Before you head off to enjoy the barbecues and fireworks, it’s time for our annual Independence Day fact file. Here is this most American of holidays by the numbers, courtesy of the Census Bureau:
Often referred to as the lightning capital of the nation, it is no revelation that Florida ranked first for lightning caused homeowners insurance claims in 2018, with 7,108 claims, followed by Georgia (5,539) and California (4,909), a new addition to the line-up. Texas, which had ranked second in 2016, fell to fourth place (4,559).
With increased labor and construction costs as well as a consumer appetite for smart home products, it’s not surprising that lightning-related homeowners insurance claims costs have risen. The average cost per claim rose eight percent from 2017 to 2018. However, the average cost per claim between 2016 and 2018 increased 21 percent – a veritable bolt from the blue!
Today Illinois Governor J. B. Pritzker is reportedly going to sign into law a bill that legalizes recreational marijuana in the state. That makes Illinois the eleventh state (plus D.C.) to legalize marijuana for adult use.
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But as medical and recreational marijuana legalization spreads, concerns about what this means for workplace safety and workers compensation continue to grow. What is the impact of legal marijuana on workplace safety, employer duties and obligations and workers compensation insurance?
Today, the I.I.I. published a report that examines the current state of the issue. (Download the report here.)
“Haze of confusion: How employers and insurers are affected by a patchwork of state marijuana laws” dives into the following questions:
How does marijuana intoxication work and how might it impact workplace safety?
What accommodations, if any, are employers expected to provide for workers that use marijuana?
Does workers compensation insurance provide benefits to injured employees testing positive for marijuana? What about reimbursement to injured workers for medical marijuana?
Unfortunately, none of these questions have straightforward answers. Every state’s laws and regulations governing these issues are different, not to mention that federal law prohibits marijuana outright. To complicate matters further, state laws and regulations are constantly changing. Employment and insurance activities once prohibited are often now permitted – or required.
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Legal marijuana isn’t going away. Employers and insurers will continue to grapple with a rapidly changing environment, perhaps for years to come.
By Jennifer Ha, Head of Editorial and Publications, Insurance Information Institute
Hail damage is a growing problem in large regions of the United States and causes about $1 billion in damage to crops and property each year, according to the National Oceanic Atmospheric Administration (NOAA). As such, after years of field and lab research, the Insurance Institute for Business Home and Safety (IBHS) has recently released the results of its first hail impact performance program—the IBHS Impact Resistance Test Protocol for Asphalt Shingles—designed to track impact-resistant roofing products and to demonstrate the IBHS performance standard for impact-resistant shingles.
To test its standard, IBHS bought the most widely purchased impact-resistant shingles available to consumers and tested them in its lab under simulated real-world conditions, which it has now published on its website. The site includes disclosures, test standards and Member-only data.
Owning a small business has many rewards, like freedom, independence and the chance to financially benefit from your own hard work. But there are also major challenges, like long hours, hungry competitors, and cash-flow problems.
One of the challenges that lands squarely on the shoulders of the small business owner is risk management. Whereas larger firms have the funds to hire specialists whose sole concern is identifying and preparing for threats to the business, Arthur the accountant and Mia the mover must take on that role themselves.
Natural disasters are a type of risk that can strike a business at any time. Luckily for Arthur and Mia, business insurance often comes with loss prevention expertise offered by many insurance carriers to their clients. An agent or broker can create a disaster and recovery plan customized for any business.
Here is a list of disaster planning tips State Farm® offers for small businesses, they include:
Safety first
Take time to plan evacuation routes and exits from your facility and mark them.
Install proper emergency lighting and exit signs to help show the way in case of power failure.
Designate staff “safety wardens” to guide and assist any emergency efforts, including regular drills.
Businesses should conduct emergency training exercises with all employees as frequently as needed to reinforce proper reaction times and responses.
Identify appropriate shelter spaces, such as a basement or storm cellar, in your facility for emergencies that may require them. If there is no basement in your building, go to the center of a small interior room on the lowest level away from windows or outside walls, such as a closet or interior hallway. Make sure spaces are kept clear of items that would limit their capacity or safety.
Contact a qualified contractor to discuss risk mitigation construction techniques for your building or office.
As an added precaution, you may also want to research places where you could temporarily relocate your operations if disaster strikes.
Maintain a comprehensive, up-to-date inventory of the items and equipment used in your business. Consider capturing these assets in photographs or video and securing the images and inventory files offsite.
Institute regular backup procedures for critical software and data to help ensure your business maintains access to the digital infrastructure it needs.
A business natural disaster plan will help get you up and running.
Following a disaster, you’ll want to resume business as quickly as possible:
Keep a name and telephone number list of contractors or repair firms who could make emergency temporary repairs or board up windows should some of your buildings be damaged.
Maintain a list of key suppliers, creditors, customers, and employees you need to contact about the state of your operation.
Construct a financial plan to cover continuing payroll expenses and debt obligations.
Graduation isn’t an end, but a beginning. As you embark on your career path, please allow me to offer a few observations and some valuable guidance that others have shared with me:
Have an upward vision. Know where you want to go in life but understand that worthwhile journeys seldom follow a straight path; sometimes moving sideways creates a clearer route to the top.
Remember that what got you “here” won’t necessarily get you to “there.” Take stock of what’s around you and look for new skills and points of view that can contribute to success.
Be open to new challenges. You may find new perspectives on—and outlets for—your passions.
The last bit of advice is kind of familiar to those of us in the insurance industry. “I never considered a career in insurance when I was a student” is a pretty familiar refrain. Our team at the Insurance Information Institute includes an actuary who studied journalism, an economist who studied literature, and other dedicated professionals who’ve come to insurance from a wide variety of educational and professional backgrounds. Why did we all end up choosing insurance as a career? Because we have discovered what more than 2.5 million folks currently working in our industry already knew: That insurance careers offer virtually limitless opportunities to earn, learn, grow and make lasting contributions to your community every day.
So, if you haven’t yet considered a career in insurance, then you’re in good company. Because for 350 years, our industry has been driving innovation, embracing change and building a safer, more prosperous world. That’s why the I.I.I. and our member companies are proudly leading the charge to build a workforce that’s responsive to the needs of the people we serve.
We wish you all the best and hope you will choose insurance as a career.
