of a communicable diseases that causes any bodily injury or property damage is not covered by the policy. What this basically means is that if you (the insured) cause someone to get hurt (i.e. sick) via a communicable disease, whether you knew you were sick or not, then the policy won’t cover you for any liability if you get sued.

So if someone without a measles vaccination throws a party and ends up getting several guests sick, that person’s homeowners policy probably won’t cover any liability arising out of their actions. Doubly so if the person did this purposely: intentional acts are excluded from pretty much every insurance policy on earth.

Personal liability umbrella: probably not covered, but it depends

A personal liability umbrella policy is basically an extra layer of liability insurance. It will cover some types of liability your homeowners insurance excludes – and will also cover higher payments, sometimes up to $1 million (homeowners is often limited to $300,000).

Personal umbrella policies will also often exclude liability arising out of the transmission of a communicable disease. But not always, since what constitutes a communicable disease often depends on the specific policy. Some policies only exclude sexually transmitted diseases; others will exclude any communicable disease.

Travel insurance: could be covered, depending on the situation

Travel insurance policies can vary dramatically, depending on the insured’s needs. Two of the more common coverages are for trip cancellation and emergency medical treatment.

Will travel insurance cover you if a trip gets cancelled due to an epidemic or pandemic? Again, depends on the policy, but probably not. Many travel policies will exclude losses caused by disease outbreaks.

What if you get sick and need to cancel your trip? Unfortunately, you’re probably not covered if you got sick because of an epidemic. But for other diseases, you could be covered, depending on the insurer and a whole laundry list of conditions. For example, a sickness that would be covered often requires that the sick person be so ill that they can’t travel (a mild cough won’t pay out); the sick person is also often required to have a medical professional confirm that they were, in fact, too sick to travel.

If you have emergency medical treatment coverage, then you’ll be covered for any covered medical care, including illness. However, these kinds of policies can get very complicated; it’s important to talk to your agent to make sure you are getting the coverage that you need.

I.I.I. Report: Marijuana legalization raises concerns about drugged driving

The “green gold rush” shows no sign of slowing.

Most recently, New Jersey legislators reportedly announced a bill that would permit recreational marijuana. If signed into law, New Jersey would join ten other states and D.C. that currently permit recreational marijuana. More than 30 states and D.C. also permit medical marijuana programs of some kind.

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But as legalization spreads, concerns about driving under the influence of marijuana continue unabated.

Today, the I.I.I. has published a report that examines the current state of the issue.

A rocky road so far: Recreational marijuana and impaired driving” dives into the hazy questions surrounding marijuana impairment: its effects on driving abilities, how traffic safety might be impacted, and how states are grappling with the issue of “stoned driving.” (Download the report here.)

Unfortunately, there are still many unknowns when it comes to stoned driving. Marijuana impairment degrades cognitive and motor skills, of course – but marijuana-impaired driving is an evolving issue with many questions and few concrete answers. Legalization is still relatively recent. Data are still being gathered. How to understand and measure marijuana impairment are still open questions.

Do the rates of marijuana-impaired driving increase following recreational legalization? Answer: probably. Does marijuana-impaired driving increase crash risks? Answer: probably, but we still don’t concretely know to what degree. What about traffic fatalities – do those increase after legalization? There’s evidence that traffic fatalities could increase following legalization, but there is still quite a bit of discussion about this issue.

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There is active research, discussion and debate being conducted to answer these and other questions. As more states legalize recreational marijuana, forthcoming answers will become ever more critical to help best guide public policy and traffic safety initiatives.

To learn more, download the report here.

Sidewalk liability: are you covered?

A friend of mine likes to say that New York City is so expensive that just leaving your apartment will cost you $20. It cost me $100 to leave my apartment the other day – in fines for leaving a piece of furniture by the curb on a day not designated for “bulk trash removal.”

I get it: leaving bulky trash all over the sidewalk for days on end is an antisocial thing to do, especially in a crowded city. I wouldn’t have felt great about myself if a kid had somehow tripped and hurt herself on my discarded garbage.

My landlord could also have landed in legal trouble had that happened. That’s because NYC law makes property owners responsible for keeping sidewalks “reasonably safe” and clear of debris (with some exceptions). “Reasonably safe” also includes shoveling snow and ice – something I’m always grateful for after the occasional NYC blizzard.

New York is not alone. Many jurisdictions across the country put the onus on property owners for maintaining sidewalks, including clearing snow and ice (even if the sidewalks are city property).

If you’re a property owner, it’s important to check your city or homeowner’s association codes to see who is responsible for what. If you rent, you should also check your lease. Some leases make tenants responsible for clearing snow from sidewalks.

Let’s say you do live in a city where you’re responsible for keeping the sidewalk safe. What happens if someone slips and suffers injuries on your sidewalk?

Homeowners insurance could provide some coverage. Depending on the case, there could be coverage for liability and for some medical payments to the injured person. But an insurance company could deny coverage if the homeowner knew about an unsafe sidewalk and did nothing to fix it.

And liability payments can get expensive quickly. That’s why some people will also buy optional “personal umbrella liability coverage,” which has a higher payment cap than standard homeowners.

Renters insurance also provides liability coverage. But whether the tenant or landlord is responsible for a slip and fall on a sidewalk would depend on the terms of the lease and local ordinances.

The upshot is: check if you’re responsible for the sidewalks outside your home. It’s also a good idea to chat with your insurance agent to see if you have the appropriate coverage to protect you from liability costs.

How Insurance Covers Skiing Accidents

If you’re skiing like this guy, you should have health insurance

The holidays are over. It’s time to exercise. If you live in snowy climes, that means it’s time to go skiing.

But flying down a mountain at high speeds on a pair of sticks is…not safe. Between 2006 and 2016, an average of 38 people died skiing or snowboarding each year in the U.S.

And ski injuries are much more common than deaths. So how does insurance cover skiing accidents?

Health insurance: If you are injured in the U.S., your personal health insurance should cover your medical expenses, depending on the specific details of your policy. What if you need to get airlifted out because of a medical emergency? Your health insurance might help cover that, but you should check with your insurance company.

Travel insurance: Your personal health insurance may not cover all your medical expenses if you get injured abroad. (Again, it depends on your policy, so call your health insurer to make sure). That’s where travel insurance can come in handy. Make sure your travel insurance covers emergency medical assistance. This could cover situations like being airlifted off the mountain after a ski accident.

Homeowners insurance: What if you accidentally injure someone else on the slopes? Your homeowners insurance may kick in to cover some of the liability you incur. Ditto renters insurance. But different states determine ski accident liability differently, and your homeowners insurance doesn’t cover everything, so talk to your agent to find out what your coverage is.

Personal umbrella liability: Liability payments can be expensive. That’s why some people will buy a personal umbrella liability policy, which is basically extra liability insurance. It will cover some types of liability your homeowners insurance excludes – and will also cover higher payments, sometimes up to $1 million (homeowners is often limited to $300,000).

What about the ski resorts themselves? They will typically have a commercial insurance policy to cover their liability and property damages. Ski resorts could face liability claims from injured skiers for poor slope maintenance, ski lift accidents, or accidents in, say, the ski lodge.

Stay safe out there!